Buying a property can undoubtedly be nerve-wracking, and it’s natural to have second thoughts. Such a significant purchase often comes with lifestyle changes, and when faced with numerous choices, you might find yourself overwhelmed by indecision. Sometimes, walking away is the best move for your peace of mind. However, it’s crucial to make sure you’re well-informed about what backing out involves and have thoroughly weighed the consequences.
One of the first things you’ll need to consider is the potential loss of deposits or booking fees. Typically, you’ll need to put down a deposit known as the Option fee to secure the Option to Purchase (OTP). This deposit is often about one percent of the property’s price, with the remaining four percent due upon exercising the Option. If you decide to withdraw after securing the Option, you’ll likely lose this deposit.
When it comes to new property launches, backing out means you might forfeit the entire booking fee, usually about five percent of the property’s price.
