A signed deal is a binding contract with technical legalities. Once the option to buy a product or service is approved and the deposit is paid, turning back from your payment schedule is not that easy.
With the global economic downturn, every investor or speculator examines the financial direction of his investment. Falling stocks usually result in the withdrawal of private home deals.
Property analysts claimed that an increasing number of late call buyers are finding means to escape from paying their purchases. A litigator, who requested anonymity, confirmed high cases of inquiries regarding the matter since the latter part of last year.
According to the Real Estate Developers’ Association of Singapore, those who made earlier purchases cannot run away from their previous contracts and simply return their units. This was emphasised by legal adviser Kwa Kim Li during a construction and property prospects seminar this month.
For real estate consultants and litigators, purchasers can not simply abandon their duties after signing a sale and purchase contract. Sadly, the chance of cancelling the agreement can be thinly implemented.
Investors who purchased using delayed payments in 2006 and 2007 are currently on the hot seat as the completion date of their contracts nears and scheduled payment needs to be paid.
As of last year, the government statistics showed that there were 10,450 private homes that have yet to be furnished under the deferred payment programme, which enables investors to give initial payment of 10 to 20 percent for those homes that need to be finalised and the rest of the payment to be given when completed.
The increasing number of buyers not showing interest to follow up their deals brings market analysts to forecast a weaker property industry suffering setbacks because of the downfall.