AskGuru Q&A Community

Hi Wenkai,

Do you mean to say that you have already signed on the OTP but yet to transfer the $4000 exercise fee to the seller?

Regards
Aaron
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

Hi Wenkai,

Did you appoint any agent to represent you in this purchase? I am assuming you have not therefore you are asking this question. In order to exercise the Option To Purchase, you will need to sign on the acceptance portion of the Option To Purchase as well as pay the seller the remaining Option Exercise Fees, which in this case I suppose is the $4,000 in order to consider that you have exercised the Option, and thus enter into a legal binding agreement with the seller to purchase the property.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

We are offering our clients a complimentary first consultation without obligations (Absolutely FREE!). Schedule for your FREE session today!

Warmest regards,
Geryl Lim
Associate Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K
[main] +65 6471 8888  [mob] +65 81577565  [LDA] +65 92787772 
www.geryllim.com

My self introductory video on https://www.youtube.com/watch?v=S_2NydENfx0

-----

Note: We value your home as much as you do! Find out the indicative value of your home at http://bit.ly/UrHomeMatters and get monthly update on your home value. Restructure your portfolio with us, speak to us!

Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.

Visit and Like my facebook page at https://www.facebook.com/GerylLimSince2009/ - Aspiring To Be The Best Real Estate Agent In Singapore

Pick up knowledge, skills and Real Estate concepts at https://www.facebook.com/RealEstateXcellence/

New Singapore Expatriates on facebook is up and running. Come join us at https://www.facebook.com/groups/newsgexpats/

-----
Landed Dynamic Alliance
Home of *7772 Hotline
Check out our latest Landed Dynamic Alliance 7772 mobile application on iOS or Android @ http://l.ead.me/7772 Read More

Hi Wenkai,

1) This will depends on which state you are in.
2) If the buyer backed out after offering a deposit in exchange for the OTP but did not exercise the OTP, meaning signing on page 8 of the prescribed HDB OTP. The buyer can still back out.
3) There are circumstances where the buyer back out after placing a deposit such as :
(a) The valuation is too low compared to the purchase price, so the buyer has to pay a high COV (Cash-Over-Valuation). The buyer cannot afford or is unwilling to pay.
(b) The bank could not provide sufficient loans to the buyer for the purchase. This could happen when the buyer did not check with the bank properly on his loan capacity.
This commonly happened to those DIY buyers.

4) Since the buyer did not sign the OTP, therefore a contract has not been legally formed in this case. The seller also cannot sue the buyer for not exercising.
5) But if the buyer had exercised the OTP (sign on page 8), but did not pay the exercise fee. This is not considered exercising. Exercising the OTP needs 2 actions; signing and pay up the exercise fees.
6) The seller can then keep the deposit and wait till this current OTP expires in order to release a new OTP to the next buyer.
7) The reason for waiting for the OTP to expire is that the current buyer can still change his mind and exercise the OTP before the OTP expire.
8) Once an OTP is issued, the seller will have no control over whether the contract will be formed, and it is up to the buyer to accept the offer by exercising the OTP, or wait till the OTP is expire.
9) The seller will be able to keep the deposit if the buyer did not exercise the OTP by the due date.

Please give me a thumbs-up if the answer provided is relevant to your main concern. Thanks!!!

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us.
The best way to get a follow-up is to Whatsapp or email us directly. Read More