Correct Procedures In Buying A Property

[netimpact 0]

Hi guys,

I have a question to buying a condo.

I have already got a AIP from banks and want to offer for a condo. Do I need to enage a laywer first before I pay the 1 % downpayment for the OTP? or I can pay first and get the Bank loan, lawyer?

[therat 18]

no fix rule. depend on you.

Some prefer to use their own lawyer even if their lawyer is not under the bank panel lawyer

some want to use the bank panel lawyer in order to entitle for the legal subsidy.

So.. totally depend on yourself.

[yoongf 11]

Offer 1% chq to entice owner give u OTP.

Grab the OTP and run to bank, demand within 2 weeks give u LO.

Then find lawyer to exercise OTP on your behalf.

Whether want to wait for Bank LO before exercise OTP is up to u.

Whether want to tell agent to immediately advertise to flip also up to u.

[blackcar 0]

Hi guys,

I have a question to buying a condo.

I have already got a AIP from banks and want to offer for a condo. Do I need to enage a laywer first before I pay the 1 % downpayment for the OTP? or I can pay first and get the Bank loan, lawyer?

No need lawyer, once the owner agreed to sell u the hse. Get all the supporting documents to yr banker for offical loan approval. Once it has been approved which is most likely since u obtained the AIP from them. The bank will arrange a lawyer for you.

[horseman 0]

The sequence should be

a. sort out finances (AIP)

b. find the property

c. make the offer for property

d. once seller grants option to purchase, formally apply for loan using the OTP. Loan approvals are quite fast - I had facility letters within a week.

e. decide on financing package and appoint a lawyer from the bank's panel

f. instruct the lawyer to exercise the option

g. sign the facility letter {can be done before or after you exercise the option}

h. wait for completion of sale

d, e and f has to be done before the option expires.

If it is a straightforward case, the bank's panel of lawyers should be competently able to handle the property purchase. If you prefer to use your own lawyer and he or she is not on the bank's panel, you won't enjoy the legal subsidy. In my case, I appointed my friend whom I have known for years to handle my purchase even though he was not on the bank's panel. I didn't enjoy the subsidy but it was a small price to pay for the peace of mind of knowing that I have direct access to my trusted lawyer. The legal fee is but a small portion of the property purchase price.

[JustMortgage 0]

Hi guys,

I have a question to buying a condo.

I have already got a AIP from banks and want to offer for a condo. Do I need to enage a laywer first before I pay the 1 % downpayment for the OTP? or I can pay first and get the Bank loan, lawyer?

You can always check with your lawyer if he is on the panel of the respective banks.

[netimpact 0]

Hi Guys,

Thanks for the advise, I guess I just need to ensure the vendor is the correct owner and no bankrupt before paying my 1%

[chia90 0]

Hi Guys,

Thanks for the advise, I guess I just need to ensure the vendor is the correct owner and no bankrupt before paying my 1%

...and no impending lawsuits which may result in owner filing for bankruptcy... and no land reserve in SLA plan for landed transactions....

there may be more to watch out for...that is why lawyers are very important in pte property cases....

[therat 18]

...and no impending lawsuits which may result in owner filing for bankruptcy... and no land reserve in SLA plan for landed transactions....

there may be more to watch out for...that is why lawyers are very important in pte property cases....

the lawyer will be checking all the above.

Owner no need to do all these.

[horseman 0]

Vendor's agent should ensure that vendor is rightful owner and has the authority to sell, otherwise the vendor cannot legally grant the option. If it gives you peace of mind and you do not have a lawyer when you make the offer, you can make an online property title information check with SLA. It costs only $15.75. The information will also include court notices which includes bankcruptcy action. Ask your agent to help you.

Hi Guys,

Thanks for the advise, I guess I just need to ensure the vendor is the correct owner and no bankrupt before paying my 1%

[yoongf 11]

Vendor's agent should ensure that vendor is rightful owner and has the authority to sell, otherwise the vendor cannot legally grant the option.

Vendor agent owe no duty of care to the buyer. Agent has no obligations whatsoever. Do not expect anything from the agent. Real estate agency is not a regulated profession like lawyers or engineers.

[chrisngpg 0]

How long does the process normally take? I just signed the offer to purchase, and ask seller to confirm acceptance of sale by tomorrow. What's the earliest I should ask the seller to vacate the place? Agent say give them 10 weeks, cos all the paperwork will take that long anyway.

[yoongf 11]

..... and ask seller to confirm acceptance of sale by tomorrow. What's the earliest I should ask the seller to vacate the place? Agent say give them 10 weeks, cos all the paperwork will take that long anyway.

Ask seller to confirm acceptance of sale???

OTP is issued by seller, u shd pass the OTP to a lawyer, and it's his/her job to "Exercise the OTP" according to the terms and conditions as stated in the OTP. During this period, everything is based on what is written in the OTP. Agent words no count, as all terms and conditions are on the OTP itself.

Early completion is a double edge sword, and the cost of late completion can be costly. Both buyer and seller usually have loan issues to resolve during this 10 wk completion period.

[therat 18]

Offer to purchase in short OTP

Option to Purchase in short also OTP

[scenic98 0]

How long does the process normally take? I just signed the offer to purchase, and ask seller to confirm acceptance of sale by tomorrow. What's the earliest I should ask the seller to vacate the place? Agent say give them 10 weeks, cos all the paperwork will take that long anyway.

i feel any agents worth their salt should have the basic knowledge of a standard sales and purchase of a property. i guess most of us here are not into buying and selling properties every other week (or months or years for that matter....at least for me ), so we will normally have to rely on agent's advise on the procedure which is what they are paid to do in the first place.

I guess i was lucky in having acceptable agents (NOTE: only acceptable, and not exceeding expectations) that made my sale of my EC and purchase of our new nest a smooth process.

Did your agent ask u to sign the OTP on the spot? The time between u handing over the 1% and signing the OTP is like a cooling off period. You paid the premium (i.e. the 1%) for this option to back off the deal if you so wish to for whatever reason. It also gives your lawyer time to do some basic background check on the property (tenure, land size etc) and also to finalise your loan. Once you sign the OTP, and decide to back off, not only you stand to loose the entire 5%, you may get into some legal bind.

The "industry norm" of completion is 12 weeks. Though this can be negotiated and mutually agreed by both buyer and seller.

wonder what's taking the authorities so long to license all property agents.