learn how a singapore Property agent lies

Property buyer singapore got to learn how an agent lies

Published by RealEstate Professional on August 18th, 2011

Tricks agents play on  Option to purchase in Singapore
Option to purchase OTP   in Singapore. An option to purchase is usually the first step in property buying in Singapore.   An option to purchase gives the purchaser   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

We treat   any act that puts the property buyer and seller at risks as  unethical and bad practices.

Many   dishonest   Singapore Property agents want the seller to sign an Option to Purchase document leaving out the date and the price unfilled.  This puts the seller at risks of selling accidentally below cost   and gives a potential dishonest property agent a chance of a quick sale which could costs the Owner hundreds of thousands of dollars.

On property buying , the unethical property agents pressure  the property buyers into making an offer, property is in the bag.

Case 1 , he/she tells the buyer that seller agrees to  $1.23m, this price is acceptable by the seller.
Thinking this is a done deal, the property buyer writes a cheque for 1% of $1.23m  .  The Dishonest property agent then deposit   this cheque into the seller’s bank account  . He/she forces or sweet talk the Seller into agreeing to the deal.

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 careful , during this time, the Dishonest Property agent may ask for a commission  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 1% deposit is stuck 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 buyers may   be coerced into paying more. BINGO, the deal is done! The deal is closed!!!

Dishonest Singapore property agents looks really honest   
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.

A new bad development  in our opinion.   This practice stems from a botched deals where smart buyers discovered last minute that something is not quite right and cancelled the cheque.

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 a Buyer offers to purchase and it is accepted and the subsequent Option to purchase comes, but with terms that are UNFAIR and not acceptable? Does that mean that the Property Buyer has also accepted the terms and conditions of the Option to Purchase?
Most agents will not want to show you any contract for review, we can bet with you
Try  asking them to provide you a copy of the Option to purchase, 9 out of 10 will be most reluctant to show you. Most will tell you, there is no worry at all, it’s standard practice. But there is nothing standard about it, it can be modified along the wishes of the property seller. 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, you can ask them to first show you the Option to purchase. If there is a need, do not be shy to counter suggest the wordings and modify the terms and conditions to your wishes, although many agents will tell you this is not possible. Well, if it is not right, don’t sign. Property agency business is an unregulated and sometimes dirty business, so just take your own precautions.
If doubtful , 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 jungle   of Dishonest Singapore Property agents. They are used to the tricks that property agents play.


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. Do not leave the original copy with the Property 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 then lose their dream homes.

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 dishonest Singapore Property agents may take your original OTP  , 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 a commission , which is illegal.

Is your Singapore Property   agent too keen  to introduce to you   a bank, a banker to you? RUN for your life.
Is your property agent too eager to recommend a lawyer or law firm? RUN for your life.
Is your property agent too keen to recommend you a contractor? RUN for your life.

Singapore property 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 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 loans@propertyBuyer.com.sg who has no stake and no commission in property buying. Propertybuyer.com.sg offers free mortgage advice and property buying guidance for free. 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.