Quick Answer: Can I Get Back Option Fee?

Is HDB option fee refundable?

Taking an HDB housing loan Option fee is reimbursed in cash if there is enough money in your CPF Ordinary Account (OA) to pay the downpayment..

How much is a downpayment for a BTO?

Assuming they will be taking a HDB loan, the downpayment they will have to pay is 10% of the purchase price. Using the average price of $300,000 for a BTO flat in a non-mature estate, the downpayment they will have to pay is $30,000.

What is the best way to deliver an option fee?

The earnest money should be delivered to the title company, while the option fee should be delivered directly to the seller. Both should be delivered within three days after the effective date of the contract.

Is option fee part of down payment?

Option Fee It forms part of your downpayment. If you are taking a HDB loan and have enough Ordinary Account (OA) savings for your downpayment, it will be reimbursed in cash. Otherwise, it goes towards the cash portion of your downpayment.

What is a 10 day option period?

An Option Period is a specified number of days during which the buyer has the right to have the property inspected and can cancel the contract for any reason. The Option Period can be “bought” for a fee known as the Option Fee in which the amount can be negotiated between the buyer and seller.

Does seller keep option money?

The quick answer is cash it and keep it. The Seller earns this money when the contract is executed. It is a payment from Buyer to Seller for the unrestricted right to terminate the contract during the Option Period. … Option Fee money is often confused with Earnest Money.

What fees do you need to pay when buying a house?

Costs before completionMortgage fees. Paid to your lender. … Valuation fee. Paid to your lender. … Survey fee. Paid to your surveyor/lender – optional but advisable. … Broker fee. Paid to your broker – if it charges. … Stamp duty. Paid to the Government. … Conveyancing fee. Paid to your solicitor. … Don’t forget the Land Registry fee.

How long does it take to exercise an option?

This means that the only time you can exercise your contract is the last trading day (usually Friday) before expiration. Even though there is only one day to exercise your contract, you can always close out your option position in the market on any day prior to expiration.

Can I back out from selling my house?

Sellers can back out of a home sale without ramifications in the following instances: The contract hasn’t been signed. Before a contract is officially signed, a seller can kibosh a deal at anytime (that’s what happened to me). The contract is in the five-day attorney review period.

Who Gets Option money?

Like earnest money, option money is negotiated between buyers and sellers. But the amount of option money is significantly smaller as it typically runs between $100 to $500. The option money is provided to the seller.

Can I get earnest money back if I back out?

An earnest money deposit says you’re committed as a buyer. … If you back out of the deal for reasons that have nothing to do with the home inspection or the appraisal, the seller can keep your money. On the other hand, if everything is moving along smoothly and the buyer decides to back out, you can get the deposit back.

How do option fees work?

Option money is a very important piece of a buyer’s contract. When a buyer pays an option fee they are purchasing the unrestricted right to cancel the contract in the time provided for in the contract.

How much is the option fee?

Typically, the seller grants the buyer an option to purchase the property based on the terms and conditions in the Option to Purchase, in return of a sum of money from the buyer called the Option Fee. The Option Fee is typically 1% of the sale price of the property, but is negotiable between parties.

Can Options money be cash?

The option fee is payment for the buyer’s right to walk away from the contract. Whether or not they exercise that right doesn’t matter. The seller may cash an option fee check at any time and keep the option fee if the buyer terminates.

How much should I pay for BTO flats?

Attend the flat selection exercise at HDB Hub, book your flat, pay option fee of $500 to $2,000 (depending on flat type) and apply for CPF housing grants. Within four months, sign your lease agreement and pay your downpayment of 10% if taking out an HDB loan or 20% if taking out a bank loan.