Seller Call Of After Exercise Otp

[Novem1101 0]

Dear all,

I've paid S$1k & S$4k to exercise OTP

Then the stupid Seller suddenly wan to cancel this deal, and do not want to sell his Unit due to they failed thier HDB bank loan for new Unit.

Are they legally wrong to withdraw this deal after signing OTP & received my S$4k?

My agent advise we can tk Legal action agaist them, to sue them n so on

If I really take Legal action, is that 100% win?

I'm thinking of give up the Unit

but other then ask back my S$5k, can I ask other compensation from Seller?

eg. Agent fees, bank penalty, my rental & all my time wasted :<

Is there any cap for compesation?

Besides, my agent also mentioned we can ask price different of current & new unit

Example, my current unit S$300k, I look for a S$320k

This Seller need to pay me S$20k

Is that true?

Pls advise. Thanks a lot lot

Edited February 24, 2010 by Novem1101

[asoon88 0]

Dear all,

I've paid S$1k & S$4k to exercise OTP

Then the stupid Seller suddenly wan to cancel this deal, and do not want to sell his Unit due to they failed thier HDB bank loan for new Unit.

Are they legally wrong to withdraw this deal after signing OTP & received my S$4k?

My agent advise we can tk Legal action agaist them, to sue them n so on

If I really take Legal action, is that 100% win?

I'm thinking of give up the Unit

but other then ask back my S$5k, can I ask other compensation from Seller?

eg. Agent fees, bank penalty, my rental & all my time wasted :<

Is there any cap for compesation?

Besides, my agent also mentioned we can ask price different of current & new unit

Example, my current unit S$300k, I look for a S$320k

This Seller need to pay me S$20k

Is that true?

Pls advise. Thanks a lot lot

Don't be silly. Just get back your $5K and look elsewhere.

If you take your agent's advice, you will lose more money seeking legal redress. The seller is also not obligated to pay you the difference because the courts cannot enforce the market price argument since you didn't actually buy another unit.

Edited February 24, 2010 by asoon88

[asoon88 0]

Don't be silly. Just get back your $5K and look elsewhere.

If you take your agent's advice, you will lose more money seeking legal redress. The seller is also not obligated to pay you the difference because the courts cannot enforce the market price argument since you didn't actually buy another unit.

Another thing, you are not obligated to pay your agent anything because it is a failed sale.

It was your agent's job to ensure that seller is able to sell off their property without any strings attached. Clearly, your agent didn't do his job. Don't listen to him anymore or you will be worse off.

[Novem1101 0]

oh... no no

is the seller agent don't do his job

he does not get Seller's loan approved before listing his Unit

I also think that is not possible to ask for the price different,

if the Seller need to lost blood like this, how dare they simply call off n not to sell...

So the most I can only tk back my S$5k & nothing more??

Then what this OTP and S$5k stand for???

the Seller can simply change thier mind without paying anymore??

This is really unfair to Buyer lei...

[usagisan 0]

oh... no no

is the seller agent don't do his job

he does not get Seller's loan approved before listing his Unit

I also think that is not possible to ask for the price different,

if the Seller need to lost blood like this, how dare they simply call off n not to sell...

So the most I can only tk back my S$5k & nothing more??

Then what this OTP and S$5k stand for???

the Seller can simply change thier mind without paying anymore??

This is really unfair to Buyer lei...

What has seller can't get loan to buy 2nd flat got to do with us buyers? That's the frustration i faced when the agent delayed submission of our resale application coz seller couldn't get loan approval.

The OTP is legally binding. So since u have already exercised the option & paid $5k, by right you should be able to get the $5k back. Read your OTP in detail to find any clause that allows you to claim it back legally. As for claims on other items, you need to discuss with seller / seller agent.

Check the commission agreement you signed with your agent coz different agencies varies. Usually if seller drops the deal, you don't have to pay commission.

In my case, seller can't sell due to HDB restrictions. We used a clause in OTP to claim our deposit & loan cancellation charges. No commission charged as well. We didn't claim compensation like higher value of next flat or inconvenience as the seller sure won't give in since it cannot be quantified/verified, unless we get a lawyer to do it. We didn't want to get laywer coz if seller still refuse, then go court will spend more $$ & effort. I've known of cases similar to yours where the lawsuit took more than 2 years to settle.

[Kellvin 0]

First of all, a good agent will go thru the entire clause in the OTP in front of the seller and buyer. In this case, I suspect both seller and buyer's agent just allow both party to sign and very brief explanation. I always brief them especially the consequences of withdrawing sales from seller and buyer before the signing of the OTP.

The seller's agent should advice the seller to obtain the HLE from HDB or to obtain the In Principal Approval (IPA) from the bank first in order to proceed the marketing of the unit. A good seller's agent will assist the seller to check on the eligibility to sell, financially advice after the sales and buying another unit making sure that seller is fully understand with the process before marketing. Buyer agent only mistake for this was during the signing the OTP, he should add those important clause that miss out by the other agent that present the signing of OTP. But when seller withdrawer of the sales, he might not fully understand the losing ground. What i mean the seller's agent is fully responsible.

During this kind of situation, there is no need to pay any comm to buyer at all.

Edited April 6, 2010 by Kellvin

[sksh 0]

first of all, did the agent demands for his comms? there is NO need to pay for the comms at all, cos there aren't any sales transaction taken place even.

as for the OTP, I only knows that exercising the OTP + deposit, is to safeguard the buyer from backing out last minute. However, I'm not too sure whether does it covers the 'protection' against the seller backing out instead. Nevertheless, u can definitely get back the deposit you have paid.

Just my opinion - it's your agent's job. They are supposed to do it for us. If not, why are we paying that much for their service when the deal is done.