The deal’s sealed only when you sign
WHAT can a buyer do when he is given the roundabout by the seller?
He can’t do anything, property agents said.
So long as the seller has not received the buyer’s cheque (with the 1 per cent option fee) and signed the option to purchase agreement, the deal is not on.
This agreement usually provides buyers with an option period of two weeks to consider their prospective purchase.
Once the buyer exercises this option, a binding contract is entered into between the seller and buyer for the sale and purchase of the property.
In today’s sellers’ market, either you walk away from a potential bidding war and look elsewhere or you just have to meet the seller’s price, said property agents.
Dennis Wee Properties director Chris Koh said: ‘In this case, the buyer is basically at the mercy of the seller. The buyer has to move quickly and offer more to seal the deal. There’s no point negotiating.
‘If you don’t have the option to purchase agreement, there’s no deal.’
But once the seller signs the agreement, the deal has to go through.
If the seller changes his mind, the buyer can sue for the transaction to go through or claim for damages, said MrKoh.
For instance, if the seller changes his mind about selling his $1 million property, the buyer can buy a similar unit for $1.1 million and try to sue the seller for the difference.
Source : The New Paper - 29 May 2007
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