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> possible to cancel after signing SNP?

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TSpisces88
post Nov 14 2019, 12:51 AM, updated 5y ago

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Scenario

1) A sell house to B, didnt go through developer/agency. Deal direct but go through proper lawyer to do SNP.

2) A wants 20k in cash from B upon signing of SNP (this is separate from the 30K downpayment), while waiting for loan to release by bank.

3) example, SNP RM330k. Loan RM300k. A wants 20k, then bank loan release 300K to A. A will give a cheque to lawyer for this 20K while waiting for loan reimburse. once reimburse, B will bank in this 20k cheque to get back to 20K advance.


questions is

How risky is it to B? if lets say A cancel the cheque for the 20k when loan reimburse, will lawyer side able to do anything? or its solely between seller and buyer?

If after signing SNP, A gets the 20k cash, does A still got any ways to cancel the SNP and pull out from the deal + run away with 20k?

This post has been edited by pisces88: Nov 14 2019, 01:03 AM
MUM
post Nov 14 2019, 01:00 AM

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I think
the agreement contract document from the lawyer would have stated selling price RM320k
initial payment RM20k.....pass to lawyer for transaction handling
balance would be from bank loan

If B cancel the cheque later, A goto see the lawyer
If A run away after taking the cheque.......the agreement had been signed with the lawyer and document processed


TSpisces88
post Nov 14 2019, 01:03 AM

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QUOTE(MUM @ Nov 14 2019, 01:00 AM)
I think
the agreement contract document from the lawyer would have stated selling price RM320k
initial payment RM20k.....pass to lawyer for transaction handling
balance would be from bank loan

If B cancel the cheque later, A goto see the lawyer
If A run away after taking the cheque.......the agreement had been signed with the lawyer and document processed
*
the selling price is 330k.

30k is deposit which lawyer holds.

20k is cash which seller requested, cos need to use money urgently.


so total 30+20k from buyer given to lawyer, which lawyer will give all to seller after he sign SNP.

if this scenario risky?
MUM
post Nov 14 2019, 01:09 AM

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QUOTE(pisces88 @ Nov 14 2019, 01:03 AM)
the selling price is 330k.

30k is deposit which lawyer holds.

20k is cash which seller requested, cos need to use money urgently.
so total 30+20k from buyer given to lawyer, which lawyer will give all to seller after he sign SNP.

if this scenario risky?
*
unless the lawyer abscond or in cohort with the buyer

Rogue lawyers' names struck off the roll, says Malaysian Bar
https://www.nst.com.my/news/crime-courts/20...s-malaysian-bar

also better not use cash....banker cheque is better (have transaction record)

This post has been edited by MUM: Nov 14 2019, 01:10 AM
mini orchard
post Nov 14 2019, 06:42 AM

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In a negotiated snp contract, the terms of payment can be varied. Is is NOT fixed at 10% on initial and 90% thereafter.

If the seller wants a higher down, eg 20%, it can also be done with the agreement of buyer.... 20:80, or 30:70 or whatever agreed.

Do it the formal way so that everything is stated clearly on the Snp.

Your lawyer should be able to advise you.

This post has been edited by mini orchard: Nov 14 2019, 06:46 AM
powerlinkers
post Nov 14 2019, 07:16 AM

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why do you want to complicate yourself?

it would be simple if you just pay him rm50k deposit, just state in the agreement.

if bank disburses extra money: it should be returned back to you by the lawyer.

do not trust the seller, do not trust and simply give rm20k. do not think you can cash a cheque in the future. you might not get anything back in the future.
simple advice bro: do not ever trust the seller.
powerlinkers
post Nov 14 2019, 07:18 AM

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QUOTE(mini orchard @ Nov 14 2019, 06:42 AM)
In a negotiated snp contract, the terms of payment can be varied. Is is NOT fixed at 10% on initial and 90% thereafter.

If the seller wants a higher down, eg 20%, it can also be done with the agreement of buyer.... 20:80, or 30:70 or whatever agreed.

Do it the formal way so that everything is stated clearly on the Snp.

Your lawyer should be able to advise you.
*
\agreed. this would be the best choice.
do not trust the seller/
kons
post Nov 14 2019, 08:41 AM

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any payment should just be handled by the lawyer. do not deal directly with the seller. the only person you need to deal with is the agent and the lawyer you appointed.
WaCKy-Angel
post Nov 14 2019, 08:55 AM

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QUOTE(pisces88 @ Nov 14 2019, 12:51 AM)
Scenario

1) A sell house to B, didnt go through developer/agency. Deal direct but go through proper lawyer to do SNP.

2) A wants 20k in cash from B upon signing of SNP (this is separate from the 30K downpayment), while waiting for loan to release by bank.

3) example, SNP RM330k. Loan RM300k. A wants 20k, then bank loan release 300K to A.  A will give a cheque to lawyer for this 20K while waiting for loan reimburse. once reimburse, B will bank in this 20k cheque to get back to 20K advance.
questions is

How risky is it to B? if lets say A cancel the cheque for the 20k when loan reimburse, will lawyer side able to do anything? or its solely between seller and buyer?

If after signing SNP, A gets the 20k cash, does A still got any ways to cancel the SNP and pull out from the deal + run away with 20k?
*
Seems like seller want to lower tax by asking 20K outside of SNP price.

Im not sure why u specifically mention didnt go thru developer. Is it new house (or strata title) or subsale with individual title??

I would say paying extra 20K is risky but it is the same for paying deposit also risky. Even go thru proper agent/lawyer still the money already given to seller.
If any issue happen the seller could refuse to return money and u cant do anything but issue letter of demand and go thru alot hassle. But it is possible to get back money thru court order.
mini orchard
post Nov 14 2019, 09:07 AM

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QUOTE(WaCKy-Angel @ Nov 14 2019, 08:55 AM)
Seems like seller want to lower tax by asking 20K outside of SNP price.

Im not sure why u specifically mention didnt go thru developer. Is it new house (or strata title) or subsale with individual title??

I would say paying extra 20K is risky but it is the same for paying deposit also risky. Even go thru proper agent/lawyer still the money already given to seller.
If any issue happen the seller could refuse to return money and u cant do anything but issue letter of demand and go thru alot hassle. But it is possible to get back money thru court order.
*
No.

I think seller is not aware that he can request for a higher down. Did not seek legal advise.
WaCKy-Angel
post Nov 14 2019, 09:12 AM

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QUOTE(mini orchard @ Nov 14 2019, 09:07 AM)
No.

I think seller is not aware that he can request for a higher down. Did not seek legal advise.
*
Ohh now i understands... Seller want 20K advance and pay back after get money from bank.
U can ask lawyer to include the T&C in the agreement.

Usually bank will release the money into laywer's account as intermediate and money from there transfer to seller. So lawyer can hold the 20K and return it to u.
mini orchard
post Nov 14 2019, 09:18 AM

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QUOTE(WaCKy-Angel @ Nov 14 2019, 09:12 AM)
Ohh now i understands... Seller want 20K advance and pay back after get money from bank.
U can ask lawyer to include the T&C in the agreement.

Usually bank will release the money into laywer's account as intermediate and money from there transfer to seller. So lawyer can hold the 20K and return it to u.
*
Just increase the deposit amount in snp.

No need other terms to complicate matters.

Take note ...

In the event that the deal is aborted by the buyer for whatever reasons, the seller can only fofeit 10% and the balance return to buyer.

This post has been edited by mini orchard: Nov 14 2019, 09:19 AM
WaCKy-Angel
post Nov 14 2019, 09:37 AM

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QUOTE(mini orchard @ Nov 14 2019, 09:18 AM)
Just increase the deposit amount in snp.

No need other terms to complicate matters.

Take note ...

In the event that the deal is aborted by the buyer for whatever reasons, the seller can only fofeit 10% and the balance return to buyer.
*
How to increase the deposit while applying 90% loan?

Lawyer will auto calculate the amount deduct the paid deposit? and the balance amount give back to buyer?
mini orchard
post Nov 14 2019, 09:40 AM

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QUOTE(WaCKy-Angel @ Nov 14 2019, 09:37 AM)
How to increase the deposit while applying 90% loan?

Lawyer will auto calculate the amount deduct the paid deposit? and the balance amount give back to buyer?
*
How buyer want to pay extra but no cash?

If buyer can loan the 20k, i dont see any reason why cannot increase the deposit amount.

This post has been edited by mini orchard: Nov 14 2019, 09:45 AM
TSpisces88
post Nov 14 2019, 09:54 AM

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QUOTE(powerlinkers @ Nov 14 2019, 07:18 AM)
\agreed. this would be the best choice.
do not trust the seller/
*
Thanks bro. I dont wan to trust seller also , so asking more opinion before speaking to seller n lawyer
Tigerr
post Nov 14 2019, 09:55 AM

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QUOTE(mini orchard @ Nov 14 2019, 09:40 AM)
How buyer want to pay extra but no cash?

If buyer can loan the 20k, i dont see any reason why cannot increase the deposit amount.
*
Buyer B might be squeezed by seller A for demanding that extra 20k. Not that buyer willing to place extra money. Furthermore buyer B may need to get back the 20k as part of his/her renovation cost later.
mini orchard
post Nov 14 2019, 09:58 AM

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QUOTE(Tigerr @ Nov 14 2019, 09:55 AM)
Buyer B might be squeezed by seller A for demanding that extra 20k. Not that buyer willing to place extra money. Furthermore buyer B may need to get back the 20k as part of his/her renovation cost later.
*
We cannot speculate what is not mentioned. Advise is based on what ts posted.

Ts concern is to safeguard his 20k only.

'If' want to speculate, this thread can go to 100 pages.

This post has been edited by mini orchard: Nov 14 2019, 10:42 AM
TSpisces88
post Nov 14 2019, 10:44 AM

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My concern is the buyer end up cancel the deal and dont return the 20k cash / banker cheque. Then it will be troublesome to get it back, whether its through court or not..
mini orchard
post Nov 14 2019, 10:49 AM

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QUOTE(pisces88 @ Nov 14 2019, 10:44 AM)
My concern is the buyer end up cancel the deal and dont return the 20k cash / banker cheque. Then it will be troublesome to get it back, whether its through court or not..
*
If you are worried about the 20k, then you should also be worried on the 10%.

Even without the 20k, if the seller wants to cheat, he can also abort the deal after signing without returning the deposit.

Either way, you need to sue him for specific performance as stated in the snp.

If you worried too much about cheating, I dont think you will ever sell or buy anything.

Let your lawyer do the ground work to protect your interest.

This post has been edited by mini orchard: Nov 14 2019, 10:56 AM
wayton
post Nov 14 2019, 01:00 PM

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QUOTE(mini orchard @ Nov 14 2019, 10:49 AM)
If you are worried about the 20k, then you should also be worried on the 10%.

Even without the 20k, if the seller wants to cheat, he can also abort the deal after signing without returning the deposit.

Either way, you need to sue him for specific performance as stated in the snp.

If you worried too much about cheating, I dont think you will ever sell or buy anything.

Let your lawyer do the ground work to protect your interest.
*
Normally the property is caveat once entering Snp, so if seller doesn't return the earnest deposit, buyer has the right to caveat,. Once caveat, the property cannot be sold.

Every Snp has own risk of default, that's why lawyer always draft clause of forfeiture clause on earnest deposit.

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