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

[Devil_82 1]

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.

if you're taking hdb loan, i suggest u follow what marshmallow has said....

but i doubt you're eglible for hdb loan unless your spouse is a local

1) Getting the option to purchase - 1000 (cash / cheque) you're right

2) Excercising the option - 4000 (cash / cheque) you're right

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

i don't remember paying any cash on the 1st appointment. However you must pay the cov + 20% since your cpf fund is not sufficent, minus the 5k u pay on No 1 & 2. this payment will have to be made to the laywer firm that you engage via the bank or u engage urself. usually 8-10working days before your second appointment.

4) Second Appt - MISC + REMAINING

2nd appointment just pay the property tax to the owner. infact if you're taking bank loan, you do not have to turn up for the 2nd appointment. just authorised ur agent to collect the key to you. usually the tax amount should not be high if you're on the year end. i paid only about 15bucks during dec takeover.

what i have mention here is just FYI, h*b regulation change like the baby diaper therefore, it is still advisable to consult your banker on the actual process.

[neeravks 0]

if you're taking hdb loan, i suggest u follow what marshmallow has said....

but i doubt you're eglible for hdb loan unless your spouse is a local

1) Getting the option to purchase - 1000 (cash / cheque) you're right

2) Excercising the option - 4000 (cash / cheque) you're right

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

i don't remember paying any cash on the 1st appointment. However you must pay the cov + 20% since your cpf fund is not sufficent, minus the 5k u pay on No 1 & 2. this payment will have to be made to the laywer firm that you engage via the bank or u engage urself. usually 8-10working days before your second appointment.

4) Second Appt - MISC + REMAINING

2nd appointment just pay the property tax to the owner. infact if you're taking bank loan, you do not have to turn up for the 2nd appointment. just authorised ur agent to collect the key to you. usually the tax amount should not be high if you're on the year end. i paid only about 15bucks during dec takeover.

what i have mention here is just FYI, h*b regulation change like the baby diaper therefore, it is still advisable to consult your banker on the actual process.

okay so lets put another twist in the tale. the seller wants to delay the 2nd appointment.

These are sample dates

1) 25-Dec - option to purchase - pay 1000

2) 27-Dec get offer letter and excercise option - pay 4000

3) Take appt with HDB. first appt - 25-Jan

4) 25-Jan - dont pay anything ?

5) 2nd appointment. Seller wants more time. So 2nd appointment : april 15th.

6) April 10: give 20% down payment + COV to seller.

7) april 15 : collect keys and pay legal + agent fee + stamp duty + tax

So with above process i dont have to pay anything more than 5 k till 10 April.

Is the process correct?

[Devil_82 1]

okay so lets put another twist in the tale. the seller wants to delay the 2nd appointment.

These are sample dates

1) 25-Dec - option to purchase - pay 1000

2) 27-Dec get offer letter and excercise option - pay 4000

3) Take appt with HDB. first appt - 25-Jan

4) 25-Jan - dont pay anything ?

5) 2nd appointment. Seller wants more time. So 2nd appointment : april 15th.

6) April 10: give 20% down payment + COV to seller.

7) april 15 : collect keys and pay legal + agent fee + stamp duty + tax

So with above process i dont have to pay anything more than 5 k till 10 April.

Is the process correct?

i thought nowadays seller need a cooling period of 7days. ur point 1 and 2 seem need to be confirm..

point 4 is right....

point 5 i can't tell you more as i have not been in that stages. my 2nd appointment went smoothly.

but if you defer the 2nd appointment during the 1st appointment then it is okay. because usually after the 1st appointment then u proceed to the lawyer firm. during that time u need inform the lawyer about it

if 2nd appt is schedule already, lawyer has been informed already then i'm not sure as i have mention, i have not been thru that stage.

maybe it is good that you tell us your whole picture or rather you tell us all the scenario that you can virtually think of...that will be easier to help as so many ppl is trying to help u....

[neeravks 0]

i thought nowadays seller need a cooling period of 7days. ur point 1 and 2 seem need to be confirm..

point 4 is right....

point 5 i can't tell you more as i have not been in that stages. my 2nd appointment went smoothly.

but if you defer the 2nd appointment during the 1st appointment then it is okay. because usually after the 1st appointment then u proceed to the lawyer firm. during that time u need inform the lawyer about it

if 2nd appt is schedule already, lawyer has been informed already then i'm not sure as i have mention, i have not been thru that stage.

maybe it is good that you tell us your whole picture or rather you tell us all the scenario that you can virtually think of...that will be easier to help as so many ppl is trying to help u....

basically, i like a house.

Valuation is 300 K. Cov is 20K.

I am a first year PR. So no savings in CPF.

I am going to take bank loan.

Loan Amount : 240 K

So total cash i have to pay (remember no CPF) : 60 (20% OF VALUATION) + 20 + 10 (APPROX) = 90

Now, my doubt is how much do I have to pay at :

1) first appt

2) 10 days after first appt

3) between first and second appointment (10 days before 2nd)

4) On 2nd appointment

Also what of the above can be negotiated with Seller / HDB as to when to pay.

I hope this will help understand my question better.

I only want to know when to pay how much, so that I can plan my personal loans (from friends , family) better.

[Devil_82 1]

basically, i like a house.

Valuation is 300 K. Cov is 20K.

I am a first year PR. So no savings in CPF.

I am going to take bank loan.

Loan Amount : 240 K

So total cash i have to pay (remember no CPF) : 60 (20% OF VALUATION) + 20 + 10 (APPROX) = 90

Now, my doubt is how much do I have to pay at :

1) first appt

2) 10 days after first appt

3) between first and second appointment (10 days before 2nd)

4) On 2nd appointment

Also what of the above can be negotiated with Seller / HDB as to when to pay.

I hope this will help understand my question better.

I only want to know when to pay how much, so that I can plan my personal loans (from friends , family) better.

great...i think my earlier post have answer your question since you're taking a bank loan. i doubt there is any way to negotiated for the payment date. All the best for your dream house. with the info here share by us, i think u have a better picture. will this info, i suggest it is good to talk to ur agent to explain to you while you can also approach any banker to ask them for an ipa(in princple approval) and explain the processs to you. so if all tally, then i presume you are safe to go...

[neeravks 0]

Hi,

I just got the sample situation converted to reality.

1) Search for house. See 20 houses in 1 week. 20th house. Like it immensely.

2) Haggle with owner and agent over COV. Finally agree. 275 + 31

3) 26-Dec : Pay 1000 Option Fee

4) 27-Dec : Apply for loan. Wait for Offer Letter

Suppose

5) 02-Jan : Excercise Option - Pay 4000

6) 20-Jan : First Appointment -

7) 20-Mar : Second Appointment -

Now, as per earlier posts it was clear that I dont have to pay anything in first appointment.

Please note that I have no CPF and I am taking Bank Loan.

I have to pay downpayment + COV + ALL FEES (stamp duty + agent + lawyer) = 95 K.

But my agent says, I have to be ready with all the money in the first appointment itself.

Is it true?

As per HDB Website, you have to do this in first appointment :

• If you are obtaining an HDB loan, our resale officers will verify your eligibility for an HDB loan and determine the amount of mortgage loan granted

• If you are obtaining a bank loan, resale officers will confirm the amount of mortgage loan to be obtained from the bank

• Process your application to withdraw your CPF savings for the purchase. Only applicable if buyer is represented by HDB

• HDB will set aside from his CPF Ordinary Account for the payment of the stamp and legal fees (about 1%-3% of the selling price of the flat) and the Home Protection Insurance (if any). Thereafter, the balance in the CPF Ordinary Account will be fully utilised towards payment of the purchase price, subject to a ceiling set by the market valuation ie. CPF can only be used up to the market valuation or purchase price whichever is the lower.

• Determine the amount of cash that you need to pay within 10 days from the date of the first appointment, if any

• Cash payment is required when the purchase price is above the market valuation or when the loan granted (with credit assessment) and the CPF usable for the purchase are insufficient to cover the purchase price. If the cash payment required is more than 10% of the purchase price, you are only required to pay 10% within 10 days from the First Appointment date. The balance must be paid on the resale completion. If the cash payment required is less than 10%, this amount must be paid within the 10 days period.

• The balance cash payment to be paid on resale completion must be in cash or cashier's order.

• Calculate the amount of stamp and conveyancing fees you have to pay

• Use of GIRO for monthly instalment

Does the above take into account, that the buyer will not use CPF and take BANK LOAN.

Me getting confused day by day.

Somebody help please.

[marshmallow 0]

Hi,

I just got the sample situation converted to reality.

1) Search for house. See 20 houses in 1 week. 20th house. Like it immensely.

2) Haggle with owner and agent over COV. Finally agree. 275 + 31

3) 26-Dec : Pay 1000 Option Fee

4) 27-Dec : Apply for loan. Wait for Offer Letter

Suppose

5) 02-Jan : Excercise Option - Pay 4000

6) 20-Jan : First Appointment -

7) 20-Mar : Second Appointment -

Now, as per earlier posts it was clear that I dont have to pay anything in first appointment.

Please note that I have no CPF and I am taking Bank Loan.

I have to pay downpayment + COV + ALL FEES (stamp duty + agent + lawyer) = 95 K.

But my agent says, I have to be ready with all the money in the first appointment itself.

Is it true?

As per HDB Website, you have to do this in first appointment :

• If you are obtaining an HDB loan, our resale officers will verify your eligibility for an HDB loan and determine the amount of mortgage loan granted

• If you are obtaining a bank loan, resale officers will confirm the amount of mortgage loan to be obtained from the bank

• Process your application to withdraw your CPF savings for the purchase. Only applicable if buyer is represented by HDB

• HDB will set aside from his CPF Ordinary Account for the payment of the stamp and legal fees (about 1%-3% of the selling price of the flat) and the Home Protection Insurance (if any). Thereafter, the balance in the CPF Ordinary Account will be fully utilised towards payment of the purchase price, subject to a ceiling set by the market valuation ie. CPF can only be used up to the market valuation or purchase price whichever is the lower.

• Determine the amount of cash that you need to pay within 10 days from the date of the first appointment, if any

• Cash payment is required when the purchase price is above the market valuation or when the loan granted (with credit assessment) and the CPF usable for the purchase are insufficient to cover the purchase price. If the cash payment required is more than 10% of the purchase price, you are only required to pay 10% within 10 days from the First Appointment date. The balance must be paid on the resale completion. If the cash payment required is less than 10%, this amount must be paid within the 10 days period.

• The balance cash payment to be paid on resale completion must be in cash or cashier's order.

• Calculate the amount of stamp and conveyancing fees you have to pay

• Use of GIRO for monthly instalment

Does the above take into account, that the buyer will not use CPF and take BANK LOAN.

Me getting confused day by day.

Somebody help please.

i think it's better if you call the HDB hotline for an answer. hear from the "horse mouth"