Apart from the Unity, Resilience as well as the Solidarity budget set up by the Singapore government for the people. Homeowners or soon to be homeowners that bought new launch condos are set for another reprieve from the government regarding their purchase of their property via the COVID-19 (Temporary Measures) Bill.
The summary of the bill pertaining to new homeowners (updated Wednesday 13 May) are as follows
- Cover Buyers who just went into OTP (Option to Purchase) Agreements, S&P (Sales and Purchase) Agreements, Agreements of Lease for Residential Properties
- Affects only contracts between Buyers and Developers or Housing Development Board.
- Does not cover agreements between individuals
- Contracts must have been entered before March 25, 2020 with contractual performance on or after February 1, 2020
Every effort must be made first to discuss terms of extension between the buyer and the developer. Only when both parties are unable to agree on the terms, should the buyer then apply a Notification for Relief (NFR) to enjoy the relief under the act.
Type of Agreement
How it affects
Option to Purchase (OTP Agreement)
Developer will be prohibited from withholding or forfeiting any part of the booking fee paid under the agreement during the relief period
Sales and Purchase (S&P) agreement / Agreement for Lease
Developer will be prohibited from terminating the agreement on the basis of the buyer’s non-payment
Also, the developer will not be allowed to increase interest rates or impose new charges on delayed payment to discourage buyers from seeking for relief under the act
For more information, please check out the video below and the source link
As always, let me know how if I can help you with anything.
Real Estate Associate
ERA Realty Network Pte Ltd