If the buyer straight away go to sign SPA without booking fee, what happen?
Nothing much happened. Only that there is no signing of letter of offer. This offer letter usually would specify few things.
- The booking fee and price of property.
- Conditions for example, application of loan, it is subject to that condition.
- Forfeiture if any.
- Time as an essence.
By the time the process has gone to SPA stage the above conditions are met or had become unconditional anyway. Therefore, there is no other reasons that the SPA should not proceed. The buyer pays all the monies with guarantee from the bank and the seller signs the SPA. The only thing is there was no booking, and anyone can cut in as long as there was no SPA signed.
This is possible only when seller is adamant that nobody else but this buyer is to purchase his property, like friend to friend, relative to relative or due to business circumstances (like take my house in place of my debts). In an arm's length transaction, this seldom happens.