When Is Cov Paid To Seller, And When Pay Agent Fee

[pixie 0]

Is it during first appt?

[fongfamily01 0]

You'll be given 7/10 days from the first appointment date. The HDB officer will explain to you.

Agent fee is after the completion. This you have to arrange with your agent.

[Warrior88 0]

HDB loan, 1st appointment.

Bank loan, 2 ~ 3 weeks before 2nd appointment. (pay through lawyer)

[tweety3334 0]

I took bank loan and can pay COV on or before day of completion but you have to purchase cashier order in the name of the seller on or before completion date. You can pass to the lawyer on or before completion date. The lawyer will check that the spelling and amt in the cashier order is correct when they accept from you.

For agent fee, I think need to pay after completion if there is nothing else that you need the agent to do. I negotiated with agent to pay one month later and he agreed.

[marcusdeming 0]

I took bank loan and can pay COV on or before day of completion but you have to purchase cashier order in the name of the seller on or before completion date. You can pass to the lawyer on or before completion date. The lawyer will check that the spelling and amt in the cashier order is correct when they accept from you.

For agent fee, I think need to pay after completion if there is nothing else that you need the agent to do. I negotiated with agent to pay one month later and he agreed.

is there like a standard practice?

My agent asked me to sign the agent fee agree as I was exercising my option. (really pissed at that lack of professionalism as the seller agent is present as well)

And subsequently, they invoice me even before I had the first appointment.

[godloveyou 0]

is there like a standard practice?

My agent asked me to sign the agent fee agree as I was exercising my option. (really pissed at that lack of professionalism as the seller agent is present as well)

And subsequently, they invoice me even before I had the first appointment.

Always pay agent's comm at 2nd appointment = end of the process.

Edited December 7, 2010 by godloveyou

[Plastic3 0]

is there like a standard practice?

My agent asked me to sign the agent fee agree as I was exercising my option. (really pissed at that lack of professionalism as the seller agent is present as well)

And subsequently, they invoice me even before I had the first appointment.

Usually Agent will ask Buyer to sign service fee during exercise, as when Buyer exercise option they confirm buying the unit. Agent need to submit case to Agency.

For my own transactions, signing the service fee agreement does not mean my buyer need to pay early, they can still pay on completion of the transaction.

Best to ask your Agent.

Edited December 8, 2010 by Plastic3

[marshmallow 0]

On the COV payment, when to pay will depend on how much your COV is.

Look here: (under subtitle "Finalise Buyers’ Resale Financial Plan")

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...nDocument#First

if Cash Payment < 10% of flat purchase price: Pay full amount during 1st Appointment, by cash or by cheque

if Cash Payment > 10% of flat purchase price:

Pay 10% during 1st Appointment, by cash or by cheque

Pay remainder during 2nd Appointment, by cash or cashier order. No cheque.

of course, cash payment can also include things like e.g. cash payable if one cannot obtain enough housing loan... but let's assume that you are able to get whatever housing loan necessary (HDB loan), then cash payment will mean COV only.

Let's illustrate with an example:

Taking HDB loan:

Case A: COV < 10% of purchase price:

Flat price: $400k

COV: $20k

Purchase price = $400k + $20k = $420k

10% of $420k = $42k > COV

Hence, during 1st Appointment, you need to pay:

COV minus 5k paid during OTP (HDB considered this 5k as "cash paid")

= $20k - 5k

= $15k --> Cash paid during 1st Appointment

Case B: COV > 10% of purchase price:

Flat price: $400k

COV: $60k

Purchase price = $400k + $60k = $460k

10% of $450k = $45k

COV = $60k > $45k --> So cash payment will be split:

During 1st Appointment, you need to pay 10% of purchase price, so:

= $45k --> Cash paid during 1st Appointment

then, during 2nd appointment, you need to pay the remainder, minus off the 5k from OTP:

= $60k - $45k - $5k = $10k --> Cash paid during 2nd Appointment

Hope this helps

Edited December 8, 2010 by marshmallow

[pixie 0]

What I eventually did:

COV: 23K ( 5K during OTP, 18K during first appt)

Agent Fee: 1% paid during first appt though most of the pple will advise 2nd appt. Our agent had always been very kind and helpful, hence, we dont mind giving him @ first appt. Even after 2nd appt, he is still very helpful!

[neeravks 0]

On the COV payment, when to pay will depend on how much your COV is.

Look here: (under subtitle "Finalise Buyers’ Resale Financial Plan")

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...nDocument#First

if Cash Payment < 10% of flat purchase price: Pay full amount during 1st Appointment, by cash or by cheque

if Cash Payment > 10% of flat purchase price:

Pay 10% during 1st Appointment, by cash or by cheque

Pay remainder during 2nd Appointment, by cash or cashier order. No cheque.

of course, cash payment can also include things like e.g. cash payable if one cannot obtain enough housing loan... but let's assume that you are able to get whatever housing loan necessary (HDB loan), then cash payment will mean COV only.

Let's illustrate with an example:

Taking HDB loan:

Case A: COV < 10% of purchase price:

Flat price: $400k

COV: $20k

Purchase price = $400k + $20k = $420k

10% of $420k = $42k > COV

Hence, during 1st Appointment, you need to pay:

COV minus 5k paid during OTP (HDB considered this 5k as "cash paid")

= $20k - 5k

= $15k --> Cash paid during 1st Appointment

Case B: COV > 10% of purchase price:

Flat price: $400k

COV: $60k

Purchase price = $400k + $60k = $460k

10% of $450k = $45k

COV = $60k > $45k --> So cash payment will be split:

During 1st Appointment, you need to pay 10% of purchase price, so:

= $45k --> Cash paid during 1st Appointment

then, during 2nd appointment, you need to pay the remainder, minus off the 5k from OTP:

= $60k - $45k - $5k = $10k --> Cash paid during 2nd Appointment

Hope this helps

Does this CASH include the 20 % payment in case we are taking bank loan?

For eg : Valuation - 300 k

COV -20K

Bank loan = 240K.

Total cash component = 80 K.

So I just have to pay 10% of 320k i.e 32 k or I have to pay 20 K (which is less than 10% of purchase price)

[Devil_82 1]

Does this CASH include the 20 % payment in case we are taking bank loan?

For eg : Valuation - 300 k

COV -20K

Bank loan = 240K.

Total cash component = 80 K.

So I just have to pay 10% of 320k i.e 32 k or I have to pay 20 K (which is less than 10% of purchase price)

no bank loan for the cov part. 20% of valuation 300k

5% cash = 15000

assuming u have enough 15% cpf. 5% 15K + cov 20K = 35K cash.

usually 5k deposit for excerise otp. this 5k subsequent will be deduct from the 35k cash.

hope it helps

[Wenx 0]

how about in the event of doing contra?

do we pay the cash on 1st appt as well?

or after completion when our $$ comes in?

[neeravks 0]

no bank loan for the cov part. 20% of valuation 300k

5% cash = 15000

assuming u have enough 15% cpf. 5% 15K + cov 20K = 35K cash.

usually 5k deposit for excerise otp. this 5k subsequent will be deduct from the 35k cash.

hope it helps

I dont have enough CPF. I am first year PR. All is cash.

So 20% of valuation + COV + ALL MISC = 60 + 20 + 10 = 90k

How much do i need to pay during first appt , how much during 2nd appt is what i am wondering.

I am clear with the below : Correct me if i am wrong

1) Getting the option to purchase - 1000 (cash / cheque)

2) Excercising the option - 4000 (cash / cheque)

3) First Appt - 10 % of CASH. (my doubt is CASH = DOWNPAYMENT + COV or only COV)

4) Second Appt - MISC + REMAINING

The confusion is because there are very few cases i have read like me, where almost everything is own savings account and NOT CPF.

It will really help knowing the schedule of payments so I can arrange accordingly.

[Nuar 0]

For those of you who takes HDB loan, you can use this HDB tool to check how much should be paid during first/second appointment:

https://services2.hdb.gov.sg/webapp/BB29FIN/BB29FINP.jsp

very simple.

Not sure if similar tool exists for culculations using bank loan.

[marshmallow 0]

I dont have enough CPF. I am first year PR. All is cash.

So 20% of valuation + COV + ALL MISC = 60 + 20 + 10 = 90k

How much do i need to pay during first appt , how much during 2nd appt is what i am wondering.

I am clear with the below : Correct me if i am wrong

1) Getting the option to purchase - 1000 (cash / cheque)

2) Excercising the option - 4000 (cash / cheque)

3) First Appt - 10 % of CASH. (my doubt is CASH = DOWNPAYMENT + COV or only COV)

4) Second Appt - MISC + REMAINING

The confusion is because there are very few cases i have read like me, where almost everything is own savings account and NOT CPF.

It will really help knowing the schedule of payments so I can arrange accordingly.

from what i understand from HDB website, it is applicable to cash that you can't loan, so the downpayment paid in cash will be counted. As per your example:

Valuation - 300 k

COV - 20K

Bank loan = 240K.

Total cash component = 80 K.

During 1st Appointment: Pay 10% of 320k i.e 32k & some misc fees (stamp fee, conveyancing fees etc.). Can pay within a 10-day period.

During 2nd Appointment: Pay (80k - 32k - 5k) = 43k

you can also call the HDB hotline to double confirm... those at the hotline are usually quite helpful