How to get out of SPA
|
|
 Jan 17 2022, 10:38 AM, updated 4y ago
Return to original view | Post
#1
|
 
Junior Member
330 posts Joined: Sep 2019 
|
I recently signed an SPA with a certain developer.
However during that time I am not able to sign LA together as the bank was not able to produce the documents in time. SPA signed bank loan agreement not signed Now I'm having second thoughts and have my eyes on another property, anyway I can "escape" the SPA? |
|
|
|
|
|
Jan 17 2022, 04:41 PM
Return to original view | Post
#2
|
|
Junior Member
330 posts Joined: Sep 2019
|
QUOTE(Michaelbyz23 @ Jan 17 2022, 04:29 PM) Depends on the cancellation terms stated in the SPA. For mine is 1% which is not a lot but just thinking if there is a way I can get around thatGenerally for new projects, developers follow the standard spa as per HDA. This is my spa, termination term. You may try to negotiate with developer to come out with amicable settlement.   |
|
|
Jan 17 2022, 09:28 PM
Return to original view | Post
#3
|
|
Junior Member
330 posts Joined: Sep 2019
|
QUOTE(Michaelbyz23 @ Jan 17 2022, 09:25 PM) 1% only, is your unit 1million? I don't have a copy of my SPA so I am not able to check if I would have to pay $$ if my lona is rejected.. Doubt you can get away, since also just 1%. Unless you can proof your bank rejected your loan application. Can share what is the norm? |
|
|
Jan 17 2022, 10:55 PM
Return to original view | Post
#4
|
|
Junior Member
330 posts Joined: Sep 2019
|
QUOTE(mini orchard @ Jan 17 2022, 10:05 PM) By now I am sure your loan agreement should be ready for signing. How is it that you want your loan to be rejected ? If I have not signed any documents with a bank, why would I have to pay any legal fees for when I have not signed the LA. You have to check whether you are require to pay legal fees for LA and any penalty from bank for failing to sign the LA. Breach of contract is a serious matter. Be very sure b4 signing any agreements or offer letter. It was clearly stated in the first post, SPA signed with developer. LA not signed with bank. So I'm not sure why you are asking unrelated queries to the questions of how to get off the hook from SPA without paying. Just seems like you have no knowledge regarding the whole matter and spewing big words to make the matter exaggerated So back to the question of if I can get my loan rejected, will that deem me not needing to pay the SPA cancellation fees? |
|
|
Jan 18 2022, 09:39 AM
Return to original view | Post
#5
|
|
Junior Member
330 posts Joined: Sep 2019
|
QUOTE(mini orchard @ Jan 17 2022, 11:26 PM) Firstly, work is done .... meaning the agreement is in the midst of finalising for your signature and the lawyer oredi pay upfront to get the agreenent from the bank. Maybe during the signing of snp, the LA is not fully ready to be signed. That is why I'm asking in this predicament.If the developer is paying for the fee, then is no issue if you complete the transaction. If you dont sign the LA, meaning the developer will bill you for all the progress payment as it is assumed you will self finance the purchase. As you now intend to abort the SnP and LA, who is to bear the cost for legal fees / work done ?. Developer lost a sale and have to pay legal fees for your mistake ? Or do you think the lawyer will waive his fee ? To make my explaination simple in layman terms ... You order a cup of coffee and then cancel the order and request a refund when the coffee is in the process of brewing ? If every buyer were to abort the SnP and LA without paying cost, I would go for shopping spree. How to get your loan rejected if you oredi accepted the loan offer letter ? From my understanding, normally developer wont proceed to sign snp without a loan confirmation. Is not logical to sign, then cancel and refund if the loan is rejected. As mentioned in my earlier post, only your developer can reply you. If your Mr. developer is a nice guy, (1 in 100), then you get a full waiver. I approached multiple banks on my own to get my loan application. After multiple banks has responded, I verbally selected a bank and said I would sign LA next week because I can't wait for the LA & SPA due to some promotion by developer. Therefore I signed SPA last week then intended to sign LA in the coming. While yes I understand that obviously there is penalties for breaking a contract, I'm finding the easiest way out now. Worst part is I'm not able to read the whole SPA to read all the clauses as it is with the lawyer. But for my understand it's that they will be waiting for my LA so they can stamp it together as both is paid by developer |
| Change to: |  0.0179sec
 0.79
 6 queries
 GZIP Disabled
Time is now: 30th November 2025 - 08:17 PM |
Quote