Advice Needed On Otp

[faishah7477 0]

Recently somewhere in April we met a couple whos selling their house, after viewing we both agreed that,

1) me n my wife will buy the house at whatever the valuation price is, no cov involve

2) since they will only be submitting their valuation only the following week(since they will only meet their minimum occupation period the following week) we agreed on signing the otp first( both party and leaving the valuation,price n date out) and paid them a deposit+option fee of total $1000.

3)both party decided not to engage an agent as we both r short on cash.

In late april they called us up n they said they decided they wanted to do another valuation as their valuation only came up at $405k which is far below their expectations, but they r willing to let go of the house if we r willing to give them at least 30k cov in which i disagree as we have already agreed on selling at valuation price. they then asked for another month for them to do another valuation.

I waited till only a week ago then i receive news that they r now engaging an agent to deal for them as they r unable to obtain a higher valuation price for their houce n is looking at obtaining cov instead.

What r my optiuons here,

1)what can i do now, can i just insert any dates on the otp and the valuation price as i have the otp with me?

2)or should i get some legal advice and can i proceed with legal proceedings?

3)or should i go to hdb and get some consultation with them?

4)or is there any other way cause i have forgo my selection for bto as i thought i have finally gotten a resale flat?

Please help thank you.

[dreamzgal 0]

Hi,

Happen to be reading some information on OTP from HDB website. Hope the information is useful.

Maybe you should seek the advise of an agent and let both agents do the discussion.

Just my 2 cents worth.

[May_dream1 14]

Recently somewhere in April we met a couple whos selling their house, after viewing we both agreed that,

1) me n my wife will buy the house at whatever the valuation price is, no cov involve

2) since they will only be submitting their valuation only the following week(since they will only meet their minimum occupation period the following week) we agreed on signing the otp first( both party and leaving the valuation,price n date out) and paid them a deposit+option fee of total $1000.

3)both party decided not to engage an agent as we both r short on cash.

In late april they called us up n they said they decided they wanted to do another valuation as their valuation only came up at $405k which is far below their expectations, but they r willing to let go of the house if we r willing to give them at least 30k cov in which i disagree as we have already agreed on selling at valuation price. they then asked for another month for them to do another valuation.

I waited till only a week ago then i receive news that they r now engaging an agent to deal for them as they r unable to obtain a higher valuation price for their houce n is looking at obtaining cov instead.

What r my optiuons here,

1)what can i do now, can i just insert any dates on the otp and the valuation price as i have the otp with me?

2)or should i get some legal advice and can i proceed with legal proceedings?

3)or should i go to hdb and get some consultation with them?

4)or is there any other way cause i have forgo my selection for bto as i thought i have finally gotten a resale flat?

Please help thank you.

1) OTP have a few copies, one kept by you, one by seller and another to submit to HDB. If you write the date and valuation price on the OTP, other copies do not have the same info, no use

2) no price and date, no way you can fight even with lawyers. Its all based on gentleman's agreement but one back out, nothing much you can do. I am sure the seller knows it so they not worried but get agent to market the place.

3) HDB can only say, why you sign the OTP without price and date?

4) look for another flat loh. the seller back out and no black and white, very difficult to fight.

these are what i know of the rules when i went to HDB resale seminar lah. i am not agent so i can't advise much also... hope you will not get too stressed up by this.

[Rover 0]

Ur OTP form is considered void since both party can't get to agreement (or rather ur seller turned turtle on u). There's no way either party can take legal action to sue each other as the OTP form is rather 'incomplete'. What u had lose out is ur $1k deposit based on current situation.

On the same note, in the event where OTP is in order, seller can't sell their unit to others within 14 days and buyer must commit their application to hdb within 14 days. If buyer backed out within 14 days, seller keep the $1k. If seller turned turtle and sell the flat to others within 14 days, the initial buyer can sue the seller and claim compensation, eg difference in transaction price for another unit due to the fouled OTP.

[HappyHouse88 0]

I waited till only a week ago then i receive news that they r now engaging an agent to deal for them as they r unable to obtain a higher valuation price for their houce n is looking at obtaining cov instead.

What r my options here,

1)what can i do now, can i just insert any dates on the otp and the valuation price as i have the otp with me?

2)or should i get some legal advice and can i proceed with legal proceedings?

3)or should i go to hdb and get some consultation with them?

4)or is there any other way cause i have forgo my selection for bto as i thought i have finally gotten a resale flat?

Please help thank you.

Did seller can issue otp after they send in Resale Checklist ?

If no, then the otp is effective void. If you insert the date on the otp, then you may run into legal issue. That's why you need an agent, more to make sure that the paperwork is complete and legally binding.

Edited July 5, 2012 by HappyHouse88

[merri 1]

Recently somewhere in April we met a couple whos selling their house, after viewing we both agreed that,

1) me n my wife will buy the house at whatever the valuation price is, no cov involve

2) since they will only be submitting their valuation only the following week(since they will only meet their minimum occupation period the following week) we agreed on signing the otp first( both party and leaving the valuation,price n date out) and paid them a deposit+option fee of total $1000.

3)both party decided not to engage an agent as we both r short on cash.

In late april they called us up n they said they decided they wanted to do another valuation as their valuation only came up at $405k which is far below their expectations, but they r willing to let go of the house if we r willing to give them at least 30k cov in which i disagree as we have already agreed on selling at valuation price. they then asked for another month for them to do another valuation.

I waited till only a week ago then i receive news that they r now engaging an agent to deal for them as they r unable to obtain a higher valuation price for their houce n is looking at obtaining cov instead.

What r my optiuons here,

1)what can i do now, can i just insert any dates on the otp and the valuation price as i have the otp with me?

2)or should i get some legal advice and can i proceed with legal proceedings?

3)or should i go to hdb and get some consultation with them?

4)or is there any other way cause i have forgo my selection for bto as i thought i have finally gotten a resale flat?

Please help thank you.

Moral of the story, never enter into OTP 1) with flat sellers who is not eligible to sell flat yet 2) when valuation is unknown (How to fill in the OTP without selling price?) 3) when the deal sounds too good to be true ($0 COV?). I wonder how your lawyer will enforce the OTP when it is very much a blank OTP with only buyers' signature on it?