Dear all,

I

Thanks for the comment.

This post has been edited by kelvin667: Jan 12 2009, 04:39 PM

Usually it's a norm whereby if it's because loan got rejected, the down payment would be returned.
However if it's because buyer is no longer interested due to other personal reason, than there's a right to forfeit the deposit.

Anyway, there's no way you'll know whether or not the agent returns the deposit to the buyer or they took it themselves. Only thing is to trust them or if you have the contact of the buyer than you may phone the buyer up.

Thanks Boon,

Things are much clearer to me now.

Thank You.
Regards,
Kelvin667

The deposit is actually known as earnest deposit.

Please refer to the link below

http://www.iproperty.com.my/iexpert/Question.aspx?ID=447

http://www.realestate.net.my/forum/viewtopic.php?t=1162

As it is not stated in the letter as otherwise also. It is open for argument as normal practice of earnest deposit to be forfeited if buyer unable to proceed with purchase. However in cases where the loan are genuinely rejected , you may consider not to forfeit the deposit.

This post has been edited by shamim: Jan 2 2009, 03:53 PM

Dear Shamim,

Thanks, that a good quote you got there.

It depens on the agreement between buyer/seller. In most cases deposits are refundable due to circumstances beyond the control of the buyer. Purchases are dependant on loan approval. Before the buyer can obtain a loan he has to put down a deposit and the house details ie. No. 10 Jalan Tun Razak. You can't just obtain a housing loan from a bank without providing any details eg. 'I get the loan first only decide which house to buy'. So it is only fair and due that the buyer gets back his deposit if a loan is not approved. You'd want the same rights if you put down a deposit but so happen did not get a loan approval.

This post has been edited by DannyOP: Jan 2 2009, 10:13 PM

By law the owner has the right to forfeit the earnest deposit in this case,
some owners are willing to return it under certain circumstances , most of which are not the purchaser's fault. While others are not willing to do so. Purchaser should know his own financial status or ask the agent to discuss wit the owner to set the special condition before paying any fees!

Actually u can obtain pre approved loan even before purchasing the house or putting the deposit.

Eg. Maybank pre approved home loan.

https://www.maybank2u.com.my/mbb/mbb_loan/m...cation_form.jsp

It is still subject to final approval. No difference. When you submit your documents and the property details pre-approval can be rejected. Before you get the final approval you still need to pay the deposit to confirm the purchase.

This post has been edited by DannyOP: Jan 3 2009, 02:08 AM

Considrestion of the loan to be approved can be categorized into 2 that is

i. Applicant financial strength.
- Preapproval will give estimation on the loan amount the buyer can acquire to minimize the possibility the loan to be rejected.
ii. To be purchased property legal status eg. remaining year of lease and etc.
- This depend on the status of the property , however an exprienced agent shall know wether a particular property is possible to get loan or not.
However the responsibility is on the buyer themself to investigate this, eg. before paying the deposit buyer can check with the bank wether there is high chance of getting loan for the property or not.

So the responsibility is on the buyer , the seller on the other hand do not know the financial strength of the prospective buyer and will try to sell the property even if there is some legal status issue need to be considered.

This post has been edited by shamim: Jan 4 2009, 11:41 PM

By right the seller should refund the booking fees paid by the buyer. Usually the property agent will explain this point when signing the booking letter. In case that you are afraid that the agent will runaway with the money, tell the agent you will return the money when all parties involved met.