How does CGPV justify the penalty for backing out of deals?

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CGPV Justifies Penalty Based on Sales Contract Terms

Country Garden Pacificview (CGPV) asserts that the 30% compensation clause for buyers backing out of property deals at Forest City is stipulated within the sales contract. The company's chief strategy officer, Dr. Yu Runze, stated that this clause is a standard part of the purchase agreement, and any refunds would be facilitated in accordance with these contractual terms and conditions. CGPV maintains that both the Chinese and English versions of the contract contain identical clauses and that their sales and marketing teams diligently explain these terms to prospective buyers before they sign.
Compensation Clause is Part of the Sales Contract

CGPV has clarified that the 30% compensation is explicitly detailed in the sales contract signed by buyers. This clause is not presented as a down-payment fee but rather as a penalty for purchasers who are unable to proceed with their acquisition. The developer insists that these terms and conditions are compliant with Malaysian legal standards and practices.
Discussions Underway with Concerned Buyers

While acknowledging that a small group of buyers are seeking refunds due to capital control restrictions in China, CGPV has stated these individuals do not represent the majority of their clientele. The company indicated that it is actively engaged in discussions with these concerned buyers. CGPV plans to process refunds strictly based on the stipulations outlined in the executed purchase agreements.
Contractual Terms Are Consistent and Lawful

CGPV asserts that the sales contracts, irrespective of whether they are in Chinese or English, contain consistent terms and conditions that do not contradict each other. The company emphasizes that its sales and marketing personnel invest time and effort to ensure buyers understand the contractual obligations before signing. CGPV further maintains that all its sales and purchase agreements adhere to Malaysian laws and standards.

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How does CGPV justify the penalty for backing out of deals?

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