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Hello! Can I check if we signed an OTP agreement with a developer via an agent during the show flat (it has been 2 months now), there is a clause that mention we are liable to pay the 25% of the booking fee if we don't proceed to purchase the EC. We have been in HDB all along and EC is the first time. As we are going through financial distress at home, we decided not to go ahead. And now we received a legal document to pay the option fee of 25% of the booking fee. Can some kind soul please advice (1) Is this the norm practice in Singapore to send a legal letter by the developer? (2) Isn't it supposed to be 1% forfeiture? (3) Paying a 5 figure of 25% is not cheap. (4) Have you all encountered such cases? Could you please be really kind enough to advice me what to do and how to best tackle the situation? Thank you very much.
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1 Answer

Hi, if you do not wish to proceed ahead with the purchase of this EC, then I'm afraid that 25% of the booking fee will be forfeited.

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

    What are other possible alternatives to tackle this problem if we can't pay up the 25%?

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