Hi, I signed the SAP back in November 2007 and I have only paid the initial 10% deposit. I was wondering whether there was any way to cancel the SAP and get back any amount of the 10%. I have not applied for a bank loan and I am paying by cash.

If you cancel the Sales and Purchase Agreement, the 10% goes to seller, if im not wrong

the developer reserves the right to forfeit your deposit i'm sure u know. however, some of my ex-bosses do give refund for cases such as yours, on compassionate grounds only. even so the refund is not 100%.

If cannot get refund, make sure you ask for "Credit" to use for future projects

Thanks for your replies

Isn't there a clause in the SAP which says that if I am not eligible for a loan due to my income level, the SAP is void and I only have to pay 1% of the purchase price but I get the rest back?

If you are buying subsale you can put in this clause but if you buy from developer i think there is no such clause.

Dude, YOU signed the S&P, and i believe you have a copy of it.
So you should be the one that know if there is such clause. If there are, good for you.
But not eligible for loan, you need the rejection letter from bank

The problem is I think I am eligible for the loan!

Check with the bank what is the reason they reject and work your way around it lor. Bank want to do business and everything can be discuss one.

This post has been edited by cblau: Jul 2 2008, 07:44 PM

HHHHMMMmmmmmmm what exactly is the problem with you?
Proceed and buy a house, never bother to get a loan .... now u want to cancel the purchase..

for the lolz?

Sorry for the misunderstanding. I purchased the house and signed the sales and purchase agreement without thinking it through (n00b I know). I didn't get a loan because I was thinking of paying by cash (It is about RM120k and I am using my life savings). Now because of the increasing fuel prices and the possibility of a recession I want to keep as much cash as possible so I want to cancel the purchase

Investment? or own stay? if you going to stay then go ahead la...

if tend to get new house later after few years... better get a unit now since new house may hike 10%-30%...
if tend never to get new house anymore... then u can consider to sell it and do investment after recession...

got such clause in 1st hand S&P.

I just check it indeed has this clause. Never bother to read developer spa as its standard format but i learn something new today.

I don't think the developer needs to return ur $ because U decided to cancel the purchase; not because ur bank loan wasn't approved but because U don't want to buy the property now.

I doubt this falls under 'compassionate' ground Besides, which developer do U know who's compassionate? I deal with a couple but have not found ANY compassionate ones around

True but I don't have to tell the developer I want to cancel the purchase. I can just say my loan was not approved and invoke the clause in the SAP. Is there a way to make sure my loan is not approved even though I qualify for the loan?

well, developers are not born yesterday, they will usually request for proof such as the letter from bank that you applied. any way to make sure your loan is not approved ? default on all your existing loans and credit cards now

10% deposit will be to the developer. The developer need to cover those lwayer fees for preparing S&P Agreement (I don't think it's called SAP..SPA is more likely)

This post has been edited by ronnie: Jul 4 2008, 11:29 AM

Have this clause in SPA. loan not approved, forfeit 1% of purchase price. if other reason, may forfeit 10% (construction below 50%). Forfeit 20% (construction above 50%).