Top 5 Cocktail Bars in Singapore for a Night Out
Singapore, the vibrant city-state known for its impressive skyline and diverse culture, is also home to an exceptional cocktail scene....
Read More
TLDR
When a seller unexpectedly withdraws from a property transaction before a contract is signed, they are legally allowed to do so. However, once an Option to Purchase (OTP) is issued and exercised, both parties are bound by a contract. If the seller backs out after this stage, legal action can be taken, and the buyer may be entitled to compensation. To protect against unreliable sellers, buyers should pay attention to seller responsiveness, read contracts carefully, keep records of communications, and understand their rights. Ultimately, deciding whether to buy, sell, or wait depends on individual circumstances. It’s recommended to seek advice and guidance to navigate the real estate market effectively.
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 …
Top 5 Factors Should Be Taken Into Consideration When Choosing The Right Neighborhood To Invest In Singapore’s Real Estate Market
Singapore's real estate market is known for its stability and potential for growth, making it an attractive investment destination for...
Read More
6 Essential Factors HDB Upgraders Should Be Aware Of Before Purchasing a Condo in 2023
TLDR When upgrading your property, consider factors like rental rates, Buyer's Stamp Duty adjustments, higher interest rates for bank loans,...
Read More
Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance
TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...
Read More
Top 5 Bakeries in Singapore for Fresh Bread and Pastries
Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...
Read More
5 Reasons Why Your House Isn’t Selling – and How to Overcome Them!
TLDR When trying to sell your home, ensure it is competitively priced based on its unique features and the current...
Read More
5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made
Investing in property is a great way to build wealth and secure a stable source of passive income. When it...
Read More
The Quick Guide For Buying Landed Property In Singapore
TLDR When it comes to purchasing a landed property in Singapore, there are three main types to consider: terrace houses,...
Read More
What Type of Properties Can a Permanent Resident PR Buy in Singapore?
TLDR When it comes to purchasing property in Singapore as a Permanent Resident or Foreign National, there are specific restrictions...
Read More
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
Unlock The Key To Selling A Home With A Perceived Disadvantage Like Being West-Facing Or Close To A Rubbish Chute – Here’s How!
TLDR When selling your house, turn perceived disadvantages into advantages. For sun-facing homes, use UV sheets and blinds to manage...
Read More
A Guide to Purchasing a New Launch Condo in Singapore in 2023
TLDR When buying a new launch condo in Singapore, start by planning your finances to determine loan and property limits....
Read More
What to Do Before Exercising Option to Purchase?
TLDR Home buyers are advised to thoroughly research property values using online tools, secure an ideal home loan package early...
Read More
Would It Be More Better To Engage One Property Agent Or Multiple Agents In The Selling Process?
TLDR When planning to sell your property, you have the option to work with one agent exclusively or non-exclusively. Engaging...
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
Maximize Your Property Investment: 5 Questions to Ask Your Real Estate Agent in Singapore
Buying a property in Singapore can be a daunting task, especially for first-time buyers. It is important to have a...
Read More
The Top 5 Factors to Consider When Investing in Industrial Property in Singapore – Expert Insights!
Singapore, a thriving hub of business and commerce in Southeast Asia, offers a robust real estate market with various investment...
Read More
5 Tips : How To Negotiate A Good Deal When Buying A Singapore Property
When looking to buy a property in Singapore, it's essential to know how to negotiate a good deal. Here are...
Read More
A Step-by-Step Guide To Upgrading From an HDB Flat To Your a Private Property
TLDR Understanding the complexities of upgrading from an HDB flat to a private property in Singapore involves selling your HDB...
Read More
5 Dangerous Ideas Singapore Property Investors Have
Singapore's property market has always been a hot topic among investors, both local and international. With its strong economy, stable...
Read More
