OPT extension

[cookies]

my cousin recent placed an OPT for an apartment off Joo chiat road.

however the 14 days periord is also almost up but the valuation report still not up yet. he was asking if he should excercise it or wait cos agent told him that it's ok to wait till valuation is out.

however he is concern that owner will not honour it and confiscate his deposit.

[McMuffin]

It's best to get your cousin to get an extension in black and white. The deposit can be tempting to some. Hmm, but why is your cousin waiting for the valuation report? Just get him to check past transactions at the URA website if he wants to know whether the asking price is reasonable.

[happylalapo]

Yes, this kind of thing cannot be an understanding, like what Mc Muffin said must get them to put it in writing.

If I am the owner I will surely forfeit the deposit and sell again. Yeah, why is your cousin waiting for the valuation report.

Valuation is only formality - usually when you get your financing they would have already told you what the valuation is and usually no viariation from there unless you are saying your cousin still waiting for loan approval. Than it make sense.

[cookies]

aiyo i refering to HDB lar not private. sorry i got mixed up it's HDB at haig road. heheheh...

HDB you need to get valuation report first right.

[happylalapo]

aiyo, Cookies


For HDB, the valuation is applied by the seller - usually it takes about 1 to 2 weeks for the valuation to be out upon application.

Humm... how come valuation is not out yet? strange.. it should be out before the 14days up from OTP.

Well, too bad it is not out. If you cousin is sure about the purchase and that there has been an agreed price - i see no harm in your cousin exercising - however, he has to ensure he could get his loan first.

If he is applying loan from HDB direct he will need to get an approval letter before he exercise his option. And if he is getting loan from private bank same thing he will need to get in principal approval from the bank too.

In cases where he cannot exercise, he must always get extension in black and white from the seller, if not he stands to lose the deposit.

[cookies]

thanks for your advise. i'm not sure what is the progress right now as i last spoke to him was about a week ago and the problem seems like not settle yey. however will share with him the tips you shared here.