Real Estate Transaction Gone Wrong In Need Of Advice Urgently

[barefootken 0]

Hi dear all,

Need some urgent help with a sticky situation here.

Summary:

- Basically my parents are planning to rent out their current 3 room HDB unit.
- I was planning to help them source for an agent to get people to rent the unit.
- They met an agent recently and say may have a buyer. They just want to consider renting or selling but haven't made up their mind as want to see if sell can get how much max.
- Then agent today said they already signed the OTP and took $1K as deposit.
- What happened is that my parents thought they can refund as they have not yet decided and they never thought the OTP is the final document.
- Agent said the cooling off period is before the signing of the OTP. Once signed means cannot back off and can't even return the deposit as no use, unless buyer backs out.
- My parents didn't share with me all these until today. Initially few months back they did say want to consider renting out. Lesson learned for elderly people who are not well verse in terms really cannot any how sign papers so dangerous.

I need some advice here, any idea can reverse the situation or really no way out? And is what the agent saying correct? Please help, if convenient can also pm me your contact and we can discuss. Thanks in advance.

[therat 18]

- Once signed means cannot back off and can't even return the deposit as no use, unless buyer backs out.

Yes. the agent is correct.

- They met an agent recently and say may have a buyer. They just want to consider renting or selling but haven't made up their mind as want to see if sell can get how much max.

Now, no longer can have valuation before selling.

Valuation only can done after OTP sign and buyer request for valuation.

Seller will not know how much the valuation is unless buyer willingly to share this information.

1. agent represent buyer or seller?

2. does your parent has any agent present them?

3. does that agent ask your parent to sign "Resale Checklist for Sellers"?

http://services2.hdb.gov.sg/webapp/BB24ResaleChecklistBS/BB24SHome

Ur parent really sign the OTP and take that $1k deposit.

If yes, gone.

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

Resale Checklist for Sellers

If you intend to sell your flat, you should go through the Resale Checklist even before you start to market your flat for sale. The Resale Checklist highlights the key policies and procedures that you should take note of before you commit to selling your flat, that is, before you grant the Option to Purchase.

The Resale Checklist must be completed and submitted online via the Resale Checklist for Sellers/Buyers e-Service to the HDB at least seven days before you grant the Option to Purchase to the flat buyer.

[bepgof 20]

Intend-to-rent-out become conned-to-sell?

Demand from yr parents to present those docs therat mentioned.

Where got so easy to sell this day....

[barefootken 0]

Hi dear all thanks for the advises and suggestions really appreciate that. I also don't wish to pin point whose fault etc as everyone also has a family to feed and I just want a peaceful resolution.

In summary tonight met agents from both sides including buyer. Told buyer my side of the story and listen to her story. Offer buyer the $1K refund plus compensation, buyer didn't accept the offer. Buyer said already paid renovation contractor few thousand as deposit for renovation. How true I don't know. Anyway I also offer to pay whatever the amount buyer pays to contractor. If can only take over unit in May 2015 would anyone pay contractor so early? Thought people only usually pay before commencing work. So benefit of doubt here.

Instead buyer quickly wants to exercise the rights to buy even before the valuation report is out and even before the OTP expires in 8 March 2015. Buyer has signed on the OTP to exercise the buyer right and even offer another cheque.

Very sticky situation now. Really no turning back? Could it be the agents influenced the buyer as commissions at stake?

There's a grey area now too. House is registered under my mum's name, when agent goes through the checklist with my parents, my dad who is present at that time is the one login with the singpass (belonging to my mum) and acknowledged it so do we have a case here as my mum wasn't the one who actually acknowledging it? And my mum still thinks sell house where got so simple one, sign one time (on OTP) means deal is done.

All help is appreciated. Thanks in advance.

[therat 18]

hmm "exercise the rights to buy even before the valuation report is out" ????

Buyer has HLE or Bank loan in principal approved before valuation report?

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

The date of issue of the HLE or the Letter of Offer must be before you exercise the Option. This is to ensure that you have the means to buy the resale flat before you commit to the purchase.

And my mum still thinks sell house where got so simple one, sign one time (on OTP) means deal is done.

when she received the first appointment letter, then she will know how simple is it.

OTP is legal doc.

[Bendy 0]

Did the agent explain properly to your parents?

I think you may want to seek legal advice from the lawyers to see if you can get it off.

[bepgof 20]

All stakeholders need oxygen to breath - this goes without saying.

To win a game, 1st criteria is to understand the rules of the game!

The knowledge, skills and experience come 2nd.

ONLY AFTER 1ST APPOINTMENT THEN TRANSACTION NO U-TURN.

Don't sign anything now! Don't process anything!

Get agent's ID, WRITE him/her AND to the CEA, telling you have no intention to sell and willing to refund $1k...everything in black & white. No more no less.

Stop agent from 1st appointment application, if any.

[Lauer 15]

OTP is a legal document. There is no legal avenue for a seller to back out of a sale once OTP is signed by the seller.

While I am not familiar with HDB sale & purchase, my guess is that the legal process is the same except that HDB as an agency is involved in the conveyancy, because an HDB sale & purchase is legally more of a lease agreement between HDB and the buyer.

What TS has not explained is the reason for backing out of the sale. While we would not want to intrude in the privacy of the matter, the weight of this reason is important. The only way to back out of the sale is for the buyer to cancel the purchase, and in this case is to drag the process (such as not signing any subsequent document, not turning up on an HDB appointment etc as one has proposed), essentially to force the buyer to go to the Court to compel the seller to complete. And hope that the buyer chooses not to go through this and cancel the sale.

In doing so, it must be made clear that the seller is exposed to all consequential damages sought by the buyer should the buyer chooses to go through the legal process and at the end still being compelled by the Court order. The damages are the buyer's legal cost, his renovation deposit, his rental cost if any while pursuing the case, etc all kinds he could think of and the Court may approve if it agrees with the buyer. All these should be weighted against the reason of backing out of the sale.

Good luck!

[bepgof 20]

To me, buyer is a 'cannon' king on reno deposit.

Who would place a cash deposit to a reno co, not mentioning details of reno items, When he ONLY signed the OTP stage in a HDB resale mkt?

Money has future value, delay in payment towards consumed products/services/solutions w/o incur interest is the best cash flow management of course also w/o putting stakeholders relationship into the equation.

In summary tonight met agents from both sides including buyer. Told buyer my side of the story and listen to her story. Offer buyer the $1K refund plus compensation, buyer didn't accept the offer. Buyer said already paid renovation contractor few thousand as deposit for renovation. How true I don't know. Anyway I also offer to pay whatever the amount buyer pays to contractor. If can only take over unit in May 2015 would anyone pay contractor so early? Thought people only usually pay before commencing work. So benefit of doubt here.

Instead buyer quickly wants to exercise the rights to buy even before the valuation report is out and even before the OTP expires in 8 March 2015. Buyer has signed on the OTP to exercise the buyer right and even offer another cheque.

Edited March 8, 2015 by bepgof

[bepgof 20]

Now, no longer can have valuation before selling.

Valuation only can done after OTP sign and buyer request for valuation.

Seller will not know how much the valuation is unless buyer willingly to share this information.

http://www.srx.com.sg/sell

'X-value' online foc, valuation result within seconds.......chun

[AngleFire 2]

HI TS,

This sounds like a buyer-agent push/con case. To my understanding, yes, OTP is a legal doc. However, it is NOT THE DOC. ie. It is an 'Option to Purchase'..until the date to 'exercise the right to purchase'. Meaning between the day the OTP is signed (by both parties) and the dateline/cooling period which in this case seems to be 8 March? During this period, seller has every right to reject/cancel the sale to buyer. Only thing is the $1k deposit needs to be returned.

However, once the dateline is passed and buyer has proceeded to exercise the right to purchase, there's really no turning back.

In any case, all this should have been clearly explained by the agent. Hence, you might have a case and there's nothing to loose in you seeking legal advise. There are such pro-bono services held in every district these days. I'd also learnt and benefited from my agent when I sold my 4rm flat and he is one experienced, transparent agent I'd recommend to anyone looking to buy/sell your HDB flat.

All the best.

[barefootken 0]

Sorry for not updating earlier as real busy with work lately plus need to sort out this issue being running around seeking MP's advice & legal advice too.

Still remember the buyer saying not willing to accept compensation and wants to go ahead to get the unit.

Then last week buyer said willing to take compensation, including the initial $1K deposit plus valuation & registration fee total around $7K. Then seller agent said since in this case deal didn't go through due to seller's fault so want commission of around $5.5K too. Total damage around $ 12.5K which I find not worth it & no logic.

Then this week, got message from seller agent said buyer saw another unit and willing to let go of my mum's unit if compensate $1K plus the initial deposit of $1K plus valuation & registration fee total around $2.2K which I'm actually willing to compensate and close the case. The buyer give me just like less than 10 hours to consider as she said another buyer is looking at the same unit as her too. Then the 'dear' seller agent said same thing since in this case deal didn't go through due to seller's fault so want commission of around $5.5K too. Of course I said now is buyer wants to back out but he said it's not, it's just that buyer willing to consider alternative option else will still stick to plan to get the unit. So went to seek legal advice and ask agent to communicate to buyer to see if can extend by 1-2 days. Then next morning seller agent said the unit taken so buyer still going ahead to get my mum's unit.

And from legal point of view for $5.5K he find the agent won't take legal suit as would not worth it and too costly. Instead he may go to small claims tribunal and file a case whereby judge will do hearing and both sides cannot be represented by lawyers. It's going to be 50-50% chance of winning. Worst case have to pay him the $5.5K plus the registration fee, transport fee etc but won't amount to too much. Or judge may say pay half.

Best part checked with my parents they said agent didn't say if deal didn't go through still need pay him commission but agent said he did mention about it & stated in the papers. And there's total 4 sets of documents he didn't give any copies to my mum saying she didn't have an email so he safe keep them. Only when I asked for them then he emailed me. What kind of agent is this? I'm trying to be fair but I find this agent can't be trusted right haizzz.

Now really wonder what other options available?? Really tired going through this episode since CNY.

[bepgof 20]

Now really wonder what other options available?? Really tired going through this episode since CNY.

1. Forget everything and don't sign anything, just return the 1k. Take it or leave it.

2. Switch on recorder in front of agent, get whatever he says and get whatever doc you have, get his ID, lodge a complaint to CEA. Get his license revoked!

Why still 'play' hide & seek with him?

[AngleFire 2]

[salavanun 0]

please name the agent agency. i still can stand the buyer but the agent old people money also want to eat. what kind of moral he has..i thought this kind of agents are already gone with the recent tightening of agent criterias.