Hi first time property buyer here...this morning received a reminder letter from developer saying I need to sign S&P and Deed of Mutual Covenance (DMC)...

But my loan has not been approved yet...have submitted documents to banks

Should I just ignore the mail..? But they say need need to sign within 14 days..if not they will release unit?

This post has been edited by Oklahoma: Apr 7 2021, 06:33 PM

get your loan 1st then sign, safer for you

Loan and spa are two different things and can be signed in whichever order that you like. The only reason why everyone sign loan first because it ensures you have the financing to purchase the property. If you sign spa first and your loan gets rejected then you’ll be in trouble since you won’t be able to finance the property. With regards to your issue, did you pay any booking fee? If not then they give you 14 days to get your loan before they release the property is reasonable.

This post has been edited by GreenSamurai: Apr 7 2021, 06:38 PM

Normally loans first...
Anyway..
Why pushing to sign faster?...

I won't recommend to sign SPA before loan approval, because if your loan reject after SPA signed, then you'll be forced to self pay the property with own finance, it's very difficult and expensive to cancel a signed SPA

Just ask them extend the booking period

Unless ur property is selling fast else 99% the developer will agree. Make sure u not get fooled by the agent

Agree with this, you can submit proof of loan application too if they ask, rarely will developer release unit so easily if you've already paid booking.

This post has been edited by DragonReine: Apr 7 2021, 08:48 PM

Hi, mind to tell how long have you booked the unit?

Don't think developer staff will be so "hardworking" to send you a warm reminder letter in just few weeks time after you booked the unit, unless you have delayed in applying loan maybe longer than 2 mths I would say. So this letter is to serve as notification purpose so that they can re open the unit without bearing any responsibility, in case you are the party who failed to secure loan and proceed to sign SPA with them within reasonable timeline.

This letter was sent 1 week only after I made booking... Seems kind of desperate from their side no?

Wah...I will give them my middle finger if I am you.

Anyway, if they didn't explain this kind of strict condition to you when you book the unit, just ignore the reminder letter and proceed with loan application first. Loan offer letter can be issued within 2 to 3 working days if you submit all documents nicely.

DON'T sign the SPA before you sign the loan offer letter.

Typical despo tactics LOL just send a polite email/message/call to them that you're waiting the process of loan approval and can they kindly extend the validity period XD

is presign spa, mean once loan approved and letter offer signed, lawyer will stamping the SPA and apply for hoc

as long as your bank already give you a LO (letter offer) you can then proceed to sign the SPA.
bank LO is as good as confirmed.

good profile bank usually within 1 week already approve your loan.
if you are business owner is slightly complex and the bank will require more documents and takes longer time.
my loan took about 1 month plus, sales agent just ask developer to extend with proof our loan submission is still pending.

dont ever go sign the SPA without LO. as all the sifu already explain. you get yourself into trouble.

This post has been edited by special: Apr 7 2021, 11:45 PM

most of the case will be sign LO first then only sign SPA

and some developer impose 21 days from booking date to sign SPA after loan approval (as i know at least few developers have this practice), normally will state clearly in their sales form or offer letter and your agent shall well-informed you on this; but so far i didn't come across 14 days must loan approval developer as bank processing need some time.

then in some rare case i do heard about due to HOC expiring soon, and the unit need time for some processing before stamping and need to sign within 7 days; which last time towards end of HOC do heard about this things happening

This post has been edited by lysiew: Apr 7 2021, 11:34 PM

i sign SPA before LO. is not something not normal.
go ask a banker if you are not sure.
i done mine just 1 month plus ago.

imagine u sign spa and loan reject..what is your next move?

I applied for a nice loan for about a month or so with different banks before I actually signed all the docs.

Make sure you at least sign the bank LO 1st before committing to anything. Normally the spa / bank docs will be signed on the same day.

Non stop bla bla bla, is 8 pcs presign SPA . After loan approve and buyer accept the bank offer, only will proceed with Full-set SPA, stamping and apply HOC.

Normally is sign Bank LO then only sign SPA

but if you confidence on your loan approval, no harm to sign SPA first

if ur loan reject u need to cancel S&P and pay penalty hehe