Hello,
I have a problem here. I just purchased a sub sale unit and both SPA & loan agreement have been signed. Based on one of the clauses stated in the loan agreement, it says bank will release the outstanding to the vendor directly but my SPA says payment should release to the vendor's solicitor instead. Since both parties do not want to compromise..what will be the best solution for this?

Thank you very much for your inputs.

Thanks for your reply. But my loan agreement stated the sum will only be released to vendor..not his solicitor. According to banker, this is to protect their interest just to prevent the vendor's solicitor runaway with the money. So how should i go about it?

I just got a letter from my vendor's solicitor saying that if we were to follow the loan agreement clause and the SPA will be void and the 10% we have paid will be forfeited. Now i'm still waiting for the reply from both my lawyer and the loan lawyer, so frustrating...
When we signed the loan agreement, how come the loan lawyer didn't inform us about this clause, if we have known it then maybe we wouldn't proceed to sign the loan agreement with them. I believe they have read through my SPA before preparing for the loan agreement right.
So if the bank still doesn't compromise with the SPA clause, can i launch a case against them by saying they didn't inform us on such term?

[quote=dariofoo,Jan 14 2011, 08:58 AM]
What's with the vendor's solicitor? I have a feeling that legal fees have not been paid by vendor so they want the cheque to be in their favour. So that they can bank it in, potong for their fees and then issue balance to vendor. Maybe they are scared that vendor may cabut if cheque in vendor's favour.

For all you know, vendor has no idea what's going on.

Parties can always vary/amend any term of the SPA. Your lawyer ought to know about this. He ought to propose this to the vendor, as a simple amendment to allow the cheque to be issued to the vendor can solve the problem, right?

If vendor's lawyer continue to be difficult then bypass him and go talk to the vendor directly. Surely vendor prefers the cheque to be issued in his favour right?

Don't let this unscrupulous fellows forfeit your 10%. Transaction almost complete, so don't let it go to waste.

You can't 'launch' a case against the bank. They prepared an agreement and you signed it out of your own free will and with knowledge. They will not vary the terms for you. Bank loan documentation are standard documents.

You loan solicitor has the duty to explain to you the terms and conditions of the agreement. However, you signed it in the end. You can't turn around now and say that you didn't understand the contents of the agreement. It'll just make you out to be a fool, if you do that.

The only remedy now, and an easy one at that, is to vary the SPA.

For the moment, be still and see what card your lawyer wants to play first. Keep this info as your trump card. If your lawyer's short on ideas, only then you tell him ya.

Keep us updated.

Good luck.


Happy belated birthday, dariofoo
some updates on my case, apparently you were right, it was the idea from the vendor's solicitor, i think the vendor also being controlled by her solicitor. My SPA lawyer advised me to change my financier and and we are now still waiting from my current financier's reply to see whether they are able to amend the clause in order to compliance with the SPA. The worst case scenario would be just cancel the existing the loan agreement and re-apply for a new one, since the loan amount has not drawn down. I do really hope i won't be penalized for any penalty charges, since it's really not my will to cancel the agreement.
Thanks.