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Q1:
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How
do I buy a new property from the developers?
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a) You will
first need to pay a booking fee which is about 5% to 10% of the purchase
price of the Property for the exchange of the Developer's Option to Purchase.
b) Within 14 days after you've paid the booking fee, your lawyer
will receive a Sale and Purchase
Agreement from the Developer. You must then sign the Agreement
within 3 weeks upon receipt of the S&P and pay the remainder
20% minus booking fee paid within 8 weeks from the date of
Option. During this time you will also pay for the stamp duty.
c) After
that, you should arrange for funds from the bank, and the CPF
board for the remaining 80% of the purchase
price to be paid in progressive stages.
d) Once you
have made all progress payments, the Legal title will be issued
to you.
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Q2:
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What
happens if I decide not
to exercise the
option?
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You
will be
entitled to a refund of 75% of the booking fee.
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Q3:
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How
much time is given for buyer to pay each progressive payment?
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The
developer would send you a written notice 14 days before the
payment is due.
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Q4:
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What
will happen if I fail to make payments within the 14 days' notice
for payment ?
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An interest may be levied on the outstanding amount by the
Developer. The interest
chargeable is usually 2% above the prevailing prime rates of the
major banks in Singapore on the payment due.
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Q5:
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I
have just bought a property that is still under construction,
what is the document that I must have to prove my ownership?
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The
executed Sale & Purchase Agreement is the proof of
ownership.
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Q6:
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What
can I do if, the developer failed to deliver vacant possession
of the unit to me by the date agreed in the S
& P Agreement?
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You
can exercise your rights to claim for damages due to the delay.
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Q7:
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How
is compensation for delay in legal completion calculated?
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It is usually 10% per annum on the total sum of the progress payments, you
have paid from the date due for completion, and when the sale
and purchase is transferred in your favour.
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Q8:
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Can
I resell the property which I have purchased from the developer?
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Yes,
you can. This is after you have exercised the option and have paid the 20% of
the purchase price. You would need to sign the Deed of
Assignment with your buyer, and inform the developer of the
resale. Once the developer is notified, the developer will enter into a
new agreement with your buyer.
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Q9:
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When
do I need to pay for the property tax of a unit in an
uncompleted project?
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You
need to do so when you receive the developer's written notice to
take possession of the unit.
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Q10:
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What
is Defects Liability?
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Defects
liability is a 12-month warranty period for new property. During this time,
buyers may check for building defects and have them rectified at
the developer's expense.
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