HDB resale: Buyers Beware!
Buying a HDB flat should not be difficult: the regulations, procedures and dateline can all be found on the website. So we went ahead without any agent representation. What could go wrong?
We placed our deposit immediately after viewing the unit. We liked the layout, the distance from MRT and the condition of the flat. The ERA team of husband and wife seemed amicable: we exchanged information about our children, complained about school systems and other parental affairs before discussion the timeline of the transaction. It was early August. We should be able to complete the transaction by October, they said. The owner would like to request 2-3 weeks extension for time to move into his other HDB. Ah, no problem, our son will be having his A-levels and we don't intend to do anything in November. All of us were happy, hands were shaken and cheque presented.
A week later, we eagerly put in the options fee, filled up an online buyer's checklist in HDB website and waited.
A week went by and we asked the agent why was there no filling from their end? Oh, sure, we will do it tomorrow.
Another week went by and the agents were hard to get hold of. They were either in a meeting, or seminar or away in Malaysia. The option expired. We had to file another one.
All in all, 3 weeks of delay. We were furious!
After the first appointment, we were told that the earliest was the end November to complete the transaction. The seller still expected us to give him 3 weeks allowance in order for him to renovate his other flat. We tried to explain to him that it was not possible: we also need to do renovation too. December is going to be a short month for work. By the end of January, all the workers would return home for CNY. If we missed the timeline, we could possibly be looking at end February to complete renovation. That means I would have extend my stay and pay for two months of rental.
We continued pressing for the owner to move out earlier. At the same time we wanted to give our contractors a chance to survey the unit so that we could get quotations. Unable to get a prompt reply from the agent, we went to meet with the owner and asked that we contact him direct from here on so that it would be easier for us to arrange viewing of the unit.
Having learned that we visited the seller directly, the agent sent a nasty sms to us saying that we have violated the procedure (of not letting the agent be the point of contact) and that he would now go strictly by the book.
By the book? What book?
Yes, unless you are so kind, or just want to be kind and be kind at all cost. Let it be known that if you have any strand of doubt, DO NOT SIGN. Because:
1. You have to pay for the application.
2. You automatically agreed to give seller the right to stay for up to 3 months. Sure, you can have 'private' arrangement. Just be clear, to HDB the seller has the right to stay for up to 3 months. Whatever 'private' arrangement you have, you better be sure of the validity of the agreement or have a lawyer on your payroll.
3. You have to inform HDB when the seller moves out.
Why go through all these troubles? Are you really so kind?
That is what trade is all about. Buyer gives money to seller and seller delivers the goods to buyer.
When you buy a used car, do you pay and still let the seller use it till he finds an alternate mode of transportation?
When you buy a computer, fridge, sofa... anything. Do you worry about how the seller will go on with his life without the item? Do you?
So why should buying a HDB flat be different? From the point you place the deposit till the completion, it takes about 6-8 weeks. The seller should take it upon himself to find his own housing.
If not able to buy one in time, there is always another solution: a place to rent, storage space for your items, or stay with your friends.
When I sold my apartment, I did not ask for the buyer to let me stay a minute. On the day of completion, I handed over the house keys and that's it.
Really? I don't think so. That was not what we discussed. We should have completed the transaction in October, you would have stayed for 3 weeks and I take over in end November or early December. Sorry pal, when you let the option expires, whatever arrangement also expires.
Yep, that, in essence was what I told the seller and the agent after the completion of the sale.
Of course it didn't exactly end up that way. We still let them stayed for another 10 days. But the satisfaction of saying that in front of them was tremendously satisfying.
Yeah! Now we can get things moving finally and finally, after 2 months of tussles and hustles with the agents, we are happy. :)
Seller, Agent Delayed Filling
We placed our deposit immediately after viewing the unit. We liked the layout, the distance from MRT and the condition of the flat. The ERA team of husband and wife seemed amicable: we exchanged information about our children, complained about school systems and other parental affairs before discussion the timeline of the transaction. It was early August. We should be able to complete the transaction by October, they said. The owner would like to request 2-3 weeks extension for time to move into his other HDB. Ah, no problem, our son will be having his A-levels and we don't intend to do anything in November. All of us were happy, hands were shaken and cheque presented.
Why No Filling?
A week later, we eagerly put in the options fee, filled up an online buyer's checklist in HDB website and waited.
A week went by and we asked the agent why was there no filling from their end? Oh, sure, we will do it tomorrow.
Another week went by and the agents were hard to get hold of. They were either in a meeting, or seminar or away in Malaysia. The option expired. We had to file another one.
All in all, 3 weeks of delay. We were furious!
Completion date is now end November
After the first appointment, we were told that the earliest was the end November to complete the transaction. The seller still expected us to give him 3 weeks allowance in order for him to renovate his other flat. We tried to explain to him that it was not possible: we also need to do renovation too. December is going to be a short month for work. By the end of January, all the workers would return home for CNY. If we missed the timeline, we could possibly be looking at end February to complete renovation. That means I would have extend my stay and pay for two months of rental.
Agent From Hell
We continued pressing for the owner to move out earlier. At the same time we wanted to give our contractors a chance to survey the unit so that we could get quotations. Unable to get a prompt reply from the agent, we went to meet with the owner and asked that we contact him direct from here on so that it would be easier for us to arrange viewing of the unit.
Having learned that we visited the seller directly, the agent sent a nasty sms to us saying that we have violated the procedure (of not letting the agent be the point of contact) and that he would now go strictly by the book.
By the book? What book?
Buyers beware: DO NOT SIGN THE "TEMPORARY EXTENSION OF STAY"
Yes, unless you are so kind, or just want to be kind and be kind at all cost. Let it be known that if you have any strand of doubt, DO NOT SIGN. Because:
1. You have to pay for the application.
2. You automatically agreed to give seller the right to stay for up to 3 months. Sure, you can have 'private' arrangement. Just be clear, to HDB the seller has the right to stay for up to 3 months. Whatever 'private' arrangement you have, you better be sure of the validity of the agreement or have a lawyer on your payroll.
3. You have to inform HDB when the seller moves out.
Why go through all these troubles? Are you really so kind?
Buyer pays, Seller parts.
That is what trade is all about. Buyer gives money to seller and seller delivers the goods to buyer.
When you buy a used car, do you pay and still let the seller use it till he finds an alternate mode of transportation?
When you buy a computer, fridge, sofa... anything. Do you worry about how the seller will go on with his life without the item? Do you?
So why should buying a HDB flat be different? From the point you place the deposit till the completion, it takes about 6-8 weeks. The seller should take it upon himself to find his own housing.
If not able to buy one in time, there is always another solution: a place to rent, storage space for your items, or stay with your friends.
When I sold my apartment, I did not ask for the buyer to let me stay a minute. On the day of completion, I handed over the house keys and that's it.
"You promised that you will let the seller stay for 2-3 weeks after completion!"
Really? I don't think so. That was not what we discussed. We should have completed the transaction in October, you would have stayed for 3 weeks and I take over in end November or early December. Sorry pal, when you let the option expires, whatever arrangement also expires.
We shall go by the book: please get out of my flat now!
Yep, that, in essence was what I told the seller and the agent after the completion of the sale.
Of course it didn't exactly end up that way. We still let them stayed for another 10 days. But the satisfaction of saying that in front of them was tremendously satisfying.
Renovation On!!
Yeah! Now we can get things moving finally and finally, after 2 months of tussles and hustles with the agents, we are happy. :)
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