Revaluation of Flat

[eileenlim]

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

[lion]

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.

[cookies]

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.

[lion]

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.

[eileenlim]

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?

[janeng]

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