Procedure to sell a private property (under construction)?

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parcprop
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Procedure to sell a private property (under construction)?

Post by parcprop » Fri, 24 Jul 2009 8:36 am

Hi experts,

I have a Singapore condo (still under construction) and would like to sell it now.

Can someone share with me what's the procedure to do that?
I have payed 20% of the property and the remaining 80% supposed to pay until TOP time. I have NOT applied bank loan for the 80%.

Do I need to get a evaluation for the property? How is the next buyer going to pay to me?

Thanks,

Singapore Property Search

 

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ScoobyDoes
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Post by ScoobyDoes » Fri, 24 Jul 2009 9:59 am

Wow...... bought an expensive property without knowing how to sell it again? There is a saying from somewhere, "Don't have a dump in a public toilet without first checking for paper."

Now i know where the bubble prices come from.

Your first step....... call an agent.

Girl_Next_Door
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Post by Girl_Next_Door » Fri, 24 Jul 2009 10:14 am

I think you can also try to approach the developers, to see if they can buy your unit back (at a discount), or discuss what are your other options.

parcprop
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Post by parcprop » Fri, 24 Jul 2009 10:25 am

Thanks for all replies so far.
Any agent here in this forum?

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sundaymorningstaple
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Post by sundaymorningstaple » Fri, 24 Jul 2009 10:44 am

SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by teck21 » Fri, 24 Jul 2009 4:41 pm

So you bought a property under the old deferred payment scheme.

You simply just sell it. Get someone to offer to buy it, accept the offer, the lawyers take over and there you go, property sold.

Hopefully, you will be able to get a price of at least what you paid for it, or higher. Possible in today's market depending on when you bought it, and which development it is. Buyer pays 1% option fee to get you to sell them your property, then pay you another 4% when they exercise the option. Thereafter, the lawyers can do everything.

Now if you can't get a price that at least matches what you paid, the answer to your question of 'how do I get paid' is 'you don't get paid'. You have to make good the difference to the buyer since the developer expects to be pad whatever price you bought the unit at. The buyers' lawyers will not complete the sale when they find out this is the case.

Or you really could sit back and do absolutely nothing till TOP, and continue to do nothing thereafter and hope the developer manages to find a solution that is good for them, and hopefully for you too (unlikely since you both have diametrically opposing objectives). Just be aware that the developer has a million ways to shaft you if you read your S&P agreement carefully, and not vice versa.

parcprop
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Post by parcprop » Sat, 25 Jul 2009 11:30 pm

teck21 wrote:Buyer pays 1% option fee to get you to sell them your property, then pay you another 4% when they exercise the option. Thereafter, the lawyers can do everything.
From the above reply, I got a picture like this:

1. Find a buyer which agrees to buy my property (under construction) at price A.
2. Sign Option To Purchase with the buyer, and I get 1% of A
3. I get another 4% of A, when the buyer exercise the option. The remaining payment I leave to my lawyer and buyer's lawyer to settle.

I check my current Option To Purchase with developer, and find actually I paid to the developer 5% (booking fee) and 5% (8 weeks after OTP). About 1 year later I paid another 10%. That's how I paid developer 20%

So even if I sell the property under construction now, I won't be able to get the whole 20% back now.

Can someone advise when I will be able to get 20% of A?

Thanks in advance!

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Post by yoongf » Sun, 26 Jul 2009 9:25 pm

Let's say u bought from developer at 1Mil, and subsequently sold for 1.2Mil.

Upon sale completion, which is usually 3 months from option date, the buyer will take over your obligations to the developer... 1Mil less 20% = 800K.. and u get to keep the 400K less any stamp duties/legal fees/agent comm etc.

This is a very standard process among lawyers., and there's nothing to lose sleep over.

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Post by parcprop » Mon, 27 Jul 2009 10:45 am

yoongf wrote:Upon sale completion, which is usually 3 months from option date, the buyer will take over your obligations to the developer...
In this case, I guess developer also play a part in this process. What is the actual role developer involved?

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