Resale Flat - Spr Quota Eligibility Problem :(

[fengwei 0]

Hi All,

I've been trying to sell my flat for a couple of weeks. Got a confirmed buyer on 26th May. I'm an SC, the buyers are SPR from HK. When we checked the SPR Quote Eligibility on the day of viewing (in May), our flat was eligible to sell to anyone. So we signed OTP with the agent. But the buyer needed to get bank loan, which was approved last Friday, 4th of June. Our agent tried to send the OTP to HDB today, but failed 'cause the buyers aren't eligible to buy our flat anymore!

Then I checked the SRP Quota again, now only SC or Malay SPR are eligible to buy our flat

Now how? The buyer already paid me the option fee and deposit last month, but the process crossed over the month. The agent said they'd send appeal to HDB, but don't know what the turn out would be.

Is there anyone here had similar experience or heard of this kind of problem before? Would be great if the deal could go through so I don't need to look for another buyer again ...

Thanks for your input.

Cheers!

Frank

Edited June 7, 2010 by fengwei

[bepgof 20]

Hi All,

I've been trying to sell my flat for a couple of weeks. Got a confirmed buyer on 26th May. I'm an SC, the buyers are SPR from HK. When we checked the SPR Quote Eligibility on the day of viewing (in May), our flat was eligible to sell to anyone. So we signed OTP with the agent. But the buyer needed to get bank loan, which was approved last Friday, 4th of June. Our agent tried to send the OTP to HDB today, but failed 'cause the buyers aren't eligible to buy our flat anymore!

Then I checked the SRP Quota again, now only SC or Malay SPR are eligible to buy our flat

Now how? The buyer already paid me the option fee and deposit last month, but the process crossed over the month. The agent said they'd send appeal to HDB, but don't know what the turn out would be.

Is there anyone here had similar experience or heard of this kind of problem before? Would be great if the deal could go through so I don't need to look for another buyer again ...

Thanks for your input.

Cheers!

Frank

I'm sure HDB needs further action to "fine tune" to close the "hole" in this system. Within 14 days, many things can happen. System should reflect the "actual" SPR Quota number for the "next 14 day" or even slightly longer and on-going. Can not just based upon "first day of each month", - may be HDB doesn't have man-computer to reflect this based on "real time" or "14 day later".

You can write in to the press, see what HDB replies. May be HDB will tell you more specifically that it is seller's responsibility to accept $1k booking before 15 of the month. Accepting 1K after this date is seller's own risk?? Actually, yr agent should have highlighted this "risk" to you before hand.

Edited June 7, 2010 by bepgof

[fengwei 0]

I'm sure HDB needs further action to "fine tune" to close the "hole" in this system. Within 14 days, many things can happen. System should reflect the "actual" SPR Quota number for the "next 14 day" or even slightly longer and on-going. Can not just based upon "first day of each month", - may be HDB doesn't have man-computer to reflect this based on "real time" or "14 day later".

You can write in to the press, see what HDB replies. May be HDB will tell you more specifically that it is seller's responsibility to accept $1k booking before 15 of the month. Accepting 1K after this date is seller's own risk?? Actually, yr agent should have highlighted this "risk" to you before hand.

Thanks for the reply. Writing to the press didn't come to my mind until you said so. I guess I'm gonna try that and see how. Our agent didn't expect this would happen, she didn't highlight us the risk because I was selling the house on my own, she's only handling the paper work. I called HDB about this and was told to appeal but there is no guarantee that our deal would go through Anyway, we'd gonna try and see how it goes. Actually it's not a big deal to us sellers 'cause we'd lose nothing but some time. It's the buyer who might be in trouble 'cause he applied bank loan already. If the deal can't go through, he'd have a lot explanation work to do w/ the bank, and might face a fine or something ...

[blueocean 0]

The advice and conditions for the ethnic/SPR quota is quite clear (see http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...IP?OpenDocument ) :

"The ethnic proportions and SPR quota are updated on the first day of every month.

It is applicable for resale applications submitted to HDB for the same month.

Buyers and Sellers have to ensure that the ethnic proportion and/or SPR Quota are met at the point of the resale application"

The buyer's agent is quite new or inexperienced ? The standard checklist for every agent to check (1) bankruptcy (it will invalidate any contract) (2) verify correct owner and NRIC (3) verify eligibility (4) verify SPR/ethnic quota

Anyway, the buyer's agent would be stressed ... as she has breached her duty of care to her buyers

Thanks for the reply. Writing to the press didn't come to my mind until you said so. I guess I'm gonna try that and see how. Our agent didn't expect this would happen, she didn't highlight us the risk because I was selling the house on my own, she's only handling the paper work. I called HDB about this and was told to appeal but there is no guarantee that our deal would go through Anyway, we'd gonna try and see how it goes. Actually it's not a big deal to us sellers 'cause we'd lose nothing but some time. It's the buyer who might be in trouble 'cause he applied bank loan already. If the deal can't go through, he'd have a lot explanation work to do w/ the bank, and might face a fine or something ...

Edited June 8, 2010 by blueocean

[fengwei 0]

The advice and conditions for the ethnic/SPR quota is quite clear (see http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...IP?OpenDocument ) :

"The ethnic proportions and SPR quota are updated on the first day of every month.

It is applicable for resale applications submitted to HDB for the same month.

Buyers and Sellers have to ensure that the ethnic proportion and/or SPR Quota are met at the point of the resale application"

The buyer's agent is quite new or inexperienced ? The standard checklist for every agent to check (1) bankruptcy (it will invalidate any contract) (2) verify correct owner and NRIC (3) verify eligibility (4) verify SPR/ethnic quota

Anyway, the buyer's agent would be stressed ... as she has breached her duty of care to her buyers

Thanks for the info. Seems our deal is off

Actually it's not totally the agent's fault lah. She's a good friend, just helping us out w/ the paper work, we buyer/seller do the purchase on our own. Before we signed the OTP, she did check the SPR Quota, and our deal was fine since all ethnic group could buy then. But the buyers needed some time to get the bank loan, which stretched across the month. But the agent didn't check the SPR Quota before they submitted the application, which was of course rejected

Now the buyers are not eligible to buy my flat, but they already got the bank loan. Now the buyers might be fined by the bank because of this, and I need to find a buyer for my flat again.

Everything was going so smoothly until now .... Sigh

[wolflet 1]

the sellers should already have gotten their in principle approval prior to signing the OTP. if they did not, and now they are going to get fined by the bank for cancelling the loan. its their own fault.

but don't worry. i'm sure u will soon find another buyer.

[blueocean 0]

Then agent will loose "bank referral fee" and "buyer's agent fees". And risk of buyers wanting to claim back the cancellation fee from agent because of breach of duty.

Poor thing !

the sellers should already have gotten their in principle approval prior to signing the OTP. if they did not, and now they are going to get fined by the bank for cancelling the loan. its their own fault.

but don't worry. i'm sure u will soon find another buyer.

[forgotten 1]

It's a lose-lose-lose situation for 3 parties sigh...

The quota changes every month, that's the troublesome part.

Edited June 8, 2010 by forgotten

[therat 18]

Thanks for the info. Seems our deal is off

Actually it's not totally the agent's fault lah. She's a good friend, just helping us out w/ the paper work, we buyer/seller do the purchase on our own. Before we signed the OTP, she did check the SPR Quota, and our deal was fine since all ethnic group could buy then. But the buyers needed some time to get the bank loan, which stretched across the month. But the agent didn't check the SPR Quota before they submitted the application, which was of course rejected

Now the buyers are not eligible to buy my flat, but they already got the bank loan. Now the buyers might be fined by the bank because of this, and I need to find a buyer for my flat again.

Everything was going so smoothly until now .... Sigh

u mean the buyer take 1 mth to get bank approval?

I thought OTP need to exercise within 14 day. Not mah?

If the buyer has sign the LO, on top of cancellation fee , they need to pay lawyer fee too.

Buyer LOST BIG

[bepgof 20]

The advice and conditions for the ethnic/SPR quota is quite clear (see http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...IP?OpenDocument ) :

"The ethnic proportions and SPR quota are updated on the first day of every month.

It is applicable for resale applications submitted to HDB for the same month.

Buyers and Sellers have to ensure that the ethnic proportion and/or SPR Quota are met at the point of the resale application"

The buyer's agent is quite new or inexperienced ? The standard checklist for every agent to check (1) bankruptcy (it will invalidate any contract) (2) verify correct owner and NRIC (3) verify eligibility (4) verify SPR/ethnic quota

Anyway, the buyer's agent would be stressed ... as she has breached her duty of care to her buyers

The statement is definitely "clear & clean" to HDB, but not to seller/buyer. Now both fall into the "hole". Don't forget, buyer can take a maximum of 14 days to exercise the OTP (resale), if the booking date is on end this month when buyer is eligible to buy, on first day of next month HDB update the quota and show, "buyer cannot buy" - whose fault?

- Hurry the buyer to exercise otp & submit resale application by end of the month?

- Seller make sure to sell from first of the month to mid of the month?

- or should a better system be in place which always show "available quota for the next 15 days"? So everybody understands?

HDB fails to realise the implication of the 14 days, or the praticality of the system, just know how to put words nicely to its.....sigh red tape! Rooms of improvement to be done.

Edited June 8, 2010 by bepgof

[fengwei 0]

the sellers should already have gotten their in principle approval prior to signing the OTP. if they did not, and now they are going to get fined by the bank for cancelling the loan. its their own fault.

but don't worry. i'm sure u will soon find another buyer.

You see, it's gonna take about a week to get the principle approval. But buyer needs to have the signed OTP form to get the approval (loan) from the bank. But this thing crossed over the month ...

Then agent will loose "bank referral fee" and "buyer's agent fees". And risk of buyers wanting to claim back the cancellation fee from agent because of breach of duty.

Poor thing !

That's the thing I'm afraid of. The agent definitely won't get the money. But I hope the seller won't lose money to the bank because of something we can't control (but the agent should've warned us before letting us sign the OTP)

It's a lose-lose-lose situation for 3 parties sigh...

The quota changes every month, that's the troublesome part.

That's true. This system definitely got holes right now ...

u mean the buyer take 1 mth to get bank approval?

I thought OTP need to exercise within 14 day. Not mah?

If the buyer has sign the LO, on top of cancellation fee , they need to pay lawyer fee too.

Buyer LOST BIG

No, it only took 5 business days for him to get the bank approval, but he only started it on 28th of May. When the bank loan was approved, it's June 3rd already ...

I don't know how the buyer processed the bank loan, hopefully he won't lose much because of this

The statement is definitely "clear & clean" to HDB, but not to seller/buyer. Now both fall into the "hole". Don't forget, buyer can take a maximum of 14 days to exercise the OTP (resale), if the booking date is on end this month when buyer is eligible to buy, on first day of next month HDB update the quota and show, "buyer cannot buy" - whose fault?

- Hurry the buyer to exercise otp & submit resale application by end of the month?

- Seller make sure to sell from first of the month to mid of the month?

- or should a better system be in place which always show "available quota for the next 15 days"? So everybody understands?

HDB fails to realise the implication of the 14 days, or the praticality of the system, just know how to put words nicely to its.....sigh red tape! Rooms of improvement to be done.

You are sssoooo right! Base on the current HDB policy, we'd better don't sign the OTP when it's one to two weeks to the month end. Which means we only got the first two weeks to process the purchase. Otherwise the paperwork might cross over to next month, and the whole deal might be off.

"available quota for the next 15 days" is definitely a better practice than the current one. Or just base on the sign date of OTP 'cause that's when the deal is made, but only give 14 days max to submit the application. The Quote should be based on the date of sign instead of the date of submission 'cause we can control the sign date of OTP but there are quite some uncertainty for the submission date.

[forgotten 1]

Hmm now, non-Malaysian PR sellers also have an added advantage over Singaporean/Malaysian sellers. In the event of SPR quota exceeded, non-Malaysian PR sellers can still sell their house to non-Malaysian PRs but Singaporean/Malaysian sellers cannot do that. Therefore some non-Malaysian PR sellers may try to demand for higher price in the area where SPR quota is exceeded. Some non-Malaysian PR buyers will agree to the higher price because they can only buy from them?

Edited June 8, 2010 by forgotten

[fengwei 0]

Hmm now, non-Malaysian PR sellers also have an added advantage over Singaporean/Malaysian sellers. In the event of SPR quota exceeded, non-Malaysian PR sellers can still sell their house to non-Malaysian PRs but Singaporean/Malaysian sellers cannot do that. Therefore some non-Malaysian PR sellers may try to demand for higher price in the area where SPR quota is exceeded. Some non-Malaysian PR buyers will agree to the higher price because they can only buy from them?

I guess that's why my flat was sold in 3 days after I posted the ad, even w/o going through agent. The buyers said they had seen quite a few resale flats, but couldn't buy because of this quota thing. After seeing our house, they liked it, and they were eligible to buy, so our deal was fixed in an hour after viewing.

[peaceful 0]

Hi there, can check with you wat the end result. Was facing almost the same problem.

haha, me too. Got rejected during submission to HDB due to the stupid Ethnic eligibility.

And now, my property being caveat lodged due to Buyer's bank loan approved by bank.

I also eager to know the outcome, can share? In fact I need advise to get my caveat remove, since my buyer is furious and not doing anything on it.

[ahmedbaz 0]

Hi All,

Today I faced the same problem. Can you pls share what was the outcome. I am tensed now...