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RES Course

Competency Unit 4A - Private

Developer

  • Controller of Housing grant licence
    • Sale = Can sell before TOP
      • Min paid-up capital $1M
    • No-sale
  • Must submit monthly Booking Register
  • Max dwelling units (DU) = GFA / 85sqm
    • 9 exception areas with GFA / 100sqm eg. Marine Parade
    • Min 20% >100sqm
      • Exception Central >70sqm
    • Max 20% <50sqm

OTP

  • Option money: usually 1% for resale, 5% for new
  • Subject to the “The Law Society of Singapore’s Conditions of Sale 2020”
  • Verify ownership via HDB, INLIS
  • What if cheque bounced? Considered accepted, vendor has right of action

New/Uncompleted Private

  • Standard format of Option, Sale and Purchase Agreement under Housing Developer’s Act
  • Developer maintain Project Account
    • Hold purchase $, loans
  • Name to be approved by Street and Building Names Board (SBNB)
  • Comm 1-5%
  • Cannot assign to another purchaser
    • Though controller can consider for deletion, adding of immediate family
  • Vacant possession date = expected date, not legal

Process

  • OTP = Pre-contract
    • Option = Booking fee is 5% for new
    • Appoints a lawyer, arrange for CPF financing
    • Within 2 weeks, developer lawyer will send S&P to purchaser lawyer
  • S&P
    • Expire 3 weeks from the date of receipt
    • Must sign and return to developer
    • If not, forfeit 25% of booking fee
    • Extend OTP up to 12 weeks
      • Only if valid reasons, can email to URA
    • To pay another 15% (total include booking fee is 20%) within 8 weeks from date of option
    • To pay stamp duty within 14 days of the contract
  • Pays balance or progressive payment
  • TOP (handover keys)
  • Completion of Sale = Legal title is issued
    • At the developer’s lawyer office
  • Certificate of Statutory Completion (CSC)
    • For the building
Progress Percentage of Price
Obtain OTP 5%
Sign S&P 15%
Foundation work 10%
Reinforced concrete framework 10%
Brick walls 5%
Ceiling/Roofing 5%
Door/Window/Plumbing/Wiring 5%
Carparks/Roads/Drains 5%
TOP 25%
Title-CSC-12m defects 2-8-5% = 15%
  • Late payment: Base interest +2%
    • Repudiated: 14 days + 21 days notice
    • Forfeit 20% of purchase price + interests, from the payment thus far
  • Survey
    • If > 3% different in area stated, reduce purchase price in excess of 3%
  • Subsale: Before issue of CSC and title
    • OTP with “and/or nominee(s)”
    • Can sell OTP to sub-purchaser
    • Sub-purchaser sign new S&P with developer
  • Legal fee: payable by cash/CPF

Vs Commercial

  • Can assign rights
  • Booking fee <= 10%
  • Forfeit 50%
  • No licence required
  • No need open Project Account
  • No control on advertsements

Completed Private

  • caveat emptor = buyer beware
  • buyer pay pro-rated of property tax and maintenance fee

En Bloc

  • Need majority consent of > 80%
    • If < 10yo, then > 90%
    • Age is based on TOP/CSC
    • Obtain within 1y
  • Factors
    • Share Value
    • Sqft
    • Market Value
    • Does NOT account level, facing
  • Repeated attempts after a failure:
    • 1st attempt within 2y, need > 50% SP
    • Subsequent within 2y, need > 80% SP
    • Fail = defeated, not enough quorum, agreement expired

GST

  • Exempted for sale of residential
  • But to account for in rental, if furnished
  • While agent fee has GST
    • So comm + GST to charge vendor
  • Cobroke is complex when:
    • Alice is non-GST, seller agent
    • Bob is GST, buyer agent
    • Alice can tell Bob he has to absorb the GST
      • Eg. $10k -> $5k each
        • Bob $5k includes the GST

Tax

  • SC/PR
  • FR stayed >= 183 days in preceding year