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Thread: Withdrawal of Letter of Option

  1. #1
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    Default Withdrawal of Letter of Option

    Anybody know if seller can still pull out after signing the option to purchase to the buyer? The buyer hasn't excercised the option and we haven't banked in the cheque yet.

  2. #2
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    Quote Originally Posted by ongslooi
    Anybody know if seller can still pull out after signing the option to purchase to the buyer? The buyer hasn't excercised the option and we haven't banked in the cheque yet.
    has the date of the option expired? It can be terminated if the buyer fails to exercise before the agreed date - u need to discuss with your lawyers what happens...

    what happened, got a much better offer?

  3. #3
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    Will expire in few days time. After signing, found that our neighbour sold at higher price weeks before. Also for sentimental reasons lah.. Hope that the buyer will let it lapse, which is quite unlikely.

  4. #4
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    Thumbs down

    Quote Originally Posted by ongslooi
    Anybody know if seller can still pull out after signing the option to purchase to the buyer? The buyer hasn't excercised the option and we haven't banked in the cheque yet.
    No way the seller can pull out unless the buyer consent in writing is given.
    check ur option form

  5. #5
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    Nevertheless the price that you have agreed to sell is fair to you. I guess you have done yr sums etc already.
    Unless the delta is much as it may means your agent "SABO" you.

    Also, you may not get the same or more than yr neighbour
    and worse what if yours stuck n cant sell.

    Maybe good to move on.

    Sorry just Kaypo and did not answer yr question.




  6. #6
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    Quote Originally Posted by ongslooi
    Will expire in few days time. After signing, found that our neighbour sold at higher price weeks before. Also for sentimental reasons lah.. Hope that the buyer will let it lapse, which is quite unlikely.
    Its called an `Option to Purchase', not `Option to Sell', so you can't pull out. This is to protect buyers from sellers like you.

  7. #7
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    Quote Originally Posted by HP65
    Its called an `Option to Purchase', not `Option to Sell', so you can't pull out. This is to protect buyers from sellers like you.
    Seller can pull out.

    Then be prepared for buyer to buy another similar unit on the market, and then claim costs of the additional purchase from you, so if the unit is more expensive, you top up for the buyer lor.

  8. #8
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    Legally, in black and white, you can't.

    Many other ways you can do it 'by left'.

  9. #9
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    Quote Originally Posted by HP65
    Its called an `Option to Purchase', not `Option to Sell', so you can't pull out. This is to protect buyers from sellers like you.
    Agreed!!

  10. #10
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    last yr, i bot a few firesale units. got 1 of the seller come and harass me. the agt and seller make up lots of stories and trying to get me not to exercise the option. seller claims he was in a state of mental breakdown when he was issuing the option to purchase. LOL....i say tok to my lawyer or buy back the option

  11. #11
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    Quote Originally Posted by devilplate
    .... or buy back the option
    Buy back option is very kind already.
    Kwai lan buyer will go out, buy another more expensive unit very similar to the seller's, and then get lawyer to claim back every additional cent spent to acquire the new property.

  12. #12
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    Quote Originally Posted by sfwoo
    Buy back option is very kind already.
    Kwai lan buyer will go out, buy another more expensive unit very similar to the seller's, and then get lawyer to claim back every additional cent spent to acquire the new property.
    err...i not kind wor

    i offer him a xxxk figure to buy back

  13. #13
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    Be a man/woman of your words lah.

    Quote Originally Posted by ongslooi
    Anybody know if seller can still pull out after signing the option to purchase to the buyer? The buyer hasn't excercised the option and we haven't banked in the cheque yet.

  14. #14
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    Unlikely you can pull out. Does not matter you have banked in the cheque or not, basically once you signed and gave out the option the matter is out of your hands. Your best hope is the buyer do not exercise the option lor ~

  15. #15
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    if can anyhow back out just like that means real estate industry needs even more stricter rules to cover the "by left......."!

    Quote Originally Posted by Wild Falcon
    Be a man/woman of your words lah.

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    I don't think there is much "by left" in thie case, unless he can argue that "consideration" has not been made (because he hasn't banked in the cheque) and therefore there is no "contract" in the first place. But I think chances are slim. But whatever it is, I always believe integrity is worth more than money. So if you have in principle agreed to sell at X price, just stick to your promise lor. Lots of people regret selling their house after they realise prices have gone up further, but they still stick to their words. Will you walk away had the price come down? Obviously not.

    Quote Originally Posted by bargain hunter
    if can anyhow back out just like that means real estate industry needs even more stricter rules to cover the "by left......."!

  17. #17
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    Quote Originally Posted by Wild Falcon
    I don't think there is much "by left" in thie case, unless he can argue that "consideration" has not been made (because he hasn't banked in the cheque) and therefore there is no "contract" in the first place. But I think chances are slim. But whatever it is, I always believe integrity is worth more than money. So if you have in principle agreed to sell at X price, just stick to your promise lor. Lots of people regret selling their house after they realise prices have gone up further, but they still stick to their words. Will you walk away had the price come down? Obviously not.
    In case integrity fails...then the law steps in. And in this case, law is on the side of the buyer.

  18. #18
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    happened to my friend, seller banked in cheque and object later. this case had been dragged for years and lawyer still not able to claim damage from seller. don know lawyer not doing his job or wat. tot my friend's chance of winning should be very high since seller signed and banked in cheque......but my friend LL lor.....

  19. #19
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    Cannot pull out. Buyer will forcefully buy your unit. Any delay in the completion, the buyer can claim at 10% p.a. So if your unit cost 1 million, that is 100k.


    Quote Originally Posted by sfwoo
    Seller can pull out.

    Then be prepared for buyer to buy another similar unit on the market, and then claim costs of the additional purchase from you, so if the unit is more expensive, you top up for the buyer lor.

  20. #20
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    Quote Originally Posted by ay123
    happened to my friend, seller banked in cheque and object later. this case had been dragged for years and lawyer still not able to claim damage from seller. don know lawyer not doing his job or wat. tot my friend's chance of winning should be very high since seller signed and banked in cheque......but my friend LL lor.....
    change lawyer....clear cut case.

  21. #21
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    Not really. Once the option is signed, it is a contract - regardless the cheque status. There was a case where option not signed but cheque deposited. Also consider sold. So we know either sign or bank in constitute a contract. Don't play with Singapore laws.



    Quote Originally Posted by Wild Falcon
    I don't think there is much "by left" in thie case, unless he can argue that "consideration" has not been made (because he hasn't banked in the cheque) and therefore there is no "contract" in the first place. But I think chances are slim. But whatever it is, I always believe integrity is worth more than money. So if you have in principle agreed to sell at X price, just stick to your promise lor. Lots of people regret selling their house after they realise prices have gone up further, but they still stick to their words. Will you walk away had the price come down? Obviously not.

  22. #22
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    well, if this guy sells his unit higher than his neighbour, then there is no question raised.....

  23. #23
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    morale of the story: PROPERTISM RULES?

  24. #24
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    Quote Originally Posted by ongslooi
    Will expire in few days time. After signing, found that our neighbour sold at higher price weeks before. Also for sentimental reasons lah.. Hope that the buyer will let it lapse, which is quite unlikely.
    hey, sorry i think it is not nice that you withdrawed because you found out yr neighbour sold at a higher price? You should have reach a comfortable selling price before signing the Option to Purchase for the buyer right?

    Sentimental? If your selling price is higher than your neighbour then you will not be so sentimental?

  25. #25
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    did u find out how long ur neighbour took to market his unit? if you forego this sale, u may have to wait ages to find another buyer willing to offer u this price. if just 20k dif, forget it lah....if another buyer prepared to offer you 100k higher than what ur buyer offer, u may want to compensate him an amount from the 100k (maybe 10k or something and tell him not to exercise). of course u have to make sure the other buyer exercise before u compensate the 10k....

    just my 2 cents

  26. #26
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    just move on with the sale and look for another nicer unit in the neighbourhood.

  27. #27
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    Quote Originally Posted by devilplate
    morale of the story: PROPERTISM RULES?
    That's right.

    One wouldn't have ended up with such a problem if one practises PROPERTISM.

    PROPERTISM Rule No. 1 - Property prices always go up in the long term hence properties should only be bought and not sold.

    If you never sell your properties, then you will never need to issue an option and you will never end up with such a dilemma.

  28. #28
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    I have long wanted to write in response to this point.

    If you buy a property, sell, then buy 2, your gains actually doubled ! Of course there are other ways to achieve the same effect. But selling is not an inferior strategy. I have sold one and bought 3 before and the profits just tripled in the following years compared to if I only held on to just one!

    Your sale should be a good one. Recent observation is that prices are showing signs of weakness. I suspect June prices will be lower than May's transacted. Did some high level checks - think this is true more than 50% of the time.

    What is the meaning when we hit a historical high ? It meant it took more than 10 years for those who bought in 1996 to recover.

    Good Luck!

  29. #29
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    Quote Originally Posted by DKSG
    I have long wanted to write in response to this point.

    If you buy a property, sell, then buy 2, your gains actually doubled ! Of course there are other ways to achieve the same effect. But selling is not an inferior strategy. I have sold one and bought 3 before and the profits just tripled in the following years compared to if I only held on to just one!

    Your sale should be a good one. Recent observation is that prices are showing signs of weakness. I suspect June prices will be lower than May's transacted. Did some high level checks - think this is true more than 50% of the time.

    What is the meaning when we hit a historical high ? It meant it took more than 10 years for those who bought in 1996 to recover.

    Good Luck!
    u nid to be more careful on the debts

  30. #30
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    dksg probably had good timing.

    the unfortunate ones might get caught in negative equity. or the third possibility, the value from the sold unit is 75% of the next unit if you sell too early in the up cycle. it can be pretty terrible to time the market. like i heard of some friends who sold in august/september last year.

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