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> Bought a property, almost 12 months ago, SPA still not done

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TSAeon_Clock
post Oct 25 2021, 02:44 PM, updated 3y ago

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Hi all, I am in some predicament here that need some Sifus to help. I went to view an old double storey house last year and decided to buy the house after about a week or two. We paid the deposit to the agent around end of November. However the owner did not sign the agreement letter and hold it for one month before signing under pressure of us cancelling the purchase (or sth like that).

I cannot remember the details but each time we needed a document to proceed with the completion of the purchase, the owner's side delay one month. This includes house deed, ownership documents, site/house valuation by the bank and more. Of course during MCO 3.0 we were not able to proceed with anything at all.

It is now end of October and we have been waiting for discharge documents from the seller's bank & lawyer since early September. Apparently the seller's bank is also slow (SCB) so this document extra long. After this, it'll take another month at least to change name before the process can be completed.

Now you may be wondering why he purposely delay every document by one month, that is because he is still staying in the house with his whole family and is planning to move out to another bigger house. This new house however is a leasehold and as you may be well aware of...leasehold properties take longer to process. On top of that, we had an agreement in writing on the sales agreement that the owner will pay a minimum rent per month for staying at the house once all the SPA processes are complete.

My question here is can we do anything about this deliberate delay? I have been paying rent out of my own pocket for his benefit for months (another friend who bought a house on the same month as me moved into his new house in APRIL!!) and this Chinaman tactic needs to be addressed legally.

All advices are appreciated.

This post has been edited by Aeon_Clock: Oct 25 2021, 02:46 PM
digitalz
post Oct 25 2021, 04:24 PM

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QUOTE(Aeon_Clock @ Oct 25 2021, 02:44 PM)
Hi all, I am in some predicament here that need some Sifus to help. I went to view an old double storey house last year and decided to buy the house after about a week or two. We paid the deposit to the agent around end of November. However the owner did not sign the agreement letter and hold it for one month before signing under pressure of us cancelling the purchase (or sth like that).

I cannot remember the details but each time we needed a document to proceed with the completion of the purchase, the owner's side delay one month. This includes house deed, ownership documents, site/house valuation by the bank and more. Of course during MCO 3.0 we were not able to proceed with anything at all.

It is now end of October and we have been waiting for discharge documents from the seller's bank & lawyer since early September. Apparently the seller's bank is also slow (SCB) so this document extra long. After this, it'll take another month at least to change name before the process can be completed.

Now you may be wondering why he purposely delay every document by one month, that is because he is still staying in the house with his whole family and is planning to move out to another bigger house. This new house however is a leasehold and as you may be well aware of...leasehold properties take longer to process. On top of that, we had an agreement in writing on the sales agreement that the owner will pay a minimum rent per month for staying at the house once all the SPA processes are complete.

My question here is can we do anything about this deliberate delay? I have been paying rent out of my own pocket for his benefit for months (another friend who bought a house on the same month as me moved into his new house in APRIL!!) and this Chinaman tactic needs to be addressed legally.

All advices are appreciated.
*
Question. Hopefully you got both sets of lawyers for each party? Its hard to call it "deliberate" delay if he/the lawyers can show that certain things are out of their hand.

Also, are you getting paid and when was the "expected" VP (minus all the MCO etc)?
mini orchard
post Oct 26 2021, 06:36 AM

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QUOTE(Aeon_Clock @ Oct 25 2021, 02:44 PM)
Hi all, I am in some predicament here that need some Sifus to help. I went to view an old double storey house last year and decided to buy the house after about a week or two. We paid the deposit to the agent around end of November. However the owner did not sign the agreement letter and hold it for one month before signing under pressure of us cancelling the purchase (or sth like that).

I cannot remember the details but each time we needed a document to proceed with the completion of the purchase, the owner's side delay one month. This includes house deed, ownership documents, site/house valuation by the bank and more. Of course during MCO 3.0 we were not able to proceed with anything at all.

It is now end of October and we have been waiting for discharge documents from the seller's bank & lawyer since early September. Apparently the seller's bank is also slow (SCB) so this document extra long. After this, it'll take another month at least to change name before the process can be completed.

Now you may be wondering why he purposely delay every document by one month, that is because he is still staying in the house with his whole family and is planning to move out to another bigger house. This new house however is a leasehold and as you may be well aware of...leasehold properties take longer to process. On top of that, we had an agreement in writing on the sales agreement that the owner will pay a minimum rent per month for staying at the house once all the SPA processes are complete.

My question here is can we do anything about this deliberate delay? I have been paying rent out of my own pocket for his benefit for months (another friend who bought a house on the same month as me moved into his new house in APRIL!!) and this Chinaman tactic needs to be addressed legally.

All advices are appreciated.
*
Firstly, have you discuss what you have written with your lawyer and if yes, is he taking any action ?


When any sellers delay in signing the earnest letter for whatever reasons without first notifying the buyer, it better to terminate the deal. If he is not 'ready' to sell, then is no point forcing him.


TSAeon_Clock
post Oct 26 2021, 05:09 PM

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QUOTE(digitalz @ Oct 25 2021, 04:24 PM)
Question. Hopefully you got both sets of lawyers for each party? Its hard to call it "deliberate" delay if he/the lawyers can show that certain things are out of their hand.

Also, are you getting paid and when was the "expected" VP (minus all the MCO etc)?
*
Can you image any reasons he may delay every single document by one month? Also, try explaining taking a whole month to sign the sales agreement.
No, I am not getting paid...that is the reason for his delays.

QUOTE(mini orchard @ Oct 26 2021, 06:36 AM)
Firstly, have you discuss what you have written with your lawyer and if yes, is he taking any action ?
When any sellers delay in signing the earnest letter for whatever reasons without first notifying the buyer, it better to terminate the deal. If he is not 'ready' to sell, then is no point forcing him.
*
what are you saying? Its the basic SPA. What else can you add into the SPA?
Also I'm sure you would know if I terminate, I would have to forfeit the 10% deposit.
digitalz
post Oct 26 2021, 06:25 PM

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QUOTE(Aeon_Clock @ Oct 26 2021, 05:09 PM)
Can you image any reasons he may delay every single document by one month? Also, try explaining taking a whole month to sign the sales agreement.
No, I am not getting paid...that is the reason for his delays.

what are you saying? Its the basic SPA. What else can you add into the SPA?
Also I'm sure you would know if I terminate, I would have to forfeit the 10% deposit.
*
So you still haven't answered my question. Whose lawyer? Yours or his? Or you have your own lawyer?

Basic SPA? You didn't try to include any clauses that will protect yourself during that time? You as a purchaser can include certain clauses or conditions into a SPA. It is your right.
TSAeon_Clock
post Oct 26 2021, 06:30 PM

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QUOTE(digitalz @ Oct 26 2021, 06:25 PM)
So you still haven't answered my question. Whose lawyer? Yours or his? Or you have your own lawyer?

Basic SPA? You didn't try to include any clauses that will protect yourself during that time? You as a purchaser can include certain clauses or conditions into a SPA. It is your right.
*
that's the thing, I don't understand the question. What lawyer write what...that's why I asked "what are you saying"...lol
We are both using different lawyers if that's your question.
We did include a small clause into the sales agreement document but that is to begin after the completion of the purchase - advised by the agent.

This post has been edited by Aeon_Clock: Oct 26 2021, 06:31 PM
SUSxander83
post Oct 26 2021, 06:43 PM

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Nothing much you can do if both sides didn’t agreed upon any relocation cost or moving costs to bear with in the 1st place
digitalz
post Oct 26 2021, 06:43 PM

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QUOTE(Aeon_Clock @ Oct 26 2021, 06:30 PM)
that's the thing, I don't understand the question. What lawyer write what...that's why I asked "what are you saying"...lol
We are both using different lawyers if that's your question.
We did include a small clause into the sales agreement document but that is to begin after the completion of the purchase - advised by the agent.
*
That's not to me I think. tongue.gif

Anyways, if no clauses were included to protect your interests... that's unlucky for you. The thing you can do? "Talk" to your lawyer and get the lawyer to sort it out.

Even better? Ask for a chronology and ask for all the explanations for the delay. (Most likely you'd get -> Land office delay, covid, the other lawyer delay etc).
TSAeon_Clock
post Oct 26 2021, 06:51 PM

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oh crap...wrong response XD
but yeah...besides that we didn't add anything else into the sales agreement form. The SA form itself was kinda detailed already but I guess not helpful after a certain stage...

This post has been edited by Aeon_Clock: Oct 26 2021, 07:05 PM
mini orchard
post Oct 26 2021, 07:06 PM

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QUOTE(Aeon_Clock @ Oct 26 2021, 05:09 PM)
Can you image any reasons he may delay every single document by one month? Also, try explaining taking a whole month to sign the sales agreement.
No, I am not getting paid...that is the reason for his delays.
what are you saying? Its the basic SPA. What else can you add into the SPA?
Also I'm sure you would know if I terminate, I would have to forfeit the 10% deposit.
*
I am not sure whether your lawyer is acting in your best interest.

Honestly, you have been taken for a free ride on this deal.

Is there an end date for the nominal rental agreement and if there is none, what happens if the seller continue to rent without moving out ? Could buying 'another' house an excuse ?

This post has been edited by mini orchard: Oct 26 2021, 07:06 PM
that1337guy P
post Oct 27 2021, 11:11 AM

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you can actually sign the S&P and pay the 10% deposit right now. However u can't collect rental from the owner until you have paid the full balance purchase price.

however the whole transaction length depends on :

1. whether property has restriction in interest (sekatan kepentingan). take a look at the title/land search
2. whether title is in owner's name

it may take up to a year depending on scenario.

can PM me if u need clarification.
TSAeon_Clock
post Oct 27 2021, 03:47 PM

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QUOTE(mini orchard @ Oct 26 2021, 07:06 PM)
I am not sure whether your lawyer is acting in your best interest.

Honestly, you have been taken for a free ride on this deal.

Is there an end date for the nominal rental agreement and if there is none, what happens if the seller continue to rent without moving out ? Could buying 'another' house an excuse ?
*
exactly my sentiment. The condition is only to begin after the SPA deal is completed. But he cannot rent more than 3 months. For this reason he delays all the documents (including the first sales agreement) so that he possibly avoid paying rent alltogether or get this deal delayed to be closer to completion of his own new house.

QUOTE(that1337guy @ Oct 27 2021, 11:11 AM)
» Click to show Spoiler - click again to hide... «


you can actually sign the S&P and pay the 10% deposit right now. However u can't collect rental from the owner until you have paid the full balance purchase price.

however the whole transaction length depends on :

1. whether property has restriction in interest (sekatan kepentingan). take a look at the title/land search
2. whether title is in owner's name

it may take up to a year depending on scenario.

can PM me if u need clarification.
*
how do I do this search? Do you know?
hanhanhan
post Oct 29 2021, 01:46 PM

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QUOTE(Aeon_Clock @ Oct 27 2021, 03:47 PM)
exactly my sentiment. The condition is only to begin after the SPA deal is completed. But he cannot rent more than 3 months. For this reason he delays all the documents (including the first sales agreement) so that he possibly avoid paying rent alltogether or get this deal delayed to be closer to completion of his own new house.
how do I do this search? Do you know?
*
usually law firm have account to do land search.

can ask ur lawyer for a copy, or if u want to do ur ownself, u need to see title to determine which land office /website to go to conduct the search.

 

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