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 Buying New Property

 

Buying new properties in Singapore is actually quite easy as it is very much regulated and controlled by the Controller of Residential Property.


Below are some Frequently Asked Questions that you would like to know below committing to your property purchase!

 


 

 Frequently Asked Questions
 

Q1:

How do I buy a new property from the developers?

Q2:

What happens if I decide not  to exercise the option?

Q3:

How much time is given for buyer to pay each progressive payment?

Q4:

What will happen if I fail to make payments within the 14 days' notice for payment?

Q5:

I have just bought a property that is still under construction, what is the document that I must have to prove my ownership?

Q6:

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 ?

Q7:

How is compensation for delay in legal completion calculated?

Q8:

Can I resell a property which I have purchased from the developer?

Q9:

When do I need to pay for the property tax of a unit in an uncompleted project?

Q10:

What is Defects Liability?

Q11:

When does the liability period begin? 

Q12:

What if I discover a defect after the defect liability period has expired?

Q13:

What should I do before I make a claim?

Q14:

What is the remedy if the developer delays to repair the defects?

Q15:

If the area of the unit that I purchased is smaller than what was stated in the developer's Sale & Purchase Agreement. What is my right?

 

Q1:

How do I buy a new property from the developers?

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.

 

Q2:

What happens if I decide not to exercise the option?

You will be entitled to a refund of 75% of the booking fee.

 

Q3:

How much time is given for buyer to pay each progressive payment?

The developer would send you a written notice 14 days before the payment is due.

 

 

Q4:

What will happen if I fail to make payments within the 14 days' notice for payment ?

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.

 

 

Q5:

I have just bought a property that is still under construction, what is the document that I must have to prove my ownership?

The executed Sale & Purchase Agreement is the proof of ownership.

 

Q6:

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?

You can exercise your rights to claim for damages due to the delay.

 

Q7:

How is compensation for delay in legal completion calculated?

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.

 

Q8:

Can I resell the property which I have purchased from the developer?

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.

 

Q9:

When do I need to pay for the property tax of a unit in an uncompleted project?

You need to do so when you receive the developer's written notice to take possession of the unit.

 

Q10:

What is Defects Liability?

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.

 

 

Q11:

When does the liability period begin?

The liability period begins when notice is served for you take possession of the property. This occurs when buyers attend a joint-inspection of the premises with the project manager.

 

Q12:

What happens if I discover a defect after the 12 months defect liability period has expired?

The developer remains potentially liable for defects of a property for six years. However, the longer you procrastinate the pursuing of your claim, the more difficult it will be to distinguish between defective workmanship and materials and general wear and tear.  

 

Q13:

What should I do before I make a claim?

Before reporting defects, you should make a list of all the defects you have discovered, and take photographs as proof of the defects. After that jot down the date on the list, and forward the list to the developer.

 

Q14:

What is the remedy if the developer delays to repair the defects?

Under the Sales & Purchase Agreement, you are entitled to engage your own contractor if the developer does not repair the defects within one month. However, before you do that, you should write down the date when you've listed the defects, and the date when the list was given to the developer. Also you have to obtain reasonable quotations for the repairs, and record that 14 days' notice of such quotations was forwarded to the developer. The cost of repairs by your contractor may be charged to the developer's account. Evidence of defects should be in the form of photographs of the defective areas, and if possible, obtain a loss adjuster's report or a surveyor's report on the defects.

 

Q15:

If the area of the unit that I purchased is smaller than what was stated in the developer's Sale & Purchase Agreement. What is my right?

Usually, the developer's Agreement state that if the true area is less than the area stated in the Agreement, the purchase price will be adjusted for the difference in excess of 3% of the agreed area, at the rate which the purchaser paid for each square metre of the unit.

 


 

Please note that the above are for your information Only.  You are advised to consult a local lawyer on Singapore Property Laws. You can email us for more information or  for assistance in getting a local lawyer.

You can also Click here here to register your interest about some Properties. Just tell us your specific requirements and there is absolutely NO obligation or commitment whatsoever at this stage.
Thanks


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