I recently signed a booking form and paid 3% earnest deposit for a leasehold apartment unit after viewing the unit. It was a property under a well known Realty Company.

To my horror, upon clearing of cheque for the earnest deposit, the broker then revealed the unit is actually on caveat. It was then explained that it was a caveat by enraged prospect buyer on previous attempt for sales. I was fooled by either the broker or the vendor as the caveat thingy was not disclosed to us until then.

As the vendor & broker both assured us that the Caveat can be cleared given the abovementioned story and I had obtained loan approval and have signed the offer letter for loan, so I thought I will proceed with the drafting of SPA (it is the purchaser's duty afterall).

However, the vendor have demanded in the SPA:
i. an extended period of 6 months (for the removal of caveat); and [is this a reasonable time frame?]
ii. a non-remedial clause shall he failed to remove the Caveat / he decided to cancel the deal of whatsoever reason in the end. [how could we accept the outrageous clause?]

and the vendor's solicitor seems quite firm on the clause imposition, else the vendor won't agree to sign the SPA.


So I need to clarify here, is the only choice I have now is to accept the vendor's outrageous clause that is depriving our benefit wholly. What is the suggested next course of action to protect our rights as a deceived purchaser?

Please help!!! Thank you.

Hmm, if can pullout better pullout. Ask back for your deposit. Make complain tribunal if u cant get ur money back. Or police report for fraud.

Well, i also want to know what other sifu advice. Parking here. Hehe

when both the purchaser and vendor cannot agree on the terms of the SPA, the only solution would be to
cancel the whole deal..it has happened to me before..

6 months to remove a caveat?? usually it does not take so long if its a straight forward case so I believe the
vendor must be having an ongoing case with an ex purchaser so would you want to take the risk by going ahead with it? you may end up with nothing..

I mean by giving the vendor a free hand to cancel the SPA without compensation , its really a bit one sided.

why are you not seeking advice from your SPA lawyer??

Better pull out... Its too much trouble/stress/anxiety/etc on your part. If shit happens on the other side you are affected yourself also. I know a lawyer that is quite good in these. If you want can PM me for his number.

Well,if we have pulled out now,are we getting remedy to at least offset the consequential costs incurred.Not to mention the disappointment n opportunity cost~

Or u may consider to ride the waves if you have a good vibe on the future potential of the intended property.

Really depends on you and the discussion with your family.

This post has been edited by VOOSH: May 3 2016, 09:21 PM

My concern now is that how the current legal system helps to protect us as purchaser?!

What is the legally enforceable rights of the booking form?!

Is the vendor in fault shall the property list for sell is on Private Caveat given he did not disclose it to us?!

Any lawyer or with past experience can advise?!I'm sorry but I'm not asking for plausible answer~I need a clear and definite answer to move on...Thanks~

From my basic understanding, it's not so easy to lodge a caveat these days compared to last time as you need to have a registrable interest to successfully lodge a caveat.

In your case, it would be easier to remove the said caveat as the previous buyer dud not sign any SPA, transfer form etc. Hence, he has no Registrable Interest per say for the caveat to remain in place but things like refund, etc has to be given back to him, if applicable.

But you should obtain your own legal advice.

What is your Booking Form says?
The lawyer shall draft the SPA base on Booking Form.
Any changes in the booking form must get agreement (with initials) from purchaser n vendor.

Fyi = most agents' booking forms have clause that balance purchase price must be settle by 3 months+1 month.
so now how come the vendor is asking longer than that?
You definately have a firm reason to cancel the deal n demanded 100% earnest deposit refunded back to u

If i were u
- appoint a lawyer to fight for u
- tell the agent as what i said above. Tell him u going to report to BOVEA if u dont refund your booking
- cancel the deal!