Experience The Best Of Southeast Asia: 5 Must-See Destinations After Singapore
Singapore is a great starting point for travelers looking to explore the region. From Singapore, there are many great destinations...
Read More
TLDR
When a property deal is not yet formalized, sellers can withdraw without consequences. However, once an Option to Purchase (OTP) is issued and exercised, a binding contract is formed. Sellers typically cannot back out at this stage, while buyers may forfeit deposits if they withdraw. To safeguard against unreliable sellers, understand their motives, assess responsiveness to deadlines, scrutinize contracts before signing, maintain a record of communications, and be aware of your rights. Timing property transactions depends on individual circumstances. Consult experienced professionals for strategic advice and effective property marketing.
From searching for your perfect home, negotiating prices, managing finances, and looking into different home loan options, you need to do your best to ensure a successful purchase.
But what if the seller unexpectedly withdraws?
Are they even allowed to do that?
And if so, is the buyer entitled to any form of compensation?
Until a contract has been made and accepted, neither the buyer nor seller are obligated to the other party.
At the start of the selling process, before any contracts have been signed, the seller still has the right to pull out of the transaction if they no longer wish to sell their property – even if the buyer has been viewing listings and setting up meetings to view the property in person.
Thus, if you’ve expressed interest verbally but haven’t yet been handed an Option to Purchase (OTP) or sales agreement, the seller is able to revoke their offer without consequence.
When Sellers Cannot Back Out of the Deal
After putting pen to paper on the OTP, things are now undeniably official.
Once the seller issues an OTP, and if you decide to exercise the OTP, you and the seller enter into a binding contract.
It’s essential to read the OTP details carefully to see if the seller is able to withdraw from the agreement once the OTP has been exercised; while typically the seller is not allowed to back out once the OTP has been exercised, buyers typically can withdraw but will forfeit any deposits or option fees they have paid.
When you exercise an OTP, you may be required to sign a sales agreement, making it binding for both you and the seller. Unfortunately, this contract leaves no room for backing out; if the seller fails to uphold their end, any option fees or deposits paid by you must be refunded.
You could consider taking legal action against the seller to make them stick to their obligations; however, unless they have not refunded your money or caused you to suffer huge losses, it might not be worth going through the hassle or expense.
How to Protect Yourself Against ‘Bad’ Sellers
Most of the time, sellers don’t back out of property transactions – but there are some simple steps you can take to avoid any potential troubles from a reluctant seller.
1. Find Out Why They Are Selling the Property
When you chat with the seller or the agent, observe if the seller appears determined to sell the property, or if it looks like they are somewhat undecided.
Asking the seller or agent why they are selling can help you spot an uncertain seller. If the seller is simply upgrading their home, that’s usually a sign they are eager to sell.
However, if it appears they are just trying to see what price they can get for their home without a pressing need to get rid of it, they might not go through with the transaction.
2. Pay Close Attention To The Seller’s Responsiveness And Adherence To Deadlines
If the seller fails to fulfill their commitments, isn’t punctual for viewings, or does not adhere to timelines, there is a chance they may not follow through as promised.
Pay close attention to how they answer your calls, respond to your requests for information, and if they issue the OTP or sales agreement when they said they would.
3. Read the OTP and Sales Agreement Carefully Before Signing
Before signing any documents, it’s critical to thoroughly read through all contracts, such as the OTP and sales agreement, which will outline your rights and obligations as well as those of the seller.
Be sure to double-check if there are any stipulations that allow the seller to back out of the deal or end the contract, and if that doesn’t sit well with you, then speak up and try to have them removed.
4. Keep a Copy of All Communications
It’s essential to keep all communication with the seller and agent – whether in person, via text, or email – in order to have a paper trail should you ever enter into a dispute.
Be sure to save a copy of all messages sent and received for your records. To ensure that verbal conversations are not forgotten or misconstrued, it’s best to write down and acknowledge the details of the agreement in a text or email afterwards.
This way, you’ll have solid evidence of any verbal agreements made with the seller.
5. Know Your Rights When Dealing with Sellers
To guard yourself from any possible disputes, it’s wise to take a few precautionary steps before signing any documents, such as reading all contracts thoroughly and saving a copy of all interactions with the seller and their agent.
Despite the fact that most sellers don’t end up obstructing their property transactions, it’s always prudent to be aware of your and the seller’s rights, as well as keep an eye out for a seller who may be untrustworthy.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
When will En-Bloc set to Become Reality Beyond 2023?
TLDR The real estate market is experiencing a lull in en-bloc activities due to various factors. Higher Additional Buyer’s Stamp...
Read More
What is a Tenancy Agreement (TA)
TLDR When it comes to understanding property jargon, it's crucial to familiarize yourself with the specifics of a Tenancy Agreement...
Read More
Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?
TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...
Read More
Top 5 Bookstores in Singapore for Book Lovers
Singapore, a bustling cosmopolitan city, is known for its rich cultural heritage, diverse population, and of course, its love for...
Read More
What is Your Next Step in the Property Market?
When you flip open the papers or turn on the news nowadays, the common buzzwords are "INFLATION", " INTEREST RATE...
Read More
What Hidden Costs Are There When Selling Your House?
TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...
Read More
What’s The Difference Between An Offer To Purchase And An Option To Purchase?
TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...
Read More
Singapore Property Swapper
Jayson Ang, also known as the Singapore Property Swapper, is a certified Propnex agent and top 1% producer who helps...
Read More
Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?
Take a look at this chill spot in Yew Tee. Someone's gone all out to make it feel like an...
Read More
Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore
TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...
Read More
It Seems Like Less Folks Living In HDB Flats Are Chasing After The Dream Of Owning A Condo
TLDR The Singapore property market is experiencing a decline in condo purchases by HDB flat owners due to multiple property...
Read More
5 Proven Strategies for Increasing the Value of Your Singapore Property
In Singapore's competitive real estate market, adding value to your property can be the key to making a profitable investment....
Read More
5 Insider Tips From Real Estate Experts On How To Get The Best Deal On Property In Singapore
Investing in property can be a great way to build wealth and secure your financial future. However, with Singapore's highly...
Read More
The Impact of a Real Estate Agent on Your Property’s Selling Price
TLDR In the world of real estate, the value of property agents lies in their ability to create competition among...
Read More
Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!
TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...
Read More
Bayshore: Reinventing the Experience of Living by the Beach
TLDR When deciding on buying or selling property in Bayshore, consider the recent developments and potential future growth. With a...
Read More
SP Utilities Guide – Quick Guide To Setting Up Utilities In Singapore For Your New Home
TLDR Setting up utilities in Singapore for a new home is hassle-free. Contact SP Services for electricity and water accounts,...
Read More
5 Points : Singapore’s Property Market vs. Stock Market: Which is the Better Investment Option?
Investing is an important aspect of personal finance and can be a valuable way to grow wealth over time. However,...
Read More
5 Things to Know About the Singapore Property Tax System
5 Things to Know About the Singapore Property Tax System Here are 5 things you need to know about the...
Read More
