Guidelines For Homebuyers
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Prior to purchase a housing property, you must ensure that the housing developer has:
Ensure the type of housingThe expected date of completion for landed properties such as bungalows, semi-detached houses and terrace houses is 24 months from the date of signing of the Sales & Purchase Agreement (SPA)Subdivided buildings such as condominiums, apartments, flats and townhouses, the expected date of completion from the date of signing of the SPA is 36 months. Buyers are advised to obtain complimentary brochures from housing developers, which states all necessary information such as the developers’ license number, advertisement and permit. Land categoryPlease check if the land is:
Further info on the land can be obtained from the Land Office or the State Land Register. Complimentary Brochure from Housing DevelopersAll brochures from developers must contained the following:
Rights and interest of buyers in the SPAAs per Schedule G & H of the Housing Development (Control & Licensing) Regulation 1989 First PaymentFirst payment of 10% must be made upon signing the SPA. Please note that the date of signing of SPA and payment are the same. (The housing developer is not allowed to collect any payment without the SPA being signed). Architect CertificationEvery request from the developer for payment must be supported by a certificate duly signed by an architect or a certified engineer. Interest on late paymentAn interest of 10% per annum will be charged on the buyer or the end financer for the buyer who fails to pay the progressive payment within 21 working days from the date of the written notice of payment from the developer. Termination of SPAThe developer has the right to terminate the SPA if the buyer fails to make the progressive payment or interest charged on late payment exceeding 28 days. The developer shall then send a written notice via AR registered post of its intention for the termination of SPA. Infrastructural Maintenance FeeInfrastructure is defined as road, driveway, drains, sewerage, pipelines and sewerage tank for the housing development (for land & building), road, drive, drains, sewerage, pipelines and sewerage tank for the building (for subdivided buildings). Maintenance & Management FeeFrom the date of delivery of vacant possession, the buyer shall be responsible to pay for services for: HTML clipboard
Note: It is compulsory for the buyer to pay the maintenance fee for as long as he / she owns a parcel in the said maintained building. Payment of Quit Rent, Assessment, etc.The buyer is responsible for the payment of quit rent, assessment, rate payment and other charges on subject property bought from the date of vacant possession or date of assignment, whichever is earlier. Sinking Fund – For subdivided building onlyUpon vacant possession of the subject property, the buyer shall contribute to the sinking fund, an amount equivalent to 10% of the service charges. Vacant PossessionVacant Possession of the building completed with water and electricity connection must be handed over within 24 calendar months for landed property and 36 calendar months for subdivided buildings from the date of signing of the SPA. DamagesShould the developer fails to deliver vacant possession to the buyer within the time frame as stipulated in the SPA, the developer shall compensate to the buyer as liquidated damages calculated on a daily rate at 10% per annum of the Purchase Price. Defect Liability PeriodThe defect liability period is 18 months after the date of delivery of vacant possession. The Formation of Management CorporationThe Management Corporation will be created once the strata title of each individual parcel is issued to the owners. Other functions are to insure and maintain a building. Enquiries & ComplaintsPlease contact: |
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