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The Secret Tricks Dishonest Singapore Property agents play on Option to purchase in Singapore
Option to purchase OTP in Singapore. An option to purchase precedes buying a property in Singapore. An option to purchase gives the property buyer the right to buy a property within a given time window at an agreed price, but not the obligation to do.
Typical bad and unsafe practices in Singapore Property market
What is considered bad practices in Singapore property market? Anything that puts the Property buyers and sellers at risks are considered bad practices. Some practices may not be criminal , but they are nonetheless NOT RIGHT .
Many Bad Singapore realtors want the seller to sign an Option to Purchase legal contract leaving out the date and the price unfilled. On the pretext of convenience, such practices puts all the risks squarely on the property seller and none on the property agent.
On property buying , the dishonest property agents entice the property buyers into making an offer, property is in the bag.
In this scenario , Dishonest agent dupes buying into believing that the deal is sealed at $1.23m, and this is the agreed asking price.
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 banks this cheque into the seller’s account . The dishonest property agent then gets the owner to try to agree on this sale.
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 emotions are running high, you cannot think straight , the dishonest property agent will offer a way 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”.
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 absconded 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 may be tricked into paying more. BINGO, the deal is done! The deal is closed!!!
We are no match for the Dishonest Singapore Property agent, they are smooth
The common man or woman on the street is usually no match for the dishonest property agents as even very senior executives get cheated. Nothing to be ashamed of, because these people have an innocent face and are genuinely cunning. But of course, there are a small fraction of honest singapore agents out here, you just have to look very hard.
Another newly developed practice. This practice is a response to unsuccessful deals where smart and alert property buyers outsmart craft Dishonest property agents and pulled the plug at the last minute when they sensed something amiss by stopping the cheques.
Since these buyers actually do outsmart the property agents and agencies , something needs to be done to protect the interests of the Property agencies and property agents.
We see cases where some agencies and agents use an Offer to Purchase acknowledgement slip or an agreement. An offer to purchase may hold legal weight or it may simply function more like an acknowledgement slip. But the terms of the offer needs to be carefully evaluated.
Do look out for terms such as “Irrevocable” and words to that effect. Let’s say a Property Buyer offered to buy at a certain price, they then sign the Offer to Purchase and then give a cheque. If the Seller agrees to sell. Does that mean that the Property Buyer has offered to purchase without reserve? Or offered to purchase conditionally? We have seen a few, we do not recall that.
What if the seller accepts your offer to purchase? Then followed next is an Option to Purchase with very ridiculous terms and conditions?
Most dishonest property agents will only tell you what you need to know, not more. So will they show you the Option to purchase?
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. Of the 1 out of 10 who may be willing to show you, he/she may be new to the property agent trade, therefore may tend to be more upfront.
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.
If unsure , you can sms Property Buyer Singapore Mortgage Consultants at +65 – 9782-8606 in Singapore or email them at loans@propertybuyer.com.sg to guide you through the minefield of Dishonest Singapore Property agents. They have crossed swords with property agents in protecting buyer’s and seller’s interests in many occasions.
Should the Property Buyer sign the Option to Purchase?
Only the rightful owner(s) 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 property hype, 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 Singapore property agent too keen to introduce to you a lawyer or law firm? RUN for your life.
Is your property agent too keen to recommend you a contractor? RUN for your life.
Agents don’t do things for free, just try asking them to give you some comparisons and some paperwork, they will try all ways to turn it away. Many are lazy and yet want to make quick money. If they are too keen, something’s fishy. Just tell them firmly, NO thank you. We will find our own contractors, our own bankers, our own mortgage consultants and our own lawyers. Check with your close friends who are not agents to find out.
Singaporeans do not buy properties too often in their lives, so naturally, you may need a Singapore Mortgage Consultant at
Send email to Property Buyer Mortgage consultants at loans@propertybuyer.com.sg
who has no stake and no commission in property buying. www.Propertybuyer.com.sg offers free mortgage advice and property buying guidance. They offer their services for free to property buyers in selecting home loans as they are like outsourced bankers. Banks would need to incur staffing cost if not for mortgage consultants, therefore this service is offered to you free of charge at sms (text) +65 9782 8606.
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