I am in the midst of selling off my property but now I wanted to back out after the offer letter is signed due to some personal reasons. Can anyone let me know what is the consequences of doing so ?

pay equal amount of compensation

sorry but what does that mean ? can be more specific?

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Added on October 4, 2012, 12:59 amI have received 1% deposit from the broker out of the 3% deposit that the buyer paid. Does it mean that I will just need to return the 1% deposit back and thats it ? Btw its been 2 weeks and the loan approval is still not confirmed.

This post has been edited by trusted519: Oct 4 2012, 12:59 AM

Yes ,so i will return the 1% that i received then the broker( who received 2%) can then return all the 3% back to the owner , right ?

tak lak sign S&P, just offer letter only. And loan approval not yet gao dim also, its been 2 weeks.

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Added on October 4, 2012, 1:12 amoh no.... headache now...

This post has been edited by trusted519: Oct 4 2012, 01:12 AM

y so fickle minded wan to sell, sell la. dun play games and create inconvenience for others
one of my previous transaction last year, the seller wanted to back out after sign offer letter. ejen convince him to continue
then while waiting for the 1st disbursement from banker, seller back out & says to forfeit my deposit as 4 months not seen any money
niama I have to cum out 2xx,xxx since the banker damn bloody slow
anyway, as at today, the fake iproperty price shows an increase of 10%
so please sell la, u also heard tat a tsunami bubble is cuming soon and all props prices will jatuh longkang with mega sale be cash ready

dont scold me la

Yeah, as ceveori shared.

first time selling , so a bit noob ma.. but anyway the reason why i decided to keep it is because originally i wanted to get a landed funded by the profit from the sales of this property one. But now, due to some constraint tak jadi. That's why think of keeping it instead, else I will end up with no house

This post has been edited by trusted519: Oct 4 2012, 01:17 AM

You hold it back, pay 3% compensation .. settle ma

TS is seller

It has to be fair to both parties, what if the purchaser refuse to buy? you hv the right to forfith the 3%.
In normal circumstances, letter of offer / Agreement to Purchase will hv specific performance once the vendor refuse to sign the S&P (refrain fr selling).
1. Purchaser has an option to :-
i) accept your 3% compensation (means you issue 4% and the agent refund the 2%)
ii) take legal action

2. Pay the agent the agreed professional fees. (2%)


In short you are facing 4 outcomes :-
a) Issue 4% to Purchaser (agent issue 2%) + issue 2% to agent as commission
b) Issue 4% to Purchaser (agent issue 2%) only - if the agent is kind enough not to take the commission
c) Just refund the 1% (agent issue 2%) to the purchaser and be prepare the purchaser take legal action on you
d) Just refund the 1% (agent issue 2%) to the purchaser + issue 2% to agent as commission, and be prepare the purchaser take legal action on you

p/s : Legal action can't be enforceable if agreement didn't states the SP

soli la, did not realize u r a noob
but it was really inconvenience to go bank uplift fd and then hav to chase the banker and lawyers again for my 1st disbursement & put back to fd
ok, u seem to be in hot soup, won't bug u, but jus want to share with u the experience from the other side

the seller before sign offer letter, he says wan to sell, then dun wan to sell, then wan to sell, then dun wanna sell
lucky ejen commision was worth the hassle, for 1 over week, ejen voodoo seller and convince him bubble will blow
too bad seller wish for bubble burst did not cum true, my sympathies but seller did cash out for over a 100% gain

tak jadi because of unable to come to a conclusion with my bf on what to buy. So I think i better keep my condo and rent it out instead. Else, I would have end up condo sold, has some cash but dont know what to do with the cash.

keep changing mind indeed is no good. I will only change it once.
But anyway, yea regarding the bubble burst thingy. But my condo is relatively cheap when i bought it, and its near lrt so i think should be able to fetch OK rent. I wouldn't think of selling it if it is not because of wanting to get a good landed which is like sooooo expensive nowadays. But now tak jadi liao, so macam no reason for me to sell the condo.

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Added on October 4, 2012, 1:32 amlolz, good one there. indeed I am considering

This post has been edited by trusted519: Oct 4 2012, 01:32 AM

but anyway, just to get some advise. If you have a condo that is at a good location with lrt and you wanted to get a landed now. Will you sell the condo off so that if will help burden off a bit the installment. or.. just keep the condo by renting it out, and get the landed at the same time

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Added on October 4, 2012, 1:34 am


This post has been edited by trusted519: Oct 4 2012, 01:34 AM

Sorry. Betul! Betul! Betul!

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Added on
If rental is good and the new purchase you two are capable of serving it, why not (1 for own-stay only, it means no investment) ..

I would refinance it as within 3 years when lrt ring complete, u can go find another bf from sentul to sg buloh & distance is not a problem
imagine tat! u get so many bf from so many diff locations, wah! can get so many rental income from so many sources

and all this answer is telling me i should not sell off my condo. but i signed offer letter liao OMG, really need to compensate 3% ? Can I not just refund ? Can i not use the excuse that the loan after 2 weeks also not yet gao dim ?

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Added on October 4, 2012, 1:46 amWALAO WEH

This post has been edited by trusted519: Oct 4 2012, 01:46 AM

OK I also know its not that good to do that, but just need to be the bad person this time. That's why i also feel so fan now to having to talk to the agent tomorrow about this.

Or you can take it positively (since so many people think that real estate market is cooling down), signed already, just sell it (no one can tell about future, fortune-teller doesn't count) ... reserve more bullet, or can reno nicer for your coming landed (if you can get it shortly)

of coz, we mus alwiz look at the bright side of things instead of complaining & expecting govt handouts or the end of the world via mayan 2012
when visiting frens & potential gfs, scout around the areas and see got potential to put capital to work hard and use opm or not
no worries, we won't tell your wife

Keep the condo and top up loan to buy landed.

But since u agreed to sell and collected booking fees. It's unethical to back out.

Why dont you share the offer letter that u signed? Presumably, prepared by agent, rite ?

delete

This post has been edited by Denis: Oct 4 2012, 08:40 AM

If I were u, keep the condo. Refinance it. Just compensate the 3%. Treat it as a learning fee.
Remember, money is just an idea.

just sharing my own experience which encountered last month. I pay booking RM10K for a subsales and after I applied loan and lawyer sent draft SPA to seller's lawyer, the seller call off the transaction and end up he has to pay: -

1) Refund Deposit RM10K
2) Liquidated damages RM10K
3) Agent commission RM5K

Total money that seller need to pay RM15K.

But why you want to call off the deal?

its quite unethical to call of once ppl placed a deposit. Of course, you can do so with the compensation on top of deposit refund.

Not to forget is wasting ppl time and effort....

dear all, i know its not good to do that. It's definitely not my intention to do so if i have a choice. i guess im just too noob in making decision for property.

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Added on October 4, 2012, 10:09 amthe offer letter that i signed indicated that i need to pay 50% of the full fees if the transaction is aborted after deposit is received and before S&P is signed. I think i just need to take it as a learning fees.

This post has been edited by trusted519: Oct 4 2012, 10:09 AM

perhaps, try to discuss with the buyer for a lower settlement. explain to he/she your situation and maybe sometimes can be settled with RM0 compensation

btw i think the buyer also maybe has problem in getting the loan but im not sure. Since im going to call the agent to back out , how would i know if the loan was not even successful in the first place? In that case, i wouldn't have to even compensate.

yes, try to reach a win win situation with the buyer.

If i'm not wrong, the general clause is written as below. I'm not sure what is written in your offer letter, but it only matters if the signing of S&P is delayed.


The Sale & Purchase Agreement must be signed by both parties within fifteen (15) full working days from the date of acceptance by the Vendor. In default of signing Sale & Purchase Agreement within the above validity date:
• By the purchaser(s), (provided that there is no undue delay on the part of the Vendor or Vendor’s Solicitor) the said earnest deposit sum paid herewith shall be forfeited by the Vendor and this agreement shall be treated as null and void. Thereafter neither party shall have any rights or claims whatsoever over the other party.
• By the Vendor, the Vendor shall refund the said earnest deposit sum to the Purchaser(s) together with a compensation sum of equivalent amount and this agreement shall be treated as null and void. Thereafter neither party shall have any rights or claims whatsoever over the other party

This post has been edited by recoil: Oct 4 2012, 10:20 AM

tq recoil. So can i assume that if loan is not approved and S&P also not prepared after 15 days from the date of acceptance , me as vendor wanted to pull out, its reasonable for me to just refund the deposit without any compensation needed?

That is the case now actually.

This post has been edited by trusted519: Oct 4 2012, 10:47 AM

It should be 100%, the 50% should be for between the purchaser and the agency thingy.
"塞翁失马，焉知非福"

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Added on
The number of days you can also spot it in the Form you've signed, normally 14 days or 14 working days to SPA signing, calculated from the date Vendor(you) supply sufficient documents for Purchaser to proceed with SPA and Loan Application.

In your case, likely you can call it off, details you better get someone who can talk to you face-to-face.

just called my agent, and to find out today itself is the 14th day ( only working day is counted). So I can only pray that today the loan is still not approved then i just need to refund the deposit to the buyer and pay 50% of full fees to my agent instead of compensate another 3% to the buyer.

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Added on October 4, 2012, 12:37 pmhmm if the loan is not approved after 14 days and i decide to pull out, why do i still need to pay 50% compensation to the agent ... anyone can shed some light ?

This post has been edited by trusted519: Oct 4 2012, 12:37 PM

Is like, I ask you do some work with some payment, after that I tell u, your work not needed, so? I need to pay your or not?

In fact .. You're right, there's no such thing you've to pay if the deal being called off .. probably you can give him/her Yum Char $ should be sufficient (the thing is if you want to get everything peace quickly, ask the agent to explain to the purchaser, instead of flaming).

My 2 cents.

sorry probably i wasn't clear enough. I am definitely going to compensate my agent, he is a nice guy and I appreciate what he has been doing. What i meant is probably it doesn't need to be 50% of the full fees which part of it will go to his company instead of his pocket.

This post has been edited by trusted519: Oct 4 2012, 05:06 PM

Don't forfeit the purchaser's booking fee o (50% agent+agency, 50% vendor), he/she is so pity .....

if not 50%, how much u want compensate? RM100? RM200? the agent is not pasar malam, the price must fixed to standardise it. else in future any agent can charge u any amount also right instead of 2%?

it is all about the fine print in the letter of offer both sides signed.

if stated in letter and buyer can't get loan, the deal is off.

if buyer accepts the cancellation, all is well and good. if buyer has loan approved and wants the deal and u want to get off, you need to pay the stipulated compensation. the time given is not all overriding as in the eyes of the law, everything is about being "reasonable" and "time is of the essence".

if you one sided renege on the deal, buyer can caveat yr prop, make life difficult for you if he wishes and willing to spend some money on lawyer.

this situation applies to both fickled minded buyers and sellers. one must be responsible when signing a contract, both sides.

you may want to ask this question in the laywer thread, someone there can help clarify for you, i think.

This post has been edited by AVFAN: Oct 4 2012, 07:22 PM

hi all , the case is now settled. Due to the SPA is not executed within 14 working days I have the right to pull out without paying compensation to the buyer. However, I will compensate 50% of full fees to my agent.

And the buyer's booking fee?

hi alex, don't see me so bad la. Thats not wat i meant at all. I also wish to compensate my agent fair and square, but on the other hand I also have my seller's right. In this case, the SPA is really not executed within 14 working days and I has my right to pull out for better offer. Just so happen the better offer is non-existend, and i would like to rent it out instead and I'm still going to get the same agent to get ppl to rend. So he actually has nothing much to lose. Instead of paying 50% of full fees, i wanted to pay him probably 1-2k. But in the end, i still decide to pay him 50% of full fees because he said he will help me to reduce cost in other areas. I understand that he is trying to protect himself, since no one knows what will happen in the future even though i told him i will let him handle my future case ad he still can earn.

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Added on October 4, 2012, 8:37 pmof course is refund lo.

This post has been edited by trusted519: Oct 4 2012, 08:37 PM

TS, you don't need to report here to answer everyone mar actually

Anyway, congrats!

This post has been edited by ecin: Oct 4 2012, 08:49 PM

haha no la, i appreciate many ppl chip in their thought so maybe it's good that i update a bit also. And in case if there is anyone out there that might be in the same situation then can refer a bit huhu

This post has been edited by trusted519: Oct 4 2012, 08:51 PM

Example:

3% deposit is RM3,000

If you (seller/vendor) cancel the agreement, the Vendor shall refund the said earnest deposit sum (RM 3,000) to the Purchaser(s) together with a compensation sum of equivalent amount (RM 3,000)

You need to pay purchaser: RM 3,000.00 + RM 3,000.00 = RM 6,000.00

plus u need to pay agent: 50% of deposit.. = RM 1,500.00

Total lost=RM 7,500.00

However, due to loan unapproved to purchaser and vendor want to pull out.. Purchaser only get RM 1,500.00, agent get RM1,500.00 (Fair deal).. or Vendor get RM 1500, agent get RM1500 (kesian purchaser)...

This post has been edited by abgkik: Oct 4 2012, 09:41 PM