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Urban Redevelopment Authority (URA)
Circulars

Pre-Approved Proviso to clause 7.4 of the Precribed Sale and Purchase (S&P) Agreement for Residential and Commercial Property

Tags

General

1 September 2004

Our Ref : 141/4-31 & 141/4-11 vol 4
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

Who Should Know:
Developers and solicitors

Effective Date:
With effect from 1 September 2004.

Objective

  1. The pre-approved proviso to Clause 7.4 was first introduced on 18 Dec 2001 to provide for the recovery of the balance 20% cash downpayment from the purchaser in the event that the S&P Agreement is annulled before the balance is paid. It can be adopted without obtaining further approval from the Controller for those who are offering the deferment of part of the 20% downpayment under Deferred Payment Scheme (DPS).

  2. For the developers who are not offering the deferment of part of the 20% downpayment for their projects, the balance 20% downpayment is collected upon signing of the S&P Agreement within the 3 weeks Option period or within 8 weeks from the date of Option after the S&P Agreement has been signed.

  3. The Controller of Housing has received requests from developers who are not offering the deferment of part of the 20% downpayment but are allowing purchasers 8 weeks from the Option date to pay the balance 20% downpayment, to also insert the pre-approved proviso to Clause 7.4 for the recovery of the balance 20% downpayment from the purchaser.

  4. The pre-approved proviso to Clause 7.4 can also be adopted without obtaining further approval from the Controller for the projects which the developers are giving the purchaser up to 8 weeks from the date of the Option to pay the balance 20% downpayment.

Details

  1. The pre-approved proviso to Clause 7.4 is in bold below:

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.

  1. If you or your members have any queries concerning this circular, please contact Mr Poh Bu Hap at Tel: 6321 6586 or Ms Fong Fook Leng at Tel: 6329 3512. You and your members may wish to note that this circular as well as past circulars issued by the Controller of Housing are available from our website http://www.ura.gov.sg (opens in new tab).

Thank You.

RICHARD HOO
CONTROLLER OF HOUSING
SINGAPORE