When To Make Which Payments?

[deadrat 0]

Hi All,

I have exercised the OTP to purchase a resale hdb. I need to get the $$ prepared for the various payments, but I do not know when to pay what? Need advice from you all on when to pay what, so that I won't be caught by surprise.. haha!

1) OTP $5K Fully paid

2) COV Not Sure When?

3) Legal Fees Not Sure When?

4) Stamp Duty Not Sure When?

5) 10% of House Price Not Sure When? => (I am getting 90% loan from bank.)

6) Agent Fees Not Sure When?

Thanks in advanced!!

[swift 0]

Hi All,

I have exercised the OTP to purchase a resale hdb. I need to get the $$ prepared for the various payments, but I do not know when to pay what? Need advice from you all on when to pay what, so that I won't be caught by surprise.. haha!

1) OTP $5K Fully paid

2) COV Not Sure When?

3) Legal Fees Not Sure When?

4) Stamp Duty Not Sure When?

5) 10% of House Price Not Sure When? => (I am getting 90% loan from bank.)

6) Agent Fees Not Sure When?

Thanks in advanced!!

You are paying agent fees. Ask your agent for advice,

[springsummer 0]

Are you getting a lawyer? If yes, this is my payment schedule:

(1) Stamp Duty ==> on 1st appointment date; pay to the law firm

(2) Remaining COV = Total COV - $5K OTP

(3) Legal Fees

(4) 5% of Valuation Price (must be in cash)

(5) The rest of 5% of Valuation Price (if you take 90% bank loan, can be in cash or cpf or cash + cpf)

** If you take 80% bank loan, then item #5 will be "the rest of 15% of valuation price"

Item #2 - #5 Cash Portion: about 2 weeks before the scheduled completion date. The law firm will send you a letter about 1 month before the completion to give you the date. Cheque can be mailed, but i prefer to drop it off personally so that i can get the photo-copy of the cheque that i submitted.

Alternatively, you can give them a post-dated cheque on the 1st appointment, so you don't need to go there again.

Item #5 CPF Portion: CPF Board will deduct funds from your CPF OA acct about 1 week before the scheduled completion date.

The law firm will send you a letter about 1 mth before the completion date based on your instruction on how much to withdraw from each account.

(6) Agent Fees ==> The agency will send you an invoice within 1 week after the Resale Approval is out.

HDB approves the resale within 1 week after 1st appointment. When you pay the agent, it depends on your agreement with the agent.

For me, i paid my agent about 1.5 weeks before the completion. Some ppl advise to pay the agent on the completion date. It's up to you.

Hi All,

I have exercised the OTP to purchase a resale hdb. I need to get the $$ prepared for the various payments, but I do not know when to pay what? Need advice from you all on when to pay what, so that I won't be caught by surprise.. haha!

1) OTP $5K Fully paid

2) COV Not Sure When?

3) Legal Fees Not Sure When?

4) Stamp Duty Not Sure When?

5) 10% of House Price Not Sure When? => (I am getting 90% loan from bank.)

6) Agent Fees Not Sure When?

Thanks in advanced!!

Edited December 9, 2009 by springsummer

[hcbing 0]

Are you getting a lawyer? If yes, this is my payment schedule:

(1) Stamp Duty ==> on 1st appointment date; pay to the law firm

(2) COV + Legal Fees ==> about 2 weeks before the scheduled completion date. The law firm will send you a letter about 1 month before the completion to give you the date. Cheque can be mailed, but i prefer to drop it off personally so that i can get the photo-copy of the cheque that i submitted.

Alternatively, you can give them a post-dated cheque on the 1st appointment, so you don't need to go there again.

(3) CPF Withdrawal => about 1 week before the scheduled completion date. The law firm will send you a letter about 1 mth before the completion date based on your instruction on how much to withdraw from each account.

(4) 10% of Purchased price ==> Cash will be about 2 weeks before completion (see item #2). CPF will be according to item #3.

(5) Agent Fees ==> The agency will send you an invoice within 1 week after the Resale Approval is out.

HDB approves the resale within 1 week after 1st appointment. When you pay the agent, it depends on your agreement with the agent.

For me, i paid my agent about 1.5 weeks before the completion. Some ppl advise to pay the agent on the completion date. It's up to you.

I think if I'm not mistaken (kindly correct me if I'm wrong here), item (4) should accurately be described as "10% of Valuation price" instead? Since the cash portion would include herewith (5% of val price) + COV + others.

Cheers!

[deadrat 0]

Are you getting a lawyer? If yes, this is my payment schedule:

(1) Stamp Duty ==> on 1st appointment date; pay to the law firm

(2) COV + Legal Fees ==> about 2 weeks before the scheduled completion date. The law firm will send you a letter about 1 month before the completion to give you the date. Cheque can be mailed, but i prefer to drop it off personally so that i can get the photo-copy of the cheque that i submitted.

Alternatively, you can give them a post-dated cheque on the 1st appointment, so you don't need to go there again.

(3) CPF Withdrawal => about 1 week before the scheduled completion date. The law firm will send you a letter about 1 mth before the completion date based on your instruction on how much to withdraw from each account.

(4) 10% of Purchased price ==> Cash will be about 2 weeks before completion (see item #2). CPF will be according to item #3.

(5) Agent Fees ==> The agency will send you an invoice within 1 week after the Resale Approval is out.

HDB approves the resale within 1 week after 1st appointment. When you pay the agent, it depends on your agreement with the agent.

For me, i paid my agent about 1.5 weeks before the completion. Some ppl advise to pay the agent on the completion date. It's up to you.

Thanks Springsummer, but I was asked by the agent to pay him during the 1st appointment. I don't think that is quite correct, am I right?

Thanks hcbing for your additional comments.

Hi Swift, I have a lousy agent.. he asks me to refer everything to the lawyer.. but without him, I won't be able to get my dream house.. So, I can't complaint too much.

[madwarrior72 0]

Thanks Springsummer, but I was asked by the agent to pay him during the 1st appointment. I don't think that is quite correct, am I right?

Harr? But I thought transaction is not completed till the second appointment? Pay him liao then if anything go wrong between 1st to 2nd appointment how? I have also received the invoice from real estate company but my agent confirm that I will only need to pay him his commision after the whole sale is completed. F.Y.I, my 1st appt is only happening in Feb thus Sec appt should be in Mar liao. I think he wants you to pay earlier so that he can get his portion of commision earlier. Depending on his position, his company will split the commison with him say maybe he get 80% and 20% go to company.

[leo_aries 0]

I think if I'm not mistaken (kindly correct me if I'm wrong here), item (4) should accurately be described as "10% of Valuation price" instead? Since the cash portion would include herewith (5% of val price) + COV + others.

Cheers!

For Item (4)

Should it be 10% of Valuation price minus the $5k deposit? I just wondering? anyone can help clear my doubt?

[springsummer 0]

Thanks Springsummer, but I was asked by the agent to pay him during the 1st appointment. I don't think that is quite correct, am I right?

Thanks hcbing for your additional comments.

Hi Swift, I have a lousy agent.. he asks me to refer everything to the lawyer.. but without him, I won't be able to get my dream house.. So, I can't complaint too much.

Should be able to negotiate to pay him closer to the completion date or on the completion date.

If really unlucky, the seller can back off last minute as the flat is still legally theirs before completion date.

In anycase, the cheque is still with you so the agent cannot do anything if you want to pay him on the completion date. He has to "so-called" oblige to your request now because you've gone thru' 1st appt & you've known the seller. It's him who'll be worried not getting paid.

Anyway, try to ask nicely to pay him on the completion. If he's really a nutcase, then act tough and say he's not getting paid before the deal is completely done.

If not wrong, there's a clause in the agent's agreement that if the sales is cancelled & it's not our fault, the agent will have to give us back the commission paid. But, it'll be difficult lar to get our $$ back once it's paid.

[springsummer 0]

For Item (4)

Should it be 10% of Valuation price minus the $5k deposit? I just wondering? anyone can help clear my doubt?

Example: Purchase price = $310k valuation + $30k COV

Bank loan is 90%

(1) OTP, pay $5k

(2) On 1st appt, pay Stamp Duty

(3) About 2wks before Completion, pay:

$25K (cash, remaining COV, $30k-$5k)

5% of valuation price = $15.5K (must be in cash)

Legal Fees = $2.0K - $2.5K (cash; can also use CPF)

5% of valuation price = $15.5K (cash / cpf / cash + cpf)

--> the $25K must be in cash

--> $15.5K must be in cash

--> legal fees can be in cash/cpf

---> another $15.5k can be in cash/cpf/cash+cpf

Edited December 9, 2009 by springsummer

[jeda 0]

even if i take HDB loan, still must fork out 5% valuation price???

[springsummer 0]

deleted deleted

Edited December 9, 2009 by springsummer

[leo_aries 0]

Thanks for the info, SpringSummer.

if

Example: Purchase price = $310k valuation + $2k COV

90% bank loan.

and deposit buyer pay $5k.

what will happen to the extra $3k?

[JustMortgage 0]

Thanks for the info, SpringSummer.

if

Example: Purchase price = $310k valuation + $2k COV

90% bank loan.

and deposit buyer pay $5k.

what will happen to the extra $3k?

310k : 10% = 31k

You need to pay 31k + 2 K = 33K

After 5k Deposit = 27k outstanding.

of which 5% cash. 15.5k Cash + 2k Cash

Therefore you need to pay 17.5k Cash - 5k Option

= 12.5k Remaining CASH to be paid

CPF = 12.5k

Take a bank loan and ensure that LO is ready by 1st appointment.

[leo_aries 0]

310k : 10% = 31k

You need to pay 31k + 2 K = 33K

After 5k Deposit = 27k outstanding.

of which 5% cash. 15.5k Cash + 2k Cash

Therefore you need to pay 17.5k Cash - 5k Option

= 12.5k Remaining CASH to be paid

CPF = 12.5k

Take a bank loan and ensure that LO is ready by 1st appointment.

i think the CPF portion should be still 5% of 310k which is 15.5k right?

and also "After 5k deposit = 27k outstanding" , should be 28k right?

Just to high light, as I'm not sure if i am correct about it.

[deadrat 0]

Should be able to negotiate to pay him closer to the completion date or on the completion date.

If really unlucky, the seller can back off last minute as the flat is still legally theirs before completion date.

In anycase, the cheque is still with you so the agent cannot do anything if you want to pay him on the completion date. He has to "so-called" oblige to your request now because you've gone thru' 1st appt & you've known the seller. It's him who'll be worried not getting paid.

Anyway, try to ask nicely to pay him on the completion. If he's really a nutcase, then act tough and say he's not getting paid before the deal is completely done.

If not wrong, there's a clause in the agent's agreement that if the sales is cancelled & it's not our fault, the agent will have to give us back the commission paid. But, it'll be difficult lar to get our $$ back once it's paid.

Hey Springsummer,

Thanks a lot for your great advice. I shall nego with him. ;-)