Asked by
I am in the process of buying an EC. Owners want the 4% Option Exercise Fee to be made payable to their names instead of to the law firm.

May I know what is the pros and cons for me?
What are the rationale behind this arrangement?
0
636 views
Want this question answered?
Get faster responses from our experts by upvoting.
Be the first to upvote this question.

4 Answers

Hi,

You could check with your law firm too whether is it advisable to do just that.

Regards
Aaron
 9730 8455 
aaronchong2774@yahoo.com.sg Read More
0
Dear Sir/Mdm,

This could be that they wish to use the 4% option fee as a down payment of their next unit or for other financial commitment. However, it is not advisable to pay the 4% directly to the owners as the 4% is supposed to be safe kept by the law firm in the CVY account and only be released upon completion. You may gather further advice from your law firm.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020
Visit my website to know me better: www.nicktan.com.sg

I was featured recently on Council for Estate Agencies (CEA) Newsletter:
http://bit.ly/CEAnews

I have written a guide on buying Residential Property:
http://bit.ly/buypropertyguide

Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)

“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer)

“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick)

“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House) Read More
0
Hi,

1) In a normal conveyance process the 4% exercise fee is made payable to the law firm with CVY in the cashier order or cheque.
https://www.mlaw.gov.sg/files/linkclick66dd.pdf/
2) This is to protect the buyer's interest in the conveyance process. You may read the flyers from the Ministry of Law under (1).
3) The reason for the seller requesting this is because they could only receive this 4% upon completion which is 3 months later and not immediate.
4) You may discuss with your lawyer whether this is advisable to do so.

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 until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
0
Hi,

1) You should check your OTP whether there is a stakeholder clause if there are means that the stakeholder money will be held in a conveyance account where it required both buyers and sellers' lawyers to sign in order to withdraw it.
2) In a normal conveyance process if there is no stakeholder clause, the 4% exercise fee is made payable to the sellers' name.
3) If there is a stakeholder clause in the OTP then the seller could only receive this 4% upon completion which is 3 months later and not immediate.
4) Therefore it is advisable for you to consult your lawyer whether it is advisable to do so.

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 until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
0

Still looking for answers?

Get answers from PropertyGuru experts in 24 hours

Previously Asked Questions