Redemption Statement issue drag on for "1 YEAR"

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asked on Aug 29, 2015 at 01:19
I'm a first time house buyer. I had release the payment of 3% to the owner and the rest of 7% was paid through my law firm (recommended by Bank) after the signing of S&P. Only the next process my lawyer found out that the owner of the house had redemption statement that had not being cleared as to date the redemption statement short fall is more than my 10% deposit.

This had been drag on for a year and i had fork out the 10% + lawyer fee without any interest to myself. The vendor told me that he is trying his best to cover the redemption statement and he have no more money and currently (in such bad market) trying to sell his other property to cover the debt. I consulted my lawyer that he suggest me to take litigation method by sue him till bankrupt (in case he have money and is my rights). Which will take around 6 months and RM40k of fee without any guarantee i will get a sen if the seller is bankrupt because i'm not a secure creditor.

I felt i had not being protect as a client and cheated by the law firm and vendor in short. Is a nightmare for me. i'm currently choosing to abort the purchase or wait for the seller to come out with the shortfall. If i abort the purchase what can i do towards my vendor and my solicitor. is there an better option?
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3 Answers

answered on Aug 31, 2015 at 13:42
The worst thing you can do now is to listen to your lawyer's "advice" again.
It may be safer to use your 40k to help out with the redemption.
At least this way, the deal is guaranteed.
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answered on Sep 1, 2015 at 14:12
Maybe you could use the same loan bank as the vendor's bank so the difference could be "contra" by the bank.
This solves the problem with the redemption.
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answered on Jan 23, 2016 at 13:59
I had bought a house before and the owner's unpaid loan with the bank was more than 10% of the house price. There was no problem with the redemption. Could it be that the man's unpaid loan was more than the money ge could get from the sale?
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