Hi Dario,

Would like to ask a question,

I sell a house, buyer paid earnest deposit and accordingly to the agent, his loan application is rejected.

There is an extra condition in the Offer To Purchase Letter, "Subject to loan approval of 90% margin to be obtained within 14 working days. Earnest deposit will be fully refund provided with 2 banks rejection letter"

It is a lot of times i have been chasing the agent to get the loan rejection letters but i did not receive. After > 20 working days, i was chasing the agent again, then agent told me buyer collected the letters, but he is oversea. He can't give me now. So, i told him i would forfeit 50% of the earnest deposit.

According to the agent, he has advised lawyer that i can't forfeit 50% of the earnest deposit since buyer has the loan rejection letters within the 14 workings day clause and i have to bring this to court if i want to forfeit and bank can act as witness.

The agent also said if i forfeit, my property will be caveat and cannot be sold until the case is settled. Is this true? (I mean i cannot forfeit any deposit as long as buyer has the rejection letters within 14 working days even though i did not receive in time)

This post has been edited by WEELIN1012: Jul 30 2012, 05:28 PM

Dario,

Thank you very much for your advise. I would refund 100%.

One thing i want to make sure the agent did not 'eat' the deposit (deposit is on agent's hand) without seller and buyer knowledge so i told agent if he still not give me the letters, i would forfeit 50% to pressure him to work since i've been chasing him a lot of times but no feedback even the buyer still in the country. This is the first time i sell house thru agent and heard a lot of not good comments to property agents.

This post has been edited by WEELIN1012: Jul 31 2012, 09:17 AM

em... good question that i don't have answer. I just told agent i want to forfeit 50% and will follow-up with his company to 'force' him to follow-up.

Before i signed the Offer To Purchase, i asked him to scan the cheque for me to confirm name under his company, he did not.

After only i said want to forfeit and will follow-up with his company, he came back with some feedback as what the question and answer i asked you.

I think i will sms buyer to get his refund if i still cannot get rejection letters on the due date i gave to agent. I do not want to follow-up a case which consider ended on my side. (Good thing is i have the buyer's phone number).

=====

Agreed every profession has good and bad apples. I try to be more careful on any case. It's too sad to say 'difficult to find a person whom you do not know to totally trust on...'

Hi Dario:

Thanks for all the reply.

I have another question regarding seller's lawyer which i have called 2 lawyers to confirm what i need to do.

The 1st lawyer firm i called up and asked, why i need a seller's lawyer, she said i need a lawyer for legal acting for me and will do the SnP. And charges is RM4k++. I believe this RM4k++ is for SnP drafting. The acting side may be if late full payment, so they will act for me to claim the interest.

The 2nd lawyer firm i called up and asked, why i need a seller's lawyer, she also said for SnP. Basically seller appoint lawyer is for SnP. She also told me that i can use buyer lawyer since i am asking why seller needs to do SnP. If seller and buyer has his own lawyer, then both parties will draft the SnP together.

Besides, i also asked how about the name transfer, water and electricity cut. 2nd lawyer firm said i can use buyer's lawyer as well.

The 3rd advise i got it from my relative, if the house is fully settled and redeem, do i really need a lawyer. He also said basically lawyer can go thru the SnP clauses which when it is unfavourable to seller, lawyer can act on behalf.

I need to get the 4th advise from you so i can have more confident to decide whether i can sell the house without a lawyer.

My case:
1. My house is fully settled
2. I already appointed lawyer to redeem original SnP, Loan Documents, Discharged of Charge and Geran.
2. I already paid off Cukai Tanah, Cukai Taksiran, Indah Water, Water and Electricity bills
3. I also downloaded the CHKT-1A and CKHT-3 form from LHDN (house is bought > 5 years)
4. Land title is freehold

What i plan to do is i just wait for the buyer's loan approved and SnP, and do not appoint lawyer.

Basically, i'm thinking to do the following:
1. Cut water and electricity connection
2. Fill-up the CHKT after SnP is signed and get stamp from LHDN, and pass a copy to buyer's lawyer.

Do you think i'm too ridiculous to do the above without appoint laywer to act for me. Bascially, i believe SnP is quite standard. For the Indah Water side, do i need to cut as well?

Thank you very much. Long writing again.
(Oops... i remembered quite some time ago if my memory not wipe off, i read your post at Corner v1/v2, seller can do the above on himself).

This post has been edited by WEELIN1012: Aug 3 2012, 01:51 PM

Thank you very much for your feedback.
I will just go ahead without lawyer.
Anything related to SnP, name transfer, cukai tanah and cukai taksiran i will just let buyer's lawyer to handle.

Ok. Thanks for remind.

I brave brave go, no worry, be happy.

This post has been edited by WEELIN1012: Aug 3 2012, 10:24 PM

Your case is same as me. My agent also collected 2% earnest deposit and agreed professional fee is less than 2% earnest deposit.

Once the SPA is signed, my agent requested a few first SPA pages and the SPA page with purchaser and vendor signature (do not need to wait the SPA to be stamped), then Agent's company account department issue cheque and receipt acknowledgement letter for me to sign.

I've received the balance earnest deposit refund within 1 week.

This post has been edited by WEELIN1012: Sep 24 2012, 10:34 AM