To date, 95 flat-buyers have demanded a full refund of payment.
The HDB said flat buyers who wish to cancel their application before signing the Agreement for Lease will have the paid option fee forfeited.
In addition, cancelling the application after the signing of the agreement will result in flat owners forfeiting the 5 per cent of purchase price of the booked flat.
The HDB has given these 95 flat buyers a Feb 27 deadline to decide on whether they want to go ahead with the cancellation.
Residents had previously cried foul over plans to build a columbarium within the Chinese temple designated at a plot of land located near the three projects at Fernvale Link.
Many say they were hoodwinked by the HDB and URA, as they were not told of the plans when they purchased the flat.
National Development Minister Khaw Boon Wan has promised that his ministry will ensure the tender site at Sengkang is restored to the original plan of a Chinese temple.