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> possible to cancel after signing SNP?

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mini orchard
post Nov 14 2019, 01:03 PM

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QUOTE(wayton @ Nov 14 2019, 01:00 PM)
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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Yes, correct.

That why snp has the 'specific petformance' clause to compel the seller MUST sell to the buyer.

You dont caveat only when seller defaults. Caveat is done IMMEDIATELY when snp signed. So the bold statement is unnecessary.

Caveat is on first come first serve basis. If an early buyer caveat ahead, then ts can kiss his deposit bye bye. That is why an experienced lawyer is important.

Dont slash his fee ... he may only earn from you once.

This post has been edited by mini orchard: Nov 14 2019, 01:12 PM
Mikeshashimi
post Nov 14 2019, 01:07 PM

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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?
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1. Why did the vendor want to do this? It's only usually done if it's thru agent/broker because the broker wants their cut first before loan disbursement.
2. The property still under loan or clean title?
3. After sign SNP cannot simply cancel cancel la bro, it's not a booking document, it's a legally binding contract.

BTW, you should just ask the (your) lawyer otherwise he makan duit kosong saja.

Mikeshashimi
post Nov 14 2019, 01:08 PM

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QUOTE(wayton @ Nov 14 2019, 01:00 PM)
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.
*
Yea correct.

Usually all will be executed simultaneously to the lawyer can file and submit for registration in the correct order.

Unless the lawyer is chapalang la.
mini orchard
post Nov 14 2019, 01:17 PM

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QUOTE(Mikeshashimi @ Nov 14 2019, 01:07 PM)
1. Why did the vendor want to do this? It's only usually done if it's thru agent/broker because the broker wants their cut first before loan disbursement.
2. The property still under loan or clean title?
3. After sign SNP cannot simply cancel cancel la bro, it's not a booking document, it's a legally binding contract.

BTW, you should just ask the (your) lawyer otherwise he makan duit kosong saja.
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Agent fee is payable upon signing of snp under the BOVEA guideline OR consent from local authority if is a lease property.

No. 2 is irelevant.

This post has been edited by mini orchard: Nov 14 2019, 01:20 PM
Mikeshashimi
post Nov 14 2019, 01:24 PM

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QUOTE(mini orchard @ Nov 14 2019, 01:17 PM)
Agent fee is payable upon signing of snp under the BOVEA guideline OR consent from local authority if is a lease property.

No. 2 is irelevant.
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thumbsup.gif cheers

but wrong.

2 is not irrelevant.

On a charged property, loan is not disbursed to the vendor.

This post has been edited by Mikeshashimi: Nov 14 2019, 01:25 PM
mini orchard
post Nov 14 2019, 01:29 PM

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QUOTE(Mikeshashimi @ Nov 14 2019, 01:24 PM)
:thumbsup:  cheers

but wrong.

2 is not irrelevant.

On a charged property, loan is not disbursed to the vendor.
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Whether is loan or cash, final disbursement sum is always to the purchaser's lawyer and to be forwarded to the vendor's lawyer if he is represented.

This post has been edited by mini orchard: Nov 14 2019, 01:30 PM
TSpisces88
post Nov 14 2019, 01:41 PM

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QUOTE(mini orchard @ Nov 14 2019, 01:29 PM)
Whether is loan or cash, final disbursement sum is always to the purchaser's lawyer and to be forwarded to the vendor's lawyer if he is represented.
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Thanks for ur feedbacks, appreciate it.
mini orchard
post Nov 14 2019, 01:43 PM

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QUOTE(pisces88 @ Nov 14 2019, 01:41 PM)
Thanks for ur feedbacks, appreciate it.
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Go ahead and buy if you like the property.

Get an experienced lawyer to advise you. Your worry is unnecessary.
wayton
post Nov 14 2019, 02:26 PM

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QUOTE(mini orchard @ Nov 14 2019, 01:03 PM)
Yes, correct.

That why snp has the 'specific petformance' clause to compel the seller MUST sell to the buyer.

You dont caveat only when seller defaults. Caveat is done IMMEDIATELY when snp signed. So the bold statement is unnecessary.

Caveat is on first come first serve basis. If an early buyer caveat ahead, then ts can kiss his deposit bye bye. That is why an experienced lawyer is important.

Dont slash his fee ... he may only earn from you once.
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Already mentioned caveat once entering Snp.
In normal situation when Snp collapsed, buyer needs to drop the caveat. Buyer cannot caveat once Snp collapsed, buyer can get sue if continue caveat without reason.
wayton
post Nov 14 2019, 02:29 PM

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Get lawyer advice, don't just simply doing side deal with seller. Everything follow black and white Snp.
Don't pay cash directly to seller either.
mini orchard
post Nov 14 2019, 02:44 PM

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QUOTE(wayton @ Nov 14 2019, 02:26 PM)
Already mentioned caveat once entering Snp.
In normal situation when Snp collapsed, buyer needs to drop the caveat. Buyer cannot caveat once Snp collapsed, buyer can get sue if continue caveat without reason.
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What is your meaning of 'SNP COLLAPSED'
Tigerr
post Nov 14 2019, 02:49 PM

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QUOTE(mini orchard @ Nov 14 2019, 09:58 AM)
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.
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I merely state my mind answering your assumption too. Not come in here to speculate

Cheers....
mini orchard
post Nov 14 2019, 02:54 PM

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QUOTE(Tigerr @ Nov 14 2019, 02:49 PM)
I merely state my mind answering your assumption too. Not come in here to speculate

Cheers....
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The fact of the problem is on page 1. I dont think I made any assumption in answering replies. I cannot read ts mind but you did an assumption that ts wanted back the 20k for reno and squeezing ....blah blah.

TS didnt mentioned that he wanted bank the money for reno. TS is only concern that the seller will not return the money if something goes wrong.

This post has been edited by mini orchard: Nov 14 2019, 02:57 PM
Tigerr
post Nov 14 2019, 02:58 PM

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QUOTE(mini orchard @ Nov 14 2019, 01:29 PM)
Whether is loan or cash, final disbursement sum is always to the purchaser's lawyer and to be forwarded to the vendor's lawyer if he is represented.
*
I also have a question. Currently i am selling one of my house. The buyer not signing booking form and the buyer go engage lawyer to help him buy the property n he is trying to secure a 100% loan. He also did not pay me any booking fees too as he worried if his loan failed n i dont want to return his booking fees.

Anyway. I just told the agent let him go do whatever he wants but if he able to secure the 100% loan. Then i definately will collect 10% downpayment upon signing snp.

The agent already asked for my geran as the said his banker n lawyer needs that.

Is this weird?
Tigerr
post Nov 14 2019, 03:03 PM

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QUOTE(mini orchard @ Nov 14 2019, 02:54 PM)
The fact of the problem is on page 1. I dont think I made any assumption in answering replies. I cannot read ts mind but you did an assumption that ts wanted back the 20k for reno and squeezing ....blah blah.

TS didnt mentioned that he wanted bank the money for reno. TS is only concern that the seller will not return the money if something goes wrong.
*
You are right. The Buyer B also never mentioned he got no cash to pay extra.


Cheers....i just merely answer on this why buyer concern this.
mini orchard
post Nov 14 2019, 03:11 PM

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QUOTE(Tigerr @ Nov 14 2019, 02:58 PM)
I also have a question. Currently i am selling one of my house. The buyer not signing booking form and the buyer go engage lawyer to help him buy the property n he is trying to secure a 100% loan. He also did not pay me any booking fees too as he worried if his loan failed n i dont want to return his booking fees.

Anyway. I just told the agent let him go do whatever he wants but if he able to secure the 100% loan. Then i definately will collect 10% downpayment upon signing snp.

The agent already asked for my geran as the said his banker n lawyer needs that.

Is this weird?
*
You inform the buyer that you will sell the property to anyone who pays you first since you dont have any contractual document (booking form) with him. Treat this 'buyer' as non existence. You cannot be waiting for his answer while ignoring another potential buyer. You can also change your mind and not sell anymore. You can also change the price, but this not gentleman.

As for the 100% loan and 10% deposit, you are right.

As for the geran, is normal as bank wont process loan application without it. After all is just photocopy. He can also get it at land office but troublesome.

This post has been edited by mini orchard: Nov 14 2019, 03:15 PM
wayton
post Nov 14 2019, 03:24 PM

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QUOTE(Tigerr @ Nov 14 2019, 02:58 PM)
I also have a question. Currently i am selling one of my house. The buyer not signing booking form and the buyer go engage lawyer to help him buy the property n he is trying to secure a 100% loan. He also did not pay me any booking fees too as he worried if his loan failed n i dont want to return his booking fees.

Anyway. I just told the agent let him go do whatever he wants but if he able to secure the 100% loan. Then i definately will collect 10% downpayment upon signing snp.

The agent already asked for my geran as the said his banker n lawyer needs that.

Is this weird?
*
It is called "earnest deposit", to show sincerity in purchasing your property, instead of talk without essence.

Normally, you as seller impose a time frame for it, 2 weeks or 1 months time to sign the SNP (after receive the earnest deposit) to collect 10% downpayment., as you don't want to miss other buyer (if the current buyer doesn't proceed to buy).
Loan approval normally proceed quite fast nowadays if the buyer has the financial capability, or meet the loan requirement.

Please engage lawyer before accept any deposit (including earnest deposit), as it is always need to come with clauses, you don't want some clauses that are in favour, as sometimes SNP can drag too long, which is disadvantage to seller.

Yes, it is normal for seller to show the property title to buyer banker and lawyer to verify the property is indeed yours.
Buyer also scare of fake seller.
Tigerr
post Nov 14 2019, 04:57 PM

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QUOTE(mini orchard @ Nov 14 2019, 03:11 PM)
You inform the buyer that you will sell the property to anyone who pays you first since you dont have any contractual document (booking form) with him. Treat this 'buyer' as non existence. You cannot be waiting for his answer while ignoring another potential buyer. You can also change your mind and not sell anymore. You can also change the price, but this not gentleman.

As for the 100% loan and 10% deposit, you are right.

As for the geran, is normal as bank wont process loan application without it. After all is just photocopy. He can also get it at land office but troublesome.
*
Ya. I know. No other buyer now except him. Previous 2 buyers failed at bank loan.

Currently tenanted. So no harm waiting. If he gets the loan then i sell. Else i just keep continue renting it out but pain in the axx when collectinh rental every month...

mini orchard
post Nov 14 2019, 05:04 PM

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QUOTE(Tigerr @ Nov 14 2019, 04:57 PM)
Ya. I know. No other buyer now except him. Previous 2 buyers failed at bank loan.

Currently tenanted. So no harm waiting. If he gets the loan then i sell. Else i just keep continue renting it out but pain in the axx when collectinh rental every month...
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Landlord nightmare.

The last time I sold my property, the buyer pays me the earnest deposit in 2 instalments over 2 weeks. And is only 2.5k. During snp everything went on as normal.

Now I dont do long term rental anymore. I prefer vacation home business. Less headache. Upfront cash.

This post has been edited by mini orchard: Nov 14 2019, 05:08 PM
jenastan
post Mar 18 2021, 10:40 PM

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Sorry can I ask.

I recently faced such issue as well where as I bought a unit then later decided to upgrade to a bigger unit, I only paid booking fee. But now the previous unit lawyer send me an invoice of RM10k. Before I proceed to switch to bigger unit, I have double confirm with the SA only the additional cost and their reply is only RM1K, thats why I proceed with the booking for the new unit and had recently signed the new spa.

I have signed the cancellation agreement with the developer with their term. What should I do now

I was so shocked when I received this. Can you guys advise some approach to not pay this amount? Should I approach LHDN or Housing Ministry for some advice?

Please advise. Sorry all.

Appreciate it.

I consulted both the invoice lawyer and my new spa lawyer, both said need to pay that amount. Please help

 

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