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> Lawyer withholds my house sale deposit, Is it normal?

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TSWoodStock
post Nov 30 2022, 11:22 AM, updated 2y ago

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With soaring inflation and salary cut, I have problem servicing my house loan and decided to sell my house at lost.
The buyer paid 10% deposit and everything went well.
But my lawyer withholds my deposit because he said my selling price is less than bank loan outstanding. So he cannot give me the deposit. Instead he asked me to pay him the balance of house loan outstanding.
I am not happy because I lost a lot money for selling already. Why put the deposit at the lawyer? I want to use the deposit to pay in the house loan account now to reduce loan interest.

Any comment please?
is it normal that the lawyer to withhold deposit?

thanks. notworthy.gif notworthy.gif

This post has been edited by WoodStock: Nov 30 2022, 11:23 AM
ifourtos
post Nov 30 2022, 11:26 AM

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legit.

i guess u are so wrong.


ur house is sold ONLY after u clear the loan....

if u cant clear the loan, how to complete the S&P?


to reduce the loan??
no... the Loan must be clear b4 u change owner.


u are so wrong

u should do remortagage...
TSWoodStock
post Nov 30 2022, 11:29 AM

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QUOTE(ifourtos @ Nov 30 2022, 11:26 AM)
legit.

i guess u are so wrong.
ur house is sold ONLY after u clear the loan....

if u cant clear the loan, how to complete the S&P?
to reduce the loan??
no... the Loan must be clear b4 u change owner.
u are so wrong

u should do remortagage...
*
I mean the 10% deposit which the buyer paid when he sign S&P
Normal procedure is, this 10% deposit will be paid to me right?
ifourtos
post Nov 30 2022, 11:30 AM

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QUOTE(WoodStock @ Nov 30 2022, 11:29 AM)
I mean the 10% deposit which the buyer paid when he sign S&P
Normal procedure is, this 10% deposit will be paid to me right?
*
haizzz..

who is the rightful owner of the house?

you???

no

deposit paid to the owner of the house.

Bank.
ifourtos
post Nov 30 2022, 11:32 AM

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QUOTE(WoodStock @ Nov 30 2022, 11:29 AM)
I mean the 10% deposit which the buyer paid when he sign S&P
Normal procedure is, this 10% deposit will be paid to me right?
*
That snp mostly done between bank

buyer bank and ur bank.

1 house only 1 mortage loan. very simple

now if house sell to Mr B, mr b is taking a new loan with this property

so, your mortage must settled 1st.
Mikeshashimi
post Nov 30 2022, 11:33 AM

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QUOTE(WoodStock @ Nov 30 2022, 11:29 AM)
I mean the 10% deposit which the buyer paid when he sign S&P
Normal procedure is, this 10% deposit will be paid to me right?
*
As long as you still owe the bank, the house isn't yours.

When you sell for a "loss", the loss just means you owe the bank cash.

Say your outstanding loan is RM50,000.00, you sell for RM30,000.00, the bank still need you to pay RM20,000.00 before the house can be "sold".

So in the end you rugi. Who advise you to sell property under loan at a loss?
Zenith5229
post Nov 30 2022, 11:33 AM

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QUOTE(WoodStock @ Nov 30 2022, 11:22 AM)
With soaring inflation and salary cut, I have problem servicing my house loan and decided to sell my house at lost.
The buyer paid 10% deposit and everything went well.
But my lawyer withholds my deposit because he said my selling price is less than bank loan outstanding. So he cannot give me the deposit. Instead he asked me to pay him the balance of house loan outstanding.
I am not happy because I lost a lot money for selling already. Why put the deposit at the lawyer? I want to use the deposit to pay in the house loan account now to reduce loan interest.

Any comment please?
is it normal that the lawyer to withhold deposit?

thanks. notworthy.gif  notworthy.gif
*
Your lawyer is correct la . How can you get hold of the deposit when you're not the owner of the house ? The Bank owns the house , you must therefore clear the loan first . However in your case the selling amount is not enough to clear the outstanding , hence you must topup the difference .
ifourtos
post Nov 30 2022, 11:37 AM

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u should sell to another bank to get cash and reenter mortagage
ifourtos
post Nov 30 2022, 11:44 AM

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i hope ts is ok...
he is trying to ease burden but now create new burden..


calculate the damage of cancel this deal

find a bank that value ur prop higher
refinance it.

u may get cash and lower the loan

extent the loan as long as possible
mini orchard
post Nov 30 2022, 01:36 PM

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QUOTE(ifourtos @ Nov 30 2022, 11:44 AM)
i hope ts is ok...
he is trying to ease burden but now create new burden..
calculate the damage of cancel this deal

find a bank that value ur prop higher
refinance it.

u may get cash and lower the loan

extent the loan as long as possible
*
The damage is limited to 10% of the deposit paid during snp.
ForgotPassword
post Nov 30 2022, 01:45 PM

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QUOTE(WoodStock @ Nov 30 2022, 11:29 AM)
I mean the 10% deposit which the buyer paid when he sign S&P
Normal procedure is, this 10% deposit will be paid to me right?
*
No. Deposit is paid to the lawyer.

mini orchard
post Nov 30 2022, 01:58 PM

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In normal SnP, the 10% deposit is paid to the lawyer which is then forwarded to the seller PROVIDED the selling price is more than the outstanding loan.

If the selling price is less than the outstanding loan, the lawyer will keep the deposit. He will further instruct the seller to pay the differential sum between the selling price and outstanding loan to him b4 he will proceed further. Together with the purchase price, the lawyer will settle the loan with the seller bank.

If the seller cannot pay up the differential sum, the seller has breached the SnP agreement and the seller has to compensate the buyer for an amount equal to the 10% of the purchase deposit paid. The lawyer will return the buyer deposit and the deal considered aborted.
smartinvestor01
post Dec 2 2022, 05:37 PM

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QUOTE(WoodStock @ Nov 30 2022, 11:22 AM)
With soaring inflation and salary cut, I have problem servicing my house loan and decided to sell my house at lost.
The buyer paid 10% deposit and everything went well.
But my lawyer withholds my deposit because he said my selling price is less than bank loan outstanding. So he cannot give me the deposit. Instead he asked me to pay him the balance of house loan outstanding.
I am not happy because I lost a lot money for selling already. Why put the deposit at the lawyer? I want to use the deposit to pay in the house loan account now to reduce loan interest.

Any comment please?
is it normal that the lawyer to withhold deposit?

thanks. notworthy.gif  notworthy.gif
*
by the way, you actually have to check on your loan outstanding before deciding to sell the property and finalized the selling price..


hanhanhan
post Dec 4 2022, 09:05 AM

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From: Kuala Lumpur


QUOTE(WoodStock @ Nov 30 2022, 11:22 AM)
With soaring inflation and salary cut, I have problem servicing my house loan and decided to sell my house at lost.
The buyer paid 10% deposit and everything went well.
But my lawyer withholds my deposit because he said my selling price is less than bank loan outstanding. So he cannot give me the deposit. Instead he asked me to pay him the balance of house loan outstanding.
I am not happy because I lost a lot money for selling already. Why put the deposit at the lawyer? I want to use the deposit to pay in the house loan account now to reduce loan interest.

Any comment please?
is it normal that the lawyer to withhold deposit?

thanks. notworthy.gif  notworthy.gif
*
ur lawyer is right.

if he give u the 10% deposit, later u cannot fork out the shortfall owing to bank then how?



 

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