Hi dear all,
Need some urgent help with a sticky situation here.
- Basically my parents are planning to rent out their current 3 room HDB unit.
- I was planning to help them source for an agent to get people to rent the unit.
- They met an agent recently and say may have a buyer. They just want to consider renting or selling but haven't made up their mind as want to see if sell can get how much max.
- Then agent today said they already signed the OTP and took $1K as deposit.
- What happened is that my parents thought they can refund as they have not yet decided and they never thought the OTP is the final document.
- Agent said the cooling off period is before the signing of the OTP. Once signed means cannot back off and can't even return the deposit as no use, unless buyer backs out.
- My parents didn't share with me all these until today. Initially few months back they did say want to consider renting out. Lesson learned for elderly people who are not well verse in terms really cannot any how sign papers so dangerous.
I need some advice here, any idea can reverse the situation or really no way out? And is what the agent saying correct? Please help, if convenient can also pm me your contact and we can discuss. Thanks in advance.
cooling off period applies after signing
usually ranging from 7 to 60 days
pls read the black and white thoroughly, thrice.
Before they signing the OTP there is a Seller Checklist need to be done, and the salesperson have to explain the selling procedure step by step.
After the Seller Checklist signed, there will be a 7 days cooling period before the Sellers is allow to issue the OTP. I have came across some of my sellers who have met salesperson who jump the procedure and sign both the Checklist and OTP on the same day to prevent the sellers to backout.
Do ask them clearly on what procedure have they did. If you need any guildance, feel free to contact me at 8487-8875.
Hi dear all thanks for the advises and suggestions really appreciate
that. I also don't wish to pin point whose fault etc as everyone also
has a family to feed and I just want a peaceful resolution.
In summary tonight met agents from both sides including buyer. Told buyer my side of the story and listen to her story. Offer buyer the $1K refund plus compensation, buyer didn't accept the offer. Buyer said already paid renovation contractor few thousand as deposit for renovation. How true I don't know. Anyway I also offer to pay whatever the amount buyer pays to contractor. If can only take over unit in May 2015 would anyone pay contractor so early? Thought people only usually pay before commencing work. So benefit of doubt here.
Instead buyer quickly wants to exercise the rights to buy even before the valuation report is out and even before the OTP expires in 8 March 2015. Buyer has signed on the OTP to exercise the buyer right and even offer another cheque.
Very sticky situation now. Really no turning back? Could it be the agents influenced the buyer as commissions at stake?
There's a grey area now too. House is registered under my mum's name, when agent goes through the checklist with my parents, my dad who is present at that time is the one login with the singpass (belonging to my mum) and acknowledged it so do we have a case here as my mum wasn't the one who actually acknowledging it? And my mum still thinks sell house where got so simple one, sign one time (on OTP) means deal is done.
All help is appreciated. Thanks in advance.
The Council for Estate Agents (CEA) is government body which regulates the real estate agency industry . Estate agents must register with the CEA and pass an industry examination. The CEA also engages in public education efforts, helps consumers in property transactions and assists in disputes between agents and consumers.
Sorry for not updating earlier as real busy with work lately plus need to sort out this issue being running around seeking MP's advice & legal advice too.
Still remember the buyer saying not willing to accept compensation and wants to go ahead to get the unit.
Then last week buyer said willing to take compensation, including the initial $1K deposit plus valuation & registration fee total around $7K. Then seller agent said since in this case deal didn't go through due to seller's fault so want commission of around $5.5K too. Total damage around $ 12.5K which I find not worth it & no logic.
Then this week, got message from seller agent said buyer saw another unit and willing to let go of my mum's unit if compensate $1K plus the initial deposit of $1K plus valuation & registration fee total around $2.2K which I'm actually willing to compensate and close the case. The buyer give me just like less than 10 hours to consider as she said another buyer is looking at the same unit as her too. Then the 'dear' seller agent said same thing since in this case deal didn't go through due to seller's fault so want commission of around $5.5K too. Of course I said now is buyer wants to back out but he said it's not, it's just that buyer willing to consider alternative option else will still stick to plan to get the unit. So went to seek legal advice and ask agent to communicate to buyer to see if can extend by 1-2 days. Then next morning seller agent said the unit taken so buyer still going ahead to get my mum's unit.
And from legal point of view for $5.5K he find the agent won't take legal suit as would not worth it and too costly. Instead he may go to small claims tribunal and file a case whereby judge will do hearing and both sides cannot be represented by lawyers. It's going to be 50-50% chance of winning. Worst case have to pay him the $5.5K plus the registration fee, transport fee etc but won't amount to too much. Or judge may say pay half.
Best part checked with my parents they said agent didn't say if deal didn't go through still need pay him commission but agent said he did mention about it & stated in the papers. And there's total 4 sets of documents he didn't give any copies to my mum saying she didn't have an email so he safe keep them. Only when I asked for them then he emailed me. What kind of agent is this? I'm trying to be fair but I find this agent can't be trusted right haizzz.
Now really wonder what other options available?? Really tired going through this episode since CNY.
1. Went HDB was told they don't handle agent cases refer me to CEA.
2. Went CEA was told no strong case as all communications are verbal. Exclusive agreement is between seller and agency office they don't interfere.
3. And in HDB terms & conditions document, did mention before 1st appointment seller can write in to cancel transaction. However HDB did warn they can cancel it but buyer side can take legal action against seller and they will not be involve as it's between buyer and seller, HDB just facilitate the transaction.
4. With regards to compensating the buyer so that she can go look for another unit earlier, the seller agent demanding the full 2% commission, it’s a debatable case as deal didn’t go through. Legal point of view is that not worth for agent to file a suit as will easily cost more than 10 grand. What agent could do is to file for small claims tribunal. In this way, both sides cannot be represented by lawyer and judge will do the hearing. Could be do not need pay agent or pay agent half the commission or worst case pay full amount.
Already also mentioned if only seller agent willing to convert sales into rental he will still get some commission. I acknowledge the fact he did do some work so willing to compensate him like $1K but he kept saying if deal didn’t go through he has rights to the full 2% commission which is $5K+.
5. Anyway now buyer said want to go ahead with deal as the unit she considering taken up.
6. Buyer already fixed HDB 1st appointment on 20th April now racing against time.
Really tough situation man like can't think of other alternatives already. Any other advise would be deeply appreciated.
Technically speaking, once OTP is issued and exercised, there is no turning back.
Cos the OTP is a legally binding contract. Once breached by either party, the other party has the right to pursue.
Unless seller has a strong case, then is worthwhile to take this risk. For example, seller is able to prove that they are being misled by their agent into signing the OTP.
In this case, I think there are no alternatives already.
And obviously your agent didn't have your interest at heart. He is more concern with his commission. You should name and shame him.
I know I am stupid