Hi all, I'd like some opinion from you guys, if there are anyone with experience out there. So I'm looking at this piece of 35 year old property for purchase own stay. Freehold. It's been renovated 10 years ago for the tiles, ceilings etc and appears to be in good condition. The kitchen was renovated less than 3 years ago. I've agreed to a certain price. However the current owner stated that he and his family will only move out in Mid January 2025, pending the completion of his new place. The agent had said we could sign the S&P stating when the property will be handed over to me, and all I need to do is pay 10% and bank will only disburse on the mentioned date.
Is there a downside of doing this, what precautions should I take or should I avoid this altogether? Thanks!

Sign when they want to move. Prop handover always delay. Look for other unit at the meantime. There's always better.

not worth, you pay the 10% upfront and you need wait 8 month to get the house. (usually freehold just 3 month transaction period)

tell them to empty the unit within 3 month or you not going to purchase, hunt for other deal.

I'm sure it won't be 8 months. I nearly get into something your situation but glad I didn't because I bought another unit renovate and moved in, that 1st unit still haven't move out. For sure got all kinda delay. Other than that, maybe can go into a rental agreement with a black and white agreement on the duration. Else not worth your time and money.

If you really like the place and believe you are getting a good deal, then you will lock in the price by paying 10% downpayment. Lock in the 8 months but say after 8 months they don't leave, they need to pay rent at market rate, chances are things happen and their new house not ready. This deal is good if the market is on the up as you will lock in the price. But this deal is no good if the market is going down. On your side, you need to factor in if you are paying rent now, your cost may go up versus the interest you pay if you get the new house in 3 months.

Better to look elsewhere...

Won't be moving out in 8month later...

Seen this kind of situation many times....

Best decision made ever....

If you die2 want that particular property...
Ask them to move out in 3 month.... If not, no deal. Sadly... Be strong & firm...

35 years? check for hidden structure wear and tear..
1. roof
2. internal wiring
3. internal water piping
4. termite damage/infestation

keys handover usually goes after loan full disbursement.. there can be a small grace period, but not much..

35 year old property??

The renovation previous 10 years ago covers all major stuff?? water piping? wiring? etc.

anyway...
family will only move out in Mid January 2025??? Red Flags yo

unless they agreed to pay u rental (need include in SPA) once VP is obtain else no no

This post has been edited by Sylph818: May 3 2024, 04:37 PM

complete the transaction and ask them to pay rent.

From your points I have a few follow up questions:

1. Can there be a clause for evict should they not want to move out after January 2025? I'm not a fan of being a 'landlord' to collect rent as that includes another bunch of headaches.
2. How do I check properly? Is it common for prospective buyers to get a contractor over and do an inspection before purchase? They claim that the piping had been done before but wiring is original.
3. Also in the S&P there is a clause that if they don't move out, there will be a 8% interest fee per month.

I'm actually more concerned about how they're going to safeguard the current condition of the home in 8 months. The term "Normal wear and tear" is very subjective.

Thanks again for the input and opinion!

This post has been edited by BlueHeng: May 3 2024, 09:27 PM

Hi,
Get a good SPA lawyer and diaclose to them those possible scenarios and tell the lawyer what exactly you want.. what's flexible, what is FIRM..

Once the SPA is out.. and the seller disagree with the terms.. the deal ends here..

Something much more simple.. when seller-buyer disagree with important matters.. the deal is already dead.. why pursue it and get yourself fuk'ed?

Better not

i think the proper situation is the sale completion and title transfer is done according, which is within 90days from s&p date.
but concurrently u are requires to sign a tenancy agt will the owner. u will become the owner and he will become the tenant.

its really your call.