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Urban Redevelopment Authority (URA)
Circulars

Sub-Sale of Units under Deferred Payment Scheme (DPS)

6 June 2002

Tags

General

Our Ref : 141/4-29
Fax : 6321 6596

President
Real Estate Developers' Association of Singapore
190 Clemenceau Ave #07-01
Singapore Shopping Centre
Singapore 239924

President
The Law Society of Singapore
39 South Bridge Road
Singapore 058673

  1. Arising from feedback from developers, we have decided to allow developers the discretion to decide whether to extend the Deferred Payment Scheme (DPS) to sub-purchasers.

  2. Developers who wish to reserve the discretion are required to adopt the following procedure :

    • (a) At the Point of Original Sale

Developers are required to make it known to all intending purchasers before they are offered the DPS that the DPS may not apply or may only apply in a varied form in the event of a sub-sale. This is to be conveyed to the intending purchaser in the form of the attached letter before the intending purchaser makes a booking of the unit and signs the Option.

In addition, developers are to insert the following pre-approved clauses in the original Option to Purchase and the Sale & Purchase (S&P) Agreement to give prior notice to potential purchasers and sub-purchasers that the DPS may not apply or may only apply in a varied form in the event of a sub-sale

New Clause in Option to Purchase

"9. Sub-sale and Deferred Payment Scheme

In the event You sub-sell the Property after exercising this Option, we may amend the Sale & Purchase Agreement such that the Deferred Payment Scheme offered to You will not apply or will apply only in a varied form to the sub-purchaser."

Clause 5.1 of S&P Agreement

"The Purchase Price must be paid by the Purchaser to the Vendor in instalments according to the Payment Schedule below, subject to the variations in Clauses 5.3, 5.4 and 5.15 below. In the event of a sub-sale of the unit, the Vendor may amend this Agreement such that the Deferred Payment Scheme as set out in the Payment Schedule below will not apply or will apply only in a varied form in the new agreement to be signed between the Vendor and the sub-purchaser."

Both clauses can be adopted without obtaining further approval from the Controller for projects where the DPS is allowed.

  • (b) At the point of sub-sale

If the developer decides not to offer the DPS or offer only a varied form of the DPS, which had been offered to the original purchaser, to the sub-purchaser, the developer is to seek the Controller's approval to amend the S&P Agreement to be signed with the sub-purchaser to effect the new payment arrangement.

  1. Please note that the discretion granted to developers is only applicable to new units to be sold from now on and does not apply to units already sold prior to this under the DPS.

  2. If you or your members have any queries concerning this circular, please contact Ms Low Kien Lay at Tel: 6329 3511 or Ms Ling Hui Lin at Tel: 6329 3537. This circular is also accessible at our website http://www.ura.gov.sg.

Thank You.

PETER TAN GUAN LEONG
CONTROLLER OF HOUSING
SINGAPORE

[LETTER TO INTENDING PURCHASER]

______________________________________

(Name & Address of Purchaser)


Dear Sir

SUB-SALE UNDER DEFERRED PAYMENT SCHEME (DPS)

  1. We have been directed by the Controller of Housing to specifically draw to your attention that the DPS is offered to you and if you are to sub-sell the unit later, the developer may not offer the same DPS to the sub-purchaser.

  2. The following clauses that are inserted in the Option to Purchase and the Sale & Purchase (S&P) Agreement are reproduced below for your easy reference:

New Clause in Option to Purchase

"9. Sub-sale and Deferred Payment Scheme

In the event You sub-sell the Property after exercising this Option, we may amend the Sale & Purchase Agreement such that the Deferred Payment Scheme offered to You will not apply or will apply only in a varied form to the sub-purchaser."

Clause 5.1 of S&P Agreement

"The Purchase Price must be paid by the Purchaser to the Vendor in instalments according to the Payment Schedule below, subject to the variations in Clauses 5.3, 5.4 and 5.15 below. In the event of a sub-sale of the unit, the Vendor may amend this Agreement such that the Deferred Payment Scheme as set out in the Payment Schedule below will not apply or will apply only in a varied form in the new agreement to be signed between the Vendor and the sub-purchaser."

  1. When you wish to sub-sell the unit, it is important that you inform the potential sub-purchaser that the developer may not offer the same DPS to sub-purchasers.

  2. Please acknowledge receipt of this letter on the duplicate copy.

Yours faithfully