If there's individual/strata title - you can conduct a title search, but you'll still need the particulars of the title.

If no title, then you can check with the developer or management office.

Best if you directly check with the bank in question.

Oh ok. Sorry.

For your info, this amount is called the differential sum.

Differential sum has to be deposited with your lawyer as stakeholder before the bank drawdowns the first release to redeem the vendor's loan. The bank would require confirmation that the differential sum has been deposited, before they will release. Until and unless you do so, the whole process would be on hold.

Letter of undertaking (LOU) commonly refers to the undertaking (promise) given by a party to the purchaser's financier to refund the monies paid out by the financier to that party, as the case may be, in the event that either:

a) the deed of assignment cannot be perfected for any reason whatsoever; or
b) the charge in favour of the purchaser's financier cannot be registered for any reason whatsoever; or
c) the deed of receipt n reassignment cannot be perfected for any reason whatsoever.

Party - depends on to whom the money is paid out to:
- Vendor in case of subsale
- Developer/proprietor in case of purchase from developer
- End/bridging financier also in cases of purchase from developer where monies are still owed to the bridging financier by the developer
- Vendor's financier where a redemption sum is paid out.

Why LOU has to be issued by the above parties?

Because there is no contract in writing between the parties. The contract is between the borrower/purchaser with the purchaser's financier. Both parties are privy to the contract, and the external parties are not privy to it as they are not signatories. Under the law of contract, only parties who are privy to a contract are bound by its terms.

As such, the LOU binds the party giving it to refund the monies in the occurrence of an event which basically frustrates the contract between the borrower/purchaser and the purchaser's financier - thus terminating it.

Example - deed of assignment (DOA) cannot be perfected. This refers to deed of assignment between vendor and purchaser. If vendor cannot assign his beneficial right over the property, then the subsequent DOA between the purchaser and the purchaser's financier would also collapse and be of no effect. As such, the vendor must refund all monies paid by the purchaser's financier back to them. The LOU is basically a contract between the vendor and the purchaser's financier. Think of it as a bridge between the vendor and the purchaser's financier.

Without the LOU, there is nothing to protect the bank's interest if such event as stated above occurs, as there would be no binding contract between the party and the bank.

That is why even before first release of drawdown, the original LOU must be forwarded to the bank for their safekeeping.



This post has been edited by dariofoo: Jan 19 2012, 10:56 PM

Does it state that you need to hand over the original? What is the purpose of handing it over to the purchaser's lawyer? If they want the details to prepare the draft SPA, a photocopy would suffice.

Milo_o:


Thanks for the info

Still under installment would mean that there is an existing charge/assignment in favour of the bank. In other words, the bank is technically the beneficial owner of the property. You can either approach the bank and request to do a transfer subject to charge (if there's individual title). The bank can allow you do so subject to certain conditions, or request that a refinance plus transfer is done. Most likely, they would ask you to refinance. In both circumstances, you'd require a lawyer to do it.

If refinance, you and your sis is basically taking a new loan to settle your parents' loan and then a transfer of ownership is done. Legal fees are according to the loan sum taken and can be calculated at the first page of this thread using the calculator at the link provided.

I think you're confused. There's no difference in 'deleting' your dad's name or 'transfering title' or 'taking out your dad's name''. All those terms (although not in its proper context) is basically the same.

It all boils down to the same thing - transferring ownership from your dad to another party, whether it's your mum, you or your sis.

So the cost would be the same if you refinance it and do a transfer.

The only way it would be cheaper, in terms of legal fees at least, is if the bank consents to a transfer subject to charge (if there's individual title). If you have to refinance, then you're looking at legal fees for transfer as well as refinancing, which is essentially taking a new loan.

Is it their requirement? Perhaps this particular bank requires it. If you doubt the agent's word why don't you call the bank directly to enquire if it is necessary.

Why did you get the credit report out?

Go to the bank, ask for a redemption statement to know how much the sum you need to pay, then make payment.

You don't need a lawyer at this stage, unless you want to retrieve the original documents, grant and other docs from the bank for your own safekeeping. Normally folks would just leave all that with the bank until they sell the property, refinance it or transfer ownership to another party.

If you opt for that, your lawyer would prepare a discharge of charge/deed of receipt and reassignment. That document officially indicate that the bank does not hold the property as security anymore and you are free to deal with it as you like.

Why not? Is it safe to keep your money with the bank? Do you?

Free storage for you,mate. For the time being, all you need is the release letter from the bank.

Gong Xi Fatt Chai to all forummers!

Have a blessed celebration to usher in the Year of the Dragon. May this year be a prosperous one to us all!

I'll repeat my answer to an almost similar question:-

Any delay by the vendor will result in the completion date to be extended in favour of you as the purchaser. The common understanding in SPAs is that:

Vendors want their money fast and conclude the deal AND Purchaser has the duty to make payment of the balance purchase price on/before the completion date. As such, any delay by purchaser and he has to pay late penalty interest to the vendor. Any delay by the vendor, and the purchaser gets more time. Vendor is at a loss as the market price of the property may go up. Factor in inflation as well and the depreciation of money - both factors whereof are detrimental to the vendor.

If upon completion of the SPA, the vendor fails to deliver vacant possession to you - then he has to pay late penalty interest to you. That is how it works.

The rule does not change even though you have started servicing the interest upon your loan. Delay by the vendor only grants you more time to complete the transaction.

That completion date refers to time given to you as purchaser to complete the SPA, i.e. to make payment of balance purchase price (BPP) to the vendor.

Once that is done, look at your SPA for a term which states the number of days for the vendor to hand over VP to you - it's normally 3 - 5 days. If after 3-5 days lapses and he still fail to hand over VP to you, he has to pay you late penalty interest. As such, it doesn't go by the date, i.e. 17th or any other date. It starts to run from the date you pay the BPP and after the time given to him to hand over VP.

Yes, you need receipts for all claims. For agent fees, the letter of offer ought to be sufficient as it states that the sum will be held by the agent. If you have a receipt by the agent, all the better. For renovations, purchase of fixtures and fitting, all can be claimed. If there is damage to the property and a sum of money is spent to repair/restore it, that can be claimed as well.
All must be evidenced with receipts.

15-16 years is a long time ago and the banks might've written it off as bad debt. Are the banks still in operation?

You might want to call up the US Embassy and check with them if you're blacklisted. If you are then you'd fail at the visa application stage itself.

Your sis has to be agreeable to it. If she's ok, it's just her signature on the Form 14A to transfer which is needed. Issue is only with the bank - you need to check with them if they can agree to the transfer without the need to refinance. The bank as the chargee has to agree to the transfer subject to charge.

Gong Xi Fatt Chai to you too,mate.

For property under master title where the letter of confirmation/consent from the developer is required, then time starts to run from the date the lawyer receives the letter of confirmation. Some lawyers write in advance and receive a reply before the execution of the SPA. In such cases, time can start to run from the date of the SPA.

Some lawyers prefer to play safe and wait until the SPA is executed before writing to the developer and await a reply. In such cases, like yours, time starts to run from the date the lawyer receives the letter of confirmation.

What do you mean by hidden costs? Are you aware of the non-hidden costs?

I do not know what is provided for in your SPA, so what advice I can give is based on common practice.

Under normal circumstances, you don't have to provide the date of payment. The completion date and extended completion date, which can be easily deduced from the SPA is sufficient. Why don't you use that? Your lawyer can issue such a letter, but to get one from the bank is close to impossible as it is not their concern and they won't issue such letter.

In any event, unless your SPA allows the vendor to demand for such letter before he releases the documents, he basically can't do so. His attitude will only extend the completion date of the SPA, and this prejudices him as he would not get his balance purchase price until this is resolved.

Under normal circumstances, the bank has to give an undertaking to the vendor that it will release the loan. Once that undertaking is given, there is no reason for the vendor to hold the documents. He has a certain number of days to hand it over to your lawyer. Once that deadline is missed, the completion date is extended.

I'm assuming that the vendor is not represented? You did not mention. If so, best to advice your lawyer to speak/write to the vendor. Or perhaps try to speak to the real estate agent and see if he can drill some sense into the vendor's head. Perhaps the vendor does not understand that what he is doing is only delaying things to his detriment.