Some agents ask what happens if a client changes his mind after getting the option  to purchase, but have not yet exercise the Sales and Purchase agreement, can the option be transferred or assigned to another person?

Can I put and/or Nominee in the OTP for an under construction condo?

 

Some agents ask what happens if a client changes his mind after getting the option  to purchase, but have not yet exercise the Sales and Purchase agreement, can the option be transferred or assigned to another person? 

Answer is NO. 

This is because under the Housing Developers (Control and Licensing) Act 

  • Non-Assignment of Option
    You cannot assign or transfer the OTP that has been granted to you by the developer to any other persons. Hence, you need to ensure that all persons who are intending to purchase the unit are correctly identified and named as the ‘intending purchasers’ in the OTP. Only the intending purchasers named in the OTP may exercise the option and sign the S&PA. 

Source : URA 

So What happens then? 

  • Non-Exercise of Option
    If you do not wish to exercise the OTP, you can serve a written notice to the developer stating that you do not wish to exercise the Option. The Option will lapse immediately upon the receipt by the housing developer of the written notice. 
  • If the OTP is not exercised before its expiry, the developer may forfeit 25% of the booking fee and refund 75% of the booking fee to you. The developer can then proceed to sell the unit to any other interested party. 

Propertywiki tip 101: 

So you are still unsure? Do contact us if you have any further queries and we will do our best to answer it if it is not found anywhere here!