bepgof 20 Report post Posted November 24, 2010 Hi all: i am seeking your advice here..... I am buying a second hand condo, the seller has issue us the OTP and durly signed, we have not excerise it yet and we are planing to excerise it before the expired date indicated in the OTP , and now the seller wants to back out the OTP and get it back from us by ask the agent to called me, now what should we do ? Go ahead to excerise it ignore him or ask the compensation ? please advice.... thank you. Recalled you mentioned: 1. Obtained OTP on 17/11/10, means that you have to exercise on/before 30/11/10 (14 days, both start and end date inclusive). Believed you have secured a bank loan. 2. Seller admended OTP wants buyer to pay security deposit to existing tenant when TA expire. Have u found out the amout of security deposit? Got laywer's advise on this? Now seller wants to withdraw OTP issued to you (he must have lost his head by being far too calculation, or misled by his agent , if you agree, he MUST pay you: 1. Cancellation penalty of bank loan, which is at 1.5% of loan amount (you have to pay bank this amount, may be + some admin charges, if you wihdraw the bankloan) 2. Return 1% deposit, with interest (1 month interest, not 14 days) 3. Transport(house, bank, laywer), manhour loss, opportunity loss(forego another offer, now at higher price) Estimated above sum first (actually, all agents should have known this) ask if seller willing to pay. Don't ever exercise OTP on the LAST day, at lastest a day before the last day. When exercise OTP day, also expect an inspection and ask agent to create an inventory checklist( 4 parties to sign), this is the norm. Days before completion, inspection again according to inventory checkllist. Note: I guess seller is far too calculative type and has failed or being misled in understanding the significance of withdrawing the OTP issued. Share this post Link to post Share on other sites
40826084 0 Report post Posted November 24, 2010 Don't ever exercise OTP on the LAST day, at lastest a day before the last day. When exercise OTP day, also expect an inspection and ask agent to create an inventory checklist( 4 parties to sign), this is the norm. Days before completion, inspection again according to inventory checkllist. Note: I guess seller is far too calculative type and has failed or being misled in understanding the significance of withdrawing the OTP issued. Thank you ! i But we thought to excerise as early as possible will be good but why last day ?if we give the 4% by the day before last day to our lawer, i mean the check will indicated the date as 29/11/2010, then can seller just claim that they did not bank in our check so my option has gone since as at the last date of OTP the check have not bank in yet? Is " Excerise option date " means the day we give the 4% check to our lawyer and we sign on the OTP ? or the day seller recevied my 4%? Share this post Link to post Share on other sites
everton 0 Report post Posted November 24, 2010 Thank you ! i But we thought to excerise as early as possible will be good but why last day ?if we give the 4% by the day before last day to our lawer, i mean the check will indicated the date as 29/11/2010, then can seller just claim that they did not bank in our check so my option has gone since as at the last date of OTP the check have not bank in yet? Is " Excerise option date " means the day we give the 4% check to our lawyer and we sign on the OTP ? or the day seller recevied my 4%? Your lawyer should give his lawyer a cashiers order, so it's as good as cash. Share this post Link to post Share on other sites
everton 0 Report post Posted November 24, 2010 Your lawyer should give his lawyer a cashiers order, so it's as good as cash. The money is not given to the seller but held by his lawyer until completion. Share this post Link to post Share on other sites
yapyap 0 Report post Posted November 24, 2010 Sounds like seller got a better deal and trying to retract his sale to you. If you like the unit and want to buy, go ahead and exercise the OTP. There's nothing seller can do since the OTP has been issued. No issue about the cheque not reaching Seller... Seller will not sign OTP in the first place if he did not receive your cheque. No issue about having to pay more for the unit since the OTP GIVES U THE OPTION TO BUY AT the FIXED PRICE as stated in the OTP. When in doubt, talk to your own lawyer, not the agent or seller. this is the legal view... option seller cannot retract.. the buyer has the absolute right to decide to exercise or forfeit the fee... too bad for the seller once he signs the OTP.. and stupid of him if he sign without receiving your cheque.. you dont have to be bothered by the seller.. he cant do a sh*t Share this post Link to post Share on other sites
bepgof 20 Report post Posted November 24, 2010 (edited) Thank you ! i But we thought to excerise as early as possible will be good but why last day ?if we give the 4% by the day before last day to our lawer, i mean the check will indicated the date as 29/11/2010, then can seller just claim that they did not bank in our check so my option has gone since as at the last date of OTP the check have not bank in yet? Is " Excerise option date " means the day we give the 4% check to our lawyer and we sign on the OTP ? or the day seller recevied my 4%? Read my post again, one should exercise OTP ASAP( anyway have only 14 days, very rush to get a good bank loan)to avoid fraud. Agent will advise you to give the 4 % to YOUR lawyer (or your bank's appointed lawyer, if you don't appoint yourself one)right after the OTP is exercise (cheque put exercise date) Attached cheque with OTP doc to your lawyer, not to seller(unlike HDB's), nor seller's lawyer. If seller has outstanding mortgage loan with bank, yr lawyer(act in between you, yr bank and seller's lawyer) will keep the 4% first and work out other sums and pass to seller's lawyer (he'll work out seller's sums)who will in turn inform seller to collect on completion date (one hand pass keys to his laywer, one hand collect money(4% + yr bank loan...)from his laywer. If seller has fully redeemed the property, then your lawyer will write to him when to collect money, to pay outstanding maintenance fee, property tax, etc..(lawyer will work out the sums)You have to verify the sums. My wife is smart, spotted the problematic sums and corrected lawyer's sum, finally proved wife was correct. Buying new private property, the procedure/timing will be slightly different... 5% booking fee (pay immediate to developer), get OTP, pay stamp duty to developer, got 4 wk to exercise otp, sign S & P, get bankloan & get appointed lawyer from bank, pay 15% to developer (give cheque to lawyer), wait for ground breaking completion when first 10% (of the 80% loan) start disburse and when monthly instalment payment starts. Clear? Edited November 24, 2010 by bepgof Share this post Link to post Share on other sites
40826084 0 Report post Posted November 25, 2010 Read my post again, one should exercise OTP ASAP( anyway have only 14 days, very rush to get a good bank loan)to avoid fraud. Agent will advise you to give the 4 % to YOUR lawyer (or your bank's appointed lawyer, if you don't appoint yourself one)right after the OTP is exercise (cheque put exercise date) Attached cheque with OTP doc to your lawyer, not to seller(unlike HDB's), nor seller's lawyer. If seller has outstanding mortgage loan with bank, yr lawyer(act in between you, yr bank and seller's lawyer) will keep the 4% first and work out other sums and pass to seller's lawyer (he'll work out seller's sums)who will in turn inform seller to collect on completion date (one hand pass keys to his laywer, one hand collect money(4% + yr bank loan...)from his laywer. If seller has fully redeemed the property, then your lawyer will write to him when to collect money, to pay outstanding maintenance fee, property tax, etc..(lawyer will work out the sums)You have to verify the sums. My wife is smart, spotted the problematic sums and corrected lawyer's sum, finally proved wife was correct. Buying new private property, the procedure/timing will be slightly different... 5% booking fee (pay immediate to developer), get OTP, pay stamp duty to developer, got 4 wk to exercise otp, sign S & P, get bankloan & get appointed lawyer from bank, pay 15% to developer (give cheque to lawyer), wait for ground breaking completion when first 10% (of the 80% loan) start disburse and when monthly instalment payment starts. Clear? Thanks and sry i read wrongly , its very clear right now and we decried to excerise the Option today !! Hope the seller (or his agent) won't creat any more problem. Share this post Link to post Share on other sites
therat 18 Report post Posted November 25, 2010 Thanks and sry i read wrongly , its very clear right now and we decried to excerise the Option today !! Hope the seller (or his agent) won't creat any more problem. Just share with you, what happen on me once. My agent told me the buyer agent want more commission from us (seller). We refused. The buyer agent in return tell the buyer, seller (us) don't want to sell. But the true is, we(seller) agree on the buyer price. Just that his agent greedy want more $$$. Get a good and trusted lawyer. Go by book. U will be safe Share this post Link to post Share on other sites
