Need Advice On Buying A Flat Whose Owner Is Overseas

[sallonz 0]

Hi,

I am buying a resale HDB flat for the first time and am going to DIY without sales rep. Could anyone advice if seller is overseas (according to seller's agent) what are the things I should look out for? Seller's sister is in SG and has POA (Power Of Attorney? Again this is according to seller's agent) and has signed on the OTP on behalf of the seller. My $1K option fee's cheque (as well as the $4K option exercise fee cheque) is(/will be) made out to the seller's name.

Examples of things I should be looking out for (as far as I can think of):

Should I ask from seller's agent proof that the sister has POA to act for seller (am I too KS and do you think it is required)?

Seller's agent says sellers have moved overseas and reason selling flat is becoz they are not coming back; Would I need to check if they are still SG citizens? Does it matter if they are/are not?

So far, I believe the seller's agent is reasonably trust-worthy. I'm also not sure if the seller's sister presence will be sufficient for the 1st and 2nd appts with HDB or must the seller be present.

Also, as a buyer, when (and would I need to) lodge a caveat on the flat? I've signed up for the upcoming HDB seminar but it won't be in time before the OTP expires. So, I am in need of a little urgent advice on this.

Thanks very much and I look forward to your advice.

[bepgof 20]

Hi,

I am buying a resale HDB flat for the first time and am going to DIY without sales rep. Could anyone advice if seller is overseas (according to seller's agent) what are the things I should look out for? Seller's sister is in SG and has POA (Power Of Attorney? Again this is according to seller's agent) and has signed on the OTP on behalf of the seller. My $1K option fee's cheque (as well as the $4K option exercise fee cheque) is(/will be) made out to the seller's name.

Examples of things I should be looking out for (as far as I can think of):

Should I ask from seller's agent proof that the sister has POA to act for seller (am I too KS and do you think it is required)?

Seller's agent says sellers have moved overseas and reason selling flat is becoz they are not coming back; Would I need to check if they are still SG citizens? Does it matter if they are/are not?

So far, I believe the seller's agent is reasonably trust-worthy. I'm also not sure if the seller's sister presence will be sufficient for the 1st and 2nd appts with HDB or must the seller be present.

Also, as a buyer, when (and would I need to) lodge a caveat on the flat? I've signed up for the upcoming HDB seminar but it won't be in time before the OTP expires. So, I am in need of a little urgent advice on this.

Thanks very much and I look forward to your advice.

- Must ask to read the POA, ensure names mentioned tallied with ICs'.

- Since cheque made payable to seller's name, u have more strong ground to demand to read POA.

- POA holder must be present during 1st & 2nd appt.

- HDB loan/bank loan? It is lawyer's job to lodge caveat to SLA. If pay cash full at one go, then u need to engage lawyer too to settle transfer of ownership of property.

http://www.sla.gov.sg/htm/new/new2003/new0222.htm

Edited October 26, 2011 by bepgof

[sallonz 0]

- Must ask to read the POA, ensure names mentioned tallied with ICs'.

- Since cheque made payable to seller's name, u have more strong ground to demand to read POA.

- POA holder must be present during 1st & 2nd appt.

- HDB loan/bank loan? It is lawyer's job to lodge caveat to SLA. If pay cash full at one go, then u need to engage lawyer too to settle transfer of ownership of property.

http://www.sla.gov.sg/htm/new/new2003/new0222.htm

Hi bepgof,

Thanks for your advice. I will definitely ask to see/read POA.

On getting a lawyer, I am hoping to get HDB's lawyer to act for bank, CPF Board and me, in addition to representing HDB. Does HDB assign one only during the first appt? Should I be waiting until then to get a lawyer?

Thanks again for your advice.

Rgds.

[therat 18]

If u get HDB loan, HDB lawyer will handle.

If u get Bank loan, either u had a lawyer or recommend lawyer from friend or can use bank lawyer (ask ur bank loan officer to recommend)

[bepgof 20]

On getting a lawyer, I am hoping to get HDB's lawyer to act for bank, CPF Board and me, in addition to representing HDB. Does HDB assign one only during the first appt? Should I be waiting until then to get a lawyer?

Thanks again for your advice.

Rgds.

Getting HDB's lawyer to act for bank??? Don't worry abt the laywer stuff, unless you pay full in cash/cpf.

Seem you've not exercised the otp. You have only 14 days (from the day you paid 1K) to apply for either HDB loan or bank loan. Time is very short. When exercise the otp, you must have the mortgage loan arrangment settled, then can apply for " submission of resale application".

Before apply HDB loan, must apply HLE first. Banks need quite many docs to assess your earning capacity b4 granting you the required amount, will take at least a week for processing, need valuation report....Not to scare you, banks' loan mortgage application forms, abt 6 pages to fill in....

Time is not with you, must act quick. You have reversed the sequence - should have attended the seminar b4 buying!

Remember this: "Make sure know the rules of game b4 playing the game!". "Losser" always get caught with the rules!.

[sallonz 0]

Hi therat and bepgof,

Thanks very much for all these valuable information. I agree I should have found out more about the procedures first, but it didn't occurred to me I could give DIY a try until recently (actually, it was after spending time reading up in this forum to gain more knowledge that I now feel perhaps it is possible to DIY).

We (wife and I) do have the option of using all of our CPF savings and not take a Bank or HDB loan; But I was thinking that it would not be advisable to use up all our savings and instead, take a partial loan with the Bank (not sure if that is possible either - to take up the partial loan when there will be something left in our CPF Ordinary accounts).

However, since it is unlikely I will be able to get a loan arranged/approved in time (and wife is against getting a loan and paying interest to the bank), looks like we will be using our CPF to pay for the resale flat without any loan. What I meant earlier was I am hoping we could save a little in lawyer fees if the appointed lawyer could represent all parties, ie. HDB, CPF, we the buyers (and the bank if we were getting a loan).

So, if I am not getting a loan, is it advisable for me to wait for the first appointment for HDB to appoint the lawyer? Or should I be looking at CPF Board's list (of approved lawyers) and getting one to represent me/us before exercising the option?

Again, thanks so much for your advice.

Rgds.

[therat 18]

Just for your information

CPF only can use to pay the valuation part

COV need to be HARD CASH

Stamp fee can use CPF

For what I understand, most bank loan min 100k

Bank loan or HDB loan only for the valuation part. Not the total purchase price.

Eg.

HDB valuation 300k, COV 40k

HDB/Bank loan 80% of the valuation 300k = 240k.

Hence the balance 60k , either pay by cash or CPF

COV confirm + crop crop is hard cash.

[therat 18]

So, if I am not getting a loan, is it advisable for me to wait for the first appointment for HDB to appoint the lawyer? Or should I be looking at CPF Board's list (of approved lawyers) and getting one to represent me/us before exercising the option?

This one I answer.. b'coz I didn't take loan.

If u are not taking any loan. Don't need to appoint lawyer. Basically don't worry about this. It is not inside your checklist.

Before HDB give u 1st appointment, HDB will ask you to proof you had such cash to pay.

So.. just print out both of u CPF statement, bank account. email to the HDB officer-in-charge

Upon receive this, HDB OIC will give you , your 1st appointment date

During the 1st appointment, HDB OIC will ask whether you want to use their lawyer or urs. Just tell the OIC, use HDB one. Cheap. Just few hundred $$.

If you didn't take any loan, you don't need to pay mortgage fee which max $500. This one is cheng hu charge you one if you take loan regardless loan from HDB or bank.

[sallonz 0]

- Must ask to read the POA, ensure names mentioned tallied with ICs'.

- Since cheque made payable to seller's name, u have more strong ground to demand to read POA.

- POA holder must be present during 1st & 2nd appt.

Just for your information

...

...

Stamp fee can use CPF

This one I answer.. b'coz I didn't take loan.

If u are not taking any loan. Don't need to appoint lawyer. Basically don't worry about this. It is not inside your checklist.

Thanks bepgof and therat. Three main concerns of mine have been answered. Really grateful for these helpful advices. And now, it's time to call the seller's agent and exercise the option...

Rgds.

[bepgof 20]

Thanks bepgof and therat. Three main concerns of mine have been answered. Really grateful for these helpful advices. And now, it's time to call the seller's agent and exercise the option...

Rgds.

Don't get excited too soon. Stamp fee MUST be paid in CASH first. One can reimburse the paid CASH amount from his CPF OA account, provided he fills in and submits the prescribed form (can't remember the form's name). There is a grace period for this form to be submitted, quite many "traps" here & there, watch out.

[therat 18]

Procedure on resale HDB (buyer and seller checklist)

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatOptiontoPurchase?OpenDocument

[sallonz 0]

Don't get excited too soon. Stamp fee MUST be paid in CASH first. One can reimburse the paid CASH amount from his CPF OA account, provided he fills in and submits the prescribed form (can't remember the form's name). There is a grace period for this form to be submitted, quite many "traps" here & there, watch out.

Thanks bepgof, if you can think of any more gotcha's, please let me know...

I've found some descriptions of the procedures in the following: Appointments with HDB - First Appointment

Finalise Buyers’ Resale Financial Plan

...

...

Process your application to withdraw your CPF savings for the purchase. Only applicable if buyer is represented by HDB:

HDB will set aside from his CPF Ordinary Account for the payment of the stamp and legal fees (about 1%-3% of the selling price of the flat) and the Home Protection Insurance (if any). Thereafter, the balance in the CPF Ordinary Account will be fully utilised towards payment of the purchase price, subject to a ceiling set by the market valuation ie. CPF can only be used up to the market valuation or purchase price whichever is the lower.

Determine the amount of cash that you need to pay within 10 days from the date of the first appointment, if any:

Cash payment is required when the purchase price is above the market valuation or when the loan granted (with credit assessment) and the CPF usable for the purchase are insufficient to cover the purchase price. If the cash payment required is more than 10% of the purchase price, you are only required to pay 10% within 10 days from the First Appointment date. The balance must be paid on the resale completion. If the cash payment required is less than 10%, this amount must be paid within the 10 days period.

The balance cash payment to be paid on resale completion must be in cash or cashier's order.

...

...

Rgds.

[sallonz 0]

Procedure on resale HDB (buyer and seller checklist)

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatOptiontoPurchase?OpenDocument

OK, thanks therat. I've gone through the checklist to make sure I qualify under eligibility, upgrading programme cost, etc.

Rgds.

[therat 18]

Don't get excited too soon. Stamp fee MUST be paid in CASH first. One can reimburse the paid CASH amount from his CPF OA account, provided he fills in and submits the prescribed form (can't remember the form's name). There is a grace period for this form to be submitted, quite many "traps" here & there, watch out.

bepgof,

I don't recall I pay the stamp fee in cash.

If my memory didn't fail me, the HDB OIC ask us, use who CPF for stamp fee.

I ASAP point to my husband. HIS

[liewsc 0]

Mine also same case, owner is oversea and assigned her sister as POA. Different with you is I have a property agent and all payments (Option fee $1K, OTP $4K and 2nd appt proceeding) all goes to the POA and she signed all docs. The owner came back 2 days before the 2nd appt and she only "look thru" the process when we inspect the unit, she didn't go to the HDB office during 2nd appt.

I was very worried during the almost 6 months of waiting and fortunately no problem and things went smoothly...