Invest in Singapore Properties: Protect yourselves from Rogue Dishonest agents

Singapore Property Investor: Protect yourselves from Rogue Dishonest agents
Courtesy of www.PropertyBUYER.com.sg

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In an article by Straits Times, April 8, 2009.

"Eric Heng Jit Siang (left) conned 127 people, mainly foreigners and permanent residents...

Heng would pose as the owner of a property seeking to rent it out, milking the tenant for a deposit on the rent, and then pulling a disappearing act.

Using both landed properties and flats he had rented, the 33-year-old conned over $242,500 in rental deposits between last April and January out of 127 people.

The court heard that he rented 10 properties across Singapore, got hold of the keys and then placed advertisements in newspapers and in train stations seeking tenants.

When people responded to his advertisements, he posed as the owner of these properties and arranged to show them the units.

When the tenancy agreement was signed - and each unit was 'rented' out to more than one house-hunter - he collected money from each of them as a deposit on the rent or the utility bill."
(Source: The Straits Times, "http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_361167.html, Esther Tan")


HOW SOME SINGAPORE PROPERTY AGENTS BEHAVE

When you go to an agent, he/she brings you to see a property. He/she

always emphasize "Bring your cheque book". This is because in the heat of

the moment, sometimes you can get influenced into making a rash decision.


A rash decision is what an agent wants. Because no matter the house is

sold or not, he/she still gets his/her commission, while if you do not proceed,

you forfeit your Option to purchase deposit of 1% of the House price.


You can pay for a property that is NOT worth that much and eventually the

bank will not loan you the full amount you want to borrow or worse, you get

cheated.

Agents always tell you, it's best for them to negotiate on your behalf. Many times,

this is the worst scenario. We will talk about that in the next article.


PLACING AN OPTION TO PURCHASE

Usually the agent will ask you to place the cheque first for an amount.


But the agent did NOT get an agreement from the seller to sell at the

particular price. The agent will then use this cheque to dangle in front of the

seller inducing him/her to sell.


WHAT IS THE PROBLEM WITH GIVING A CHEQUE?

Usually, the agent will take your cheque without asking you to sign the

Option to purchase agreement.


There is No verification of who you are writing the cheque to.

If the property is $1m, 1% = $10,000.

Giving a cheque without proper verification is like passing someone your 1

CARAT Diamond ring without checking his identity.


In case the agent asks you to write to an "Imaginery owner" of the property

which is his/her friend, the agent can cash your cheque and run if he is

crooked.


Even if the agent is not crooked, giving your cheque without proper Identity

verification of the related parties is fraught with risks.


You Could consider the following Precautions: -

* Check NRIC: Of the agent

* Check NRIC of the property owner - With documents showing he/she

is indeed the owner of the property.


* Check through the Option to Purchase agreement for unfavourable

terms. (These contracts are usually worded to favour the

agent/agency, but you can negotiate to CHANGE them)

* Make sure that the owner gives you a photo-stated NRIC together with

documents stating ownership, i.e. a Bank Loan statement showing

his/her name on the loan as owner.

* Make sure that the Option to Purchase is duly signed by the Property

owner and DATED (Don't leave the DATE empty).

* If you have to give a cheque, post date it by a few days, so in case you

want to change your mind, you can quickly stop payment.

Even all these won't stop a rogue agent or a rogue Homeowner selling his

home multiple times to multiple buyers, but at least you have a slightly better

level of protection. Because at least you are sure you are dealing with the

Property Owner.

www.PropertyBUYER.com.sg is a research focused Mortgage Advisory that do not emphasize cheap loans. We balance risks with savings based on the individual's financial situation to find the best fit Home Loan.

Not only that, we help to make sure of the following: -

* Buyer is buying at the right price (we check multiple valuations to give a safe price)

* Because all these work takes a lot of time, if you commit to get your loan through us, we can

help you to check recent transaction around that block, or the particular unit's transaction

and price history.

* We can check and verify PROPERTY Seller details.

* When bank's letter of offer is given, we can check to verify the contract
details and make sure that it is as agreed.


Tel: 6100 - 0608 sms: 9782 - 8606

Email: loans@propertyBUYER.com.sg

Contact us

http://www.propertybuyer.com.sg/contactus.php

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