What Legal Recourse Do I Have?

[JT36 0]

Hi I need advice on this. I have a potential buyer for my 5-room flat who verbally confirmed to my agent that he wanted to buy my flat. The option money of $1000 in cheque was then handed to my agent who held it for 1 week before passing it to me last week.

However the cheque bounced last week and when contacted, the buyer now says that he no longer wants my unit. As I had already held my flat for him for 2 weeks, can he simply back out without having to pay me any penalty?

Thanks in advance to anyone who can advise me.

[ngunadi 2]

Hi I need advice on this. I have a potential buyer for my 5-room flat who verbally confirmed to my agent that he wanted to buy my flat. The option money of $1000 in cheque was then handed to my agent who held it for 1 week before passing it to me last week.

However the cheque bounced last week and when contacted, the buyer now says that he no longer wants my unit. As I had already held my flat for him for 2 weeks, can he simply back out without having to pay me any penalty?

Thanks in advance to anyone who can advise me.

Did he signed anything?

Or, you are only holding the $1k cheque?

From the looks of it, nothing much you can do. Not worth to sue him. Might as well move on ...

[therat 18]

The buyer issue an option CHQ of 1K and your agent on hold the cHQ for 1 wk before pass to you

1. Did you know there is such offer before your agent pass to you the CHQ?

2. Did you sign and pass the OTP to the buyer?

If you never sign and pass the OTP to the buyer. No case.

I don't understand why the agent want to on hold the CHQ for 1 wk so long.

[forgotten 1]

I would think that it was the agent's fault. He should have informed you earlier about the offer, and arranged a date for both parties to sign the OTP form.

If the buyer heard no news about the OTP form for more than 1 week, of course he would think that you (the seller) was not interested to accept his offer and proceed to cancel his cheque.

Without a properly signed OTP form, you wouldn't be able to claim the 1K from the buyer.

Edited April 22, 2010 by forgotten

[bepgof 20]

Hi I need advice on this. I have a potential buyer for my 5-room flat who verbally confirmed to my agent that he wanted to buy my flat. The option money of $1000 in cheque was then handed to my agent who held it for 1 week before passing it to me last week.

However the cheque bounced last week and when contacted, the buyer now says that he no longer wants my unit. As I had already held my flat for him for 2 weeks, can he simply back out without having to pay me any penalty?

Thanks in advance to anyone who can advise me.

- You are legally entiltled to the $1k option fee(cheque) which was meant to be paid to you in your name, if seller opted out not to purchase later on, though before you offer him the OTP.

- bounched cheque = seller intended not honour his word = seller has "intention to cheat" which is a criminal act, can make a police repoort & with this report, proceed to small claim court..........if you have time & energy & found worth doing so.

- I'm sure agent has some "ill-intention" by holding the cheque, or letting you aware such, for after a week. Check it out. For me, i would replace the agent without hesitation if found he/she has "ill-intention".

- Anyway, bounced cheque also has cost owner a "punishment" fee, you may "feel better" if not to go further on this. Think another way - can always get back this "$1k" from future buyer, right? But must get the agent corrected first.

Edited April 22, 2010 by bepgof

[chronograph 0]

Hi I need advice on this. I have a potential buyer for my 5-room flat who verbally confirmed to my agent that he wanted to buy my flat. The option money of $1000 in cheque was then handed to my agent who held it for 1 week before passing it to me last week.

However the cheque bounced last week and when contacted, the buyer now says that he no longer wants my unit. As I had already held my flat for him for 2 weeks, can he simply back out without having to pay me any penalty?

Thanks in advance to anyone who can advise me.

This is how i read it verbally confirmed meaning OTP not signed.

There is nothing much you can do but to sack your agent. Suggest you move on.

In fact, u lose nothing, maybe 2 weeks of your time. It might be a blessing in disguise cause who know u might sell higher.

[yoongf 11]

Was OTP handed over to the buyer?

Even if legally everything was in your favour, it is not worth to fight over $1K.

[JT36 0]

This is how i read it verbally confirmed meaning OTP not signed.

There is nothing much you can do but to sack your agent. Suggest you move on.

In fact, u lose nothing, maybe 2 weeks of your time. It might be a blessing in disguise cause who know u might sell higher.

[JT36 0]

Thanks a bunch for all the kind advice.

No I did not sign any OTP.

My agent held the cheque because the other agent requested him to do so. Apparently this in turn was a request of the buyer.

I have fallen out with my agent as he did not inform me he was holding the cheque and I also felt he did not advise me appropriately. I found out from HDB that I should have collected the cheque directly from the buyer in the presence of both agents. I had the idea that my flat was confirmed sold so I turned away some viewing requests.

Bepgof

Other than the cheque, I have no documentary proof so I don't know if I have a case at the small claims court.

The buyer claimed he did not expect the cheque to bounce since the agents agreed to on-hold it so he withdrew the money when he had second thoughts about my unit. He also claimed he had difficulty contacting the agent about this.

[bepgof 20]

Thanks a bunch for all the kind advice.

No I did not sign any OTP.

My agent held the cheque because the other agent requested him to do so. Apparently this in turn was a request of the buyer.

I have fallen out with my agent as he did not inform me he was holding the cheque and I also felt he did not advise me appropriately. I found out from HDB that I should have collected the cheque directly from the buyer in the presence of both agents. I had the idea that my flat was confirmed sold so I turned away some viewing requests.

Bepgof

Other than the cheque, I have no documentary proof so I don't know if I have a case at the small claims court.

The buyer claimed he did not expect the cheque to bounce since the agents agreed to on-hold it so he withdrew the money when he had second thoughts about my unit. He also claimed he had difficulty contacting the agent about this.

Suggest you to forget whole issue, frame the cheque up, next tell your story to grandchildren. Try making selling house as a pleasant experience.....

Edited April 23, 2010 by bepgof

[yoongf 11]

.... I had the idea that my flat was confirmed sold so I turned away some viewing requests.

OTP is a document that the SELLER (you) GIVE to the buyer in exchange for the OTP $.

There is no basis to claim that you thought the flat was confimed sold when this OTP was never handed over. It does not matter whether u signed it or not. The OTP must be in the hands of the buyer or the buyer agent to consider it a transection.

If u are really keen to sell, get the OTP prepared first. By reading the OTP, u will then fully understand the importance of the OTP.

There are many OTP $ chq floating out there, to entice sellers to sell. These chq mean nothing unless an OTP is handed over.

[bepgof 20]

Just to add further to Yoongf's comment:

- Seemed that agent, you and the seller failed to understand the significance of OTP.

- The $1k cheque(option fee) from you is in exchange your OTP to buyer, if you decided to sell to him.

- Correctly, this process has to be done at the same place, same time, with your & witness(agent)'s signature on OTP.

- Buyer takes the OTP home, & within 14 days, to return the OTP with his signature & pass you a $4K cheque(or can be any amount <4K, not exceeding 5K with the option fee.

- You cannot make offer to another seller within this 14 days.

- You better at the quicker earlier time bank in the cheque.

- If seller does not return OTP after 14 days, or he within 14 days, indicates to you he is not interested to buy your flat, the $1K cheque is then rightfully your & you can start selling again.

- If $1K cheque bounces, then you may consider take action.

See below seller's otp to me, paid 5K, same day, during 1st viewing.

http://img245.imageshack.us/img245/1396/ot...423113page1.jpg

http://img405.imageshack.us/img405/8572/ot...423113page2.jpg

http://img541.imageshack.us/img541/3659/ot...423113page3.jpg

http://img338.imageshack.us/img338/5256/ot...423113page4.jpg

Edited April 24, 2010 by bepgof

[purecat 0]

if only$1k can bounce... means the fellow either has many bank accounts (except this particular account is lowly cash..) or in reality really cash broke.

I think it is really a blessing in disguise to happen now... what if later then HDB realise he is not financially sound and wouldnt grant the resale... ended up that will be more adminstrative tiring for u. Though cases of Resale at 1st appmt or 2nd appmt calling off is rare but they happen also.

Hence change an agent and all the best in your future sales! Surely u can get back in a higher sale price ! Cheers !