Buyers Cheque Bounced!

[july-winter 0]

Need advices. What shall we, the seller do with the cheque that bounced(supposed to be the option fee) and can we chase the buyer for the option fee and is it right for the buyers to get their re-valuation report again on my flat although we produced our current valuation report to the buyers that is only a month(have not expired yet for 3 Months). so lost>

[GMC 12]

Need advices. What shall we, the seller do with the cheque that bounced(supposed to be the option fee) and can we chase the buyer for the option fee and is it right for the buyers to get their re-valuation report again on my flat although we produced our current valuation report to the buyers that is only a month(have not expired yet for 3 Months). so lost>

If you hired a property agent, ask him or her to go and settle the cheque.

[quoo 0]

Need advices. What shall we, the seller do with the cheque that bounced(supposed to be the option fee) and can we chase the buyer for the option fee and is it right for the buyers to get their re-valuation report again on my flat although we produced our current valuation report to the buyers that is only a month(have not expired yet for 3 Months). so lost>

Why does the buyer request for re-valuation ? i think since the cheque bounce , you have the right not to sell him since he never pay "any option fee"

[Rune 0]

Since the cheque bounced ... meaning that the "OTP'' has not been exercised. You definately have the right to market your house. However, I gathered you could get yr agent to check with the prospective buyers on how this could happened and on their interest. Could be a case of carelessness. As for your valvuation report ... it is still valid .... the said buyer would only pay upon exercising the OTP right .... correct me if I am wrong....

[july-winter 0]

Since the cheque bounced ... meaning that the "OTP'' has not been exercised. You definately have the right to market your house. However, I gathered you could get yr agent to check with the prospective buyers on how this could happened and on their interest. Could be a case of carelessness. As for your valvuation report ... it is still valid .... the said buyer would only pay upon exercising the OTP right .... correct me if I am wrong....

Ok on 8 Oct, the agreed purchase price was $350k(for 5room) on my unit n the buyer saw the valuation report n even signed on OTP. however, the buyers did give us the cheque for option fee. and then last night was told that the buyers want to re value my flat to $350K so that they dun hv to pay cov???? can u believe it????? and that mrg my hubby told me the cheque bounced(the reason was wrong signature)... ??? is it too much a coincidence???? so frustrating... we wanted to sell away faster so that we hv some cpf monies to buy a unit in western side.

i dunno what are the buyers up to now. yes i did tell my hubby to ask the agent what we are supposed to do???? feel like playing out by the buyers. so maddening...

i wonder if the buyers has the right to request for 2nd re-valuation report since the 1st valuation rpt is still valid. Can any1 enlighten me on this?

[mwerkz 0]

Ok on 8 Oct, the agreed purchase price was $350k(for 5room) on my unit n the buyer saw the valuation report n even signed on OTP. however, the buyers did give us the cheque for option fee. and then last night was told that the buyers want to re value my flat to $350K so that they dun hv to pay cov???? can u believe it????? and that mrg my hubby told me the cheque bounced(the reason was wrong signature)... ??? is it too much a coincidence???? so frustrating... we wanted to sell away faster so that we hv some cpf monies to buy a unit in western side.

i dunno what are the buyers up to now. yes i did tell my hubby to ask the agent what we are supposed to do???? feel like playing out by the buyers. so maddening...

i wonder if the buyers has the right to request for 2nd re-valuation report since the 1st valuation rpt is still valid. Can any1 enlighten me on this?

yup. de buyer have the right to request for 2nd re-valuation even if ur 1st report have not expired. by doing that, dey can choose not to buy ur 1st valuation report n pay u de cost u paid for ut

[july-winter 0]

yup. de buyer have the right to request for 2nd re-valuation even if ur 1st report have not expired. by doing that, dey can choose not to buy ur 1st valuation report n pay u de cost u paid for ut

Ok all right since the buyers have the right to request for 2nd re-valuation, still we still want to keep the otp. bear in mind that the buyers had paid the option fee n even signed. Told my agent to settle with the buyer agent abt the cheque. And the same buyer had viewed my flat more than three times n liked my unit very much. still dun understand why the buyers are still unhappy with the price. Fyi, the buyers are only male, 25 yrs old and female, 22 years old. and my hubby heard from the male buyer that their 2nd baby on its way. It make us wonder if they can afford that unit or not.

so the advice is shd we continue with this OTP or market our unit again?

[chronograph 0]

Since OTP has been signed, it is a valid legal bidding but the question is has it been 2 weeks already? Cos buyer can withdrawn within 2 weeks and forfeit the deposit. Besides, i don;t understand is did u sell your unit at evaluation price? That's val report 350k and OTP stated the same selling price.

You should indicate your intention to your agent and your agent should relay your decision to the buyer's agent.

[zirhk3355 1]

You already answered your own question; you wanted to keep this OTP right?

If so then ask them to reissue the cheque and make another offer.

But if you are unhappy with revaluation and loss of COV, then tell them that the previous negotiation was based on previous valuation. If they want to revalue, then you will want to renegotiate the price. But in this case then you must be prepared to lose the deal...

[tower 0]

And based on the current resale market, if the "prospective" buyers want to do a 2nd re-valuation, they would have to foot the costs. And there isn't a guarantee to them that the valuation might be lower, 75% chance the new valuation would be higher if u have done ur homework on the resale market. It might work in your favour instead. Firstly, u have to protect ur seller rights. Ask the buyers' agent to see if they are sincere in still buying the flat. If not, u can jolly well use the OTP form which they sign and sue them for not exercising. Maybe they have problems paying up, thus give all sorts of excuses. It's ur call, really.

[sporevoices 0]

Since the buyer had signed & exercised their opt, they are legally binded to the contract. But in this instance whereby the cheque bounced, it can also be interpreted that the buyer had backed out of the contract. So basically, the call will be in the hand of the seller. Seller can say that buyer did not pay the exercise option money as the cheque had bounced & thus forfeit the option fee and find a new buyer or seller can say contract is legally binding and sue buyer to pay the difference should you sell to a new buyer at a lower price.

As for the current valuation report, seller can tell buyer only if they pay for current report then you allowed them to do a revaluation. After all, the owner have to be in to allow the valuer to come and take picture of the house. If forever you are not free, forever they won't be able do the valuation also. In most cases, either ur agent or the buyer agent will adsorb this $170++ cost to close the deal. Is relatively a small amount compared to a $300k++ transaction. So is still seller that call the shot in this case.

[richman 0]

ask the buyer for the option fee...even if the chq bounched, u r entitled to the option fee. it seem the buyers are not sincere in buying. from the seller pt of view, it very frustrating it keep draging...get your option fee..and market it again once the option lapse. gd luck

[july-winter 0]

thanks everyone for the advices.

Now i m so relieved. yup, I already passed my keys to my mil so that she can go in n open doors for us. Re-valuation done n everything is settled. For now, we are waiting for the Otp to expire next week. and the buyers r too glad -dun hv to fork out a lot. and the agreed purchase price will remain the same.

[zirhk3355 1]

You are so nice hor. If I were you I will say that since the valuation goes up then my selling price will go up also.

But then again in this economy...hehe, well as long as u are happy with the price then quickly sell liao...

[yoongf 11]

thanks everyone for the advices.

Now i m so relieved. yup, I already passed my keys to my mil so that she can go in n open doors for us. Re-valuation done n everything is settled. For now, we are waiting for the Otp to expire next week. and the buyers r too glad -dun hv to fork out a lot. and the agreed purchase price will remain the same.

Eh.. There is no need to wait for OTP to expire. The OTP, from day the chq bounce, is not valid.

This is not a case of failure to exercise OTP. The OTP was never procured in the first place.

Think of this logic.

Seller GIVE buyer OTP in exchange for a Option Fee. This is a simple transection. Pay $ for exclusive OTP period. Since no $, then no option period in the first place. There is legally no need for the buyer to sign an OTP. OTP is a document only the seller sign.