House booking fees — refundable or not?
Quick answer: For new launches, Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 bars anyone from collecting payment before the SPA is signed — offenders face a fine of up to RM50,000 or up to 5 years' jail. For subsale, the earnest deposit is usually 2–3% of the price. Always get an official receipt and written terms that the money is refunded if the loan is rejected.
Key facts
| New launch | No collection before the SPA (Reg. 11(2)) |
|---|---|
| Penalty | Up to RM50,000 / 5 years' jail |
| Subsale | 2–3% earnest deposit |
| Tribunal | Claims up to RM50,000 |
New launches
- The law bars collecting payment before the SPA, including by agents and third parties acting for the developer.
- In practice some developers ask for a "booking" or "registration" fee. If you pay, get an official receipt in the developer company's name and written refund terms.
- The government has discussed legalising booking fees with a full refund within 14 days — check the latest with KPKT.
Subsale
- The earnest deposit is usually 2–3% of the price when the offer is signed; the balance up to 10% is paid at the SPA.
- Write "subject to loan approval" into the offer letter so the money is refunded if the bank says no.
- If the buyer pulls out without an agreed reason, the deposit can be forfeited.
If something goes wrong
Disputes with developers can go to KPKT's Homebuyer Claims Tribunal for claims up to RM50,000. Get a lawyer for larger amounts.
Before paying anything, look the project up on KPKT's TEDUH portal and make sure the developer has a licence and advertising permit (APDL).
Frequently asked questions
Is a house booking fee refundable?
It depends on the written terms. For new launches, collecting payment before the SPA is barred by regulation, so you have grounds to claim it back. For subsale, add 'subject to loan approval' so the money is refunded if the bank rejects you.
How much is the booking fee for a subsale house?
Usually 2–3% of the price as an earnest deposit, with the balance up to 10% at the SPA.
Can developers collect booking fees?
Regulation 11(2) of the Housing Development Regulations 1989 bars collecting payment before the SPA is signed. Offenders face a fine of up to RM50,000 or up to 5 years' jail.
Where can I complain if a developer won't refund?
KPKT's Homebuyer Claims Tribunal for claims up to RM50,000, or seek legal advice.