Erm, I believe you guys are talking about failure to complete transaction in the case whereby approval of the sale/purchase of flat is not approved by HDB and the fault is neither with the seller nor buyer (who else then? Hahaha... Make a guess)
Then OTP will be void, and option exercise fee from seller will be returned to buyer.
It is not to be confused in the event that bank loan didn't go through. Then OTP will still stand because fault is with buyer for not obtaining approval of loan prior to purchasing. Then buyer will lose the option fee, and seller has the rights to sell to other buyers.
Note
- Buyer IS TO assure that they HAVE HLE or LO (Letter of Offer/Bank Loan) even BEFORE viewing, make sure that you're not over-committing yourself to purchase the unit, AND the racial eligibility for that block.
- Seller would be best to make sure they've obtained valuation before selling (expires in 3 months), and has fulfilled the occupational period before signing any OTP (not even a few days UNLESS you're prior agreement from HDB to do so.)
