Hai all,

I just won an auction unit and now in the process of transferring the title. So far, what had been completed:
1- bank loan agreement signed
2- MOT is in the progress - lawyer has been appointed.
3- legal bank loan is in progress and yet to sign - lawyer has been appointed.
4- bank valuation yet to be done.

Recently, former owner called me and requested me to hold the purchasing process he wanted to keep the house. He said he will pay back my deposit.

I don't want to gaduh over this property so i told him, i am not sure if the process can be stopped as legal things currently on going, and other than my deposit, i am not sure what are other cost i need to pay as a result from this termination.

Right now i am ok to let go the property as long as he pay all everything back.

Asking everyone's opinion here what would happened if he pay me back the deposit and i am not continue the with 2 and 3? Can no 1still be cancelled? Any penalties if no 1 cancelled?

Thank you and happy new year.

This post has been edited by mt24: Jan 1 2023, 09:30 PM

just proceed, everything done then sell it back to the ex-owner with profit

you need to ask why you buy that house, if just for flipping, then ask yourself again if you want to sell back to him, he already having problem paying the loan then now out of no where got the money to pay the mortgage? you may ask your lawyer and the banker, not sure if need to reevaluate or not.

You have hired the lawyer, isnt it better to check with the lawyer instead of forum?
Also make sure the ex owner pays for your legal fees

This post has been edited by wchinwai: Jan 1 2023, 10:08 PM

It may be a tactic for the ex-owner to buy some time. Best to consult your lawyer instead.

just proceed with purchase. if he wanted. just repurchase it from you

if he afford to pay back deposit to you

why his property need to be lelong ?

Just want to point this out to u. Lelong price - ex owner hutang = new balance hutang. So no point buying from u at all cos still hutang money to bank.

Interesting thread...
I think the owner is trying to do some hanky panky things...
Get your lawyer to consult you.

If really can cancel, remember to ask the ex owner to pay you back of whatever you have paid and penalties if there is any...

Most importantly, you have wasted your time n efforts in getting this auction property and at the end you get nothing.
Try to ask your lawyer whether can issue legal letter to ex owner to claim on these kind of losses.

Dun layan the owner..
Continue with it..

Dun waste time delay and later bank forfeit ur 10% after u breached the timeline..

Unless the owner pay u in cash 10% deposit + another 10% for other cost

He may get another higher offer. No need fuck him. Just proceed. If return deposit is double the deposit money. No mercy in business

just proceed , dont need to be good guy . later you ended up lose money

Does the borrower has the capability to keep the house? if he has, legally, he will need to buy from you.

Advised you to proceed with established procedure else you may lose your deposit. He could always buy from you later if he has funding.

This post has been edited by icemanfx: Jan 2 2023, 11:23 AM

If he can pay 25-30% of auction price in cash as reimbursement, why not? Should be enough to cover whatever bank loan penalty and pocket some fast cash

do you think ex owner can pay u since his/her house already lelong...

Since he comes to you with 'good intention' and your willingness to nego, give him the benefit of doubt.

After 'price' agreed, give him 1 week max to settle the payment, failing which you just proceed with the completion. Tell him you have a deadline to meet.

How he pays is not your concern and dont have to stress over it.

Meanwhile, your lawyer will cont with the legal paperwork.

Q1 and 3 are in conflict.

Are you refering to loan offer letter in Q1 ?

Anyway, all agreement can be 'cancelled' .... just pay penalty or compensation only ..... including SnP.

A seller cannot force the buyer to proceed if he changes his decision to cont the purchase. The seller will forfeit the deposit as compensation.

Be diplomatic in your dealings with the existing owner as you require his co-operation to vacate the property after the completion of the auction process.

This post has been edited by mini orchard: Jan 2 2023, 09:08 AM

As someone who bought an auction property and faced the same situation as yours 5 years ago, here's what i had experienced :

- He said he will buy back the house from me and required some time. I said ok but i will complete my purchase in the meantime.
- He sold me his sad story, naive me given him rental at my loan cost price while he said he will settle the maintenance but he didnt.
- 2 years later, he came up with all bs, bank problem, need 3 months statement, all yada yada just to delay time
- Missed rental for 3 months, I had to get rid of him, he start showing his true color
- Tried to con me into signing an SPA buying back the property at my lelong cost. He really think im that stupid.
- Long story short, after multiple sleepless nights dealing w him the hard way (police involved), i got the property back with some damages, arrears on the maintenance which i have cleared before, and of course loss in rental that i could have easily make a decent yield.

So, a few things that i would have wished i have done differently :

- Dont be gullible and buy into sob stories. If they cant stop the auction, means hailat dy what are the chances for him to buy back from u.
- I would have straightaway hire a lawyer and get court order. I know it would cost you 10k more, but its worth it. The trouble, missed opportunity, and the losses that you will incur trying to fix it yourself is not worth it. Been there bro.
- I wouldnt even choose to meet the owner. To avoid emotional decisions and stupid sob stories, i would rather pay a friend to try to reposses the property in a friendly manner first. If fail, play nice but proceed w court order.

Don't layan sob stories

If owner wants the unit now you can set whatever price you like to resell back

Consult your lawyer instead of this forum

Thank you for sharing your experience. I heard numbers of stories about how ex owner destroy the house before the new owner manage to take over the property.

This is the thing that i would like to avoid. At the moment, he is having upper hand to the unit ( he has access to the house). So i would try as much as to avoid the conflict, which would result to my unit being destroyed by them.