Dear all,

I have a case here, hope you all can advise with your knowledge and experience.

I'm currently applying loan to purchase a Bumi lot [i'm non-bumi]. The owner is a friend of mine and he has bumi status. The bank loan is currently on-hold due to the Developer refuse to release Undertaking Letter to the bank.
Fyi, we've done everything and only pending is the letter from developer in order the bank to proceed.

Below are the points for your reference:

1. My friend purchased the property more than 5years
2. Property is under Master Title
3. Developer claim that it is Land Office requirement to ask for refund if the property is sold to non-bumi
4. Developer will not release the letter until my friend refund back the bumi discount he used to entitle to the developer.
5. Developer couldn't produce any letter or documentation on their claim on the refund. They said it is unwritten law.
6. Our lawyer is hopeless, and the only advise he gave us, is to pay the developer.
7. My friend managed to talk to Land Office personnel and they said it is not in any Act.

So, my question is, is it really under the Housing Act that the developer has the right to ask for refund on the bumi discount? What should we do if the developer insists to get the refund and refuse to issue the undertaking letter?

I've already talk to the bank and nothing much they can do since the property is under master title. they will not proceed until they get the letter from the developer.

Please do share or advise me on solving the above...or at least, what can I do next? This has been dragged for few months.

Thanks all in advance.

1st, my friend's facing financial prob and the bank almost put it up for auction.
2nd, it is a good buy and located at booming area. no more available units. good investment.