Generally, any cancellation of SPA will incurred a penalty of 10% of the purchase price. In tis case, the penalty will be 75k.

Whether the developer allows depends on their goodwill and the stage of completion of the property.

If the buyer oredi signed the Loan Agreement, it makes cancellation more difficult esp if the bank oredi disbursed part of the loan sum to the developer.

The LA is between borrower(buyer) & bank and money partially disbursed to the developer is the responsibility of the borrower to repay. Is then buyer responsibility to claim the money from the developer.

Assuming the bank haven't disburse the loan sum, and if termination of LA is allow, there will also be penalty incurred.

Lastly, there will also be legal fees and other purchase expenses from the developer and bank.

The Developer has probably not recognized this sale yet. Since only the booking fee is paid, that's all the developer can keep. But to be sure, has your friend had the signed & stamped SPA returned to them? With developers signature included? If not, then developer has definitely not recognized this sale.

Typically a developer will only recognise the sale for a loan buyer if: 1) 10% has been settled (via payment and rebate), 2) SPA has been signed and stamped, 3) Loan LOA documents received.

My advices would be to ask the conveyancing lawyer that handled your friends case.

Ps: you cannot cancel a Sales & Purchaser agreement, you can only cancel a booking. SPA will need to be terminated or revoked.

The loan should be easy enough to get out of as there has been no draw down yet.

Sort this out quickly before the developer issues billing to bank, if draw down happens, your friend will be stuck.

Normally forfeit for the downpayment only. now call to bank hold for loan first

If the project is not fully sold, likely the developer will not agreed to the termination. They will rather let the buyer deal with their bank. If buyer borrower don't make any payments to the bank, it will then proceed to auction off the property on VP.

Every unsold unit is a financial burden to the developer. All construction costs have to borne by them until they find a buyer.