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I am purchasing a subsale house. I have signed Letter of Offer and paid Deposit, purchasing using Housing Loan. It has been 3 months since I signed LO, with pre-approval Housing Loan only. Seller's Agent is threatening me to call off the LO, in which Purchaser's Solicitor has yet to finalise SPA and Bank's Housing Loan Full approval. Is the Seller's Agent practicing their right to call off the offer and forfeiting the deposit?
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1 Answer

David Wong Lai Kwong
Replied
Usually a Letter of Offer and Acceptance with conditions precedent (eg. subject to housing loan approval etc) has a timeline to fulfill. Either party cannot drag the contract beyond the stated timeline. If the earnest deposit is forfeitable, it must be clearly stated when can it be forfeited. In the absence of a timeline, either party can issue a separate notice to the other to provide a cut off time frame for conditions precedent to be obtained. Read More
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