heyhoe 0 Report post Posted May 20, 2008 I need advice urgently ... please. I wanted to offer a hdb unit that is up for sale but discover from another agent (hearsay) that the owner's wife is a bankrupt. Is there any way for me to check? If I were to purchase it, is it allowed? Will there be any implications? Appreciate any advice(s). Thanks! Share this post Link to post Share on other sites
donut88 1 Report post Posted May 20, 2008 I need advice urgently ... please. I wanted to offer a hdb unit that is up for sale but discover from another agent (hearsay) that the owner's wife is a bankrupt. Is there any way for me to check? If I were to purchase it, is it allowed? Will there be any implications? Appreciate any advice(s). Thanks! it may be a complicated transaction, but not for you. it will be for the seller. and as for you, the handover period could be longer coz HDB may take longer to process the resale transaction. and there may be a risk of HDB not allowing the resale to be approved due to bankruptcy issues; for example the seller owes $$ to HDB or CPF or IRAS. I ever experience something like this before with my buyer recently. The buyer was selling his flat and buying my flat. But he owes $$ to CPF last time and has not clear this debt yet for many years. So HDB stops our resale transactions and delay the whole thing. its only after 1-2 months of negotiations between the buyer and HDB, that HDB allows buyer to sell and buy. normally resales transaction takes about 2-3 months to complete. my case, it took 6 months to complete it!! So, i kena delayed in my selling flat to the buyer. All parties got delayed. The buyer was apologetic about this whole thing. another thing is loansharks. who knows whether seller got borrow from loansharks or not? or maybe some other creditors who may turn up at doorsteps when u move in.......... Share this post Link to post Share on other sites
applefreak 1 Report post Posted May 20, 2008 not just that, there had been cases where the sellers of the flat are bankrupts took the option fee, then refused to sell the flat buyer has no recourse as you can't possibly sue a bankrupt for money if they could repay they wouldn't be a bankrupt in the first place i'd suggest you pay the min option fee - $1k and nothing more Share this post Link to post Share on other sites
donut88 1 Report post Posted May 20, 2008 not just that, there had been cases where the sellers of the flat are bankrupts took the option fee, then refused to sell the flat buyer has no recourse as you can't possibly sue a bankrupt for money if they could repay they wouldn't be a bankrupt in the first place i'd suggest you pay the min option fee - $1k and nothing more this is a good point from applefreak about the option fee. maybe get the selling agent to commit in B/W that all deposits are 100% refundable in any case the transaction cannot go thru due to any reasons. since everyone knows that the seller is a bankrupt, then its better to play safe. There are alot of possibilites that the transaction may not go thru due to many reasons. So just be open abt it and discuss with all parties. Share this post Link to post Share on other sites
zirhk3355 1 Report post Posted May 20, 2008 A bankrupt can sell the HDB flat, of course! All she needs is to get approval from the OA. And because by selling the flat, the OA would be able to get money to clear more of the debts, they would be more than happy to approve it. So from the bankruptcy office's POV, there is usually no hindrance there. All you need to is the owner to show you the papers that they had approval from OA's office to sell the flat. However, what you must be more worried about the bankrupt herself, because if she backs out of the deal, you will have to sue her and everyone knows what can happen when you try to sue a bankrupt...zilch. You get nothing. So make sure that you do not hand any money to the bankrupt; any deposits, cash payment, etc should be handed to a lawyer or agent (if can trust lah!) or perhaps the OA for caretaking. Anything screwed up, like abovesaid, at least you get your money back, although you cannot sue for more lor... Share this post Link to post Share on other sites
heyhoe 0 Report post Posted May 20, 2008 Thanks donut88 and applefreak. Just asked my agent to check and confirmed she's a bankrupt. Apparently, they've applied for OA and really hope they don't own loansharks. Thinking of checking with their neighbours on loansharks but don't know how to approach subtley without offending them. Btw for option fee, can pay $500 instead? Also, if they agree to let me move in earlier for renovation purpose, hopefully by 1st appointment ... should I get them to sign Tenancy Agreement for black and white purpose? Thanks for all your help! Share this post Link to post Share on other sites
donut88 1 Report post Posted May 20, 2008 Thanks donut88 and applefreak. Just asked my agent to check and confirmed she's a bankrupt. Apparently, they've applied for OA and really hope they don't own loansharks. Thinking of checking with their neighbours on loansharks but don't know how to approach subtley without offending them. Btw for option fee, can pay $500 instead? Also, if they agree to let me move in earlier for renovation purpose, hopefully by 1st appointment ... should I get them to sign Tenancy Agreement for black and white purpose? Thanks for all your help! i think the minimum option is $500..... cant remember liao.... but just pay the whatever minimum sum. if the selling agent is competent and sincere, then its ok to work with agent. make sure that agent knows alot about all requirements for bankrupancies selling houses. You are depending alot on the agent on the resale transactions. one slip up by the agent, the transaction will be delayed. about loansharks and creditors, you got to 'visit' the unit almost everyday at different timings to check for wall writings or posters or nasty stuff. go on weekdays and weekends, at different timings.... morning, afternoon and midnights....... just walk around the block or the floor level to see. if walls are clean, no nasty stuff on the door or gate, then its quite safe..... if you are really keen to buy over, then these are the things you need to do........ the tenancy agreement should not be a problem. you are paying them rent to move in earlier, right? then its ok. its only when u need them to pay you $$, then you start to worry........ Share this post Link to post Share on other sites
latitude 0 Report post Posted May 20, 2008 (edited) option fee is from $1, up to $1000max. last year when I sold my HDB, I only accepted $300 from buyer as option fee. Edited May 20, 2008 by latitude Share this post Link to post Share on other sites
heyhoe 0 Report post Posted May 20, 2008 I don't intend to pay rent as they agree to let me move in earlier if the transaction goes thru. I just need to know that they don't play me out later....otherwise, no place to stay and I can't do minimal renovation. I'm thinking of doing a tenancy agreement just to be on the safe side. Also, thanks Latitude for your advise. Share this post Link to post Share on other sites
inix 0 Report post Posted May 20, 2008 There is no real "minimum" option fee. It starts @ $1. I think the max was $1K. My agent paid $5 as the option fee when I told her I wanted to buy my house... Share this post Link to post Share on other sites
heyhoe 0 Report post Posted May 22, 2008 Thanks all, decided not to pursue afterall. Share this post Link to post Share on other sites
