Is the 30% penalty clause standard in Malaysian property sales?

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The 30% penalty clause is not standard in Malaysian property sales.

Chinese buyers at the Forest City megaproject have discovered a 30% compensation penalty clause in their sales contracts, which they are required to pay if they back out of a deal. This situation has arisen for buyers unable to proceed with their purchases due to capital controls implemented by Beijing. The developer, Country Garden PacificView (CGPV), maintains that these terms align with Malaysian legal standards, though a property lawyer has stated such a high penalty is unusual.
Standard Penalty Clauses in Malaysian Property Transactions

In typical Malaysian property sales, if a buyer breaches the sales agreement, the forfeiture is usually limited to the initial down payment. Property lawyer Derek Fernandez indicated that a 30% compensation penalty is not a standard practice. He further explained that if a buyer is unable to secure financing for a purchase, the down payment should typically be refunded.
Developer's Stance on Contract Terms

Country Garden PacificView (CGPV) has stated that the terms and conditions within their sales and purchase agreements are in accordance with Malaysian laws and standards. The developer acknowledges that a small group of buyers are seeking refunds and indicated that these will be facilitated according to the existing agreement terms. CGPV also noted that their sales and marketing teams make efforts to explain the contract terms to buyers before signing.
Buyer Concerns and the MM2H Programme

Some Chinese buyers at Forest City have expressed that the 30% penalty clause was not clearly communicated to them at the time of purchase, with some claiming they signed only English contracts and were not given Chinese versions. Additionally, several buyers were reportedly attracted to the project due to assurances that purchasing a unit would facilitate applications for the Malaysia My Second Home Programme (MM2H). CGPV has clarified that while their staff may assist with MM2H applications, approval rests with the Ministry of Tourism and Culture, and they cannot guarantee successful status for Forest City homeowners.

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Is the 30% penalty clause standard in Malaysian property sales?

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