Property Agent

[rustgal17 0]

Dear Fellow members,

Sad to say that these days all agents are crazy with commission and there is no more honest agents which will hold on their professional attitude. I recently committed a purchase and I did not have my appointed agent and the Option was handled through the Seller's agent. The price as agreed was based on the total area of the Apt (floor area). A per sq ft was recommended and used for the calculated of the total purchase price and it was cleared confirmed again by the Agent and the Seller that the area of the unit is correct but when my lawyer did a search and found that the area is smaller (about 3% smaller). Accordingly to the law, anything below 3% in the shortfall is acceptable. So, this is where it is debatable and the Agent as well as Seller claimed that the area in their previous documents and searches indicated that the area provided to me is correct and they have no idea how the title search shows a smaller area. I really hate myself for trusting the agent and seller (they seem such nice people). I am sure that the Agent will not stand on myself since their commission is paid by the Seller even through they claimed that they are representing me as well in closing the deal. I am really very very disappointed. Just for sharing my story I hope all home buyers be very very careful when dealing with agents.

[zirhk3355 1]

Unless your OTP stated the price as "total GFA x $????psf" (which is unlikely), you do not really have a case.

Anyway, you saw the unit, you liked it and you are okay to pay that price. So why get so upset over this? Move on lor, 3% difference in GFA is totally negligible, you should be transferring your energy to finding a good ID and stress yourself over the renovation now!

BTW just to clear it up - Agents are commission-based; ie they are paid by the clients directly to work for them. In law, this means that they owe a fiduciary duty to the client. You do not pay them, they do not owe you any fiduciary duty. Period.

Any agents who tell you that they are representing you and standing on your stand though you do not pay them commission is, well, simply b*llsh*tting you. They either want to put your guard down, or they are hoping to get future business from you.

So actually this is nothing to do with honesty; he was paid by the owner, he owes fiduciary duty to the owner and so he has to stand on the owner's side and protect him/her AGAINST you.

This is the same expectation that you must be having when you engage an agent to sell any property for you in future.

[delirious_jeff 0]

Look on the bright side, you did not have to pay for the agent's commission, which is maybe 1% of the agreed price.

[rustgal17 0]

I thought buyer does not need to pay for any commision (not HDB). If the law demands that the buyer has to pay for some of the commission, I am sure the Agent will demand for his share. The seller's agent will keep all the commission to himself since there is no co-broke in this case. Just wondering how long will any one of us take to save $20K which is the price difference we are talking about here. With $20K, you can go for a very nice holiday.

[zirhk3355 1]

I thought buyer does not need to pay for any commision (not HDB). If the law demands that the buyer has to pay for some of the commission, I am sure the Agent will demand for his share. The seller's agent will keep all the commission to himself since there is no co-broke in this case. Just wondering how long will any one of us take to save $20K which is the price difference we are talking about here. With $20K, you can go for a very nice holiday.

According to IEA's guideline, seller pays 2% and buyer pays 1%. There is no 'law' to govern this at all; the current way of collecting only 2% from seller and none from buyer is a market practice.

Just to check again, didn't you already agreed to the buying price? So where did that extra $20K came from?

[rustgal17 0]

According to IEA's guideline, seller pays 2% and buyer pays 1%. There is no 'law' to govern this at all; the current way of collecting only 2% from seller and none from buyer is a market practice.

Just to check again, didn't you already agreed to the buying price? So where did that extra $20K came from?

The $20K is the difference in the area. I was offered to buy at an agreed of $X per sq ft x total area of the apt.

[delirious_jeff 0]

The $20K is the difference in the area. I was offered to buy at an agreed of $X per sq ft x total area of the apt.

Does the price difference include the stamp fees? Stamp fees is based on the agreed selling price.

In your case, the total area of the apartment was misrepresented. As as result, the selling price AND the stamp fees you paid are incorrect.

[zirhk3355 1]

The $20K is the difference in the area. I was offered to buy at an agreed of $X per sq ft x total area of the apt.

I think you had been misrepresented in the negotiation process.

I believe your OTP does not state "XXXpsf multiply by XXXsqft", right? Thus legally speaking, you do not agree to "$XXXpsf multiply by XXXsqft"; you agree to the actual price as stated in the OTP. When people speak of psf, its only the negotiation process, not actual agreement.

The agent/seller could argue that you had explicitly agreed to the final price, ie you signed on the OTP (black and white) with the price stated big big there. Legally speaking, you did not incur any "loss" because you had agreed to the final price. Somemore you are also aware that 3% is within reasonable difference.

Sorry to say this but the court would probably think you are trying to extort further discount out of this "reasonable difference" in gross floor area (GFA), in which case you suddenly becomes the aggressor and the seller/agent become the victims instead.

If PSF is so important to you, next time you should not have signed on the OTP and asked for verification of the GFA, ie getting the property's details from SLA. Take it as a small lesson learnt lor...

[rustgal17 0]

Does the price difference include the stamp fees? Stamp fees is based on the agreed selling price.

In your case, the total area of the apartment was misrepresented. As as result, the selling price AND the stamp fees you paid are incorrect.

Hey..you understand my situaton. Well, stamp fee is always payable by the buyer (according to the law) and it has to be paid within 14 days from date of exercising the option. The Agent is challenging me to take the case with the seller directly knowing that the information was provided by them in the Contract which was signed between the Agent and myself indicating the area of the apt. Well... i have given up, just need some space to air my disappointment with the practice here. Probably, being away for too long and was not caution enough to trust the agent. In Europe, an agent's word is trusted and honoured. They are very professional with their job. It is simply bad luck for me and I am just telling my story to warn others to be careful.

[delirious_jeff 0]

Hey..you understand my situaton. Well, stamp fee is always payable by the buyer (according to the law) and it has to be paid within 14 days from date of exercising the option. The Agent is challenging me to take the case with the seller directly knowing that the information was provided by them in the Contract which was signed between the Agent and myself indicating the area of the apt. Well... i have given up, just need some space to air my disappointment with the practice here. Probably, being away for too long and was not caution enough to trust the agent. In Europe, an agent's word is trusted and honoured. They are very professional with their job. It is simply bad luck for me and I am just telling my story to warn others to be careful.

I think the agent was not dishonest. I am guessing the agent just did not realise there was an error until it was too late. After the OTP was signed, very little can be done to correct any errors that will be mutually beneficially for all parties involved. Most agents that I have come across looks "blur". When I ask some of them questions about rules and regulation, they cannot give an immediate answer. They have to check with someone else before calling me back. This is why we engage lawyers to handle the transfer process.

[rustgal17 0]

I think the agent was not dishonest. I am guessing the agent just did not realise there was an error until it was too late. After the OTP was signed, very little can be done to correct any errors that will be mutually beneficially for all parties involved. Most agents that I have come across looks "blur". When I ask some of them questions about rules and regulation, they cannot give an immediate answer. They have to check with someone else before calling me back. This is why we engage lawyers to handle the transfer process.

Obviously, there is an error but no one apologise and insisted that the area is correct until a title search shows the actual area. Even that, they insist that some searches which they did online provide a different information. Anyway, I have enough of this and decided to move on until yesterday the agent called to ask why don't I go after the seller, knowing that I have no ground and the only document which shows the agreed area was a contract signed with the Agent where it indicates the area used for the calculation of the purchase price.

[delirious_jeff 0]

Obviously, there is an error but no one apologise and insisted that the area is correct until a title search shows the actual area. Even that, they insist that some searches which they did online provide a different information. Anyway, I have enough of this and decided to move on until yesterday the agent called to ask why don't I go after the seller, knowing that I have no ground and the only document which shows the agreed area was a contract signed with the Agent where it indicates the area used for the calculation of the purchase price.

Sorry seems to be the hardest word...