Property

[Krieger]

guys need to get some advise. if i already paid the 5% for the property n i wish to pull out. whats the penalty or legal complications?

[Moredhel]

guys need to get some advise. if i already paid the 5% for the property n i wish to pull out. whats the penalty or legal complications?

 

Hedgedeebee?

[Krieger]

no private landed

[Moredhel]

Edit: Just saw your reply.

 

Not sure about private, but would think that it would encompass forfeiture of the 5% downpayment fee/option fee(possibly can recoup some back) + legal fees + bank loan(if any). cancellation admin fees and opportunity costs if you have signed anything with a bank.

 

What did your agent tell you?

 

Edited February 20, 2013 by Moredhel

[Krieger]

hi i only went down laywer side to side to excerise our options thats all.

[Rubbishman]

Private? 25% of your initial 5% will be forfeited.

 

 

[Rubbishman]

Have you worked out other available options? Is this your 2nd property? What a waste it would be, especially if you have bought it before the ABSD kicks in on the 11th Jan 2013.

[Mcscot]

Errr ... it really depends on the other side. My Sister pulled out and lost her deposit but I think it was only for 1%. I heard the agent and the owner split 50/50.

[Steptronic]

Errr ... it really depends on the other side. My Sister pulled out and lost her deposit but I think it was only for 1%. I heard the agent and the owner split 50/50.

1% is OTP is gone if you pull out after owner accepted. TS is talking about 5% now! it is 1.25% that would be gone!

[Acemundo]

hi i only went down laywer side to side to excerise our options thats all.

 

 

if option already exercised, i think your position is quite vulnerable.

 

the seller can come back to sue you for the price differential if his next buyer buys at a lower price.

 

in the eye of IRAS, you have already paid the stamp duty and this transaction is legally recognise, title to be transferred.

[Wt_know]

what about those published in the newspaper that buyer return the condo to developer?

 

is it 1%, 1.25% or 5% forfieted?

Edited February 20, 2013 by Wt_know

[Throttle2]

hi i only went down laywer side to side to excerise our options thats all.

 

Not good my friend.

I have given up exercising an option for 1% before for a better deal but this is deeper than that, you shouldnt be backing out at this stage.

 

Honestly, under normal instances i will sue the buyer for serious compensation if i were the seller....

Not sure how nice, the seller is in your case.

 

But not good....

[Vid]

Not good my friend.

I have given up exercising an option for 1% before for a better deal but this is deeper than that, you shouldnt be backing out at this stage.

 

Honestly, under normal instances i will sue the buyer for serious compensation if i were the seller....

Not sure how nice, the seller is in your case.

 

But not good....

 

2nd that... Cos I sue someone over that before

[Acemundo]

2nd that... Cos I sue someone over that before

 

 

my mother friend also sued buyer before.

[Lala81]

For those folks who say seller can sue, can he only sue after u have sold the property? for the price differential?

[Altivo]

By pulling out of the deal after you've exercised the OTP,

 

1) The seller can sue you for the price difference if he has to subsequently sell his property at a lower price.

2) You could be liable to pay for the commission for the seller's agent as well as your agent since legally, it was already a done deal and they are entitled to their dues.

[Swifter78]

Is it possible to let someone take over the purchase in such circumstances?

[Acemundo]

For those folks who say seller can sue, can he only sue after u have sold the property? for the price differential?

 

 

i am recalling my knowlege gained during my study of contract law.

 

court will typically allow 2 types of restitution

 

1) specific performance

2) damages

 

If seller prefer 1, he can immediately (upon expiry of the window period stated in the option contract to complete the purchase and payment) get his lawyer to apply for court to enforce buyer take delivery of the unit and pay up.

 

However, in all practicality, most sellers will adopt 2. easier to execute and enforce. and where damages is concerned, the principle is always the price differential. to adopt option 2), it make sense only to start legal action once buyer have been identified. otherwise if the buyer pays commits to pay price above what the previous buyer defaulted on, there is no need to commence legal action.