Wat If The Buyers Decide To Back Out From The Hdb Sale/buy

[july-winter 0]

HI brothers and sisters

We, the sellers and the buyers had already signed, and submitted the OTP and our first appt was on 12/12/08. however, the transaction could not go thru due to their HLE made invalid based on the male's loss of job recently. Now our concern is can we sue the buyers for damages since everything was okay and even submitted to HDb but in case, they might not be able to get their HLE by end of dec or early Jan,

How???

[zirhk3355 1]

Based on what you said, there is definitely a case for you because its the buyer's responsibility to ensure that they are eligible to buy.

But you might want to look at other alternatives besides suing, as its not cost-effective (legal fees will be high) and does not fulfill your objective of selling the flat. Work with the buyers on how they can assure you that they will do their due diligence to ensure that they can buy your flat.

[applefreak 1]

you have to prove damages when you sue

what damages have you suffered?

[july-winter 0]

you have to prove damages when you sue

what damages have you suffered?

For now, our buyers managed to resolve their issue and our appointment was rescheduled to a later date.

Just asking only cos i m scared.

[ashes02 0]

dun be too hard on the buyers lah. times r bad, HDB are very niao on the HLE. if they really back out, u still gain the deposit leh. look for other buyers lor. u seriously dun hv much to lose.

[Stagger 0]

It will be really bad if any parties back out after exercising the OTP. Not only on the legal part, the party backing out may need to pay for the seller and buyer's agent fees. This is what they may have to pay if they back out:

1. Buyer + Seller's agent commission (abt 2%+1%)

2. Bank penalty charges (if Buyer is taking up bank loan) Buyer would have signed the loan approval prior to exercising the OTP

3. Back out for buyer - pays the diff if seller sold his flat for a lesser price than the initial agreed amount with the buyer

4. Back out for seller - pays the diff if buyer purchased a similiar flat eslewhere but at a higher price

this is my understanding...

[zirhk3355 1]

It will be really bad if any parties back out after exercising the OTP. Not only on the legal part, the party backing out may need to pay for the seller and buyer's agent fees. This is what they may have to pay if they back out:

1. Buyer + Seller's agent commission (abt 2%+1%)

2. Bank penalty charges (if Buyer is taking up bank loan) Buyer would have signed the loan approval prior to exercising the OTP

3. Back out for buyer - pays the diff if seller sold his flat for a lesser price than the initial agreed amount with the buyer

4. Back out for seller - pays the diff if buyer purchased a similiar flat eslewhere but at a higher price

this is my understanding...

Abit off-topic, but I hate to see people being arm-bent into paying agents' commission for such situations. The job of the agent (or the value of that commission) is not just to introduce the two people together. It is to iron out all factors, protect your respective clients, if possible create a win-win situation AND close the deal. If being an agent is just to introduce, then all agents should have been millionaires within their first year.

However all the crooked agencies had been coming up with micro-worded commission agreements that arm-bent people into paying commission as long as the agent brings someone for you. Now that IEA has scrapped their commission guidelines and especially in this gloomy situation, NEVER NEVER sign any commission agreements that seem unfair. Reserve your rights to pay only due commission to the deserving agents.