Amendment to Clause 7.4(C) of the Prescribed Sale and Purchase (S&P) Agreement

Our Ref : 141/4-11, 202/2-01 & 202/2-02

Fax : 321 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. The Controller of Housing has received requests from some developers offering deferment of part of the 20% cash downpayment to amend Clause 7.4(c) of the S&P Agreement to provide for the recovery of the balance of the 20% cash downpayment from the purchaser in the event that the S&P Agreement is annulled before the balance is paid.

2. Please bring to the attention of your members the enclosed Annex A which contains the pre-approved amendment to Clause 7.4(c) of the S&P Agreements prescribed in Forms D and E of the Housing Developers Rules and Form D of the Sale of Commercial Properties Rules. It can be adopted without obtaining further approval from the Controller for those who are offering the deferment of part of the 20% downpayment.

3. If you or your members have any queries concerning this circular, please contact Ms Low Kien Lay at Tel: 329 3511 or Ms Tan Puey Choo at Tel: 321 6580. Your members may like to note that this circular is also accessible in our website http://www.ura.gov.sg.

Thank You.

CHUA CHOR HOON (MS)

DEPUTY CONTROLLER OF HOUSING
SINGAPORE

Annex A

PRE-APPROVED AMENDMENT TO CLAUSE 7.4(C)

Forms D and E of the Housing Developers Rules and Form D of the Sale of Commercial Properties Rules

7.4 Once this Agreement is annulled, the Vendor has the right to -

• resell or otherwise dispose of the Unit as if this Agreement had not been entered into;

• recover from the instalments (excluding interest) previously paid by the Purchaser all interest owing and unpaid at the date of annulment; and

• forfeit and keep 20% of the Purchase Price from the instalments (excluding interest) previously paid by the Purchaser.

Provided that if the instalments (excluding interest) previously paid by the Purchaser are not sufficient to cover the amounts referred to in Clauses 7.4(b) and 7.4(c), the Vendor has the right to claim and recover from the Purchaser any shortfall of the said amounts. The costs and expenses (including legal costs) incurred by the Vendor in such claim and recovery shall be paid by the Purchaser.

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