I'm damn surprised today when an agent told me her buyer wanted a 6 weeks option.
I'm damn surprised today when an agent told me her buyer wanted a 6 weeks option.
Well, I had ever asked for 12 weeks option and got it - that's because I am renting the place at the same time during the period before I decide to buy it or not plus concurrently trying to get rid of my unit.Originally Posted by Property_Owner
normally is between 8-10 weeks. 6 weeks? wow.... buyer's lawyers must be darned efficient.
Standard options are 2 weeks, flippers tend to ask for slightly longer so they have more time to flip I guess........
Originally Posted by new2mondrian
I mean option.
Originally Posted by mcmlxxvi
Option? 12 weeks?
Normal is 2 weeks. Maybe buyer need more time to accumulate enough money for the 4% payment.Originally Posted by Property_Owner
Yes I can read. Not like some others. I meant option from the beginning.Originally Posted by Property_Owner
completed resale or yet to TOP? if it's yet to TOP, maybe your buyer is trying to flip.
You will know if the seller sign by putting nominee on option to purhcase form.Originally Posted by kane
cos your buyer want to flipOriginally Posted by Property_Owner
14 days standard and its not your buyer want 6 weeks, its your flipper.
Flip flip. No market for flippers now unless ur price is 5% or more below current market price.
6 weeks can have 4 weeks of free play. He tries to sell within a day or within 4 weeks and then will exercise when his buyer exercised. Playing property owner when he is not owning anything. It's like a blank cheque.
Want to get rid of this? Set the option price high high lor. 6 months option also can when it is set at 200% more (kidding).
you mix up option exercise period and S&P period.Originally Posted by new2mondrian
14 days is the norm for option while 8 weeks for S&P period.
The fastest case I came across was 1 week completion. 2 + 1 but option exercise on the 1st day so only 1 week for S&P. And both side not using or under any loan liablity/cpf obligation, 100% cash to cash purchase. 1 side was a lawyer by professional.
That guy seems want to flip for asking 6 weeks. Remind me of marco polo ardmore launch at lane crawford. Where option without barring tranferee make itself a commodity to sell. So buyer can chose to buy the 40 queue from agent which had camped part-timers 3 days ago OR the option.
Flip option - I done it before. But it's very stressful.
Today one can still do it provided you find something that's like fire sale and you darn sure you can sell it off at market or higher price within the limited time.
But today has seller's stamp duty. May not gain much.Originally Posted by mcmlxxvi
For that, the answer is really "it depends".Originally Posted by DC33_2008
Some owners may be desperate for cash and willing to let go at 10% or more below market price due to emergencies or whatever, you could still gain 5% or more if you have holding power.
Originally Posted by DC33_2008
Flip option must pay SSD mah?
Originally Posted by mcmlxxvi
12 weeks option....wow. Longest I heard in my life
Wow, shortest I heard in my lifeOriginally Posted by apple3
learn something new again.
If I'm not wrong, legally you did not exercise it thus no need to pay any stamp duties.Originally Posted by Property_Owner
oops... sorry never read properly. 2 weeks.Originally Posted by Property_Owner
6 weeks option is very long, unless the offer is too irresistible....
mcmlxxvi is right. As long when caveat not lodge, there is no obligation for stamp duty.Originally Posted by mcmlxxvi
All flippers please take note here, just a gentle reminder;
if the following clause or something similar stating transferee is stated in OTP, you cannot transfer/flip the option. my colleague went into some legal entangle for releasing the loan.
The Option to Purchase is deem as private and personal to the buyer. The buyer is not allowed to convey, assign or transfer the Option to Purchase that has been granted to him/her by the seller or vendor to any other persons.
AND OR NOMINEE are the magic words that allows transfer.Originally Posted by apple3
never done flip optn b4, learn smethng new here
What is so stressful?Originally Posted by mcmlxxvi
Stressful becoz u never intended to swallow the unit. If cant sell will be forfeiting the option money.Originally Posted by Property_Owner
I would make the attempt to flip to but with a view to eat it if no buyers found.Originally Posted by mcmlxxvi
Anyone seen the "option to purchase" as "offer to purchase?"
Anyone interested or had compared the different options to purchase issued by well know agencies?
Offer to purchase is a an offer by the buyer to the seller to purchase the property at a certain price & gives the owner a dateline to accept the offer usually within a few days.A cheque for 1% of the offer price will be attached to the offer. This is to ensure that the owner makes up his mind & not dilly dally & use it to raise the bar a few notches to get a better price.If the seller accepts the offer then he issues an Option to purchase commonly known as OTP to the buyer & banks in the cheque. If the seller does not accept the offer to purchase then he returns the offer to purchase & the cheque to the buyer.Originally Posted by Condorich
Thanks, good advice.Originally Posted by jsh
Are you or anyone else willing to share the pitfalls to watch in that doc? Both legally and common sense in common general language for sharing and learning purposes.
Why don't the agents prepare the option to purchase for owner to issue instead of giving them the offer to purchase for them to issue the option to purchase themselves or through agency later on? Agency do issue OTP directly with their company name as I have seen them. Any comments?
Generally;Originally Posted by Condorich
1. Offer to Purchase are prepare by agent on behalf of Buyer to attach 1% and confirm on requested 2 + ? weeks.
2. Option to Purchase are prepare by agent on behalf of Seller should he accept the 1% and confirm on transaction period.
3. Bank LO, CPF approval, Legal, etc to kick off next.
I miss this out. Thank to mcmlxxvi. AND OR NOMINEE are the magic words that allows transfer. You don't see this in developer sale, for owner transact it depend.Originally Posted by mcmlxxvi