Paying 'booking fees' to sole marketing agent - any guarantees to buyers??

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Read this article and the writer briefly mentioned about MM2H buyers for this development in B. Ferringhi. It's buyers beware and know thier rights when dealing with the 'sole agent' of a developer, even a reputable one as stated below.

http://www.apartment-penang.com/2010/01/buyer-feels-cheated-by-agent-developer.html#comments

Buyer feels cheated by agent & developer

Comment by Ben

I have a problem & hope someone can help or advise.

Last month i booked a unit of bayu feringghi condo somewhere around christmas and i paid the booking fees to the sole marketing agent by cheque at the site office as the developer does not have an office in Penang. He let me sign a booking form stating the price, unit no, my name i/c no etc.

A few days later, he told me there are many buyers looking for my unit as it is the last unit at that block. When i quiried him, he assures me that the unit is mine as i have paid the deposit for it.

A few days later he told me that the unit might be classified as a bumi unit and have to wait for confirmation from the developer as their sales has reach bumi quota. He assures me that i have nothing to worry as if my unit is under bumi unit, it is only temporary until the completion reaches 80% and the developer will declassify it from bumi status. However, i cannot sign the s&p yet but i have to sign a supplemental agreement stating the unit and purchase price and i have to increase my deposit by another 10k. Being a purchaser of a bumi unit i will stand to "enjoy" some benefits like the price will remain the same after the bumit unit is released. That means buy now but pay later. And i get to save a few thousand on the housing loan interest as all i need to pay now is the deposit and the balance until the completion has reached 80%. which is about a year later. I gave the agent another cheque for the extra deposit. He did not give me any receipt but acknowledge receipt on the photocopy of the cheque.

A week later, the agent call me and congratulates me as the developer has confirmed that my unit is classified as a bumi unit. He says the solicitor will call me to sign a supplemental agreement soon but i have to change my cheque to pay to the solicitor's firm instead of the developer's name. He will return my previous cheques which he has not paid in yet in exchange for the new cheques.

Yesterday, the agent called me to inform that he wants to return me my cheque and cancell my booking due to objection by some of the directors of the developer. It seems that one of the directors has agreed to sell the bumi units at first and has proceed to do so but the other directors is not agreeable later on.

I feel very angry and cheated.

How can a reputable developer which is listed on the main board of Bursa do such things? And the marketing agent is also reputable being one of the best not only in Penang but worldwide as many of their clients are from MM2H. The agent made many beautiful but very empty promises. Their agents are also listed on this very web side.

What i want to know is can the developer cancell my booking after accepting the deposit for almost a month although they have not paid in my cheque?

I am planning to take some legal action but i need to know if there is any buyer out there facing the same problems? The agent told me there are also other units affected.

Can i lodge a complaint perhaps the Housing Ministry? I would also like to made complaints against the housing agent. Are they licenced? By whom?

Please advise me if you know.

Thank you.

(Above comment appeared in Bayu Ferringhi Condo and S&P Agreement & Legal Issues (Discussion) blog post)

Labels: Views/Opinions

1 comments:

  January 24, 2010 2:17 AM Penang Fan said...

    GET A GOOD LAWYER! YOU HAVE A CASE I THINK. DO YOU HAVE A RECEIPT FOR THE DEPOSIT? THAT HELPS IF YOU HAVE ONE FROM THE AGENT REPRESENTING THE DEVELOPER.
     
End of News.

BB

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It doesn't sound like a good story, does it.  I wonder if the guy engaged a lawyer at the start.  Surely if you are putting money down on a property, don't you engage the services of a lawyer straightaway?  Though I guess the moral of the story is get a lawyer quickly and get the S&P issued quickly?  Poor guy.

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I think there is a difference between the 'booking fee' and the proper deposit procedure whereby the lawyer will be there to draw out a legal contract.
With booking fee one is usually given a week to opt out and get the amount refunded minus some admin fees as there is no proper legal contract until the proper deposit payment a week later with the lawyer's presence when signing the S&P. But, of course one can just put the full downpayment and sign the S&P right away with the lawyer there.

It seems the agent and a director were trying to sell off reserved Bumi units before the holding period allowed hoping for the best they would not be sold! The other directors objected and the 2 guys plan fell through.
This potential buyer should know very well,  but he hopes to save a few thousand Rm and 'bet' on the bumi unit even before the release period. He should be happy he gets his full refund! He is just as guilty as the director and the agent ;-) ;-)

BB