the 2.5% is the last payment of your house price. Usually the bank will not release it to the developer until strata title is out. If u were to sell or refinance the house, u have to pay up the 2.5% to the developer to enable u to sell or refinance the house (only if the bank have not finish releaseing the amount u loan). If u dont pay, the developer will not let u sell the hse or rather will not release the documents for further processing. Since u refinance, besides paying the 2.5%, are u aware that u might have to pay penalty to the existing bank becoz of early release? (but of coz some loans do not have to pay the penalty but i think u better check yours)

Hmm...yes you can choose to charge your buyer higher geh....but u will have to fork out the money 1st to pay it else u cannot sell the house in the 1st place. Maybe u can nego with the buyer to pay u 1st, but usually nobody will give u the money unless S&P is signed, where u can collect 10% of your asking price from your buyer. But bare in mind, when S&P is signed, u must pay all outstandings to the bank oredi.

This post has been edited by mIssfROGY: Jul 1 2008, 02:31 AM

actually u cannot tell the buyer to pay for u that 2.5% (not nice to hear from buyer view becoz its your cost of the house)....but u can raise your selling price instead. Hmm..i m not sure how is your agreement like with the buyer so i cannot advise u whether u can just canx it like that. But since you didnt accept any booking money, i think its ok kua, but u better check.

Hmm..
how to put it....

Lets say your house price is 200k
You paid 100k downpayment to the developer

Bank Loan is 100k
Bank released to developer = 95000
Bank Havent release (2.5% of 200k) = 5000

So meaning, if u havent settle this 2.5%, u cannot refinance or sell your house. Even if u think u can sell, in the end, your developer will ask u for that 2.5% in order for them to provide the documents for processing becoz you are still owing them that 2.5%. (It can be more, but in your case its 2.5%)

U can also ask your bank to settle that 2.5% geh (becoz its the loan u took from them but they havent pay to developer yet).....but usually they wont do it. But depends la....try to nego.

And another thing.....your loan not drawdown yet (becoz u said bank still havent release the 2.5%)....
SO, in your s&p stated penalty on 1st drawdown or last drawdown? It varies from bank to bank.
And how many years is your loan with the bank oredi? Usually within 3-5 years will kena penalty.

I also understand your situation geh....hahah coz i also stucked in refinancing the last time. I only prepared money for penalty (few Kksss).....then suddenly come letter ask me to pay the final 2.5%. I oredi told my new bank....they say no prob can one, no need to worry. Then when everything's done, they come tell me they overlooked that part eventho i reminded them several times, so in the end gotto fork out another few ksss. Sometimes, there r alot of things they duwan to tell u until last min. SO better check everything especially the additional payments part.

This post has been edited by mIssfROGY: Jul 1 2008, 03:31 AM

OHhh, then most proly be4 S&P signed also can sell then.
Please do update us on whether u need to pay the 2.5% or the bank auto release the money to the developer?
HAhaha really need to b well-equip with this info oredi

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Added on July 1, 2008, 11:26 amhmmm ya i think so.
So far our scenario is all the last 2.5%....what about if the bank havent disburse lets say 75% of the loan?

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Added on July 1, 2008, 11:37 amyeah if u settle the 2.5% with developer, then your loan wif bank will less 2.5%.

In my case of refinancing, i have to settle the 2.5% to developer. Then because refinancing takes MONTHS.....eventho i have already paid (and the developer obviously knows), the developer go ask bank to disburse summore the 2.5%!!

Then i wrote in letter to bank to stop payment becoz oredi paid. But the bank disbursed the money oredi. Then gotto write in to developer to refund. Then later developer call and say cannot refund becoz bank asking them back for the refund to refund me back one big circle.....

So....moral fo the story.....no matter wat, u still get back the 2.5% u paid, but later on.

Whereelse in sales of house, ya, u will get back if you sell your house at a higher price than your initial price or same.

This post has been edited by mIssfROGY: Jul 1 2008, 11:37 AM