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 Paying cash for an undercon property, What should the buyer do?

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TSnookie188
post Mar 26 2016, 10:24 AM, updated 10y ago

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If a buyer decides to pay cash for an undercon property what should the buyer do
to ensure that the property will not face disclosure in the event the developer did not service
their bridging loan eventually?


TSnookie188
post Mar 26 2016, 03:04 PM

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QUOTE(lifebalance @ Mar 26 2016, 02:18 PM)
There is no guarantee a developer will fulfill their promise to complete the project, thus a undercon project is always a risk where the developer can bankrupt or close down.

If want no risk = buy a completed one
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I wanted a discussion on the issue I raised actually - not whether to buy a property undercon or completed - that is not the point
actually.
TSnookie188
post Apr 5 2016, 09:58 AM

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QUOTE(cherroy @ Apr 5 2016, 08:08 AM)
Sorry to say, the existing law is not protective enough to property buyer, be it loan or cash buyer.

Just last week there is an article on thestar, which may serve a good read.
http://www.thestar.com.my/business/busines...se-buyers-trap/

So reputation of developer is one of most important factor to consider when purchasing a property.

Having said that, the recent amendment of needed strata title ready when deliver to buyer is a good start to close this loop hole.
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yes it was this article that prompt me to open up this discussion though somehow many assumptions were made in the meantime about the cons of buying cash..as we know there are buyers in the market that do pay cash for their
purchases so what can they do to protect themselves - that was my general question actually..

agree buying a reputable developer is important not only when you are paying it outright but for other good reasons as well..

would a good developer provide a letter to the cash paying buyer that the property will be delivered with no lien?
or is this already covered under the spa?


TSnookie188
post Apr 5 2016, 12:51 PM

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QUOTE(cherroy @ Apr 5 2016, 10:53 AM)
The fear is always the company bankrupt or liquidated, by then whatever letter/agreement signed also no use already.

Reputable developer want to sell its next phase of property, they don't want something hanky panky in between that could jeopardise their reputation and future property sale and potential premium buyer willing to pay.

Newer SPA should cover this area already as there is new law stated that strata title must be delivered when VP time.
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do you know when did this ruling that strata title to be delivered upon VP came into effect?
TSnookie188
post Apr 5 2016, 02:05 PM

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QUOTE(cherroy @ Apr 5 2016, 01:56 PM)
Should be this year.
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thanks ...personally I feel that the enforcement of regulations is rather lax in this country so
not sure really how this will pan out in the end

 

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