Bankrupt ?

[jakie 0]

Hi All

Really Need Ur Advise .. Hope Someone can help to clear my doubt..

recently i have sign an otp and happen to know that the owner owe HDB $$$ ..

So my question here is , if the seller owe $$$ to HDB , does it mean he is bankrupt..

is there anyway to check whether the seller is bankrupt or not..

will the processing be confirmed after the first appointment.. would there be any problems could arise after first appointment which can cause the processing to be postpone or cancel..

what r the risks for the buyer point of view..

i really pray loan shark not coming out after i got the flat.

so far have confirmed with neighbour , as they feedback so far quite positive such as the seller and family living in the house and so far no loan shark appears before, blah blah..

pls enlighten me and thanks in advance..

[zirhk3355 1]

"Owe HDB $$$" meaning the guy still servicing a loan, or the guy did not pay his instalments on time??

If still servicing a loan means bankrupt, I think 80% of Singapore are bankrupts liao! No, its not so simple; bankruptcy is where your creditors get so fedup with you for not paying them on time (or not paying at all) that they lodge a complaint to get help from the govt. Min amount to declare a person as a bankrupt is $10,000. The Official Assignee will come in, confiscate all your assets and help to pay off your creditors.

Of course you can do an Insolvency Search (layman's terms is "bankruptcy check") on individual persons at http://www.isis.gov.sg . But as usual, SG govt no free things one, got to pay.

As for you as a buyer, I dun see any complications if the seller is sincere in selling. If the guy is a bankrupt and sells his flat, he will have money to pay his creditors, right? So the govt would be more than happy for him to sell! So if he is really a bankrupt, you must make him go to his OA's approval to sell, just as part of procedure.

But problem may arise if the seller is a bankrupt and pulling a fast one on you; ie he wants to take your deposit and run away. In that case, you have very little (or slow) recourse because you are doing business with a person known to be a bankrupt and you cannot sue a bankrupt.

Hope this helps...!

[applefreak 1]

think owe hdb $$$ as in the guy defaulted on his installment payments

it doesn't make him a bankrupt as HDB don't sue people for defaulting

they just take back the flat and sell as 'repurchased' flats

possible problems arising after the first appt includes

1. seller fail to obtain permission from OA to sell his flat, so that might take some time to sought it out (if he is a bankrupt)

2. seller try means and ways to drag out the process (that applies to everyone)

[jakie 0]

now in this case, agents comes middle man to keep the deposit, means agent issue a letter so call commission agreement , and they account whatever COV inside this agreement, in the case of not successful , with that commission agreement , buyer can actually claim back those $$$ from agent..

so , it is nothing to do with seller anymore..

so here i doubt, is it 2% commission from seller and 1% commission from buyer standard rule??

Coz the declare amount in commission agreement is more than 1% from the buyer point of view..

anyone come across such case before? would it be safe?

[Zc31 0]

In the eyes of the law, a seller who's declared bankrupt does not mean he can't sell the house.

The diff is the profit (if any) does'nt go direct ot him and goes through an OA.

Of course usually such flats would have a higher chance of money lending activities which could mean potential safety hazard to your family.

[MaCe 3]

as for loansharks - what those scums do is to BORROW from as much loanshark as they can just before handing over the flat officially.

this is the LOOPhole the dumb gov didnt see when revising the rules of changing address of IC.