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

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

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