The following is Part 2 of:
Don't Kill A Racehorse When It is Running: Part 1 

1. Consent From The Official Assignee to sell the flat. This is valid for only 1 month. The share of the insolvent's sale proceeds will be remitted to the OA. If the OA deducts all monies owed, the Insolvent Person has nothing. Well, he has monies returned to his CPF and to pay his housing loan. This means that the Man In Dire Straits (MIDS) would have no cash left at the end of the sales as the creditor bank had been asking for exorbitant large amounts of monies due (inclusive of legal charges and high interest) for his credit card debts. He might have $5,000 cash left and if he was honourable, he would pay Khin Khin's interest-free loan. But how many insolvent men and women are honourable?

The first Option To Purchase (OTP) had expired. "Give me back the $1,000 and when the Caveat is lifted, let me know." "The Seller just needs one more week to get the caveat lifted as the OA had already given his consent to sell," I said but the Seller was not interested. So the 2nd OTP lapsed. The Buyer sms back that he had proceeded too far and would not return the money. The Seller had not accepted the bank loan and therefore did not have to pay penalties of 1.5% for non performance.

2. Lifting of the Caveat. The Caveat was lifted by the Banker of the first prospective Buyer. As to why, I don't know. In the letter to this Banker, the Seller had threatened the Bank that he would be liable for his losses if he failed to sell the property due to this action of the Caveat. That is what the Seller believed and told accordingly.

I thought it could be the false address of the Caveatees. Revelation of this false address in public would embarrass the bank. The MIDS strongly believed that the mastermind of this Caveat was Agent 1. Whatever the reason, there was now green light to proceed as the caveat was lifted. Green light all the way? Not so simple in an HDB sales as there are many bureaucratic hurdles, one of which is the EIP.

3. Ethnic Integration Policy (EIP). I was holding my breath that the EIP still permits the Buyer to be qualified to buy this insolvent person's HDB apartment. The Singapore Government's EIP aims to get racial integration. In the past, there were racial enclaves and this would not be good for racial harmony when racial tensions flare up. Sticks and knives had been used in racial riots to kill people. "There seems to be a season," the Seller said to me one day. "When Agent 1 was marketing my apartment, I saw all Chinese prospects. Now, Khin Khin's prospects are mainly Indians and non-Chinese." He did not know that there is a EIP. Fortunately, the EIP's approval for this particular non-Chinese buyer was still given despite the expiry of Khin Khin's first OTP for him. The second OTP was in progress as the Buyer took some time, for reasons unknown.

HDB property prices continued to escalate. "I want to give the Buyer the $1,000 and ask him to get lost," the Seller said to me as he found that the Seller seemed to be hesitant.

"The Seller has 14 days and he can exercise the Option on the 14th day. Legally, you can't do anything. You gain $1,000 if he does not sign the OTP." No Buyer will be so foolish as to give up this sale as prices have had shot up. The Seller is not indebted to loan sharks but he knew he would get a much better price. I contacted the Seller's Agent to expedite. "Not much I can do," the agent said.

4. Resale Checklist for Housing Agent engaged by Sellers. Before granting the OTP to prospective buyers, the agent must inform the Seller about: Eligibility to Sell, Financial Planning/Next Housing Step, Understanding HDB's Standard OTP, Payment of Resale Levy/Upgrading Cost (if applicable) and Giving accurate information. I had to go through this checklist with the Seller. He could not be bothered.

5. Exercising of The Option. I took a subway to meet all parties to be the Seller's witness in the exercise the OTP one cool evening in November. There was no great joy for the Seller.

6. Difficulty in contacting the Seller and his unusual behaviour to communicate with the Seller's Agent. "I was in the court," the Seller said to me when I complained that he could not be contacted the whole day during the exercising of the OTP. The Seller's Agent also had problems with getting him to return calls or contacting him. He had a strange behaviour. He had his own agent Khin Khin who was now represented by me, but he was messaging crucial meeting info on exercising the Option  only to the Buyer's agent. The latter contacted me. Both of us had to work closely to close this case.

The MIDS pulled me to one side and said, "I had to pay the HDB $8,000 in car park fines." Therefore he could not answer my phone calls. However he did message the Buyer's Agent that he would be attending the meeting to exercise the Option. He did not bother to keep me updated by the same text message. Fortunately, the Seller's agent informed me.

7. Empty promises. We left the meeting place in a taxi as I did not drive. I wanted to spend some time getting to know the Seller and hoping that he would be kind enough to return the monies loaned to him by Khin Khin.

The Seller said he would return the money once he cashed the $4,000 deposit from the Seller the next day. When we reached Peninsula Plaza, he had to alight from the taxi to meet his friend to get some money to pay the taxi fare. "I will stay in the taxi," I said as he waited for me to get out. Just to give the taxi driver some comfort that we would not be absconding. The taxi driver with greyish white beard, was relieved. I thought the Seller had got a job and should have some cash. The next day, I phoned the Buyer. His phone was switched off.

On Nov 30, 2009, I met him in Peninsula Plaza while I was advising Khin Khin how to start up a company with her new partners. I had to attend a "Criminal Aspects of Medical Practice" by AG Prof Walter Woon at the Supreme Court Auditorium soon. I approached MIDS and asked for the repayment of Khin Khin's loan, telling him that he did not answer my phone.  

"I have to pay HDB $8,000 in car park fines", the MIDS smiled and patted and looked at his mobile phone on his trouser belt as if he would check. Since the HDB would jail him if he did not pay up $8,000, he had to do that first. So, he had no money for Khin Khin. "The judge can recognise me," the MIDS once told me as he had to appear in court to plead for leniency. I deduced that he had too many court appearances for non-payment of debts and fines. "Life is like that," he said to me. "Ups and downs." I reflected that I was fortunate.  

Handling an insolvent person's case is very stressful. The horse race is on as the Option is exercised. The first appointment from the HDB is 3 months later. Meanwhile HDB will send somebody to check if there is any illegal renovation of the HDB flat. It will be very difficult to get back the loan for Khin Khin. Now the Seller does not need to grovel for financial help. He can now enjoy not returning the loan to Khin Khin, out of spite. After all, he is a bankrupt. Good money will be thrown after bad if Khin Khin sues him for $2,000. The legal process would cost more. 

In this case, the HDB had been very kind to permit this insolvent person to finally sell the apartment by not forced sale at 90% of the valuation price in a rising market. The Seller has found a job and was now paying off his mandatory debts. As for Khin Khin's loan, that was low priority for him. I doubt Khin Khin would recover her loan soon since she had offended the Seller. I would try and help her. This is the real world. "Neither a borrower nor a lender be" - if only Khin Khin had read Shakespeare and applied his advices.

The racehorse is now galloping fast at the home turn. Many things can still happen but his property sale would not be aborted legally by him or the Seller. How about another Caveat being lodged? Would this abort the completion of the sale legally?  I keep my fingers crossed.

The racehorse has not been killed while it is running as I had met him at Central 99 cafe when Khin Khin was so angry with him. So, there is hope at the finishing post. After all, why adopt a negative mental attitude? When there is life in this racehorse, there is hope (of recovering Khin Khin's loan)!