After the unpleasant deal with 203B, we went on to view another 16 units before finding the one we liked. Not 100% perfect but we could make do with it. It took the owner 3 days to get back to us as we couldn't offer what he wanted in mind. We were prepared to give it up when the agent started to say things like need to complete the transaction a little later etc. Hmm.. another case of extension?
On the day we were supposed to sign the option to purchase (OTP), the agent told us he would submit our application soonest possible but will take the last of the HDB appointment dates available. Meaning, although the appointment slots available is from 8 June - 19 July, he will fix the appointment for 19 July. In short, the owner wants an extension of almost 2 months but do not want to pay us for it. The usual practice is to lower the cash-over-valuation (COV) or pay rental to the buyer for the extension. However this owner was out to cheat us of it. Fed-up, we walked out of the deal.
I don't know why but before going to sign the OTP, I had a feeling that there will be problems with the deal. I wasn't happily planning on how to renovate the house. In fact I was mentally preparing myself to walk off from the deal if it's not a fair deal. Therefore when the agent came back to tell us the owner refused to lower COV for the extension, I immediately said "ok lor, too bad." And I stood up, signaling my dad & dear to leave the flat. I don't want to be bullied by the owners.
I was actually quite relieved we dropped it. The flat required too much renovation and we had to live with granite flooring that resembles the flooring of Dhoby Ghaut mrt. And my mum & sis were actually quite freaked out by the owner praying to ancestors at home. What if they didn't "invite" their ancestors to their new home properly? haha
After this we viewed another 15 units before finding one we like. But we've yet to offer. The valuation and COV is quite too high but the location is rather off, not worth the price tag. So we're just waiting. Prob after a month price will drop, or if some idiot's willing to pay so much for it now, gd for the owners lor. We'll continue with our hunt for the perfect home :)
Monday, April 5, 2010
Thursday, March 4, 2010
The purchase that went wrong
We thought we've found our dream home. Then our dreams shattered 2 weeks later when the agent told us the seller failed to meet HDB's restrictions and can't sell. Words can't describe the shock, disappointment and anxiety we experienced. Worse still, I received the bad news hours before my job interview and the start of CNY weekend. I managed to keep my mind off the matter during the interview but over the weekend I couldnt. I broke down a few times, troubled by the thought of losing the deposit ($5k), losing the flat or wasting precious time. Here's what happened:
23/1/2010 - We signed the OTP and passed a $1000/- cheque (addressed to seller) to our agent as deposit. We also signed the commission agreement on the same day but we didn't receive an acknowledgement of receipt of deposit nor a copy of the commission agreement.
30/1/2010 - We exercised the OTP and passed a $4000/- cheque (addressed to seller) to our agent. We also paid our agent $180/- for valuation report and $80/- for submission fee. Didn't receive acknowledgement of receipt of deposit nor receipt for the $180 & $80 paid.
9/2/2010 - We called our agent for updates on the 1st appointment date. She said it's with the seller's agent and not submitted yet as the seller is pending bank loan for his purchase of another flat. I was pissed off. What has the seller not being able to get loan for his new flat got to do with us? In order to pacify us, our agent said she'll collect the documents back from seller's agent and do the submission on 11/2/2010.
12/2/2010 - We called our agent for updates on submission and 1st appointment date again. She said the seller didn't meet the Minimum Occupancy Period (MOP) of 5 years and is now at HDB to submit appeal. She said we cannot back out now and have to wait for the appeal as we've already paid $5,000/- and we're legally binded by the OTP contract. The agents had filled in 45 days from date of exercise OTP to submit documents. So by right they can take their time to submit as long as it's within the 45 days.
13/2/2010- We approached the owner directly to verify the claim of not meeting MOP. The owner admitted it and was apologetic. We brought up the possibility of dropping the deal if owner doesn't want to wait for the appeal. Owner said she is considering that option too and will inform us how they want to resolve it.
16/2/2010 - Our agent called us at night to remind us again that we cannot back out of the purchase as we are legally binded and we'll lose our $5,000/- if we want to drop the deal.
During supper, my siblings and friends were talking about our situation. Then my brother voiced out "If owner can't sell, the contract is already void coz he has no goods/service to sell!" It made sense, so I checked the OTP in detail when we reached home. He was right! At that point I was both relieved and angry.
We can choose to give up the flat and get our deposit back. However I was worried the owner might have spent the $$ and can't cough it out. I was angry that our agent never mentioned this to us, instead she kept telling us we'll lose the $$. As an agent who has seen more OTP than us, doesn't she know the OTP is already void? We decided to act as if we still want the flat and willing to wait for appeal while pushing them for concrete evidence of seller can't sell due to restrictions.
17/2/2010 (morning) - Our agent called to inform us that the owner said we want to back out of the deal and reminded us not to do so. She also updated us that the success rate of the appeal is low and the owner is at HDB now regarding the appeal. Again she reminded us we cannot drop deal or we'll lose the $5,000/-. In addition there are other costs, e.g. her commission fees.
She said if the appeal fails, the owner has to pay us back and we've to claim for other charges like bank charges and her commission fees. She said her company will bill the commission fee to us. We've to pay them and claim it back from the owner if the appeal fails.
17/2/2010 (afternoon) - Our agent arranged a meeting with the seller's agent and us on 19/2/2010 to show us the documents (acknowledgement of appeal from HDB, purchase documents etc) that proves the owner can't sell and are now waiting for an appeal.
My brother consulted his friend who's a lawyer regarding our situation. With the valuable advice and information, we planned how to handle the agents and owner and get our money back coz by then, we had completely lost interest in the flat.
19/2/2010 - We met up with the agents, together with my dad & brother. The agents were all smiles and the seller's agent showed us nonsense ~ an appeal letter by the owner and acknowledgement of application to show Min. Occupancy Period. Were they taking us as fools? I told him I could easily write an appeal letter too and application of MOP doesn't prove anything. He replied in a very unfriendly manner, saying "You just need the document to say we can't sell due to MOP and not because we're selling to someone else, right? That document is at owner's place now. Anyway you still have to wait for the appeal till the 45 days is up."
My brother, upon hearing the agent say such things, told me to show them the clause in the OTP. I wish I had a video cam to take the 2 agents' expressions! The smirk look turned to blankness in a spilt second. My brother started to shoot the seller's agent on the OTP being void, on taking legal action if the owner doesn't return our deposit and other damages etc. No more smiles from them after that.
My agent was quiet and lost. The seller's agent started sprouting more nonsense coz he probably didn't know how to get out of the situation. The more he said, the more he was shot by my brother until finally he kept quiet and listened to my brother & dad talk. My brother gave them a deadline to revert on owner's decision (to return deposit & bank charges) by 12 noon the next day, failing which a Letter of Demand from our laywer will be sent. Meeting ended at about 9pm. At 1 am, our agent sms me to inform owners will return the money.
20/2/2010 - The seller's agent prepared the agreement to cancel the OTP and issued us the cheque. When we met up, he told my brother if we bring this to court, it's still a 50-50 case on claiming bank charges, as advised by his lawyer. Immediately my brother told me to return the cheque and we'll let the lawyers fight it out. The lousy agent quickly said "it's just general talk". Stupid guy!
22/2/2010 - The cheque cleared. No financial loss but we suffered emotional distress for the past 2 weeks. And we've to start house hunting all over again.
I am glad I've my family's support. Without them helping to ask around we probably would have been waiting like idiots for the appeal's outcome. All credits should go to my brother who seeked legal advice & other housing agent's advice then went to negotiate with the agent on our behalf. He even recorded the whole conversation down on his phone in case the agents twist their words later. Very impressive.
We've learnt valuable lessons here:
1) No matter how nice the agents are, most are just trying to make a living w/o real concern for you. I've since made a checklist for the next purchase to minimize problems.
2) Trust no one except your family. When things go wrong, they are the ones cracking their brains and going the extra mile to help you out of the problems.
Pray hard hard the next purchase will be smooth and trouble free....
23/1/2010 - We signed the OTP and passed a $1000/- cheque (addressed to seller) to our agent as deposit. We also signed the commission agreement on the same day but we didn't receive an acknowledgement of receipt of deposit nor a copy of the commission agreement.
30/1/2010 - We exercised the OTP and passed a $4000/- cheque (addressed to seller) to our agent. We also paid our agent $180/- for valuation report and $80/- for submission fee. Didn't receive acknowledgement of receipt of deposit nor receipt for the $180 & $80 paid.
9/2/2010 - We called our agent for updates on the 1st appointment date. She said it's with the seller's agent and not submitted yet as the seller is pending bank loan for his purchase of another flat. I was pissed off. What has the seller not being able to get loan for his new flat got to do with us? In order to pacify us, our agent said she'll collect the documents back from seller's agent and do the submission on 11/2/2010.
12/2/2010 - We called our agent for updates on submission and 1st appointment date again. She said the seller didn't meet the Minimum Occupancy Period (MOP) of 5 years and is now at HDB to submit appeal. She said we cannot back out now and have to wait for the appeal as we've already paid $5,000/- and we're legally binded by the OTP contract. The agents had filled in 45 days from date of exercise OTP to submit documents. So by right they can take their time to submit as long as it's within the 45 days.
13/2/2010- We approached the owner directly to verify the claim of not meeting MOP. The owner admitted it and was apologetic. We brought up the possibility of dropping the deal if owner doesn't want to wait for the appeal. Owner said she is considering that option too and will inform us how they want to resolve it.
16/2/2010 - Our agent called us at night to remind us again that we cannot back out of the purchase as we are legally binded and we'll lose our $5,000/- if we want to drop the deal.
During supper, my siblings and friends were talking about our situation. Then my brother voiced out "If owner can't sell, the contract is already void coz he has no goods/service to sell!" It made sense, so I checked the OTP in detail when we reached home. He was right! At that point I was both relieved and angry.
We can choose to give up the flat and get our deposit back. However I was worried the owner might have spent the $$ and can't cough it out. I was angry that our agent never mentioned this to us, instead she kept telling us we'll lose the $$. As an agent who has seen more OTP than us, doesn't she know the OTP is already void? We decided to act as if we still want the flat and willing to wait for appeal while pushing them for concrete evidence of seller can't sell due to restrictions.
17/2/2010 (morning) - Our agent called to inform us that the owner said we want to back out of the deal and reminded us not to do so. She also updated us that the success rate of the appeal is low and the owner is at HDB now regarding the appeal. Again she reminded us we cannot drop deal or we'll lose the $5,000/-. In addition there are other costs, e.g. her commission fees.
She said if the appeal fails, the owner has to pay us back and we've to claim for other charges like bank charges and her commission fees. She said her company will bill the commission fee to us. We've to pay them and claim it back from the owner if the appeal fails.
17/2/2010 (afternoon) - Our agent arranged a meeting with the seller's agent and us on 19/2/2010 to show us the documents (acknowledgement of appeal from HDB, purchase documents etc) that proves the owner can't sell and are now waiting for an appeal.
My brother consulted his friend who's a lawyer regarding our situation. With the valuable advice and information, we planned how to handle the agents and owner and get our money back coz by then, we had completely lost interest in the flat.
19/2/2010 - We met up with the agents, together with my dad & brother. The agents were all smiles and the seller's agent showed us nonsense ~ an appeal letter by the owner and acknowledgement of application to show Min. Occupancy Period. Were they taking us as fools? I told him I could easily write an appeal letter too and application of MOP doesn't prove anything. He replied in a very unfriendly manner, saying "You just need the document to say we can't sell due to MOP and not because we're selling to someone else, right? That document is at owner's place now. Anyway you still have to wait for the appeal till the 45 days is up."
My brother, upon hearing the agent say such things, told me to show them the clause in the OTP. I wish I had a video cam to take the 2 agents' expressions! The smirk look turned to blankness in a spilt second. My brother started to shoot the seller's agent on the OTP being void, on taking legal action if the owner doesn't return our deposit and other damages etc. No more smiles from them after that.
My agent was quiet and lost. The seller's agent started sprouting more nonsense coz he probably didn't know how to get out of the situation. The more he said, the more he was shot by my brother until finally he kept quiet and listened to my brother & dad talk. My brother gave them a deadline to revert on owner's decision (to return deposit & bank charges) by 12 noon the next day, failing which a Letter of Demand from our laywer will be sent. Meeting ended at about 9pm. At 1 am, our agent sms me to inform owners will return the money.
20/2/2010 - The seller's agent prepared the agreement to cancel the OTP and issued us the cheque. When we met up, he told my brother if we bring this to court, it's still a 50-50 case on claiming bank charges, as advised by his lawyer. Immediately my brother told me to return the cheque and we'll let the lawyers fight it out. The lousy agent quickly said "it's just general talk". Stupid guy!
22/2/2010 - The cheque cleared. No financial loss but we suffered emotional distress for the past 2 weeks. And we've to start house hunting all over again.
I am glad I've my family's support. Without them helping to ask around we probably would have been waiting like idiots for the appeal's outcome. All credits should go to my brother who seeked legal advice & other housing agent's advice then went to negotiate with the agent on our behalf. He even recorded the whole conversation down on his phone in case the agents twist their words later. Very impressive.
We've learnt valuable lessons here:
1) No matter how nice the agents are, most are just trying to make a living w/o real concern for you. I've since made a checklist for the next purchase to minimize problems.
2) Trust no one except your family. When things go wrong, they are the ones cracking their brains and going the extra mile to help you out of the problems.
Pray hard hard the next purchase will be smooth and trouble free....
Subscribe to:
Posts (Atom)