Option to purchase: Dishonest Singapore property agents can still play

Dishonest Singapore property agents Option to purchase in Singapore

We shall not go into the details on how an Option to purchase works and what it is. An option to purchase is basically a legal document which gives the Property Buyer the option to buy a property at an agreed price within a time period, typically 14 days.

Malpractice in Property transactions regarding Option to purchase in Singapore

We consider any act that puts the property buyer and seller at risks is unethical and bad practices.

Some Bad Singapore Property agents want the seller to sign an Option to Purchase document leaving out the date and the price unfilled. This puts the seller at risks of selling involuntarily and gives a potential dishonest property agent a chance of a quick sale which could costs the Owner hundreds of thousands of dollars.

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By Property Buyer Singapore Mortgage Consultants and Broker

Not Simply Cheap, but what Fits. We Research, You Save!

Tel:    6100 – 0608

SMS:  9782 – 8606

Email: loans@propertyBUYER.com.sg

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On property buying , the dishonest   property agents lure the property buyers into making an offer, and leading them into believing that the price is agreed by seller.

Case study 1  , Dishonest agent dupes buying into believing that the deal is sealed at   $1.23m, this price is acceptable by the seller.

So the Property buyer makes an offer and pays a deposit for the option to purchase of $12,300 for the property. The Dishonest property agent then deposit   this cheque into the seller’s account . He/she forces or sweet talk the Seller into agreeing to the deal.

During this time, you will be chasing the property agent. At this time, they may have asked the seller to return the money, but as cash to them. You may have a hard time to see this money again.

This causes the property buyer much anxiety . When they are most anxious , the dishonest property agent will offer a solution   to help negotiate with the seller.

Be cautious, during this time, the crooked property agent  may ask for some fee for “doing you a favour” from the trouble they created in the first place. Talk about being thick skin.

In case this crooked agent cannot get a cut from trying to recover your money, they may instead really try to sell the property at the true asking prices of  $1.31m instead of $1.23m. And since your Option to purchase money  is stuck and the Dishonest property agent has no intention of returning you the money easily (even if it is not them who kept the money), some buyers may  be tricked  into paying more for their property. BINGO, the deal is done! The deal is closed!!! Commission is paid out to dishonest Singapore property agent. It’s all in a day’s work.

Our unfamiliarity with Property Buying is dishonest singapore agent’s gain

Remember many agents in Singapore look really decent and innocent. Behind that innocent face are lies, tricks and unethical behaviour. Many of them look really kind and friendly, if you do follow them secretly for a day, you will discover all their dirty tricks. Even many property agents secretly acknowledged that 9 out of 10 of them are crooked and it’s because of the system, they have no choice.

IS OFFER TO PURCHASE A BAD CHOICE?

The offer to purchase document is a new and  bad development  in our opinion. This practice stems from a botched deals where smart property  buyers discovered last minute that something is not quite right and cancelled the cheque.

Since these buyers actually can protect their own interest, this runs counter to the benefit of dishonest agents and dishonest agencies  , something needs to be done to protect the interests of the Property agencies and property agents.

So they came up with a document called OFFER TO PURCHASE. We are not quite sure how much an OFFER TO PURCHASE holds in legal weight. But it is nonetheless a legal document whereby the Property agent asks the Property Buyers to sign on offering a price.

Do check through on the terms and make sure that they are reasonable for an Offer to purchase and that you have the right to rescind the offer should it not be accepted within 3 days. If possible, post date your cheque. And that you must also specify and include your rights such as “the offer is valid upon a reasonable and satisfactory terms stated within the Option to purchase” or words to that effect.

What if a Buyer offers to purchase and it is accepted and the subsequent Option to purchase comes, but with terms that are UNFAIR and not acceptable? Does that mean that the Property Buyer has also accepted the terms and conditions of the Option to Purchase?

Most Singapore property agents will only tell you what you need to know, not more. So will they show you the Option to purchase?

If you don’t believe, try asking them to provide you a copy of the Option to purchase, 9 out of 10 will be most reluctant to show you. Since the agencies drafted the Option to purchase documents, it usually favours the agencies and the agents and sometimes to the disadvantage  of the Property seller and buyers.  Those rare agent who may be willing to show you may be new to the trade.

So if a Singapore Property agent asks you to offer a cheque and sign an OFFER to purchase,  ask them to send you both documents for your review first.  And have the terms and conditions of an Option to purchase included in the offer to purchase. Otherwise you may be signing a blank cheque.

Should the Property Buyer sign the Option to Purchase?

Only the rightful  seller needs to sign the option to purchase. The property buyer(s) do not need to sign the option to purchase. The property buyer only needs to have the original signed copy of the option to purchase in their possession. Never never never ever leave your Original copy of the Option to purchase with your agent.

Beware of letting your agent handle your original option to purchase document. They can easily sub-sale your property without you knowing about it, simply by filling in the name of the buyers if it is not filled in.

During the hot property market , we have heard that some agents who held copies of the original option to purchase managed to flip the properties for higher price making the difference. When the original buyers wanted to exercise option, they did not want to HAND OVER the ORIGINAL option to purchase. The buyers have no recourse as they do not have the original OTP and cannot exercise the option.

This leads to the Original buyers being unable to exercise option even if they have paid and book the property. Under normal circumstances, the buyer would have the right to buy the property at the agreed price. In this case, the Property Buyer loses out on his/her property and any potential gains.

Some crooked  Singapore Property agents may even   take your original option to purchase , make copies and then submit it to many banks to try and secure property loans from their favourite bankers  and lawyers from which they have an under-table deal. These rogued lawyers then over-charge you and pay the dishonest agent the difference  , which is illegal.

Is your property agent too eager to recommend a bank, a banker to you? RUN for your life.

Is your property agent too eager to recommend a lawyer or law firm? RUN for your life.

Anything outside of Property buying and selling, be really careful.

Singaporeans and people who buy in singapore do not buy properties too often in their lives, so naturally you can consider an advisor such as Property Buyer Singapore Mortgage Consultant who’s also experienced not just in Home loans, but also property Buying to guide you.

Related posts:

1. Beware of Dishonest Singapore Property Agents
2. Dishonest Singapore Property agents: Head of Property agent need to focus on ethics
3. Singapore Property Buyer: How to Protect yourselves from cheating agents
4. Dishonest Singapore property agent wants your money
5. Dishonest Singapore property agent cheats Novice property investors and buyers

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