For many naive and unwary property purchasers, signing a booking pro-forma with a housing developer or with its appointed agent or lawyer and paying an upfront booking fee before the formal sale and purchase agreement (SPA) is signed has come to be viewed as a common operating procedure.

While it is mostly unspoken, many developers request a booking fee which can range from a few hundred to a few thousand ringgit. Contrary to popular belief, this widespread practice is strictly prohibited by Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 (HDR).