Newest Procedure For Buying Resale Flat

[Kobelala 8]

Hi Bros and Sis-s, I did an OTP 3 days ago and paid a $5k deposit for a flat.

During the signing, seller was not around as seller is oversea and represented by an authorise person under the POA.

POA was also not around when signing but check was made payable to owner (local).

Agent told me I need to wait 1 week (cooling period) and thereafter another 2 weeks (to excercise OTP), which means I'll only get 1st Appt date after 3 weeks of signing my OTP. Inputs from friends and colleagues on resale procedures told me otherwise, most are telling me that I can get a 1st Appt date right after signing OTP...

I then read up HDB resale procedures but was not very clear of what they are actually saying, and I also called up HDB and the resale officer told me that once I paid a $5K deposit, agent can proceed to book for 1st Appt.

As such I called up the agent last night and she informed me "her initial procedure" again and affirm that it is correct and said that seller had submitted their docs.

I am at a lost now.... Can any member here enlighten me on whether what I'm going thru is right ???

Thanks in advance... Kinda worried now, not really because of the $5k (cos i don't think someone is so stupid enough to cheat $5k like this) but more of seller and agent trying to take me for a ride and I lose precious time..... I am in need of a house badly for my marrige and that's really giving me alot of headache...

Thanks in advance for your time and assistance...

Edited February 11, 2011 by Kobelala

[Plastic3 0]

Seller can only grant OTP 7days from date of Sellers Checklist

Option fee is usually $1000 (Agent should have given you the OTP at this point, 14days consideration period)

Option exercise fee $4000 (You should have exercised the OTP at this point)

If you have paid $5000 you should have already exercised the OTP

There is a period of time stated in the OTP for Buyers & Sellers to submit the case to HDB (page 4 of OTP)

Do you have your own Agent or are you dealing with sellers Agent directly?

Best,

Mark

[Kobelala 8]

Hi Mark, thanks for your reply, I initially do not have an Agent, I view all the houses thru listings and intend to get a lwayer to do the paperworks for me and also run some of the errands myself, as the comm of agent works out to about 5k, i picture that I'm going to do this by myself and save some bucks....

But i realise most of the agents are very clever, once they know that you are a direct buyer viewing house , they'll bring along a co-broke agent and inform that this house is co-broke with his/her colleague... ..

For this house that I OTP, the scenario is slightly different, I wanted to view another unit but the agent brought me to this unit after that, we love it and decided to OTP and pay 5k .... so the agent representing me can be said to be a complete stranger, but seems decent and trustworthy enough and is l licenced.

[Plastic3 0]

ok, so this Agent represents you & another Agent represents the Seller?

I don't quite understand your initial post, have you exercised the OTP or not?

Have you handed your $5000 to the Seller or not?

[Kobelala 8]

Bro Mark, thats also what I dont understand, I had signed OTP, I had written 2 cheqs, 1 @ 1k and the other 4k... I've signed all the forms like OTP and checklist...

So have I actually exercised OTP ??? since I had paid the 5k, but according to HDB officer, i should have gotten a 1st appt date since all had been done.... However, the agent told me I need 1 week cooling and 2 week OTP, and that I can get my 1st appt date only 3 weeks later ... ...

I asked the agent again but was informed that this is the proper procedure and it's better to follow the proper procedure so that the case will not be throw out...

I intend to ask the agent out and print out the HDB procedures for further discussion, can you enlighten me of anything which i need to take note ?? I just hope that I don't lose precious time .. ...

[therat 18]

since u had written 2 CHQ, amount of $5k.

You has officially exercise the OTP. Don't need the 2 wk OTP as what your agent say.

Either they are trying to buy some time for the seller. So that the seller had more time to look for a new house. OR this agent is super GREEN.

DO you had the agent name card?

Do you had the HDB officer reply in email?

If yes, use this email and forward to the company director and question him.

The agent should pass you a copy of OTP which u had sign.

Scan whatever doc you had. include your CHQ book log page. To proof that you did issue CHQ to exercise. At the mean time, update your bank. See had they bank in your CHQ.

Scan the agent name card too.

Once got all these,

email to the company director.

Remember give them a reasonable date line to get back to you.

Once no reply receive by the given date line.

email to CEA feedback@cea.gov.sg

CEA web

http://www.cea.gov.sg/cea/content/consumer...gcomplaint.html

[Plastic3 0]

Standard procedure:

1] Sellers complete checklist submit to HDB (7 days cooling period till granting of OTP to buyer)

2] Buyer complete checklist

3] Buyer exchange option fee($1000) for OTP (14 days consideration, or exercise immediately)

4] Buyer exercise OTP pay $4000

5] Submit case to HDB before number of days stated in OTP (page 4)

6] 1st appointment date depends on availability (check HDB web)

7] 2nd/completion 6-8weeks from 1st appointment

you can print this page:

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...TP?OpenDocument

and discuss with your Agent, the only cooling period is between step 1 & 3, after that there is no cooling period...

Best,

Mark

[May_dream1 14]

I think the key thing is the seller side have not sign anything. Not the owner or the POA. So in actual case, only seller has signed (or you also haven't signed?). Just writing chq doesn't mean you have exercise it if you didn't get the OTP form with all signatures on it.

[snowpear 0]

Hi Bros and Sis-s, I did an OTP 3 days ago and paid a $5k deposit for a flat.

During the signing, seller was not around as seller is oversea and represented by an authorise person under the POA.

POA was also not around when signing but check was made payable to owner (local).

Agent told me I need to wait 1 week (cooling period) and thereafter another 2 weeks (to excercise OTP), which means I'll only get 1st Appt date after 3 weeks of signing my OTP. Inputs from friends and colleagues on resale procedures told me otherwise, most are telling me that I can get a 1st Appt date right after signing OTP...

I then read up HDB resale procedures but was not very clear of what they are actually saying, and I also called up HDB and the resale officer told me that once I paid a $5K deposit, agent can proceed to book for 1st Appt.

As such I called up the agent last night and she informed me "her initial procedure" again and affirm that it is correct and said that seller had submitted their docs.

I am at a lost now.... Can any member here enlighten me on whether what I'm going thru is right ???

Thanks in advance... Kinda worried now, not really because of the $5k (cos i don't think someone is so stupid enough to cheat $5k like this) but more of seller and agent trying to take me for a ride and I lose precious time..... I am in need of a house badly for my marrige and that's really giving me alot of headache...

Thanks in advance for your time and assistance...

Do you have a copy of the OTP with Sellers' signature? You must have the Sellers' signature on the OTP before you pay the option fee of $1k.

Your agent got the procedures wrong. It should be this way:

1) Once price is agreed, Sellers will sign on the OTP. Cooling period for Sellers depends on the date the Sellers signed the resale checklist.

2) You (Buyer) will pay the option fee (max $1k) and will have 14 days to exercise the option. During this 14 days, you can consider the purchase and get your loan approved(if you are taking loan). You DO NOT SIGN the OTP unless you want to exercise it.

3) Once your loan is approved, you can go ahead and exercise the OTP by signing on the Acceptance page. You should then pay the option exercise fee(up to S$4k). Take note that if you are taking loan, your LO or HLE date CANNOT be later than your OTP exercise date, i.e you are NOT ALLOWED to exercise the OTP before you get your loan approval.

4) Submit the resale application to HDB. The 1st appointment date should be about 2-3weeks' time, subject to availability though.

In your case, by paying $5k and signing on the OTP, you have technically exercised the option. But if the seller did not sign on the OTP. it is not valid at all. And also, make sure you have your bank's LO or HLE if you are taking loan. Otherwise, HDB would reject your application.

If your cheque has not been banked in, I would suggest you cancel it and clarify with your agent first to make sure things are not to your disadvantage.

Hope my info helps and best wishes to your purchase!

[Kobelala 8]

Dear Senior Members and Mod, really thanks for your kind assistance and reply. I had spoken to my agent and I understand what was being done :

a) I issued a cheq of 1k n 4k and signed only my part of Checklist, OTP and also paid for the valuation report... As mentioned earlier that seller is using POA to transact and the POA was not present.

b) Seller had submitted the Seller Checklist yesterday Morning.

c) They had not banked in my cheq as they are only collecting the cheqs first and have me sign first since I'm firm and so that they don't need to meet me again.

d) My Agent further inform that my docs will be submitted in 7 days and will update me again once there is a 1st appt date.

I do not want to pin them down on the wrong procedures as yet and I can only assume that both agents are trying to secure my cheqs and signature first and thereafter proceed with the proper procedures. I am ok with the arrangement thus far so long there is nothing in between the lines and they pull thru the deal.. ... and I understand what they are doing now slightly better; but the forms in my posession now are ;

a) My signed copy of CEA Prescribed Est Agency Agreement Form (2)

b) The agent's company comm agreement form.

c) 2 simple receipts of Valuation report n resale submission fee.

Can i check with Senior Bros n Sis-s :

a)What other forms should I request from my agent ??

b) What are the repercussion I may have in this case ? (can the agents play me out if they have a better offer or if the owner refuse to sell... ??)

c) I intend to continue looking for other flats in case this case dosen't pull through, I will stand to lose ony 1k or all 5k if I cancel this transaction ?? (like I said I'm in need of a flat badly for my marriage)

Really thankful for all your replies and advise.. .. (i am not revealing the name n sex of my agent as i am still giving the agen my benefit of doubt) .

Edited February 12, 2011 by Kobelala

[therat 18]

c) I intend to continue looking for other flats in case this case dosen't pull through, I will stand to lose ony 1k or all 5k if I cancel this transaction ??

U had exercise the OTP.

If you cancel the transaction, the seller can sue you.

Did the seller or POA sign the OTP before you sign?

[Plastic3 0]

I do not want to pin them down on the wrong procedures as yet and I can only assume that both agents are trying to secure my cheqs and signature first and thereafter proceed with the proper procedures. I am ok with the arrangement thus far so long there is nothing in between the lines and they pull thru the deal.. ... and I understand what they are doing now slightly better; but the forms in my posession now are ;

a) My signed copy of CEA Prescribed Est Agency Agreement Form (2)

b) The agent's company comm agreement form.

c) 2 simple receipts of Valuation report n resale submission fee.

Can i check with Senior Bros n Sis-s :

a)What other forms should I request from my agent ??

b) What are the repercussion I may have in this case ? (can the agents play me out if they have a better offer or if the owner refuse to sell... ??)

c) I intend to continue looking for other flats in case this case dosen't pull through, I will stand to lose ony 1k or all 5k if I cancel this transaction ?? (like I said I'm in need of a flat badly for my marriage)

Really thankful for all your replies and advise.. .. (i am not revealing the name n sex of my agent as i am still giving the agen my benefit of doubt) .

A] Technically once you have given the cheque Seller should grant you the OTP, but in this case they have not submitted their Seller's checklist so they cannot grant you the OTP yet

B] Since you do not have the OTP, the Seller may not honor the deal if they get a better offer

May I ask when you view the unit, was it the very first day the unit was released in the market?

Did you make your offer within a couple days of viewing?

Best,

Mark

[therat 18]

Hi Plastic3,

U mean the agent ask TS to sign on an empty OTP(i.e seller has not sign) and take $5k deposit. And it is not consider granting the OTP to him?

It is legal?

[Plastic3 0]

Hi Plastic3,

U mean the agent ask TS to sign on an empty OTP(i.e seller has not sign) and take $5k deposit. And it is not consider granting the OTP to him?

I am not 100% clear regarding this case, since i'm only interpreting Kobelala's posting here...not sure if any detail is missed out...

Assuming the worst case scenario: if OTP is not yet signed by Seller,

in the event the Seller decides not to sell for whatever reason there is no proof to say that the Seller has agreed to sell the flat to Kobelala

Alternatively, after cooling period...Seller signs the OTP & submit the case to HDB, maybe the Agent just has a strange way of doing things...

My advice is...

that buyer's $1000 option fee is always given in exchange for a signed OTP never settle for anything less

Best,

Mark

Edited February 13, 2011 by Plastic3

[snowpear 0]

Kobelala, are you taking any loan for this house? If yes it is important to get your LO or HLE before you proceed with this application even if you are very sure you can get the loan quantum that you need. As for your questions pls see my replies in blue:

Dear Senior Members and Mod, really thanks for your kind assistance and reply. I had spoken to my agent and I understand what was being done :

a) I issued a cheq of 1k n 4k and signed only my part of Checklist, OTP and also paid for the valuation report... As mentioned earlier that seller is using POA to transact and the POA was not present.

Like what Plastic3 said, paying $1k is for the Seller to grant you the OTP, i.e. Seller or POA MUST SIGN the OTP and give you a copy. Paying S$4k is to exercise the OTP, thereafter you can submit the application to HDB.

b) Seller had submitted the Seller Checklist yesterday Morning.

Technically speaking, Sellers cannot grant you the option if they had not submitted the seller checklist. But most agents submit this checklist before they market the unit so that in anycase a good offer comes by, the deal can be closed immediately. In your case, it looks like your agent is doing the reverse.

c) They had not banked in my cheq as they are only collecting the cheqs first and have me sign first since I'm firm and so that they don't need to meet me again.

ok fair enough if it is for convenience sake. But ask yourself how are you protecting yourself in this whole transaction? You gave them the $ without a signed copy of the OTP, you do not have anything on your side if things do not turn out well.

d) My Agent further inform that my docs will be submitted in 7 days and will update me again once there is a 1st appt date.

What docs are your agent referring to?

I do not want to pin them down on the wrong procedures as yet and I can only assume that both agents are trying to secure my cheqs and signature first and thereafter proceed with the proper procedures. I am ok with the arrangement thus far so long there is nothing in between the lines and they pull thru the deal.. ... and I understand what they are doing now slightly better; but the forms in my posession now are ;

You are right indeed if everything goes well and no point harping on the procedural stuff. Your agent is probably just trying to complete the deal in a more "convenient" manner. But what happens if things do not turn out well?

a) My signed copy of CEA Prescribed Est Agency Agreement Form (2)

not relevant.

b) The agent's company comm agreement form.

not relevant also. This is more like to secure the agent's comm and protect themselves.

c) 2 simple receipts of Valuation report n resale submission fee.

valuation report can be paid by anyone. resale submission fee only receipt from hdb is valid.

Can i check with Senior Bros n Sis-s :

a)What other forms should I request from my agent ??

Most important - the signed copy of the OTP. Submission status you can check online using MyHDB.

b) What are the repercussion I may have in this case ? (can the agents play me out if they have a better offer or if the owner refuse to sell... ??)

Yes, you are at a losing end because the seller can back out and don't refund you anything. Some agents like to use this method to bait for higher offers. They will show your cheque and OTP to other buyers and tell these buyers that seller rejected this offer and thus only offer higher than that will have the chance to close. Worse still, some fraud cases whereby seller/agents collect cheques from different buyers and don't honour the deal. Of course such cases are not common.

c) I intend to continue looking for other flats in case this case dosen't pull through, I will stand to lose ony 1k or all 5k if I cancel this transaction ?? (like I said I'm in need of a flat badly for my marriage)

Why would you want to lose $5k for nothing even if you are urgently in need of a flat? You can use this $5k to make a higher offer for another flat that you really like or even use it for a short term rental. Why let the seller/agents get your hard-earned $5k for nothing?

Really thankful for all your replies and advise.. .. (i am not revealing the name n sex of my agent as i am still giving the agen my benefit of doubt) .

If you trust your agent(provided they can be trusted ) so much, then there shouldn't be much of a problem as it seems like he/she is just trying to be more flexible