Resale Flats are a pain in the ***!

Don't buy Resale flats if you can help it (or if you have a lawyer to act on your behalf). We're not too sure if the same experience can be derived when buying a resale condo, but we reckon it would probably be the same.

After more than 6 months since we set eyes on the flat, things have continued to spiral beyond our control. Perhaps it's a learning experience for us, to learn values of patience, tolerance and magnanimity. Here's a list of things that make buying resale flats such a pain.

1) The OTP takes 1 month to expire. This often feels like a never-ending wait and the agent for the sellers could submit the application only on the last day, and then create some excuses about missing documents and the delay takes another day or two.

2) The wait for the 1st appt takes up to 8 weeks. Accredited agents are allowed an earlier date but in the interest of their client, might push the date to the maximum, giving them extra time to find a replacement home for the clients.

3) The wait for the 2nd appt takes up to 8 weeks as well. The buyers and sellers are supposed to come to a mutual agreement as to when they would like handover of keys. The sellers or their agent might just ask for the maximum 8 week time frame, and if you didn't know better, you'd say OK.

4) Unauthorised works in the flat have to be rectified by the sellers and the costs borne by them as well. Sellers of course will try to ask the buyers to undertake the rectification since most buyers will do some form of renovation. This agreement is purely between the 2 parties and HDB doesn't care who does it as long as it "gets done". Interesting thing is, HDB will delay the completion of the sale until somebody raises his hand and offers to do the works. The seller, although not able to receive his money early, would be able to stay in his house for a longer time so that he can look for a new home. This can go on forever, a check with HDB showed that there was no time frame for a solution or agreement to be attained.

5) HDB Application fees for online submission is $60, but most agents will tell you the fee is $80. When questioned, they claim their companies charge $80, presumably the extra is for administrative fees. We checked with HDB who confirmed they only took $60 and said, they cannot stop those agents who charge $80 and claim the $20 is for admin charges.

6) HDB, although acting as a lawyer for the sale of the flat (should you not have your own lawyer), will not intervene in any disagreement between you and the sellers. For example, HDB will NOT intervene if the seller refuses to do the rectifications works, refuses to move out in time, refuses to send in the application, etc. If you wish to pressure the seller into doing as you wish, you have to engage your own lawyer.

7) Some sellers might request for an extension of the move-out date. This is to facilitate them moving to a new place, or to have a longer time to find a new home. Your gesture of goodwill to let them stay a few more days is considered a personal agreement between the two parties and a simple letter has to be drafted out and signed by both parties. However, should they wish to extend the time frame again, the only way you can get them to move is to engage a lawyer (sigh!) as they have broken the agreement. You cannot even call the police.

8) Did you know that HDB starts charging instalments on the 1st of the month. So if your 2nd appt is on the 10th of the month, you will be paying for 10 days of instalments but are not considered the "rightful owners" of the flat yet. And yes, the sellers will be staying in the flat for free for 10 days.

9) Hobs and Hoods and ovens cannot be taken with the seller when they move out, so if you are intending to sell your flat in a few years, you'd have to leave behind your branded designer hob and hood. Consider carefully.

Last but not least, engage a good agent to work for you if you cannot afford a lawyer (most of us can't right?). Do not use the same agent as the seller's. Always get a co-broke deal. We cannot understand how an agent can represent both the buyer and seller fairly whilst he's earning from both sides. Should you wish to do the buying yourself and not get an agent, Good Luck to you!