Here’s a useful flow chart that outline the entire process of redemption from the
bank in a subsale situation:
Redemption of Property
Seller request from his existing financier
a redemption statement stipulating the
redemption sum. (Outstanding amount)
14 days
Seller’s financier to issue redemption
statement to Purchaser’s financier
Purchaser’s financier to release first stage of
loan sum. (Redemption sum)
With title
14 -21 days
Seller’s financier to execute
the discharge form (16N) and
original security documents
which are:
1. Original title
2. Sale and Purchase
Agreement
3. Facility Agreement
4. Duplicate Charge (16A)
5. Give the executed 16N
form to Financier’s
lawyer
Financier’s lawyer registers
the discharge form (16N) and
transfer in favor of Purchase
and charge in favor of
Financier with the land office
Purchaser’s lawyer to complete the Deed of Assignment
in favor of the purchaser
Financier’s lawyer to complete
the Deed of assignment in
favor of the Financier
Purchaser’s financier will process to
release the remaining loan sum
Without title
Seller’s financier to execute
the Deed of receipt and
Reassignment (DRR) and will
return the original security
documents which are:
1. Deed of Assignment
2. Original Sale and
Purchase Agreement
3. Facility Agreement
4. Power of Attorney
Seller’s lawyer to register DRR
and revoke Power of Attorney
with High Court
This is a series of articles that examine the latest trends and issues in real estate investment. In the next issue, I will share
with you on whether you can sell your property before you take vacant possession of the completed unit. Stay tuned.
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