Can Seller Stop The Sale During The Otp Period?

[Durian pudding 0]

Wondering if a seller decided not to go ahead during the OTP period, can he don't go ahead exercised the OTP and pay back the deposit to the buyer?

Can buyer sue the seller even the seller don't wish to receive the exercised $?

[Topspin 1]

buyer can sue which is typically the difference in price of the next unit the buyer is forced to buy at a higher price.

Not sure what happens if the unit the buyer bought is lower? need to check with lawyer. In such case the buyer should be glad anyway he did not proceed with the sale.

[Durian pudding 0]

buyer can sue which is typically the difference in price of the next unit the buyer is forced to buy at a higher price.

Not sure what happens if the unit the buyer bought is lower? need to check with lawyer. In such case the buyer should be glad anyway he did not proceed with the sale.

But if the owner insisted don't want the exercised money and don't sign on the otp stated he got rec it, what can the buyer do?

[zirhk3355 1]

AFAIK, the only recourse you have at this point is double of the initial deposit to get the OTP.

As long as the option money (ie "exercised money") has not pass hands, the deal is not sealed.

If he changes his mind AFTER receiving the option money, then you can sue him.

[EL23 0]

Seller should have signed the OTP when he received the option fee from buyer. The OTP is for the buyer to exercise. As long as seller did not sign OTP, then there is no option given.

Are you buying through an agent?

[Durian pudding 0]

Seller should have signed the OTP when he received the option fee from buyer. The OTP is for the buyer to exercise. As long as seller did not sign OTP, then there is no option given.

Are you buying through an agent?

You still don't get it...

Seller will signed the otp when he get the initial deposit (max 1k)

However, if he did not want to go ahead within the 14 days option period, can he just pay back the initial deposit? There isn't stated that the seller will hv to pay 2X the initial deposit anywhere in the otp?

There isn't any contract being bond as the seller did not ack that he got rec the exercised $ if he did not sign he got rec it.

[waileong 0]

Wondering if a seller decided not to go ahead during the OTP period, can he don't go ahead exercised the OTP and pay back the deposit to the buyer?

Can buyer sue the seller even the seller don't wish to receive the exercised $?

1. Has the option been exercised? If so then the law of contracts applies, ie if the seller fails to fulfil the contract, he is liable for damages suffered by the buyer.

[papbestdad 0]

You still don't get it...

Seller will signed the otp when he get the initial deposit (max 1k)

However, if he did not want to go ahead within the 14 days option period, can he just pay back the initial deposit? There isn't stated that the seller will hv to pay 2X the initial deposit anywhere in the otp?

There isn't any contract being bond as the seller did not ack that he got rec the exercised $ if he did not sign he got rec it.

Seller agreed on the price and sign the option to purchase.

14days is to let buyer decided whether to exercise or not.

If seller decided now not to sell, he has every reason to be sue by the buyer.

Good luck to you if you are the seller intending not to sell now.

If the buyer doesn't exercised, you are safe.

If they decided to exercise and you want to back out, they will tell you "NO WAY!!".

Seller should be in a more prepared state to sell as compared to buyer who only got two weeks to think it through. What is your reason?

[Durian pudding 0]

Seller agreed on the price and sign the option to purchase.

14days is to let buyer decided whether to exercise or not.

If seller decided now not to sell, he has every reason to be sue by the buyer.

Good luck to you if you are the seller intending not to sell now.

If the buyer doesn't exercised, you are safe.

If they decided to exercise and you want to back out, they will tell you "NO WAY!!".

Seller should be in a more prepared state to sell as compared to buyer who only got two weeks to think it through. What is your reason?

there is no specific reason....

Just that in the otp, only stated buyer will sue after he exercise the otp but nv mentioned if seller did not want to get the "exercise" $ from the buyer, how is he going to sue the seller if the seller insisted not want to rec the $ and dun sigh the ack in the otp?

[yoongf 11]

OTP is a standard document used by a lot of ppl daily. Just because it does not state in the OTP u are using, does not mean there are no other applicable SOPs.

Anyway.. anybody can do anything they want. But when things go wrong.. all industry players and lawyers play by the same set of rules.

[delirious_jeff 0]

Share with you my experience.

We wanted to buy an 6 yr old EC. We signed the OTP first and returned to the agent. The Seller did not sign the OTP. After 4 weeks, they decided not to sell and returned the cheque to us.

Since the seller did not sign the OTP and they did not bank in the cheque, I guess they can back out.

[papbestdad 0]

Share with you my experience.

We wanted to buy an 6 yr old EC. We signed the OTP first and returned to the agent. The Seller did not sign the OTP. After 4 weeks, they decided not to sell and returned the cheque to us.

Since the seller did not sign the OTP and they did not bank in the cheque, I guess they can back out.

What u said is different from Threadstarter who give no specific reason why they just want to back out from selling, as below.

there is no specific reason....

Just that in the otp, only stated buyer will sue after he exercise the otp but nv mentioned if seller did not want to get the "exercise" $ from the buyer, how is he going to sue the seller if the seller insisted not want to rec the $ and dun sigh the back in the otp?

What you don't know or assume it's correct is not the way the contract work.

Give a call to any agent or the HDB and you see where your "suka suka" action will take you.

If you don't want to sell, why do you bother to receive people's deposit and waste their time.

If you did not sign at the "back of the OTP", the buyer will not have given you the deposit in the first place.

Your "story" holds no water, some part of it must be "cooked up".

If you really got no "special reason" for backing out, I do hope you get sue for your <<I dont care>> attitude towards the buyers.

Edited October 26, 2008 by papbestdad

[delirious_jeff 0]

Some sellers are hesitant and some are greedy.

When I was looking for my apartment, I came across a seller who was represented by 3 different housing agents (who were not co-broking and each asking different COVs) and a seller who changed her mind after verbally agreeing on a price.

As long as no money has been paid (lost), as a buyer, I learned to move on and looked for another apartment. I think the process is irreversible after completion of the 1st appointment.

[Durian pudding 0]

What u said is different from Threadstarter who give no specific reason why they just want to back out from selling, as below.

What you don't know or assume it's correct is not the way the contract work.

Give a call to any agent or the HDB and you see where your "suka suka" action will take you.

If you don't want to sell, why do you bother to receive people's deposit and waste their time.

If you did not sign at the "back of the OTP", the buyer will not have given you the deposit in the first place.

Your "story" holds no water, some part of it must be "cooked up".

If you really got no "special reason" for backing out, I do hope you get sue for your <<I dont care>> attitude towards the buyers.

Padbestdod...

It just a discussion for this thread, no need to be so workout and curse someone to be sued....

Sometime seller tot they can cet a bank loan for another hse they intend to buy after they sell the hse but discover they unable to get the bank loan for some reason....but they hv alredy sign the opt...

Maybe this issue can bring some senses to those who want to sell and buy at the same time...

[zirhk3355 1]

Padbestdod...

It just a discussion for this thread, no need to be so workout and curse someone to be sued....

Sometime seller tot they can cet a bank loan for another hse they intend to buy after they sell the hse but discover they unable to get the bank loan for some reason....but they hv alredy sign the opt...

Maybe this issue can bring some senses to those who want to sell and buy at the same time...

Correct me if I am wrong, so you are the seller trying to back out of a deal?? It would be nice if you can come clean upfront.

Anyway, whether you can get bank loan or whatever situation, its a different matter from THIS transaction. Don't confuse things and don't use that as an excuse to lessen your own guilt.

The fact is that you had accepted someone's money to stop marketing your property, promising to give him 14 days to think about whether to buy or not. And then you want to back out of it. Think about this.