Free advice/discussion on buy/sell of Resale flat (Part 6) - Part 2

PropExpert

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if you come back and suddenly say you want to buy, with the signed OTP and want to sue them for not selling to you?

Tear up the OTP and return to seller, or snap a pic with the page 1 all torn up (of course must show seller its the copy they had signed) with name/signature etc. Then ask them to proceed sell others (with whatsapp or email as proof).

-vinz

Just curious. Wat if the buyer already submitted for valuation report with the otp number? If a new otp is issued and the new buyer went on to request for valuation using another otp number and the previous otp had not lapsed and the dates overlapped, will there be issue with hdb submission?
 

vinz

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In theory yes, the system may block any new submission unless the 3 weeks time line is over.

I believe seller can call in or ask HDB to help them overwrite the system.

-vinz
 

vinz

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For cases with seller extension of stay, what are the items that need to be done by completion date (that are not on HDB list of things to bring, and not mandated by bank loan to have) ?

Mainly concerned about liability by way of ownership even though I not physically in the unit during the extension.
Home contents insurance good to have by then ? Although any issue is not caused by me ?
Home content is good to have , and even if issue (eg. fire) is not cause by yourself, but by your friends, relatives, tenant etc, it's still covered. (maybe any insurance agent will be more qualified to answer this question clearly)

Never heard of ex owner destroying their own house (unless accident can't be help) during extension of stay.

-vinz
 

silas85

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if you come back and suddenly say you want to buy, with the signed OTP and want to sue them for not selling to you?

Tear up the OTP and return to seller, or snap a pic with the page 1 all torn up (of course must show seller its the copy they had signed) with name/signature etc. Then ask them to proceed sell others (with whatsapp or email as proof).

-vinz

OK makes sense, thanks very much!
 

Iamdone

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about 2 months.

i rem i paid my option fee of 5k on 21st October 2019. I gotten my key to my 5 room resale unit on 23rd December 2019.

Thanks. And the first money paid is $1k for option fee and to the owner? Then wait for 21 days to exercise the option to purchase and paid remaining $4k?

Can i don't wait the 21 days and straight away pay $5k then wait 2 month to collecr keys?

Sorry to sound so dumb, first time buying resale
 

God_help_me

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no need to wait full 21days. once seller grant u otp and u paid 1k, u request for valuation within 1 day through hdb unless u are paying the house 100% cash.once you have the valuation, you can exercise otp already & pay $4K. then both seller n buyer can submit resale application to get completiom date liao

Thanks. And the first money paid is $1k for option fee and to the owner? Then wait for 21 days to exercise the option to purchase and paid remaining $4k?

Can i don't wait the 21 days and straight away pay $5k then wait 2 month to collecr keys?

Sorry to sound so dumb, first time buying resale
 

OneMantou

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no need to wait full 21days. once seller grant u otp and u paid 1k, u request for valuation within 1 day through hdb unless u are paying the house 100% cash.once you have the valuation, you can exercise otp already & pay $4K. then both seller n buyer can submit resale application to get completiom date liao

This is for hdb loan?

For bank loan, will need Letter of Offer before exercising the OTP.
https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/procedures/option-to-purchase


Home content is good to have , and even if issue (eg. fire) is not cause by yourself, but by your friends, relatives, tenant etc, it's still covered. (maybe any insurance agent will be more qualified to answer this question clearly)

Never heard of ex owner destroying their own house (unless accident can't be help) during extension of stay.

-vinz

Thx!
 
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God_help_me

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Gymrat76

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Question, if I'm a seller and I want to explore extension for 2-3 months with the buyer post-completion, is this commonly done and is this allowed? Anything I need to take note of?
 

vinz

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This should be made know to all buyer vieiwing your unit,
before signing of OTP with your buyer.

Means buyer got prior knowledge they buying your unit with the need to give you extension after completion.

It's officially allowed. unofficially happening for the past few decades prior to being legalised by hdb in YEAR 2014.

Pls click : HDB flat sellers can now ask to extend stay in sold unit

DIY SELLER? Please read up and understand the below before attempting to sell your unit.

Pls click : Things to note for extension of stay (RESALE FLAT)

-vinz
 

Gymrat76

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This should be made know to all buyer vieiwing your unit,
before signing of OTP with your buyer.

Means buyer got prior knowledge they buying your unit with the need to give you extension after completion.

It's officially allowed. unofficially happening for the past few decades prior to being legalised by hdb in YEAR 2014.

Pls click : HDB flat sellers can now ask to extend stay in sold unit

DIY SELLER? Please read up and understand the below before attempting to sell your unit.

Pls click : Things to note for extension of stay (RESALE FLAT)

-vinz

Thanks Vinz. Will we still be able to discuss with the buyer after OTP, as we probably won't be sure if we need the extension yet - only may consider if we manage to secure another place very shortly after confirming sale of our current unit, else we will look for rental outside.
 

vinz

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All buyers will want to get their hands on their new home to start their reno asap.

Imagine if you didn't pre-empt them on this, do you think they will be happy to know their plans will be in jeopardy due to your own housing plans (which shouldn't be any concern of theirs as long as they meet your selling price in the first place)

Better tell them you need the extension on the first viewing , and if there isn't a need at the end of the day, good for both party then.

Anyway there is some documents to be submitted to HDB for this extension, and it's suppose to be done at the early stage, not when resale completion already done.

-vinz
 

OneMantou

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yes, hdb loan.

bank loan, one should have gotten the in-principle approval before even paying option fee, won't take long to have letter of offer, though I dont know how long it takes.

IPA to LO about 2 days
provide LO to lawyer for other processing , about 2 days

(Bearing in mind those folks also have other clients and maybe approval chains as well )

Those are work days, while OTP 21 days include weekends .. so about one week like that gone liao.
 

OneMantou

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Thanks Vinz. Will we still be able to discuss with the buyer after OTP, as we probably won't be sure if we need the extension yet - only may consider if we manage to secure another place very shortly after confirming sale of our current unit, else we will look for rental outside.

*Triggered*

Best to be upfront about the extension even before the offer so the buyer won't get caught off guard, and whether u be paying rental for the whichever length u are staying.

To say need extension after buyer has made offer, it is like withholding information known beforehand.

Process wise, is this hdb or private property?
For HDB, the onus is on buyer to click a button for extension of stay at the stage of application.
 

Aeshteun

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HDB Resale with COV

Hi Vinz, I am planning to buy a resale HDB at Bukit Batok area. Location is near mrt and balance lease is 63 years. Considering it is a rather old flat and seller agent told me that seller is fixed on the price with $20k COV. Condition of flat is rather well maintained but with ALOT of build-in cabinets/wardrobes/tv console wall that I would want to remove. In your opinion, do you think it is worth the $20k COV for an older flat with good location (near mrt & amenities)?

Thank you in advance!
 

superflygun

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Dear vinz

My case may be a technical one.

It is a non-citizen spouse scheme, only can buy a resale flat. Entitled to singles grant (top-up grant when get PR).

1. How would the top-up grant affect us in the future? Can it be used to repay loan (HDB but not bank loan?)

Citizen
>In 2019 average monthly OVERSEAS salary S$3500/mth, no CPF. Got overseas employment letter.
>Jan-Mar 2020, no salary.
>Apr-Jul 2020, $1600/mth, got CPF.
>Aug 2020 onwards, $3000/mth (new job), got CPF.

Non-citizen spouse
>No CPF, LTVP left 8 months (end Mar'2021 expire), thinking to try PR in Nov'2020.
>Aug 2020 onwards, $2800/mth (new job), no CPF. Got SG employment letter.



2. We intend to apply for HLE now, but are worried our loan might be little (grant maybe higher but it is singles grant right?). Should we wait to apply HLE? Please advise.

3. Will HDB consider non-citizen spouse income? Or would the spouse be an occupier only?

4. Other recommendations?

We do not have a lot of CPF as it is only one party contributing.
 

vinz

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1. How would the top-up grant affect us in the future? Can it be used to repay loan (HDB but not bank loan?)
HDB loan can easily apply for the top up grant (singles to family grant, no low income grant at that stage).
Bank loan (for resale hdb), trying to use this top up grant, i think maybe a bit complicated as it's used to reduce your outstanding loan amount, and your contract with bank states a fix amount monthly repayment, I believe legal fees of $1k to $2k may be needed to change anything on a bank loan , not sure worth to get it or not at that stage if u using bank loan.
2. We intend to apply for HLE now, but are worried our loan might be little (grant maybe higher but it is singles grant right?). Should we wait to apply HLE? Please advise.
I believe the loan amount is much more important at this stage, unless you think a low loan amount + existing CPF is enough to pay for your desire HDB flat now? Anyway the additional grant is for those working 12 months prior to applying HLE, with no jobless month in between, seeing your case I dont think you are eligible for it.

Maybe doing a financial calculation yourself can make your clearer whether more grant or more loan is needed.
3. Will HDB consider non-citizen spouse income? Or would the spouse be an occupier only?
Will consider non citizen spouse income for grant (means add income, get lower grant) and maybe not for loan amount. Seriously HDB got their own calculation for these, only they know it's considered or not.

If no hurry, and got an existing place to stay, apply for a BTO, maybe 3 room flat and less stress. If need a full family grant, maybe wait for PR status first then.

Pls click : Enquiry on Loan Estimate

Pls click : Enquiry on Monthly Instalment

-vinz
 

vinz

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Hi Vinz, I am planning to buy a resale HDB at Bukit Batok area. Location is near mrt and balance lease is 63 years. Considering it is a rather old flat and seller agent told me that seller is fixed on the price with $20k COV. Condition of flat is rather well maintained but with ALOT of build-in cabinets/wardrobes/tv console wall that I would want to remove. In your opinion, do you think it is worth the $20k COV for an older flat with good location (near mrt & amenities)?
There are different criterias and priorities for different group of people.

There are those who believe paying COV is a crime, so no COV if not won't buy, no matter how good the unit is.

There are those who need to wake up early to go work/school, and thus value the convenience of a efficient public transport nearby, so they dont have to spend even more time travelling (waking up even earlier if travel time is longer).

There are those who drive and like ulu location but cheap.

20k COV is not really alot for a unit near MRT.
Just break it down that you be staying there for the next 10yrs,
that will be just $2k yearly for the amenities u get to enjoy within walking distance, worth it?

Old flats come with pros and cons. It may be harder to sell 10yrs down the road (due to CPF usage restriction) , but there may still be cash rich businessman / woman, family who won't mind buying near amenities etc.

-vinz
 

Leftwing7

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Hi, would like to get some advice on the current situation I’m in: Had placed an OTP on a 4RM flat in a mature estate; applied for HDB valuation and found that purchase price > valuation price by 24K. Hope to re-negotiate with seller but when should I activate this re-negotiation process? It’s about 10days before my current OTP lapse. Should I start nego with the seller now and hope we can reach for a compromise so on the day of the OTP lapsing, we can immediately put up a new OTP if she agrees or should I wait till on the day of my OTP lapsing then discuss?

I’m also afraid that the Seller’s agent will already begin looking for new buyers if I tell him I’m not comfy with paying so much COV. Would appreciate your thoughts. TQ
 

vinz

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Hope to re-negotiate with seller but when should I activate this re-negotiation process?
Seller not obliged to negotiate again with you on this.
It’s about 10days before my current OTP lapse. Should I start nego with the seller now and hope we can reach for a compromise so on the day of the OTP lapsing, we can immediately put up a new OTP if she agrees or should I wait till on the day of my OTP lapsing then discuss?
If I think I want to re-negotiate, I would do it asap and not waste their time if negotiation fail.
I’m also afraid that the Seller’s agent will already begin looking for new buyers if I tell him I’m not comfy with paying so much COV. Would appreciate your thoughts.
Buying a flat is about willing seller, willing buyer situation, coming to a compromise on the sales price.

If you can't afford or just dont wish to pay 24k, then start the discussion early and move on if they dont agree to negotiate with you.

You need to also take note, any new price will need to redo another valuation,
so if the new valuation drop again and u need to pay 24k or higher cov suddenly, will you go ahead , or repeat the nego, or give up the unit?

Be fair to the seller also, they need to plan their next housing also, and they most likely expect you to go ahead. If you not buying or don't wish to pay this cov, then let them move on and get other buyers, there is nothing wrong isn't it?

Is the price way over the market price? You never know the transacted price recently might all have been inclusive of cov 10k to 30k also.

If you going to stay there for next 10yrs, then maybe spending this 24k cov
is just about 2.4k annually, will it be too much for u and u feel it's overpriced?
If yes, then search for other units.

COV is very subjective. Some pay 100k cov for their units , and people call them crazy. Some dont want to pay any at all and just keep searching. Basically it's all about your own financial ability and how much you love the unit.

-vinz
 
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