Side Letters

- Side letters could be issued with Option to Purchase depending on the developers and could include selection of finishes, payment schemes, highlighting of certain clauses in the Sale Agreement, developer’s absorbing of certain charges

Time line for payments

• 5% paid (and GST) to obtain Option to Purchase usually on date of Booking or a few days later

• 15% (and GST) payable within 8 weeks of Option date

• Stamp duty (4% of purchase price less $15,400 for property above S$1m) payable on signing Sale & Purchase Agreement

Sale & Purchase Agreement

a.  It has to be signed within 3 weeks of receipt

Prescribed form - Form D

in the Schedule to the Sale of Commercial Properties Rules indicate the following:

a) estimated strata area;

b) The tenure of the property is an estate in fee simple or leasehold 99 years from (date);

c) Payment of the purchase price is in accordance with the Payment Schedule;

d) Interest on any overdue instalment is usually charged 2% above the average rate of the prevailing prime rates of the 3 major banks;

e) Also note that the developer has option to repudiate the Sale Agreement on account of non-payment of any instalment of the progress payments and to forfeit 20% of the purchase price;

f) The purchaser shall be liable to contribute and pay 50% of the title survey and plan fees;

g) Vacant possession of the said property is to be given on or before a specified date and in the event that the developer fails to deliver vacant possession by then, the purchaser is entitled to liquidated damages;

h) The purchaser is required to pay maintenance charges as approved by Commissioner of Building for the first 6 months in one lump sum and thereafter quarterly in advance;

j) The defects liability period is usually 12 months after the date of receipt of the notice of vacant possession and the procedure of giving notice to the developer to attend to the defects is set out in the Sale Agreement;

k) Compensation at the price per square metre for any shortfall in area will only be given if the said shortfall is in excess of 3% of the estimated area;

I) The purchaser's obligation to pay property tax and other outgoings commences after the date of receipt of the vendor's notice to deliver vacant possession;