QUOTE(wtm0325 @ Jul 29 2011, 10:33 PM)
Hi Dario,
I had paid the deposit 3% for a condo and later only found out the developer has gone bankruptcy. For title transfer, my lawyer and current owner lawyer have decided to deal straight with insolvency department. It's a freehold and I am the 2nd buyer. Loan has been approved one and a half month ago. No S&P signed yet, I was told it is due to lack of documentation.
Question(s):
1) can we proceed to S&P first before the title transfer?
2) any idea how long does it take to respond from insolvency department?
3) after insolvency department, will the process different and consume more time to proceed to S&P?
4) will there be any penalty/ interest charge from bank if we didn't execute the loan for too long?
5) any penalty for late S&P agreement since it is not my problem?
At the same time, I am having communication delay/error with the current owner. The agent told that current owner refuse to negotiate with me directly (might be the agent doesn't want to). The agent pass the message that, the owner allowed me to shift in before S&P agreement (with T&C in black & white), but when I request permission to direct deal with current owner, the agent replied: "current owner said anything pass to his lawyer."
I do not expect anything now, I just want to speed up the process, seal the deal and shift my butt to the house.
Please advise.
Thanks a million in advance
1) Sure
2) Not sure. Depends on how complete the file on the developer which they have with them. Some developers leave things in a mess, so it takes longer. Some developers keep good records, so the letter of confirmation from the Official Receiver can be issued faster. See your luck and how good your lawyer can follow up.
3) Sorry I don't understand the question.
4) Execute the letter of offer or the loan doc? I'm sure you haven't executed the letter of offer yet right? You haven't even signed the SPA.
5) I think from the way it is , there is a tacit understanding between the lawyers to sort out outstanding issues and queries with the Official Receiver before signing the SPA. As such, there ought to be no penalty at this moment. The penalty you're taking about only takes effect once time starts to run and the transaction extends beyond the 3 month period, and goes into the extended completion period (extra 1 month).
In your case, time would not start to run until the OR confirms things with your lawyer.
With regard to your issues with the vendor, you must note and respect the fact that the vendor is represented by an agent as well as a lawyer. You are represented by a lawyer as well. Instruct your lawyer accordingly and let both parties sort it out with each other professionally in writing. What the agent said is correct. Everything must be dealt with by the vendor's lawyer, who has been appointed and paid for by the vendor. If you call the vendor directly, you are bypassing not only his lawyer, but yours, and that can lead to unpleasant situations, i.e. miscommunication and further conflict arising therefrom.
Buying a property without title where a developer has already been wound up can be a long, draggy affair. Best you sit down with your lawyer and get a full explanation from A to Z with regard to procedure and what to expect. Do not expect thing to be easy and smooth. Patience shall truly be a virtue in your case.
Jul 29 2011, 01:28 PM
Quote
How many months 'penalty' did you pay? Is it a substantial amount?
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