need serious advice on property tansaction

[hotbot]

my good friend, just finished signing papers and realised that he had been hood winked by his property agent into selling his apartment at 1.5 mil, whereas his neighbour's unit was done at 2.4 mil few days before his. he is now engaging a lawyer to sue the property agent for fraudalent misrepresentation. btw, this is enbloc sale.

what are his chances of winning? anybody has similar experiences please share with me! if it's inconvenient to write openly, please feel free to pm me. many thanks!

 

[hotbot]

hi, guys, please advise leh...

 

[erection2015]

can bro....al though the guy signed on the dotted line He can still complain about the property agent....and follow up with a lawsuit.

He will probably still have to sell the flat at the agreed price though.

my good friend, just finished signing papers and realised that he had been hood winked by his property agent into selling his apartment at 1.5 mil, whereas his neighbour's unit was done at 2.4 mil few days before his. he is now engaging a lawyer to sue the property agent for fraudalent misrepresentation. btw, this is enbloc sale.

what are his chances of winning? anybody has similar experiences please share with me! if it's inconvenient to write openly, please feel free to pm me. many thanks!

 

[hotbot]

thanks, bro!

is there any way that he can stop the transaction by legal means based on fraudalent misrepresentation by the property agent?

can bro....al though the guy signed on the dotted line He can still complain about the property agent....and follow up with a lawsuit.

He will probably still have to sell the flat at the agreed price though.

 

[erection2015]

very very unlikely bro...the buyer will sue your friend if he tries to do that. He will lodge a caveat on your friend's property so that your

friend cannot sell to anyone else until the issue is resolved.

thanks, bro!

is there any way that he can stop the transaction by legal means based on fraudalent misrepresentation by the property agent?

 

[hotbot]

what about sueing the property agent to recoup his losses in this transaction?

very very unlikely bro...the buyer will sue your friend if he tries to do that. He will lodge a caveat on your friend's property so that your

friend cannot sell to anyone else until the issue is resolved.

 

[butoh6050]

I don't think your friend has a case. After all, he did sign the papers.
How can he prove that the agent cheated him? The agent can always say that he wanted to sell it asap.

 

[hotbot]

so much difference in the selling price, enbloc somemore, his was done at 1.5 mil whereas his neighbour was done at 2.4 mil, anybody with a sane mind will see that as some form of obvious fraud.

I don't think your friend has a case. After all, he did sign the papers.
How can he prove that the agent cheated him? The agent can always say that he wanted to sell it asap.

 

[hotbot]

any more brain juices coming in??? thanks in advance.

 

[virtualchick]

In an enbloc transaction, you have no case. If the negotiator, in this case the property agent, negotiates from you $1.5m, then from another seller $2.4m, that is the fair price dealt - willing seller willing buyer. I guess the ones holding out and unwilling to sell will theoretically get a higher price as they need to be compensated more to part with their unit. The mechanics is not exactly fair and straightforward. Unless the sellers in the block come together and sell as a group, then maybe they will all get the same price per unit area based on their unit size. If your friend sold to someone who subsequently sold to the developer enbloc, again you have no case due to mismatch of information. He knew beforehand but you didn't. In share trading this can be penalised as insider trading, not so property.

 

[Alamaking]

Should be able to sue lah, knn sell below market rate.. property agent really fucked up 1.... my friend keep asking me to sell my apartment, I retorted sell liao, stay at your home har? LOL

 

[Brightkid]

Can TS elaborate more?

Firstly, how is it classify as 'enbloc' sales when apartment is negotiated individually and not as a group? Unless you are referring to landed houses and not apartments then what u said can be true.

Secondly, what were recently transacted prices in same development (assuming is apartment block) around area? If recent transacted prices are around your friend's price, then that is a fair market price n his neighbor's agent caught a carrot head buyer.

Just some clarifications that may be of help to better understand your friend's situation.

 

[erection2015]

stay with Raiders la....he did say he wanted 1 or 2 sbf guys to stay at his place.

Should be able to sue lah, knn sell below market rate.. property agent really fucked up 1.... my friend keep asking me to sell my apartment, I retorted sell liao, stay at your home har? LOL

 

[hotbot]

the thing what made my friend so pissed off was that this PA was a very good actor and told my friend that the price was a fair one. then my friend X saw it from the listing it was transacted at a huge different price.
X didn't tell me whether it was individual enbloc or some property developer wanting to buy the whole block, his is a walk up apartment shophouse kind.

got to go, hope to hear more later. thanks!

Can TS elaborate more?

Firstly, how is it classify as 'enbloc' sales when apartment is negotiated individually and not as a group? Unless you are referring to landed houses and not apartments then what u said can be true.

Secondly, what were recently transacted prices in same development (assuming is apartment block) around area? If recent transacted prices are around your friend's price, then that is a fair market price n his neighbor's agent caught a carrot head buyer.

Just some clarifications that may be of help to better understand your friend's situation.

In an enbloc transaction, you have no case. If the negotiator, in this case the property agent, negotiates from you $1.5m, then from another seller $2.4m, that is the fair price dealt - willing seller willing buyer. I guess the ones holding out and unwilling to sell will theoretically get a higher price as they need to be compensated more to part with their unit. The mechanics is not exactly fair and straightforward. Unless the sellers in the block come together and sell as a group, then maybe they will all get the same price per unit area based on their unit size. If your friend sold to someone who subsequently sold to the developer enbloc, again you have no case due to mismatch of information. He knew beforehand but you didn't. In share trading this can be penalised as insider trading, not so property.

 

[Unrepented]

Many elements affecting the price of a property both from buyer and seller.

If buyer/agent say "fengshui" as one of the reason affecting the price, it most probably will stand also. There was a "fengshui case" regarding taxable income on the frequency of sale of properties that it may no longer be deem as a captial gain. But the court ruled in the tax payer's favour because of "fengshui" reasons.

What I am trying to say is; the sellers position is weak. If your friend want to sue on misrepresentation, all criteria for misrep must be met, the burden of proof is on your friend.

If I am the property agent, I just say because of "fengshui", I offered a lower price, and pay a fenshui practitioner to say all shitty things about the property and that he had consulted prior to the sale.

By the way, r u the property agent?? he he

 

[I_Hate_Pappies]

my good friend, just finished signing papers and realised that he had been hood winked by his property agent into selling his apartment at 1.5 mil, whereas his neighbour's unit was done at 2.4 mil few days before his. he is now engaging a lawyer to sue the property agent for fraudalent misrepresentation. btw, this is enbloc sale.

what are his chances of winning? anybody has similar experiences please share with me! if it's inconvenient to write openly, please feel free to pm me. many thanks!

Words against words situation. Tough call. Any solid evidences, like SMSes or emails? Was the $2.4mil deal done by the same PA? Can only sue against the PA.
Nothing can be done towards the Buyer. Ask your friend to seek legal advise, better.
Difference of $900k, don't be stingy over the legal fees.

 

[I_Hate_Pappies]

Can TS elaborate more?

Firstly, how is it classify as 'enbloc' sales when apartment is negotiated individually and not as a group? Unless you are referring to landed houses and not apartments then what u said can be true.

Secondly, what were recently transacted prices in same development (assuming is apartment block) around area? If recent transacted prices are around your friend's price, then that is a fair market price n his neighbor's agent caught a carrot head buyer.

Just some clarifications that may be of help to better understand your friend's situation.

"Enbloc" under Private Treaty. I guess this is a small development, not many units. Getting 100% thru this method will save Developer time and cost. Don't have to go thru STB. Chop chop! Put money take money!

 

[Brightkid]

"Enbloc" under Private Treaty. I guess this is a small development, not many units. Getting 100% thru this method will save Developer time and cost. Don't have to go thru STB. Chop chop! Put money take money!

Agreed with you if it is a small development that individual apartments were separately negotiated. But in this case of someone buying out everyone individually, I don't think it will be classified as 'enbloc' which meant collective purchase as a single deal across all apartments in development? It is merely an individual transaction with every owner by the buyer. Anyway, let's not hype up on the word 'enbloc'.

If price of TS's friend is way below what of a few cases were recently transacted, then he may have a case against the agent for misrepresentation. If that $2.4M is a one-off, out-of-wack' price while the past records is around $1.2M, then TS friend's case is weak. But that does not stop him from taking action against the agent.

Just my 2 cents thoughts.

 

[I_Hate_Pappies]

Agreed with you if it is a small development that individual apartments were separately negotiated. But in this case of someone buying out everyone individually, I don't think it will be classified as 'enbloc' which meant collective purchase as a single deal across all apartments in development? It is merely an individual transaction with every owner by the buyer. Anyway, let's not hype up on the word 'enbloc'.

If price of TS's friend is way below what of a few cases were recently transacted, then he may have a case against the agent for misrepresentation. If that $2.4M is a one-off, out-of-wack' price while the past records is around $1.2M, then TS friend's case is weak. But that does not stop him from taking action against the agent.

Just my 2 cents thoughts.

Yup, people still term it as Enbloc although technically it's not considered as Enbloc. That's why i term it "Enbloc". Yes, difference of $900k, no harm trying. As the $2.4mil was transacted few days before his friend's unit, his friend will have a strong case against the PA, if he is the one handling both units.

 

[erection2015]

bro hotbot...now became too cheem for us both eh ?:o