Known as abortive sales, genuine buyers have been forced to forfeit a significant sum of money because buyers chose not to exercise their Option to Purchase, within 8 weeks from the date of Option. To prevent this from happening, it is advised that buyers check if they have sufficient financing abilities and discuss the details with their trusted property agent.
To clarify, the following schedule of payment highlights the milestones that property owners and investors need to be mindful of when indicating their interests for new launch residential projects.
- "Option to Purchase" issued in exchange for 5% of purchase price - gives date of Option
- Signing of "Agreement for Sale & Purchase" + 15% of purchase price - within 8 weeks from date of option
(Subsequent payments as advised by development's schedule)
- Completion of foundation work of the building unit: 10% of purchase price
- Completion of reinforced concrete framework of the building unit: 10% of purchase price
- Completion of brick walls of the building unit: 5% of purchase price
- Completion of ceiling of the building unit: 5% of purchase price
- Completion of doors & window frames, electrical wiring, and plumbing of the building unit: 5% of purchase price
- Completion of car parks, roads and drains of the building unit: 5% of purchase price
- On production of the Temporary Occupation Permit* (TOP) and Architect’s Certificate of Completion (CSC): 25% of purchase price
(A remaining 15% of purchase price would be required to be paid to the developer/ Singapore Academy of Law upon the completion of the Sale & Purchase)
The original article was written by Andrew Batt, International Group Editor of PropertyGuru at www.propertyguru.com.sg.