I’m 1st time home-buyer.
I’m currently facing some problem that I might cant able to get back my deposit.
On the beginning of the month of March, I paid 3% of purchase price as deposit to the real estate agent as agreement of purchase.
However, I find that the agent and owner are not corporative as they delay me on documentation,
- The agent sent S&P copy via email on the 3rd day after we signed the agreement of purchase,
- 4th day banker told us that the S&P is incomplete as banker need “front 3pages and back 3pages” for loan application so as to check market value of the property. I called the agent and tell her about this.
- she return call to my boyfriend (not me) to say that the S&P is P&C, the owner has the right to refused giving the complete copy to us. We got no choice and submitted accordingly to banker and banker told us that they need the ‘lost’ page of s&P for proceed the loan application.
- We were so angry and call to the agent again, and finally she get back to us only on the 8th days after signed the purchase agreement (deposit) and email us the ‘lost’ page. And we were submitted documentation to others bank only on 9th day.
According banker who we dealing with. The market value is 10% lower than our purchase price, which means we need to pay for 20% as down payment. We called agent and told her about the problem we facing now (that market value can’t able to met)
She told us that if in that case, even we are unable to get loan approval, she will forfeit our deposit. I asked her any other option, and she seems like do not know anything about the knowledge of property and said will get us back after she refer to her principal.
We are facing big problem here that she might forfeit our deposit anytime. I really felt helpless now and please, if anyone knows how to solve this or any other way/ solution.
What we can do now for secure our deposit is refundable?

on booking form, terms and condition they mention refundable?

delay on documentation is normal.
anyway 3+1 runs from S&P date.

You should deal with lawyer even the lawyer is appointed by your agent.

and snp is not a p&c doc, so means this agent really a problem, if this agent is purposely want to eat your money, tell him u will bring him to tribunal court.

normally in the offer to purchase 'form' the agent will add a condition which earnest deposit can be returned to purchaser in the event of loan rejection. check it out.

if not mentioned, then you need to find other banks which can offer higher loan amount.

anyhow you still can talk to the agent and owner to get back your deposit.

which bank u dealt with? ask the officer fight with valuer..

Which bank you check the value with? I can help you to get a valuation by Hong Leong bank, maybe can get higher value. PM me. =)

It doesn't matter now. It just shows that the seller had hiked up a higher than market value price. You wouldn't want to buy a property whereby valuer gave low value than the purchase price; even if it's only one valuer.

How much losses if you forgo the deal? Can try nego 50% refund citing their delay in providing docs that causes loan processing issues.

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Added on March 23, 2010, 1:47 pmWhat if get higher value by this valuer.... is it really worth it if the real market sentiment is not there?


This post has been edited by b00n: Mar 23 2010, 01:47 PM

drop me a call when u r free.

Since its only 10% lower than the purchase price, just top up the differences by cash or your epf money since you have 3 + 1 months to settle the amount. Once you get your loan approve and together with letter of offer plus S & P, you can apply for your epf withdrawal to top up the differences.

Another option is apply loan to a few other banks, pick one that offer the highest loan amount.

This post has been edited by Tohsan: Mar 23 2010, 01:58 PM

i think that's easier said that done...10% cud be 10k, 20k, 30k, or 40k...and the monies could've been put aside for reno/moving in etc...

valuation is normally quite a standard process if the valuation is done based on address search only, meaning valuer only give its value based on the address and surrounding location. its not take into consideration renovation done etc. if the house has reno done before, e.g. extension, kitchen, built-in cabinets, the valuation price will be higher. but also depend how long ago was those reno carried out.

probably that's why the seller selling at higher than market value price??

TS mentioned they paid deposit, and from my understanding, for sub-sale, deposits are non refundable. but then of course, if the seller is nice, surely can refund cos u can cite ur reason. not becos u have change of mind, its becos loan problem.

if i was TS, i will first try with few different banks, and their valuer. bankers wanna make the deal, so they will also try with their valuer to give higher value.

if all else kenot, then no choice but to talk to the seller whether they willing to drop selling price.

Hi Yennie,

I've PM'ed you.

Hope you'll get back to me soon.

Regards,