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SMS: +65 9782 8606                         http://www.singaporehomeloan.net     Home Loans                           loans...
SMS: +65 9782 8606                       http://www.singaporehomeloan.net     Home Loans                         loans@pro...
SMS: +65 9782 8606                          http://www.singaporehomeloan.net     Home Loans                            loa...
SMS: +65 9782 8606                       http://www.singaporehomeloan.net     Home Loans                         loans@pro...
SMS: +65 9782 8606                           http://www.singaporehomeloan.net     Home Loans                             l...
SMS: +65 9782 8606                       http://www.singaporehomeloan.net     Home Loans                         loans@pro...
SMS: +65 9782 8606                      http://www.singaporehomeloan.net     Home Loans                        loans@prope...
SMS: +65 9782 8606                           http://www.singaporehomeloan.net     Home Loans                             l...
SMS: +65 9782 8606                          http://www.singaporehomeloan.net     Home Loans                            loa...
SMS: +65 9782 8606                          http://www.singaporehomeloan.net     Home Loans                            loa...
SMS: +65 9782 8606                           http://www.singaporehomeloan.net     Home Loans                             l...
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Offer to purchase versus option to purchase

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Property Buyer Mortgage Consultants

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Transcript of "Offer to purchase versus option to purchase"

  1. 1. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans Property Buying FAQ - Option to purchase versus Offer to purchase www.PropertyBuyer.com.sg/mortgageNot just Cheap But what fits !
  2. 2. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans What is an option to purchase• An option to purchase is a contract whereby the owner of a property (seller) grants the option to the buyer to buy his/her property at an agreed price within an agreed time period for an agreed fraction of the price (usually 1%).• During this time period while the option is in effect, the seller cannot sell his/her property to another party. Not just Cheap But what fits !
  3. 3. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans What is an Offer to Purchase• Offer to purchase is also abbreviated to OTP, but this must not be confused with Option to purchase.• Offer to purchase is offered by the Property Buyer to the owner (Seller).• In layman’s term, it’s the buyer making an offer and signing an Offer to purchase to present it to the seller for consideration. Not just Cheap But what fits !
  4. 4. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans A Non typical property buying process – Involving Buyer and Seller agentsAgent must show Buyer the Option to purchase documenttogether with an Offer to purchase. (But this is normally notpracticed) Not just Cheap But what fits !
  5. 5. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans A typical property buying process – Involving Buyer and Seller agentsWhy it won’t work at this moment?•Currently, Seller agents are not sharing the commission insteadfavouring a direct customer walk in where they get full commission.•Buyer agent also have a hard time to convince the buyer that theyshould pay the buyer agent 1% or whatever agreed amount for buying aplace.•In the case where seller agent is willing to share the commission (zerocommission from buyer), buyer agent is hurried into making theproperty buyer commit into a deal. Not just Cheap But what fits !
  6. 6. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans A typical property buying process – Involving Buyer and Seller agentsIn short, the Buyer agent cannot fully protect and look afterthe interest of the buyers.The buyer agent typically do not show you the Option topurchase contract format and make you make an offerwithout ever seeing an option to purchase. In case you donot agree to the terms of the option to purchase, you willmost likely lose your 1% deposit for an offer to purchase. Not just Cheap But what fits !
  7. 7. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans A typical property buying process – involving only the Seller agentNo Buyer agent present. Seller agent prepares Offer topurchase for buyer to sign and pay 1% deposit. However,seller agent does not normally show buyer the option topurchase document. (But they should) Not just Cheap But what fits !
  8. 8. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans A typical property buying process – Involving only Seller agentsThis is not in your best interests.•The seller agent will perhaps present you with an offer to purchase foryou to commit a 1% deposit and sign it.•Seller agent use you to make an offer which may be below the owner’sasking price, but which they think can still close the deal.•If owner accepts deal, but adds additional terms and conditions ontothe Option to purchase? Does the property buyer have a right to backout? If Property Buyer backs out, will he/she lose the 1% deposit?(It is better a regulatory body specify what can be written into theseOTP contracts and widely circulate it for public knowledge) Not just Cheap But what fits !
  9. 9. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans Property Buying guidance•In short, many things can go wrong with property buying. With ourhelp, you can reduce the errors and make property buying a saferactivity.•Property Buyer Mortgage Consultants are: -Home loans and Commercial Loans experts that can help you inbuying a new property as well as refinance a property. Not just Cheap But what fits !
  10. 10. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans About Property Buyer Mortgage Consultants• We are NOT property agents. We can be independent. • (If you wish, we may refer you to agents which we find honest.)• Guide and help buyers with valuations and processes.• Help buyers find the best match bank loans.• Our services are free to you as we act a bit like “Outsourced bankers” where we are paid a commission. (Banks save on payroll, while we are driven to help buyers. Win-win situation.)Not just Cheap But what fits !
  11. 11. SMS: +65 9782 8606 http://www.singaporehomeloan.net Home Loans loans@propertybuyer.com.sg Commercial Loans Contact Property Buyer Mortgage Consultants (Business registration 200618162C)Home loans and commercial loans for buying or refinancing.Tel : + 65 6100 0608Sms: + 65 9782 8606Email: loans@propertybuyer.com.sgURL:http://www.SingaporeHomeLoan.nethttp://www.PropertyBuyer.com.sg/mortgagehttp://www.iCompareLoan.com Not just Cheap But what fits !
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