Extend Exercise Of Option - Safe?

[Leb 0]

thks all for the kind advise.

we insisted agent to indicate a date and they did, although it was indicated with additional 2 more days buffer.

agent told us that buyer is very keen but they are still handling the documents as the husband is on a 6 months visit pass while the wife is a singaporean. They will be getting married next month and the husband will be applying for citizenship thus requested us to give them additional 2 weeks without forefitting the deposit.

All these were not revealed to us until we keep pressing the agent for explaination... still considering whether to extend the OTP after the 2 weeks.

say after the OTP expiry, can we still market the house while pending for the buyer documents to be ready and sign another OTP?

[therat 18]

thks all for the kind advise.

we insisted agent to indicate a date and they did, although it was indicated with additional 2 more days buffer.

agent told us that buyer is very keen but they are still handling the documents as the husband is on a 6 months visit pass while the wife is a singaporean. They will be getting married next month and the husband will be applying for citizenship thus requested us to give them additional 2 weeks without forefitting the deposit.

All these were not revealed to us until we keep pressing the agent for explaination... still considering whether to extend the OTP after the 2 weeks.

say after the OTP expiry, can we still market the house while pending for the buyer documents to be ready and sign another OTP?

tell them.

If they keen exercise the OTP first.

what if the husband citizenship was delay? extend another 2 more week

2 more weeks , another 2 more weeks. How many 2 more wks your have?

What if they face doc issue and decide not to go ahead?

who will be paying the time you had lost.

What if by then, you can't able to fetch the price. How?

For the commission, you need to check with ur agent.

I know some agent consider once OTP sign, they will get their commission regardless it complete or not.

Once OTP expire, you are free to re-market again and fore fitting the deposit

BTW, ur agent not honesty on the seller condition.

Edited May 28, 2009 by therat

[Leb 0]

hi all,

Just to update, my agent told me that the buyer is having problem with their bank loan and suggested not to extend the OTP to them. He said i can either forfeit the 1k deposit or to refund to the buyer out of goodwill and he will find me another buyer.

[therat 18]

hi all,

Just to update, my agent told me that the buyer is having problem with their bank loan and suggested not to extend the OTP to them. He said i can either forfeit the 1k deposit or to refund to the buyer out of goodwill and he will find me another buyer.

listen to ur agent. Don't extend the OTP

as for the 1k deposit, forfeit it. As u will not know whether your next buyer is when and what is the price.

the husband is on a 6 months visit pass while the wife is a singaporean

I guess the husband may be jobless.

With 1 person income. There is a limit on the home loan.

[Potluck 0]

Yes I agree with therat. You never know when you'll find a buyer..unless you're def in no hurry to sell it but still keep the 1k. This is the standard practice also to compensate you for rejecting other offers . Actually your agent should have advise the buyer to get all their paper work done first..eligiblity requirement before looking for a flat. It for the good of both parties, seller and buyer.

[therat 18]

never get HLE before getting a flat.

That deposit is for lesson pay

[born_again 0]

thought the 1k deposit could be returned to buyer in the event that the bank loan is not approved? This is the only exception otherwise the deposit would be forfeited. I think this clause is stated in the otp.

[Potluck 0]

I dun think so. i knew a few cases where by deposit forfeited because of bank loan issues. It will be unfair to sellers if every buyer get their refunds and back out. They loose a genuine eligible buyer.

[hightlighter 0]

thought the 1k deposit could be returned to buyer in the event that the bank loan is not approved? This is the only exception otherwise the deposit would be forfeited. I think this clause is stated in the otp.

No such clause in the OTP when I read through it twice just now. If there is, maybe you would like to tell us where is it located? Edited June 7, 2009 by hightlighter

[born_again 0]

No such clause in the OTP when I read through it twice just now. If there is, maybe you would like to tell us where is it located?

i'm also trying to find out cos i recalled the agent telling us that the otp would be void in the sole event that bank loan didnt go thru but didnt manage to locate the clause too.

[Sam.Lim 0]

i'm also trying to find out cos i recalled the agent telling us that the otp would be void in the sole event that bank loan didnt go thru but didnt manage to locate the clause too.

Erm, I believe you guys are talking about failure to complete transaction in the case whereby approval of the sale/purchase of flat is not approved by HDB and the fault is neither with the seller nor buyer (who else then? Hahaha... Make a guess)

Then OTP will be void, and option exercise fee from seller will be returned to buyer.

It is not to be confused in the event that bank loan didn't go through. Then OTP will still stand because fault is with buyer for not obtaining approval of loan prior to purchasing. Then buyer will lose the option fee, and seller has the rights to sell to other buyers.

Note

- Buyer IS TO assure that they HAVE HLE or LO (Letter of Offer/Bank Loan) even BEFORE viewing, make sure that you're not over-committing yourself to purchase the unit, AND the racial eligibility for that block.

- Seller would be best to make sure they've obtained valuation before selling (expires in 3 months), and has fulfilled the occupational period before signing any OTP (not even a few days UNLESS you're prior agreement from HDB to do so.)

Edited July 20, 2009 by Sam.Lim

[Phantom 1]

- Buyer IS TO assure that they HAVE HLE or LO (Letter of Offer/Bank Loan) even BEFORE viewing, make sure that you're not over-committing yourself to purchase the unit, AND the racial eligibility for that block.

This is not entirely correct. You cannot have a private bank loan approved before viewing. You have to sign the OTP before you can apply for a bank loan.

Approval in principals are just an insurance. It's not necessary that banks will lend after the Option is signed.

[Warrior88 0]

My OTP lapsed for 2 days, as my wife is overseas ( agree by seller ) to meet 2 days later

So, new draft of OTP was prepared, option date as that day and OTP date 14 days later.

with the excercise date was as that day. Agent claim this is the right way to do.

But my point is how can the letter of Offer date be earlier than option date ?

Agent says, HDB only check letter of offer date must be earlier than excercise date.

They don't care the option date.

Confused ..... how can bank offer before option date. Bank will not loan with OTP document.

Agent says, don't worry, they are experts in this line.

Agent also claim they have many submission to do each day. Must give them time.

By the way, for application online, is there a reference code. I wanna monitor this shrewd agent.

Later, I found out actually, agent side seller as they want to delay the transaction.

[raincole 0]

hi all,

Just to update, my agent told me that the buyer is having problem with their bank loan and suggested not to extend the OTP to them. He said i can either forfeit the 1k deposit or to refund to the buyer out of goodwill and he will find me another buyer.

I think out of goodwill can refund 50% back to buyer. Think 1k deposit is too much, normally people pay around $300-400 if not sincere. I believe the buyers were interested but unable to fulfil certain requirements.

Beside good deed leads to another.