Singapore Property Investor and Home loan: Strange things happen in property buying

What happens during this phase, the property agent usually tries to convince 

the buyer that a loan is obtainable and valuation can be matched.

This raises the price and the cost for the buyer. 

What is the risk to property buyer if he/she does not check the valuation?

Because if the buyer does not check the valuation prior to committing to a 

property, there may be just 1 bank which can support the high valuation. 

The property investor may be left with only one choice for their home loan. 

They end up paying for a more expensive home loan.

When placing Option to purchase, should I simply give a cheque?

Giving a cheque without first checking who you are paying to, this is a 

common practice. However this exposes the property investor to risks.

How do you know the cheque you pay out to is indeed the property seller?

You won’t know unless you insist on seeing their name and NRIC on the 

option to purchase. And you should consider asking the agent to show you 

the prove of ownership.

Here is a True story

Our client came to us and they wanted to place an option to purchase. We 

helped them to check who the owner was. 

On 08th June 2009, we check: -

We found that the person is a person, XXX. As you can see above, the 

instrument of change of proprietor and address was due to “Transfer xxxx 

registered on xxxx 2003″

1 day later 

1 days later our client was ready to sign on the option to purchase. When 

they saw the property owner name does NOT TALLY.

Then our client asked the Singapore property agent to prove that the person 

is indeed the rightful owner. 

The property agent went to check, we can see it’s done on the 9 June 2009. 

The name on the certificate of title is indeed the correct person. But if you 

check the instrument, it states ”Transmission upon Death, registered on 09 

June 2009.” Wow, we are amazed at the coincidence. 

On the 8th June 2009, it is one owner and once our client have decided to 

purchase the property, on the 9th June 2009, it is another owner. 

This got us worried!!! It was only a casual and routine check…

We then realized that the previous owner had died last year in 2008. 

The previous owner had died. And the place of death was also clearly 

stated.

So we now know the truth

The previous owner had died and his/her assets was transferred to the 

current owner. We felt that the property agent was not upfront with it and we 

did not feel comfortable with it. The cause of death was not stated, but it was 

rumoured that the previous owner had died of unnatural death 

circumstances.

What did www.PropertyBUYER.com.sg do?

We duly informed our client about this. We told them that we don’t mind if 

they change their minds about investing in the property. But ultimately the 

choice is up to them.

Depending on what religion they believe in, they may want to check with 

their respective authority on spiritual matters to bless the property.

Our client has decided not to continue the deal. And we lost a mortgage 

deal. But we are glad we did it.