1 Answer

Dear sir/madam,

In a scenario where Option To Purchase has been exercised, both Sellers and Buyers have entered into a legal binding agreement to proceed with the transaction. As HDB has already approved the resale application, the seller in this transaction can seek to claim damages from the buyers for backing out of the transaction by engaging a lawyer.

You can actually check with your agent who is handling this transaction to see if he has any contacts of experience lawyers handling this case if you decide to proceed to claim damages. Important consideration is to understand why the buyer intends to back out of the transaction. In cases where buyer backs out due to financial issues that arises, you need to decide if you should carry out the legal actions to claim for damages or not since even if you succeed in claiming against the buyer for backing out, they may also not have the necessary finances to pay as compensation, while there will be legal fees on your end to pay off to carry out the legal action.

Warmest regards,
Geryl Lim
Associate Deputy 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
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1
  • Geryl Lim
    There are consumers who are doing simultaneous transactions back to back, nothing to do with the agent. End of it all, after exercising the OTP, it is already legal binding for both sellers and buyers therefore the party who backs out needs to be ready to defend the claims by the suffering party and it will be up to the court to decide what are the compensation.
  • ET
    Honestly, seller agent has to ensure the everything has finalise up to the end before the seller proceed to buy his own flat. It the seller who is to blame if he assume everything is OK. I dun think the Judge is stupid enough to let seller claim for this type of damages.
  • Geryl Lim
    There is no definition, it can be any amount that is justified. this has serious consequences as the seller may have already purchased another property and will require the funds from the sale of this property to finance the purchase, therefore if this falls through, the other party can claim damages from the seller as well.
  • MK
    What is range of amount that the seller can claim against the buyer?

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