The units in a residential project can only be sold by a developer before its construction and after obtaining (i) the Building Plan Approval granted by the Commissioner of Building Control and (ii) the Housing Developer's Sale Licence issued by the Controller of Housing.
Sales Transaction Documents
In Singapore, licensed housing developers are required to use the standard ‘Option to Purchase’ and ‘Sale & Purchase Agreement’ forms prescribed under the Housing Developers’ Rules for the sale of uncompleted housing units.
With a construction period of three to four years, the Sale & Purchase Agreement informs buyers the amount they need to pay according to various stages of the project’s construction.
Upon signing of the Sale & Purchase Agreement, the buyer’s lawyer will lodge a caveat with the Registrar of Titles to protect the buyer’s interest.
All licensed housing developers are required to open and maintain a Project Account for the said housing project with a bank or financial institution. It is compulsory for the developer to deposit into this account:
- The total sum of money paid by a buyer (including the booking fee) for the purchase of a unit up to the issue of Temporary Occupation Permit (TOP) for the unit;
- Any and all loans granted to the building project for the purpose of construction
Withdrawal from this account is only applicable for purposes related to the specific housing project,
Buyers are given up to 12 months from the date of TOP to report on any defects found in their unit. The developer is under obligation to resolve any defects within the housing project during the 12-month period.