Asked by Anonymous
Is it common for seller to ask for 4% option fee to be given to them directly instead of the lawyer when you exercise OTP?
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2 Answers
Good evening,
such scenario is rare but it can happen if buyers are okay with.
Usually exercise fee is payable to seller's law firm's conveyancing account.
If there are special circumstances that caused the deal to void and null, seller's law firm is able to return the 4% to buyer.
If 4% is paid directly to seller and if deal voids, buyer might not be able to claim 4% back.
Hope my sharing aids in clearing your doubts.
May I know how can I value add further in your property needs?
"Your Freehold Ally, Leasehold Tactician"
YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd
(M): +65 9111 5171
(E): yt.tan91115171@gmail.com
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(FB): www.facebook.com/yttanassetprogessor
Accolades:
Top Individual Producer July 2018 (Propnex)
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Top Individual Achiever August 2017(Powerful Negotiators Group)
Top Individual Producer 2nd Quarter 2017 (Propnex)
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such scenario is rare but it can happen if buyers are okay with.
Usually exercise fee is payable to seller's law firm's conveyancing account.
If there are special circumstances that caused the deal to void and null, seller's law firm is able to return the 4% to buyer.
If 4% is paid directly to seller and if deal voids, buyer might not be able to claim 4% back.
Hope my sharing aids in clearing your doubts.
May I know how can I value add further in your property needs?
"Your Freehold Ally, Leasehold Tactician"
YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd
(M): +65 9111 5171
(E): yt.tan91115171@gmail.com
(W):www.yttan.com
(FB): www.facebook.com/yttanassetprogessor
Accolades:
Top Individual Producer July 2018 (Propnex)
Top Individual Producer 2nd Quarter 2018 (Propnex)
Top Individual Producer 1st Quarter 2018 (Propnex)
Top Individual Producer Propnex Annual Convention 2018 (Propnex)
Platinum achiever (Clock $100k commission within 1 month) August 2017(Propnex)
Top Individual Achiever August 2017(Powerful Negotiators Group)
Top Individual Producer 2nd Quarter 2017 (Propnex)
Top Individual Producer 1st Quarter 2017 (Propnex)
Top Private Property Transactors January 2017 (Propnex)
Find out your property value for FREE on a monthly basis. Simply sign up by clicking the link below:
http://bit.ly/yt_proptrack Read More
Hi,
1) It is not uncommon for seller to ask.
2) If I'm representing seller, I would recommend not to oblige.
Reason being pure simple; even lawyer can run away after receiving the 4% exercise fee, what if seller run away with it?
I would recommend my buyer to follow recent current practice by issuing a cheque with "CVY" to lawyer so as even lawyer can't run away with this exercise fee.
This is to ensure buyer interest is protected.
Hope the above answer to your main concerns, but if there are more queries, do not hesitate and 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
Note:
Any response to our answer do not reach us until we scroll through each and every queries posted daily.
The best way to get a follow up is to Whatsapp or email us directly. Read More
1) It is not uncommon for seller to ask.
2) If I'm representing seller, I would recommend not to oblige.
Reason being pure simple; even lawyer can run away after receiving the 4% exercise fee, what if seller run away with it?
I would recommend my buyer to follow recent current practice by issuing a cheque with "CVY" to lawyer so as even lawyer can't run away with this exercise fee.
This is to ensure buyer interest is protected.
Hope the above answer to your main concerns, but if there are more queries, do not hesitate and 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
Note:
Any response to our answer do not reach us until we scroll through each and every queries posted daily.
The best way to get a follow up is to Whatsapp or email us directly. Read More