Seller Want To Back Out After 1st Appt, What Should I Do?

[leez 0]

Hi, all

Currently i encounter a problem that the seller and her agent want to back out after the 1st appointment with the HDB. Is this legal and can easy to back out after 1st appt?

Since the first day we paid the deposite $5000, seller site very comfirm said there were no extention after completion.

Until 1st appt day, seller brought out that they want to extend free for 3-4 weeks? i told them there was no such free thing and at the end, they agree to pay me $1000 in cash and help me to pay the 1st monthly HDB installment ($950) by deducting from seller's CPF after completion automaticlly. Therefore i verbally agreeed with the 3 weeks extention. But at the same day i found out actually they cheated us there was no such thing money will deducting from their CPF after completion day. so i told them i was not comfortable with the extention. One week later after the 1st appt, seller said don't want to sell the house to me or want to delay the comletion day if i am not agree with the extention? are they threaten me?

So what should i do?

[neubie 2]

Hi, all

Currently i encounter a problem that the seller and her agent want to back out after the 1st appointment with the HDB. Is this legal and can easy to back out after 1st appt?

Since the first day we paid the deposite $5000, seller site very comfirm said there were no extention after completion.

Until 1st appt day, seller brought out that they want to extend free for 3-4 weeks? i told them there was no such free thing and at the end, they agree to pay me $1000 in cash and help me to pay the 1st monthly HDB installment ($950) by deducting from seller's CPF after completion automaticlly. Therefore i verbally agreeed with the 3 weeks extention. But at the same day i found out actually they cheated us there was no such thing money will deducting from their CPF after completion day. so i told them i was not comfortable with the extention. One week later after the 1st appt, seller said don't want to sell the house to me or want to delay the comletion day if i am not agree with the extention? are they threaten me?

So what should i do?

if u are taking bank loan, the first instalment will not take place until few weeks after 2nd appt is completed.

you shd not accept any form of cash payment at all. verbal agreement no count. you shd remain firm in the first place. pay 5k, both parties sign OTP and submit to hdb, and maintain zero contact with each party, and wait for the 2nd appt. by accepting the 1k, this may put u in a disadvantageous position to dispute, since by giving u 1k, you may not fulfil the minimum sum required for OTP, hence the resale transaction may be aborted prematurely....good luck.

Edited October 4, 2010 by neubie

[leez 0]

if u are taking bank loan, the first instalment will not take place until few weeks after 2nd appt is completed.

you shd not accept any form of cash payment at all. verbal agreement no count. you shd remain firm in the first place. pay 5k, both parties sign OTP and submit to hdb, and maintain zero contact with each party, and wait for the 2nd appt. by accepting the 1k, this may put u in a disadvantageous position to dispute, since by giving u 1k, you may not fulfil the minimum sum required for OTP, hence the resale transaction may be aborted prematurely....good luck.

thanks for youe reply.. by now i didn't accept to receive this 1k from them.

[neubie 2]

thanks for youe reply.. by now i didn't accept to receive this 1k from them.

ok. as long there is black and white copy of both parties signed on the OTP, it is a legally binding liao... check with the seller party if he is still intent on backing out.....if so, you can consult your lawyer to seek legal advise against them....

[therat 18]

there are no such thing call deducting HDB installment from seller CPF after completion.

In the eye of law. Once complete, you are the official , legal owner.

Any Installment should be from owner account.

Quote from HDB

After the first appointment

Both buyer and seller must agree to the cancellation of the resale application and submit a written request to HDB for the cancellation. This cancellation, however, does not necessarily mean the Option to Purchase becomes void.

In the case of a dispute, both parties will have to consult their own private solicitors.

the seller cannot 1 side say don't want to sell the house. U can sue them.

Since you had go thru' 1st appointment. I believe you had the 2nd appointment date.

Just stick with it.

Can Seller extend the completion date?

* Q: * I need to change the scheduled resale completion date. How do I do it?

[ Selling Your Flat > Resale Procedures for Sellers > Attend Completion Appointment ]

* A: * Both buyer and seller must write in to HDB and give their consent to change the resale completion date. The appointment date will then be rescheduled to another date/time at HDB's discretion.

At the mean time, contact your HDB officer-in-charge.

Ask them how?

[manutd1972 1]

dun u have an agent to help u wif all these things? at least give u proper advice?

as far as the 1k is concern, i understand that u didn't accept it. but u knw, if there's no official record of them paying u this 1k, u are still in a position of advantage. they cannot claim that u did not pay the full 5k option fee to purchase the flat.

anyways, notwithstanding the 1k payment, if seller insists on backing out of the sale, u can choose to take legal action against them, or draft an official document stating that they are willing to pay all penalties arising from the abortion of this sale and compensate you against any loss, financial as well as non-financial.

Your financial loss will be the difference between the COV and buying price of another unit that you eventually will buy due to the cancellation of this sale. In other words, because they backed out of this sale, whatever replacement flat that you now decide to buy, they will be have to pay for the difference in the price as well as the COV. Eg. u bought their unit at 25k COV. now aft they back out, u find another similar unit but the deal-closing COV is 35k. If u choose to buy this unit, u will only need to pay COV of 25k. they must bear the remaining 10k COV. And tt's not all the financial compensation to u tt they are liable for. U can also claim for time delay as u nw have to go thru the whole 3-4mths sale process again, extra cost of paying for alternative accommodation if u're currently renting, and if u engage a lawyer, whatever monetary compensation u wanna seek, provided the courts agree to it.

overall, so long as the original sale was done in proper order with all paperwork properly done, they are at the losing end should they back out and cancel the sale. U can only gain from this. but if u really like the unit, and are hampered by time constraints, perhaps better not to agree to the cancellation.

mayb best to ask why they wanna cancel or want an extension. open communication and mutual give-and-take can solve a lot of problems and avoid a lot of ill feelings towards each other.

[forgotten 1]

I believe the seller is threatening to back out of 2nd appt because he is angry that you refuse to give him an extension. Of course they are at fault of lying to you in the first place about the payment.

How about give and take a bit? Let they delay the 2nd appt by let's say 2 weeks? It'll save you time, money and efforts in taking a law suit upon them for backing out of the deal. Your loan instalment deduction from CPF will also be delayed by few weeks in that case.

Be flexible to further negotiations with your seller if you like that unit very much. There's a possibility that the other seller of the unit that your seller is buying, has delayed the handout to your seller, so your seller bopian has to ask for a delay in handover too.

Edited October 4, 2010 by forgotten

[bepgof 20]

Hi, all

Currently i encounter a problem that the seller and her agent want to back out after the 1st appointment with the HDB. Is this legal and can easy to back out after 1st appt?

Since the first day we paid the deposite $5000, seller site very comfirm said there were no extention after completion.

Until 1st appt day, seller brought out that they want to extend free for 3-4 weeks? i told them there was no such free thing and at the end, they agree to pay me $1000 in cash and help me to pay the 1st monthly HDB installment ($950) by deducting from seller's CPF after completion automaticlly. Therefore i verbally agreeed with the 3 weeks extention. But at the same day i found out actually they cheated us there was no such thing money will deducting from their CPF after completion day. so i told them i was not comfortable with the extention. One week later after the 1st appt, seller said don't want to sell the house to me or want to delay the comletion day if i am not agree with the extention? are they threaten me?

So what should i do?

Let us reconigise the facts:

1. After 1st appointment, meaning after all the eligbility check/confirmation...., there is "no u-turn" to "rewind back the process. Not only buyer incur loss, HDB also incour loss if process were to stop. Unless of very super strong valid reson, otherwise the request of "cancellation" would not be allowed. Even at this juncture the owner (seller) pass away, process carries on.

2. I supposed 2 of you have agreed upon completion date (hdb office will ask) and get printed in the hdb doc. Seller can write in & request extension to origin's agreed date, however, the maximum extension is to 8 wk from 1st appointment date, it is written in the otp doc. If due to unforesee circumstances, only HDB can extend beyond 8wk after 1st appointment. I suggest you to write in first to the office-in-charge, NOT to grant request for extemsion from seller, with reasons, before seller writes in.

3. Act before seller acts and yr letter must convince the OIC.

4. Suggest seller to camp at seaside, put up accomendation at bencooleen hoten/hotel 81, or to rent warehouse to put bulky stuff. This is COMPLETELY seller's problem in failing to plan ahead, but want to have their conveniences at your expenses.

5. Insist for CASH only it there were to have some form of compensation for extended stay. No cheque also. Cheque leaves treacibility, you do not what is in seller's mind, after some months they may be "seow" and lodge complaint againt you - if you receive cheque, you will be in trouble.

Edited October 4, 2010 by bepgof

[tweety3334 0]

5. Insist for CASH only it there were to have some form of compensation for extended stay. No cheque also. Cheque leaves treacibility, you do not what is in seller's mind, after some months they may be "seow" and lodge complaint againt you - if you receive cheque, you will be in trouble.

Correct. You cannot rend out the unit cos there is MOP and now rental need to apply/inform to HDB...so must insist on cash only.