Hi all,

What is the process of buying direct from owner?
I know there is a sort-of booking fee form when buying through property agent.
So, when buying from direct owner, I also should put a 1% booking deposit right? In case the owner refuse to sell later...
Do I have to draft out this thing by myself?

What other things i have to look out for?

Thanks!

When I bought direct, I just prepared a self drafted letter of intent to buy, signed by both parties with copies of ICs. Actually paid 3% as earnest deposit. Make sure everything is documented. Then engage a lawyer.

The process is actually similar but only taking our the agent(middle man) out of the picture and yes, you need to draft out the letter of offer to purchase with all those salient terms to ensure that your rights as a purchaser is protected pending the execution of a formal sale and purchase agreement.

Terms relating to refund and/or vendor's refusal to process are one of the many.

Since there is no agent involved, the earnest deposit is up to negotiation but I believe the vendor will opt to follow market practice.

That bolded part is S&P agreement ke?

I tot all documents prepare by lawyer.

And engage lawyer later, legal fees still the same or a bit different?

Sorry, noobs here

Nope. Self drafted. Google up letter of intent to purchase. If you ask a lawyer they'd probably ask you to let them draft the letter (with charges of course).

I just drafted my own and asked the seller to sign. Then hand over 3% earnest deposit. Only after that I appointed a lawyer for the snp.

Legal fees are based on purchase price and should be the same regardless (minor differences here and there only).

either u draft urself or pinjam an agent's booking form and copy it.

intent to purchase = offer to purchase = booking form.

If you are the buyer, I would not pay direct to the seller as I am not sure if he/she is actually the owner, if he/she is a bankrupt , is there a caveat on the property
etc..Get your lawyer in to deal with it right from the start ..lawyer should make the necessary checks before releasing your earnest deposit.

Normally if you go through an agent, the agency (not agent) will hold the money in escrow until SPA is signed..by which time all the necessary
checks would have been done by the lawyer/s..

Real case - seller already declared a bankrupt, but put her house up for sale and collected deposits from a few buyers ..so have to sue the seller
for the return of deposits but you can imagine the hassle and stress - in the end most likely monies are non recoverable after having to spend
additional money to get lawyer' help to go after seller.

This post has been edited by nookie188: Nov 7 2017, 09:51 PM

Wow thanks i did not know that