Queries On Hdb Valuation

[wikipicky 0]

Hi,

I am a direct buyer and am buying a flat recently at Yishun, valued at 350k. I have exercised the option and paid 5k deposit in all, now waiting for First Appointment in end Aug.

I did some checks with similar neighboring units (same flat model and size) that are at the same level and had their valuation done recently. I believe with the current valuation, which is done about 1 plus months back, my flat is undervalued as compared to neighboring units that are valued at around 380k.

If I were to do another valuation, my gut feel is that most likely the valuation will increase by at least 10k or more considering my deco is quite good. I like to have more cash on hand and hence pay less with cash for the flat, more with CPF.

However, the seller refuses to allow revaluation (let valuers enter the flat) although I have explained to him that the amount he will be getting in cash and CPF components will still be the same since we have agreed on the total price and that the revaluation only affects my end, perhaps he is not happy that should the valuation increases, he could have asked for a higher price if he had not granted me the option yet.

My questions are:

1. Is revaluation a buyer's right now that I have exercised the option?

2. In the event that if we fall out, and he refuses to attend our 1st Appointment, is there any legal recourse I can take against him ?

Thanks,

ZhiQiang

[forgotten 1]

What for go challenge and provoke your seller? It's not worth it.

Before your resale app is approved (usually approved 1 week after 1st appt), your seller can back out of the deal without your consent. And HDB doesn't entertain complaints of such cases.

Edited July 27, 2010 by forgotten

[scenium 0]

Hi,

I am a direct buyer and am buying a flat recently at Yishun, valued at 350k. I have exercised the option and paid 5k deposit in all, now waiting for First Appointment in end Aug.

I did some checks with similar neighboring units (same flat model and size) that are at the same level and had their valuation done recently. I believe with the current valuation, which is done about 1 plus months back, my flat is undervalued as compared to neighboring units that are valued at around 380k.

If I were to do another valuation, my gut feel is that most likely the valuation will increase by at least 10k or more considering my deco is quite good. I like to have more cash on hand and hence pay less with cash for the flat, more with CPF.

However, the seller refuses to allow revaluation (let valuers enter the flat) although I have explained to him that the amount he will be getting in cash and CPF components will still be the same since we have agreed on the total price and that the revaluation only affects my end, perhaps he is not happy that should the valuation increases, he could have asked for a higher price if he had not granted me the option yet.

My questions are:

1. Is revaluation a buyer's right now that I have exercised the option?

2. In the event that if we fall out, and he refuses to attend our 1st Appointment, is there any legal recourse I can take against him ?

Thanks,

ZhiQiang

you only think of opportunity for yourself to earn extra money.

what about other people?

When you execute the OTP at that time is based on the other day market condition & environment.

You said that the current valuation of the house should be higher.

What if the seller said, based on current market condition my house should also have higher COV?

I would say whatever extra money you earn from the revaluation, half of them you give to the seller.

What do you think?

[Plastic3 0]

Yes, valuation maybe more...but I feel you should just go through with your original agreement...doing a revaluation can lead to a whole lot of trouble.

[wikipicky 0]

Thanks for your replies guys,

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forgotten said:

What for go challenge and provoke your seller? It's not worth it.

Before your resale app is approved (usually approved 1 week after 1st appt), your seller can back out of the deal without your consent. And HDB doesn't entertain complaints of such cases

wikipicky:

Legally, the OTP is a legal binding contract. From a contractual perspective, the OTP only indicates the transaction price and does not include valuation. So even after revaluation, as long as we keep to the contractual terms i.e. total transacted price, technically, I have not violated the contract. But if seller backs out, it is a violation of a legal contract.

This is really where my second question is:

So from a legal perspective, how far can I pursue my case whether via HDB lawyer or taking up a civil suit? Anyone has similar experience whereby seller backs out of a deal after OTP has been exercise?

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scenium said

you only think of opportunity for yourself to earn extra money.

what about other people?

When you execute the OTP at that time is based on the other day market condition & environment.

You said that the current valuation of the house should be higher.

What if the seller said, based on current market condition my house should also have higher COV?

I would say whatever extra money you earn from the revaluation, half of them you give to the seller.

What do you think?

wikipicky:

Earn extra money ?? Actually, if you understand HDB resale policy and my 1st post above correctly, by doing a revaluation, any change in valuation price will not affect the amount of money coming out of my pocket. If valuation increases after revaluation, it means that less cash is coming out of my left pocket but more CPF is coming out of my right pocket. Remember the total trasacted price remain the same. From a seller's perspective, the change in valuation will NOT affect the total sales proceeds he will be getting, neither will it affect the cash or CPF component he will be getting. I just like to pay with more CPF and less cash and i be paying for the revaluation as well.

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Plastic3 said

Yes, valuation maybe more...but I feel you should just go through with your original agreement...doing a revaluation can lead to a whole lot of trouble.

wikipicky:

The procedure is actually quite simple... Seller agrees, then I arrange for valuers to go to his flat on just one day (10-1pm) to take a few photos, probably around 20 mins. Then from then on, seller dun have to do anything else. For my side, valuaers will give me a valuation report which I need to present by First Appt and thats it.

So, the question is really my 1st question, is it legally a buyer's right to revaluation?

[therat 18]

http://askhdb.hdb.gov.sg/Home/hybrid/Theme...RecordQuestion=

Q: Due to unforeseen circumstances, I do not wish to proceed to buy the resale flat. How do I go about doing it?

A:

Before the first appointment

Either buyer or seller may submit a written request to HDB to cancel the registered resale application.

After the first appointment

Both buyer and seller must agree to the cancellation of the resale application and submit a written request to HDB for the cancellation. This cancellation, however, does not necessarily mean the Option to Purchase becomes void.

In the case of a dispute, both parties will have to consult their own private solicitors.

[therat 18]

http://askhdb.hdb.gov.sg/Home/hybrid/Theme...&Selected=4

Q: I am a resale flat buyer and I have some disputes with my seller regarding the resale transaction. Can HDB enforce the terms and conditions stated in the Option to Purchase for the seller and buyer?

A: Sellers and buyers are contractually bound to complete the sale and purchase once the Option to Purchase is exercised. If either party breaches the terms of the agreement, the other party will be entitled to enforce the terms of the Option for specific performance, damages and/or any other remedy.

If there is any dispute, the buyers and sellers may wish to consult a private solicitor on the rights and remedies in the matter.

Alternatively, the buyers and sellers may wish to consider settling the dispute through mediation at the Singapore Mediation Centre. You can call them for assistance on the procedures and charges at 6332- 4366.

[wikipicky 0]

Hi therat,

Really appreciate your reply. Thanks for your help.

I guess I'll need to seek a private solicitor to find out to what end I can go for those 2 queries..

Am hoping also if theres a buyer out there who has encountered such situations and done a revaluation despite seller disagree

or seller back out and the extent to which he could seek compensation to share their stories..

Of course, I would not hope to go to such ends but at the end of the day,

I guess its about knowing our rights and how we can fully utilise our rights.

[therat 18]

If you didn't mention HDB, I would think that you are buying private property.

Make it so complication.

Just my thought.

[wikipicky 0]

Haha, it be very simple and straight forward if the seller agrees to my request.

But as always, life is seldom a bed of roses.

My goal quite simple, just wanna pay less cash and more CPF.

To achieve that, I'll need to "convince" seller to let me do revaluation the "hard way".

And to do that, I need to know how to make full use of Singapore's law and housing regulation to do that..

[mach668 0]

not worth trying although u may try.

if seller backout, even if buyer can take legal action, it'll be a tiring & long process. and buyer might not get what he want or think is fair. by that time, the resale market price/valuation might gone up another 5% or more. is it worth it?

put yourself in seller's shoe, i think most ppl will be frustrated/angry if they see the valuation become higher than what they received previously. usually a gd deal happen when both parties are benefited & happy.

[scenium 0]

Haha, it be very simple and straight forward if the seller agrees to my request.

But as always, life is seldom a bed of roses.

My goal quite simple, just wanna pay less cash and more CPF.

To achieve that, I'll need to "convince" seller to let me do revaluation the "hard way".

And to do that, I need to know how to make full use of Singapore's law and housing regulation to do that..

You want to achieve your goal by using the current higher valuation.

Seller also want to achieve his goal if the house has higher valuation.

I'm not surprise that the seller is not cooperating with you.

[therat 18]

the seller might worry.

What if the valuation report is lower?

Will buyer ask for discount?

[chronograph 0]

I am a direct buyer and am buying a flat recently at Yishun, valued at 350k. I have exercised the option and paid 5k deposit in all, now waiting for First Appointment in end Aug.

You have already submitted OTP, current valuation report and obtained 1st appointment. So why make it so complicated?

Asking for another valuation will mean cancel this appointment and resubmit your OTP and new valuation. If u cancel, it will mean re-negotiating a new deal, if i'm the seller i will ask for more.

Its poor planning at your part, you should have called for a revaluation before submitting to HDB. Which means you have 2 valid valuation reports to choose from and of course subject to seller cooperation for 2nd valuation.

[bepgof 20]

You have already submitted OTP, current valuation report and obtained 1st appointment. So why make it so complicated?

Asking for another valuation will mean cancel this appointment and resubmit your OTP and new valuation. If u cancel, it will mean re-negotiating a new deal, if i'm the seller i will ask for more.

Its poor planning at your part, you should have called for a revaluation before submitting to HDB. Which means you have 2 valid valuation reports to choose from and of course subject to seller cooperation for 2nd valuation.

Swee ! Simply put it: Wiki does not understand the rules of game. HDB web already puts it SUPER CLEARLY that revaluation needs seller's permission....., & revaluation to be done before resale application submission, & revaluation report takes 2 weeks "to cook".

Young ppl nowaday like to talk abt rights and forget their duties, why like that?