Otp To Buy Resale Flat

[tydy 0]

hi all,i really need advice for buyin a resale flat! Recently i saw an advert in st701 and called up e agent. In the advert it states at e flat is selling at valuation n we verify with e agent n she confirm.We view e flat twice n decided to purchase e flat. It requires minimal reno n since its sellin at val, we thought its a gd buy. The agent gave us sales talkin sayin intially the owner wanted 15k +val n say that e flat had been sold but too bad the other buyer was unable to get a bank loan,they have to forgo e flat thats why it is bein release back to market. We told her that we would only buy at valuation.the agent told us she would try her best to help us.n ask me to issue a chq for deposit of 1k to show our sincerity. The agent say tat the sellers r very busy to meet us n she wil try to persuade seller to sell us at val. The agent also asked me to sign an OTP form without fillin e resale price as she say she will negotiate with seller to sell us at val.

Now my worry is that

1) wil she filled in the blank resale price by any amt n i have to honour e price? I really dun wish to forfeit my 1k.

2) throughout our conversatinn, she told me e sellers r unsure of selling. I dunwan them to delay e process as my hle is expirin n becos im changin my job, i might have prob applyin for another hle.

3) in e otp form, it only bears my signature as my hubby was nt around, does it prove to be valid? Does it need 2 buyers n 2sellers signatory to be valid. Haiz. All the issues abt buyin tis resale flat is givin me sleepless nites.

4) we wanted to save cash for our reno needs hence we do not want to place too much cash for deposit. We proposed to put 1k for deposit n 1k to exercise e otp. The agent told us its a norm that most sellers would demand 1k + 4k (5k deposit) in total. Is that true? The agent say she wil try her best to help us. But she is the seller agent too. How can she protect both side interest. I really doubt her words. Nw we r at a lost. Not sure if we should withdraw frm tis flat n move on to look for other flats.

Pls advise as im really worried abt point 1 n 4!

Edited December 26, 2008 by tydy

[tydy 0]

deleted-duplicate post..

Edited December 26, 2008 by tydy

[pinkpetter 0]

WHOA.... you guys haven't even met the sellers..

technically the option should be signed with both parties present although that doesn't always happen. BUT IT SHOULD cos it is one of the clauses in the document.

If I were you... I wouldn't.

1) Highly possible. BUT due to point 3...

2) unmotivated sellers are always a big problem.

3) not valid. if two people are buying you need two signatures. So it depends on how good you are at talking. If Point 1 really happens then you can argue that it's not valid and that you want your deposit back. But... due to point 2, they can argue that it's not valid and dun wanna sell also.

4) true. I guess if you can get more cash first... why not? But it's not true for every case and some sellers are willing to take less cash at first.

Market isn't good right now and there are probably more flats at valuation or low valuation.... I would keep my options open by looking at more.

I dislike this kind of agent. IMHO.

[hello88 2]

mind telling us where's this flat located? Anyway, I found it very fishy and would never endorse my signature w/o the purchase price of the flat.

[tydy 0]

mind telling us where's this flat located? Anyway, I found it very fishy and would never endorse my signature w/o the purchase price of the flat.

thanks for reading the lengthy thread. It has been edited cos it was send by hp ytd. Thats why its a duplicate post cos I hit on refresh button twice. Hee...

Hi hello88, i have pmed u the location. Its also at Hougang.

Hi pink, thanks for the reply. I also hate this agent. She is kinda like those auntie agent and really hate her attitude. Too bad she has the exclusive rights to market the flat that's why we cannot engage another agent to represent us. I send her a sms saying that I will withdraw my cheque on 01-Jan-09 if the sellers cannot give me a reply by then. I sign a post-dated cheque and havent transfer the money yet. If she didnt called me by Monday regarding the outcome, I will let the chq bounced since the seller is also very insincere. I rather pay the bank charges of bounced chq then to let them take my 1K.

I really hate them to delay and yes, I hate the agent too. Why cant she make the process more transparent?

Edited December 26, 2008 by tydy

[zirhk3355 1]

The objective of the agent is to close the sale and get comm. They do not care if the price is right or to protect anybody's interest.

While the OTP cannot be exercised if one of the buyers is not willing to buy (ie your husband who never sign), the sellers can still forfeit the $1K deposit.

[asianms 0]

1. never put a signature on an unfilled form. agree on price first and have it written in B&W

2. 'unsure' seller could just be waiting for better offer, knowing that they have an interested buyer in you. In fact, once they accept your offer, they should not show the flat to any other parties, but many sellers don't observe that, esp if they are not in a hurry to sell. so you might end up wating even longer

4. industry practice seems to be $1K + $4k, but it is not neccesary. My recent place was bought through DTZ agent, $1k + $500 only. My agent pointed out to me that the terms actually say 'not more than'

Since agent acting for both sides, did youy check if you need to pay commission?

House hunting is stressful. keep a cool head.

Good luck

[tydy 0]

The objective of the agent is to close the sale and get comm. They do not care if the price is right or to protect anybody's interest.

While the OTP cannot be exercised if one of the buyers is not willing to buy (ie your husband who never sign), the sellers can still forfeit the $1K deposit.

hi zirhk3355, we are willing to buy as long as the seller willing to sell. We also dont wan our money to be forfeited. But given current situation, the seller hasnt met us(agent excuse saying they are very busy.) and

she dont wan to confirm if seller is willing to sell at valuation as advertised.

1. never put a signature on an unfilled form. agree on price first and have it written in B&W

2. 'unsure' seller could just be waiting for better offer, knowing that they have an interested buyer in you. In fact, once they accept your offer, they should not show the flat to any other parties, but many sellers don't observe that, esp if they are not in a hurry to sell. so you might end up wating even longer

4. industry practice seems to be $1K + $4k, but it is not neccesary. My recent place was bought through DTZ agent, $1k + $500 only. My agent pointed out to me that the terms actually say 'not more than'

Since agent acting for both sides, did youy check if you need to pay commission?

House hunting is stressful. keep a cool head.

Good luck

Yeah, we need to pay her commission of 1% + 7% GST.

[asianms 0]

If you not say die die must buy this flat, then give a deadline. If the deal is not closed by the deadline, move on.

[tydy 0]

If you not say die die must buy this flat, then give a deadline. If the deal is not closed by the deadline, move on.

my deadline for this flat is 01-Jan-09 lor. I have smed her saying that if the sellers cannot give me a response by then, I will withdraw my cheque and look for other units. No doubt we like the flat(cos just opp my mum place), we also cannot delay cos my HLE is expiring. And due to change of job, i might have prob applying for another HLE.

Edited December 26, 2008 by tydy

[pinkpetter 0]

thanks for reading the lengthy thread. It has been edited cos it was send by hp ytd. Thats why its a duplicate post cos I hit on refresh button twice. Hee...

Hi hello88, i have pmed u the location. Its also at Hougang.

Hi pink, thanks for the reply. I also hate this agent. She is kinda like those auntie agent and really hate her attitude. Too bad she has the exclusive rights to market the flat that's why we cannot engage another agent to represent us. I send her a sms saying that I will withdraw my cheque on 01-Jan-09 if the sellers cannot give me a reply by then. I sign a post-dated cheque and havent transfer the money yet. If she didnt called me by Monday regarding the outcome, I will let the chq bounced since the seller is also very insincere. I rather pay the bank charges of bounced chq then to let them take my 1K.

I really hate them to delay and yes, I hate the agent too. Why cant she make the process more transparent?

I'm really glad you did the post-dated thing. She probably is taking advantage of the situation cos she's the experienced "auntie" here.

Seriously since you haven't met the sellers, you might not know what she's telling them. She could be telling them that YOU are the busy ones, you cannot meet up and might portray a bad image of you guys.

I certainly wish you luck in house hunting... I hope you find a place just as good as this one... with someone better marketing it

[zirhk3355 1]

thanks for reading the lengthy thread. It has been edited cos it was send by hp ytd. Thats why its a duplicate post cos I hit on refresh button twice. Hee...

Hi hello88, i have pmed u the location. Its also at Hougang.

Hi pink, thanks for the reply. I also hate this agent. She is kinda like those auntie agent and really hate her attitude. Too bad she has the exclusive rights to market the flat that's why we cannot engage another agent to represent us. I send her a sms saying that I will withdraw my cheque on 01-Jan-09 if the sellers cannot give me a reply by then. I sign a post-dated cheque and havent transfer the money yet. If she didnt called me by Monday regarding the outcome, I will let the chq bounced since the seller is also very insincere. I rather pay the bank charges of bounced chq then to let them take my 1K.

I really hate them to delay and yes, I hate the agent too. Why cant she make the process more transparent?

I just saw this post.

Note that exclusive to market does not also mean that the buyers have to use her services as well; as long as you did not sign any comm agreement with her, you can get another agent to come in and fight for your rights. You are going to pay 1% comm, might as well pay to someone who will act in your interest.

Don't let the cheque bounced, it will look bad on your bank account. Call the bank to cancel the cheque; this is different from bounce.

There's a few reasons why the agent seemed funny and dodgy:

1. She is trying to play with you, play the waiting game, make you kancheong and ask the golden question as to what price the seller wants. Then she can straightaway give you the closing price and seal the deal;

2. You are being used by the agent as a dangling carrot to the seller. Someone else might have offered higher, but the seller is not accepting it, thinking got higher offer. So the agent bring you in to show the seller that the next offer (ie you) is lower, so that the seller will 'LL' accept the first offer. In another way, you are the safety net; if the higher offeror withdraws, they still can sell to you.

Take heed, and try to see how you can turn the situation around and still get your dream flat. My advice is to get another agent to represent you.

[ahwee 0]

1) never sign any blank cheque. You are putting yourself at unnecessary risk.

3) on the form itself, is your hubby's particulars written on it as a co-buyer? If its only your particulars listed as buyer and you already signed, then if i am not wrong, it can be processed as a sole buyer case??? Cause for my present resale(bought 6years ago), i am sole owner and my wife and parents are occupier.

4) Ask her dont talk rubbish. Deposit minimum $1 under HDB ruling....of cos no one put $1...5k thing is a standard for condo/private if i recall correctly. Your 1k deposit itself can be used to exercise the otp.

If you dont feel safe, then call HDB clarify your doubts without delay. Also its a bad idea to use a common agent.

[tydy 0]

1) never sign any blank cheque. You are putting yourself at unnecessary risk.

3) on the form itself, is your hubby's particulars written on it as a co-buyer? If its only your particulars listed as buyer and you already signed, then if i am not wrong, it can be processed as a sole buyer case??? Cause for my present resale(bought 6years ago), i am sole owner and my wife and parents are occupier.

4) Ask her dont talk rubbish. Deposit minimum $1 under HDB ruling....of cos no one put $1...5k thing is a standard for condo/private if i recall correctly. Your 1k deposit itself can be used to exercise the otp.

If you dont feel safe, then call HDB clarify your doubts without delay. Also its a bad idea to use a common agent.

hi ahwee, thanks for ur reply but I didnt sign on blank chq. What I did was to give them a post dated chq instead. I cannot be a sole buyer as Im under 35 yrs old.

[ahwee 0]

hi ahwee, thanks for ur reply but I didnt sign on blank chq. What I did was to give them a post dated chq instead. I cannot be a sole buyer as Im under 35 yrs old.

Hi, sorry i didnt make myself clear, the 'blank cheque' i was referring to was the otp form that you signed without witnessing the agent writing down the agreed selling price. Cause next time if there's any discrepancies, you cant turn around and say that you signed, with the price column blank, and want dispute the price indicated on it....

You can still purchase the flat as a sole owner so long that you put your husband as "compulsory occupier". That means he's not contributing his cpf to the payment of the flat.

I am a sole owner of this house which i bought 6 years back, when i was 27 years old. That time i added in my parents name as "compulsory occupier" and then changed it to my wife's name as "compulsory occupier" when i got married shortly after the purchase.

For the above 35years single party purchase, that is if you are staying alone, not registering any of your kin as "complusory occupier" staying with you.

So now you roughly get the picture what risk are there? You said you signed on the otp form, but have you signed on the exercising to purchase column? (Last page if i am not wrong). If so, then if the agent submit the document without your knowledge/agreement to hdb and hdb processed the application, then you want to abort it and claimed that its a fraudulent application, you may have a hard time proving it (that is you signed on the otp and exercised your purchase option, with the purchase price blank). The seller may sue you and if they are successful then you have to compensate. Even if you can prove that the agent frauded you, it will be a lengthly process.

Dont get me wrong, i am not saying that the agent with fraud you. These are some of the possible risks. So, if you dont feel safe, call hdb and clear your doubts. Dont be led on a merry go around by the agent.

Hope things go on smoothly for you.

Edited December 27, 2008 by ahwee