Regarding Sub Sale

[lkhiang 0]

Hi.Im the purchaser of a new private apartment which is a sub sale. However, we have went beyond the completion date as the CPF laywer is not willing to release the fund as they have found that the developer is being sued for winding up and project is not yet TOP. Can the seller charge me interest as our solicitor has not releasing the amount due to them and its already pass the completion date?

[yoongf 11]

The developer is being sued for winding up and project is not yet TOP has got nothing to do with your contractual obligations between u and the seller.

The seller has every right to go after u, for late interest and everything else.

I would also think that u shd claim this late interest incurred from this "CPF Lawyer"!

At this point in time, there is no legal basis for u not to complete the sale with the seller!

[bepgof 20]

The developer is being sued for winding up and project is not yet TOP has got nothing to do with your contractual obligations between u and the seller.

The seller has every right to go after u, for late interest and everything else.

I would also think that u shd claim this late interest incurred from this "CPF Lawyer"!

At this point in time, there is no legal basis for u not to complete the sale with the seller!

Completely agreed. I believed there is something else holds the "cpf lawyer" back from releasing the $.

Edited July 10, 2010 by bepgof

[lkhiang 0]

Completely agreed. I believed there is something else holds the "cpf lawyer" back from releasing the $.

Hi gentlemen, thank you for the advice. Actually I have talk to the lawyer regarding late interest 10% for not completion, 21 days S&P cancelled, 5% forfeit, but they told me its not our fault and will not be liable to pay the late interest as its not our fault. I have already made payment cash+CPF. (before the actual completion date)

cash is now with our lawyer, CPF is already approved and now with CPF laywer but do not want to release to our lawyer as they have found out the developer is being sue for winding up. they told me they have done some legal search and this is to protect my interest. its only that Im now worried about the 10% interest, 21 day S&P cancel, 5% forfeit, pay the difference for the seller next property purchase.

If the CPF lawyer is not releasing the money, do you think i can come out from my own pocket first again to quickly complete the sales with the seller and the rest of the consquences we will deal with developer.

[Jgal 0]

maybe you shld check again with other lawyers if you are liable for any charges. Calculate how much is the potential lost if you walk out of the deal or delay payment.

Now there is something wrong with the developer , it is best that you dun pay them cos' what if the property never complete. Since potentially, some of the other buyers may also have problem paying the developer using cpf, and may not have cash to pay. Now the "lemon" still belong to seller, he needs to have a "house" to sell you.

If potentially, there is no "house" at all because the developer cant deliver. Then i guess your sale will thus be nullify. If you pay, then the lemon belongs to you, that put seller out of the pic. The house/transaction then belongs to you and the developer... if the worst happen, you may never see your cash/house.

Edited July 11, 2010 by Jgal

[Jgal 0]

Just to add.. maybe the seller already hit the problem with CPF.. and is just passing on the "lemon" to you cos' he does not want to forfeit his deposit.

[yoongf 11]

maybe you shld check again with other lawyers if you are liable for any charges. Calculate how much is the potential lost if you walk out of the deal or delay payment.

Now there is something wrong with the developer , it is best that you dun pay them cos' what if the property never complete. Since potentially, some of the other buyers may also have problem paying the developer using cpf, and may not have cash to pay. Now the "lemon" still belong to seller, he needs to have a "house" to sell you.

If potentially, there is no "house" at all because the developer cant deliver. Then i guess your sale will thus be nullify. If you pay, then the lemon belongs to you, that put seller out of the pic. The house/transaction then belongs to you and the developer... if the worst happen, you may never see your cash/house.

Once the OTP is exercised, Stamp Duty paid within 2 weeks, the S&P between the seller and buyer is a done deal. Buyer is obligated to take over the seller's responsibilities. Seller has not done anything to screw the deal, so the buyer is fully liable for seller's losses if the deal does not proceed. The subsequent relationship beween the new buyer and the developer is a seperate issue.

[bepgof 20]

Hi gentlemen, thank you for the advice. Actually I have talk to the lawyer regarding late interest 10% for not completion, 21 days S&P cancelled, 5% forfeit, but they told me its not our fault and will not be liable to pay the late interest as its not our fault. I have already made payment cash+CPF. (before the actual completion date)

cash is now with our lawyer, CPF is already approved and now with CPF laywer but do not want to release to our lawyer as they have found out the developer is being sue for winding up. they told me they have done some legal search and this is to protect my interest. its only that Im now worried about the 10% interest, 21 day S&P cancel, 5% forfeit, pay the difference for the seller next property purchase.

If the CPF lawyer is not releasing the money, do you think i can come out from my own pocket first again to quickly complete the sales with the seller and the rest of the consquences we will deal with developer.

Very interesting case. The main question is: Can CPF board rejects owner's request to release fund due to developer is being sued by creditors for winding up? I think, unless there is something wrong in the form submitted and right timing, then CPF board should bear the consequences of those 10& interest, S&P cancellation, 5% forfeit & difference for seller's next pty purchase. Your lawyer said not yr fault? It looks like. Better serve a lawyer letter to cpf on this & get a formal return from them asap.

Edited July 11, 2010 by bepgof

[lkhiang 0]

dear guys, thank again for the great suggestions and thinking. Im will be going to the laywer again to discuss how we can settle this matter. I think this is 1 very unfortunate case out of 1000 deals. I hope not to withdraw from the sales also due to many uncertainly losses and seller will jump also. I think its best to quickly settle the deal with the seller (CPF not releasing, then i have to find the money to fill up this hole). Then the rest i will deal with the developer whether they wind up or not.

[kardtoon 0]

Once the OTP is exercised, Stamp Duty paid within 2 weeks, the S&P between the seller and buyer is a done deal. Buyer is obligated to take over the seller's responsibilities. Seller has not done anything to screw the deal, so the buyer is fully liable for seller's losses if the deal does not proceed. The subsequent relationship beween the new buyer and the developer is a seperate issue.

Unless the seller knows about these issues and did not disclose this. I think there may be legal recourse though I'm not a lawyer.

[kardtoon 0]

dear guys, thank again for the great suggestions and thinking. Im will be going to the laywer again to discuss how we can settle this matter. I think this is 1 very unfortunate case out of 1000 deals. I hope not to withdraw from the sales also due to many uncertainly losses and seller will jump also. I think its best to quickly settle the deal with the seller (CPF not releasing, then i have to find the money to fill up this hole). Then the rest i will deal with the developer whether they wind up or not.

Your lawyer works to protect your interest. How would you like to pay money for a property that get's tangled up in a legal tassle and your might never be able to resell or move in until much later (or maybe nevergets resolved)??! Even if you have to pay termination of S&P, it's up to the seller to sue you for it and frankly I think that's better than buying a problematic property.

I would advise you to trust your lawyer or if you don't, find one that you can trust. Untimately if you find that your lawyer is not acting in your best interest, you can take legal recourse. IMO much better solution than listening to internet chatter about how you should handle an expensive purchase. No one here is actually responsible for any mistakes or problems that you have from taking our advise.

Edited July 12, 2010 by kardtoon

[yoongf 11]

Unless the seller knows about these issues and did not disclose this. I think there may be legal recourse though I'm not a lawyer.

Very Very sure that the seller owe no duty of care to the buyer. During the OTP period, it is the buyer lawyer who is suppose to detect any issue, and raise the alarm. Exercise OTP means accept all risk liao.

[lkhiang 0]

Hi. During the OTP phase, which is about 8-10 weeks ago, no problem with the developer. Our laywer has also done the legal/title search and said no problem. The developer being sued for winding up case only take place these few weeks and so happen to be near to my completion date whereby CPF's solicitor happen to detect this. I have seen the letter from CPF's solicitor to my laywer stating, unless everything is cleared from developer's lawyer side, if not they are going to hold on to our CPF money until we inform them about the status again.

I went to the site yesterday to see the project and most of the things are already done and happen to talk to the developer manager that TOP will be this week. He is quite unwilling to reveal the issue of the winding up, but say no problem already settle only small problem with their contractors not able to fulfil some of their quality standard. But this is only verbal, my CPF solicitor will not believe this, so I got to get some hard copy evidence to show them or to assure them. But I also thank them for protection my interest so I don't blame them.

[lkhiang 0]

Very Very sure that the seller owe no duty of care to the buyer. During the OTP period, it is the buyer lawyer who is suppose to detect any issue, and raise the alarm. Exercise OTP means accept all risk liao.

Hi. The tricky part is during OTP phase, no problem and our laywer can't detect anything as OTP was 8-10 weeks ago, developer is very healthy, so can proceed. This incident only happen during our completion period.