[Property] What should I do if I change my mind after buying a house and the developer refuses to refund the booking fee?
What should I do if I change my mind after buying a house and the developer refuses to refund the booking fee?
In most cases, in order to purchase the desired unit, buyers will first pay a booking fee to the developer.
Did you know that this is actually illegal?
Section 11(2) of the Housing Development (Control and Licensing) Regulations 1989：
No housing developer shall, except for the amount stated in the sale and purchase agreement, collect any sum of money in any name or pretext whatsoever.
What are the consequences for the recipient of such payments?
Section 13 of the Housing Development (Control and Licensing) Regulations 1989:
The recipient may be liable to a fine not exceeding RM50,000 or imprisonment for a term not exceeding 5 years or both.
If the developer still refuses to refund the deposit, what can you do?
You can file a complaint with the Tribunal of Home Buyer’s Claim to recover the full booking fee.