Revaluation of Flat

We had paid deposit and signed OTP for a resale flat in CCK early Mar. Send to HDB for excerise but was rejected by the HDB cos the seller had not get the final approval letter to sell the flat. Currently we are waiting for the final approval letter. The excerise date and valuation reports have since been expired.

Now we are told that the house need to re-value. Based on current market, we are not sure if the valuation will go up or down. Our agreed price was 330K (15K above valuation based on the old valuation report). But if the second valution prce drops? It will be a disadvantage to us cos we have to pay more COV. If it goes up then of cos we are more than happy abt it.

My agent had ask the seller to re-sign the OTP but we have not signed yet cos we are worried that the approval letter from HDB may not be able to finalise.

Do we have a case on the seller for not getting approval from HDB as it has wasted alot of our time.

What is the current valuation for CCK 5 room flat?

eileen

hi eileenlim,

I don't think you have a case with the seller, but I am quite certain you can have a case against the agent for negligence. Its their duty to perform due diligence on the seller/buyer to make sure they are eligible to sell/buy.

You can bring this up to the IEA but that's provided that the agent is a registered member with them. If not complain to his/her agency.

Hear the lion roar.

Valuation will go up slightly.

What I suggest you do is to request for a valuation report in your name now to be posted directly to your house, but i guess you might need to pay for it. Re-sign or do a proper OTP with the approval date before your OTP date.
Inform the agent that you will re-consider the deal after the valuation report. One thing in mind is that there might be other buyer that comes in before you then might loose the flat but i guess to be fair i think you might want to do that.

I would negotiate with the seller to agree to a new price of $15K + new valuation since its their error.

Of course if the valuation goes up, seller will benefit, but you safeguard yourself from paying more COV in case the valuation goes down.

hear the lion roar.

Thanks for your advices. Will ask our agent to negotiate with them. However if we decided not to go ahead with the purchase after the 2nd valuation report is out, can the seller sue us for breaching the OTP?

Hello people,

actually i feel that the agents has a large part to play in this blunder.

If you do like the flat so much then tell the seller its valuation + 15k. I don't think you should give in to any of their request even if the valuation will to go up, because it's their problem not yours, they should honour the initial agreement.

jane

Dear Eileen


1) it depends on your initial negotiation with the seller.

if your agreement is to pay $15k above valuation . than when the new valuation come in to be higher than the first valuation you will still need to pay new valuation regardless up or down + $15k cash.

however, if your agreement is base on $330k being the absolute figure than you may be paying lesser in cash amount that is $330k less new value.

However, there are also cases where agreement is make between the buyer and seller if the valuation is higher than the orginal they will use an average to determine the selling price and to determine the cash amount.

All boil down to negotiation and what has been agreed in the first place.

I do not see where the agent negligent came about. This is a case of the owner getting approval to sell from HDB.

There is no case between you and the seller.

Assumingly you have change your mind to proceed with the purchase as the new valuation is higher. It really depend on what was agreed, this you know best.... whether you have a case to ask back your deposit.

However, from what I see, your deposit will be forfeited if you chose not to proceed.

Valuation varies from as low as $190k to as high as $330k.

well happylalapo,

you mentioned that the agent is at no fault. as a representing agent, i feel that he should ensure that the seller has the rights to sell the house before representing them. they are not just wasting my time but also the possibility of losing my finance and other opportunities.

if you are in my shoes, you will know the agony that is going thru me.

like what you mentioned if the valuation goes up and if i decided not to take up the house then do i have to absorb the cost of my loses when this whole thing is of no fault of mine.

hey eileen, i can symphatise with your situation. it's not easier to find a house you like and when you know it's the one you wanted to build your nest and such unpleasant things unhappen, your are just devastated.

however i think the valuation will increase, you may ask to set the buying price at 330K irregardless of the valuation, so if the valuation went up, you get to pay lesser COV. can try talking to the owner if you really still want the house and provided the owner is nice enough to realise their mistake.

evel