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Novem1101

Seller Cancel Sales After Exercise Otp

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Dear all, help & advise needed

I've paid my S$1k to OTP & S$4k to exercise the OTP within 14days

Then the Seller suddenly back up and refuse to sell his Unit

What can I do?

My agent advise we can tk Legal action but I know it will drag for vy long period

I think of giving up the Unit, but what compesation I can ask for?

other than my S$5k, can I ask another sum to compesate my time, rental, agent fees, bank penalyth & so-on?

Pls advise. Thanks

 

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Dear all, help & advise needed

I've paid my S$1k to OTP & S$4k to exercise the OTP within 14days

Then the Seller suddenly back up and refuse to sell his Unit

What can I do?

My agent advise we can tk Legal action but I know it will drag for vy long period

I think of giving up the Unit, but what compesation I can ask for?

other than my S$5k, can I ask another sum to compesate my time, rental, agent fees, bank penalyth & so-on?

Pls advise. Thanks

If the seller had signed the necessary documents including acknowledging the receipt of payments with your agent as witness, tell the seller that you will report the case to the police as fraud if they do not refund all the money back to you.

I am sure they will back out and refund you the money.

Edited by asoon88
 

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oh my.... what a bad seller....

why don't you go back to the seller and tell them to return you the 5k because they pull out of the sale and not you, so it's not right for them to keep the 5k. if they don't return, then tell them you will take legal action. see how they react?

i think you should just give up the unit, now so initial stage they already like that, can't imagine what will happen when it's time to handover the house keys.

 

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Thanks ahsoon & merydith

ya, this is wat I worry too, I can't imagine wat gonna happen later on .. coz after read thru this forum I find thr r many consqeunces could happen after OTP to 1st & 2nd appt.

I will surely ask my S$5k back but is it possible to ask for more??? coz the Seller treat selling flat just like a game..simply donwan after signing OTP...treat buyer like a toy

Can I ask any compensation??

Is the Seller legally offence Law??

 

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Your are LEGALLY ENTITLED to get back the $5k + compensation. See OTP document, page 2/10, clause 3.2 - "The buyer MAY pursue any other claim againt the seller".

Other claims can refer to many things like: (Make sure the seller has signed the OTP in the first place !)

A. Tangible losses/damage (Best to provide receipts, black & white doc, etc)

1. Transport fee (to & from), visit unit, banks and so on

2. Time loss (how much you are currently paid, based upon hourly rate)

3. Bankloan cancellation penalty.

4. Valuation report.....

B. Intangible losses/damage (difficult to assess)

1. Stress, face

Suggest u to write down a list of those tangible losses, attached with receipt, attachement, photocopies, etc. Address the list to the Seller, cc to agent and his/her company's head, writedown date, ask for response within 14 days...

 

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Addition:

Truely feel sad that, seller/agents' irresponsible/igorant act which resulted in your expenses. You ought to get back these expenses.

1. U need not to pay agent a single cents, because sale not through !

2. If you've paid $180 for valuation report, can return the report & get back the $.

3. Demand rental fees from seller due to failed sales? No such thing, common sense tells.

Advise is: get back $5K and whatever $paid to agents(if u have done) and let matter rests, start search for new one. Understand the rules of game before you take part in it. HDB web has many info.

 

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dear bepgof

Thank U very much for all the clear info

I will go for my 5k for sure, hopefull there is no bank penalthy incure.

Other than bank penalty, what are the possible penalty/any hidden cost?

As I need to claim all this fm the Seller...

So, what r the rules of this game?

To Buyer there is no rules to protect us.. Coz if we decided to take Legal action, the journey will be so long

If we don tk Legal action, we can only blame our luck, tk back the 5k, look for another Unit w/o getting any extra compensation

So Suey to meet such irresponsible Seller, right?

AiksSss so sad :<

 

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This is a real life case:

"Vendor has to sell even if he has not signed the Option to Purchase"

Facts

The Buyer offered to buy a property at Rio Vista through an Agent. The Agent collected a cheque for 1% option money at the offer price of $500,000. This first offer was turned down by the Vendor. The Buyer then made a second offer at $506,000 and issued a new 1% cheque in exchange for the old cheque.

The Agent wrote the following words on the back of the cheque “1% Deposit Sale of 26 Upper Serangoon View #04-32 Rio Vista S534206”. Throughout the entire negotiations, the Vendor was working in India and all communications were carried out through phone calls and emails via the Agent.

Based on the exchange of email correspondence between the Agent and the Vendor, the Court established the following key findings:

1. One email from the Agent to the Vendor spelt out the key terms of the Sale in setting out the Option money, Exercise option period, Amount payable upon exercise of Option and the

Completion date.

2. In another email from the Vendor to the Agent, he confirmed that he has taken “a decision to proceed to sell the property…” and went on to give the Agent instruction to bank in the option fee to his POSB account.

Before the Vendor actually signed the Option to Purchase, he changed his mind about selling the property because he felt he might be posted back to Singapore in the near future. As a result, the Vendor called off the deal, refused to sign the Option to Purchase and tried to return the 1% cheque to the Buyer unsuccessfully.

The Buyer proceeded to sue the Vendor for specific performance and damages. Interestingly, the Buyer eventually also sued the Agent for negligent

misrepresentation and breach of warranty of authority once the Vendor alleged that the agent had no authority to conclude an agreement to sell the property.

February 2010

Judgment

The trial judge ordered

1. The Vendors to jointly sign the Option to Purchase in favour of the Purchase at the price of $506,000.

2. The Vendor to pay $15,510.05 damages to the Buyer.

3. If the Vendor should refuse to sign the Option to Purchase, the Registrar of the Supreme Court shall have the power to sign the Option to Purchase on behalf of the Vendor.

4. The Vendor to pay the legal costs of the Buyer and the Agent.

The Court of Appeal upheld the trial judge’s findings when the case went on appeal and the Vendor lost his case.

The Court rejected the Vendor lawyers’ arguments that there was no binding

contract because the Vendor never signed the Option to Purchase based on the facts of this case.

The Court found that there was a binding contract because the exchange of email established that the basic elements

required for the formation of a contract; namely offer, acceptance, consideration and intention to create legal relations were all present.

The Court also ruled that there was a clear and binding agreement to grant the Buyer an Option to Purchase. The terms of the Option were clear and unambiguous and it was significant that the Court

actually found that the signing (which did not take place) was only a formality.

Implications

1. When one is sending out emails, one must

remember to qualify it with the remarks “subject to contract”, if the intention is not to be bound by the email correspondence until the Option is signed.

2. If the Vendor has not signed the Option to Purchase, the Agent / Vendor should not bank in the cheque until the Option is signed.

Conclusion

This is a landmark case that will be a guiding precedent in the years to come.

 

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Advise u quickly contact bank for you intend & what need to be done. My UOB loan has a clauses which states if loan not disbursed within 6 month from letter of offer, penalty(2% of total amount?? can't recall)will follow. Cancellation of loan also needs $$$. No play play.

Last year, I, as a buyer, got caught much delay during 1st appointment, by the seller who contra the unit he bot with another seller, become 3 parties invloved. The last seller "lost" the title deed of property & yet wait and wait and "dare" to present his body in front of hdb officer tellinf such during 1st appointment. Because submission of resale application was "late", as seller to me need to find a house, 1st appt delay...The 6-month period was round the corner, I called up bank and followed by a letter explaining the situation. Now ok.

Badminton, tennis, ping-pong, etc all players governed by RULES, property sale alikes. Without understanding the RULES and take part in, you're bound to pay "expensive school fee". I learnt these rules(HDB & private)by experience, through books,agents, web sites, this forum as well..... I've paid some "school fee" before, so now trying to advise people when I got time.

 

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Thanks all for ur replies & advises..

Fortunately, I've asked back some compensation fm the Seller.

and my UOB banker did a very good job,

help to waive the 1.5% penalty but UOB charge a process fees which is only 0.38% of my total loan...

I'm continue looking for better Unit now :)

Hope I am lucky enough & will not meet such case anymore

 

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is it different for HDB sales?.

For private property sales, once the OTP is signed by seller and 1% deposit is obtained, the seller has to sell.

 

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is it different for HDB sales?.

For private property sales, once the OTP is signed by seller and 1% deposit is obtained, the seller has to sell.

Difference is: Hdb resale subject to 1st appointment, only after this, then can sell. So, don't to be too happy before 1st appointment.

Edited by bepgof
 

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mine is a nightmare oso. i signed OTP to purchase an unit & was misguided by the seller's agent. As we have been looking for suitable units for 3 mths already & have to move out by early May to hand over my current flat to my buyer, we were quite rushed into this purchase of next unit w/o the valuation.

When I asked the agent what's the valuation, he told us it is abt $290k - 310k. However, when we offered a price after viewing the unit 1 week later, he informed that the valuation is now abt $310k - 320k. I still re-confirm with him on this increased valuation as compared to the previous info he gave me. He replied that now the range is like that already. Thrusting that he is the expert in this real estate field & I'm not, we signed the OTP when the valuation is not out yet, preparing to pay abt $20k cov.

Who knows abt 1 wk+ later, valuation report is out & it is only $297k!!! This means that we have to fork out $43k cov. I got really depressed & sucidial when I heard that info. Cos this means we got to borrow even more $ from relative to purchase this flat (originally already need to borrow $ for the $20 cov).

We faced a really $-faced & stubborn seller who treatened to sue us if we burst the case. We asked if they can lower the price but they refused to negotiate at all. This is not the 1st issue we had with this seller. Earlier ask for lower selling price, he refused to discuss & have the "take it or leave it" attitude. When asked for early move-in, he quoted us the maximum rental charge in the market. And now, this cov issue. Sigh.................. I'm really depressed now. Dunno how long more this thing will drag. We are gg to be homeless very soon & still got this dilemma to settle. :(

 

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mine is a nightmare oso. i signed OTP to purchase an unit & was misguided by the seller's agent. As we have been looking for suitable units for 3 mths already & have to move out by early May to hand over my current flat to my buyer, we were quite rushed into this purchase of next unit w/o the valuation.

When I asked the agent what's the valuation, he told us it is abt $290k - 310k. However, when we offered a price after viewing the unit 1 week later, he informed that the valuation is now abt $310k - 320k. I still re-confirm with him on this increased valuation as compared to the previous info he gave me. He replied that now the range is like that already. Thrusting that he is the expert in this real estate field & I'm not, we signed the OTP when the valuation is not out yet, preparing to pay abt $20k cov.

Who knows abt 1 wk+ later, valuation report is out & it is only $297k!!! This means that we have to fork out $43k cov. I got really depressed & sucidial when I heard that info. Cos this means we got to borrow even more $ from relative to purchase this flat (originally already need to borrow $ for the $20 cov).

We faced a really $-faced & stubborn seller who treatened to sue us if we burst the case. We asked if they can lower the price but they refused to negotiate at all. This is not the 1st issue we had with this seller. Earlier ask for lower selling price, he refused to discuss & have the "take it or leave it" attitude. When asked for early move-in, he quoted us the maximum rental charge in the market. And now, this cov issue. Sigh.................. I'm really depressed now. Dunno how long more this thing will drag. We are gg to be homeless very soon & still got this dilemma to settle. :(

I'm sorry to hear your story, since you say the Seller threatened to sue you, I assume you have already exercised the option?

Agents can only give an estimated valuation according to the units currently available in the market, the actual valuation will very much depend on the condition of the specific unit, so it is advisable not to commit to any agreement before the valuation is out.

 

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