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 possible to cancel after signing SNP?

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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?
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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.
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.
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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.
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.
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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?
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