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REM CHAPTER 5 - Coggle Diagram

- - - - Developer who intends to carry out a project of more than 4 units of housing accommodation is required to obtain a housing developer’s license
      - subject to Housing Developers Rules and the Housing
        Developers (Project Account) Rules
      - The license will cease to be in force when the housing
        project is completed with the issuance of Certificate of
        Statutory Completion (CSC) by the Commissioner of
        Building Control
    - - Project Account monies can only be withdrawn for
        specific purposes listed below
        
        Receiving sales revenue/ progress payment/ refund
        
        Payment of development related expenses
        
        • property tax
        
        • stamp duty payable on a mortgage to secure loan for the construction
        
        • legal fees
        
        • insurance premiums
    - - Buyer pay 5% Booking fee of the offer price. Option to Purchase (Form B) issued by Developer as acceptance through Marketing Agent
        
        Developer has 14 days to deliver S&P to Buyer or Lawyer
        
        Buyer has 21 days to Exercise the Sale & Purchase Agreement
        
        NO
        
        Developer forfeit 25% Booking Fee & Refund 75%
        
        YES
        
        Buyer exercised S & P Agreement and return to Developer’s Lawyer & wait 8 weeks for completion from issued OTP date
        
        Buyer pays according to Progress Payment Schedule (see next slide). Construction of development
        
        1 more item...
    - - Late Completion by Developer
        
        If developer fails to give Notice to complete, developer must pay to the purchaser liquidated damages based on 10% per annum on the total installment paid by the purchaser until the date of Notice to complete is given
      - Late Payment of Installment by Purchaser
        
        Purchaser fails to pay any installment according to the progress payment schedule within 14 days of due date, purchaser is liable to pay interest calculated on a daily basis at the rate 2% above Base Rate
    - - On completion, should the area of the unit on resurvey approved by the Chief Surveyor is less than the area stated in the Agreement, the Purchase Price is to be reduced as follows:
        
        • Not more than 3% - No deduction
        
        • More than 3% - Reduction at per square meter of the deficiency which is in excess of 3% of the area stated in the Agreement
    - - • In Show Flats there must be signs to mark any removed walls, partitions or doors.
      - Location, site and floor plans must be drawn to scale. Floor areas of exterior spaces like balconies must be disclosed
- - - - • All agreements for the sale of commercial properties by a developer must be in the prescribed forms of contract, according to Sale of Commercial Property Act, Cap 281 Ed.
        
        • Developer need not apply for a license
        
        • Developer to obtain the Building Plan approval before they can sell any units in the commercial project
    - - • E.g. sale of the option, sale of property before taking over or legal completion.
      - • Sale of a property by person(s) who is not yet the registered owner of the property. • E.g. sale of the option, sale of property before taking over or legal completion.
      - • Not allowed for developer’s sales