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.

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?

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

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

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?

True but loan applications are private and confidential and the developer would have no way to check whether you are telling the truth as long as the letter looks legit.

It is not like they can call up the bank and ask whether so and so's loan has been approved right? I might be wrong though.

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Added on July 5, 2008, 12:59 pmWhat did the letter say? Does it have an official letterhead from the bank?

This post has been edited by ebayer: Jul 5 2008, 12:59 PM