Progressive Payment Schedule for Commercial Properties Under Construction in Singapore
Sale and Purchase Agreement
Under the standard Sale and Purchase Agreement, buyers are required to make portion instalments of the purchase price of the property, commonly alluded to as progressive payment, as and when the developer finishes the different phases of development of the project. Instalment payments up to the issues of Temporary Occupational Permit or when the keys are issued to the owners of the purchased unit are to be paid into the Project Account which the developer is required to keep up with a bank or monetary organization.
Singapore Housing Developers Act
Developers are regulated under the Singapore Housing Developers (Control and Licensing) Act (Chapter 130) (the “Act”) and use the standard form of the sale and purchase agreement 2 (the “SPA”).
The developer similarly passes to the purchaser the risks of ownership such as a progressive instalment payment schedule that is designed to progressively match and pay for the contracted purchase price of the uncompleted property unit as the construction progresses. The payment schedule as specified in the standard SPA is also systematically aligned to the stage of completion certified by a qualified person as defined under section 2(1) of the Building Control Act (Chapter 29)
Progressive Payment Schedule
| Order of Payment | Progress of Work |
Percentage of Purchase Price |
| * Commercial & Industrial: All payments are subjected to G.S.T | ||
| (www.CosySingapore.com) | ||
| 1st | a. On obtaining Option To Purchase (Booking Fee) |
5% |
| b. Within 8 weeks from the date of the Option |
15% |
|
| 2nd | a. Notice that the foundation works relating to the Unit have been completed |
10% |
| 3rd | b. Notice that the reinforced concrete works relating to the Unit have been completed |
10% |
| 4th | c. Notice that the brick walls relating to the Unit have been completed |
5% |
| 5th | d. Notice that the ceiling of the Unit has been completed |
5% |
| (www.CosySingapore.com) | ||
| 6th | e. Notice that the door and window frames are in position. and that the electrical wiring (without fittings), the internal plastering and theplumbing of the Unit have been completed |
5% |
| 7th | f. Notice that the installation of electrical plant, sanitary equipment andair-conditioning plant (if any) relating to the Unit has been completed |
5% |
| 8th | g. Notice that the car park, roads and drains serving the Building have been completed |
5% |
| 9th | a. Notice of Vacant Possession and the Temporary Occupation Permit or Certificate of Statutory Completion in respect of the Unit (or a certified copy thereof) |
25% |
| b. Certificate by the Vendor's qualified person that the Unit and the Building (and all the roads drainage and sewerage works for the Building) have been constructed plans approved by the Commissioner of Building Control, and that all water and electricity supplies and all gas supplies (if any) have been properly connected to the Unit | ||
| 10th | Either: | |
| 1 ) Where completion of the sale and purchase takes place before the issuance of the Certificate of Statutory Completion ("CSC"):- | ||
| a) 2% to be paid to the Vendor on completion of the sale and purchase; |
2% |
|
| b) 8% to be paid to the Singapore Academy of Law ("SAL") as stakeholder and to be released less all authorized deductions by SAL to the Vendor within 3 working days of production of the CSC (or a certified true copy thereof) by Purchaser to SAL within 4 working days certified true copy thereof) by Purchaser to SAL within 4 working days of receipt by Purchaser of the CSC (or a certified true copy thereof) |
8% |
|
| OR | ||
| 2) Where CSC is issued before completion of the sale and purchase :- | ||
| a) 2% to be paid to the Vendor within 14 days after the Purchaser receives the CSC (or a certified copy thereof); |
2% |
|
| b) 8% to be paid to the Vendor on completion of the sale and purchase |
8% |
|
| * Commercial & Industrial: All payments are subjected to G.S.T |
Disclaimer:
The information on this website is for general information purposes only and may not apply to any particular set of facts or under all circumstances. Nothing on this site should be taken as legal advice for any individual case or situation. Laws and sales agreements are constantly changing. The information on this website was accurate at the time of posting and we make every effort to keep it current, however we are not responsible for outdated materials.
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