Foreign Buyers' Guides

IMPORTANT & USEFUL INFORMATION Guide On Purchasing Residential Property Under Construction in Singapore

Protection to Buyers who purchase new residential properties under construction)

RULES

Government of Singapore, In-charge by Contrller of Housing had setup the housing rules to prevent Developers taking advantage on the Buyers as following:-

1. Developer of residential properties more than 4 units must be "Registered Developer" (Must Experience of Developments continuously more than 5 years and have minimum value)
2. Developement must be "Registered Project" and to be complete with-in stipulate time frame (defined by Authorities case-to-case basis), advertisement with details as registed to Authorities.
3. The Developer must obtained "Sale Licence" before start selling the property before TOP (before being bulit)
4. All booking must be reported to Controller of Housing to keep track on Property Market.
5. All New Developments must setup separate account from the developer account called “Project Account”
6. Developer cannot freely withdrawn and only for construction purpose. only can withdraw out stage by stage when the construction up to. i.e foundation 10%, structure 10%, brickwork 5% etc.
7. The withdrawal must be approved by Architect, Auditor Authorities, Bank who control the "Project Account"
8. In the event that any wrong to the Development or Developer, Authorities will ask Bank to release money back to Buyers.
9. Profit only can be withdrawn at the last stage when “Title Deeds” (ownership documents) issued by Singapore Land Office.
10. S&P must follow the approved contents according to "Singapore Law Society's Conditions " (Panel of Lawyers) to be fair to Buyers and Developers.

SAMPLE OF PROJECT ACCOUNT (IMPORTANT)

Cheque Payments Shall Be Made To

“UOB BANK FOR PROJECT A/C NO. 352-332-358-8

OF PHOENIX REALTY PTE. LTD.

” (MUST BE SPELLED IN FULL)

TAXATION (IMPORTANT)

Sellers' Stamp Duty Only Sellers who purcharsed and sign S&P (Sale and Purchase Agreement) from 20-Feb-2010 onward and sell the same property away with in one year form the date of S&P signed are to pay Sellers' Stamp Duty, by using the same formular as Buyers' Stamp Duty

Buyers' Stamp Duty By Law: Buyers to Pay Stamp Duty to Inland Revenue Authority Of Singapore (IRAS) within 14 days from the date of Exercise The Sale & Purchase Agreement. Your Lawyer Will Help You. (If you do not appoint Lawyer I will help you to arrange Tax payment to IRAS) Stamp Duty Calculation Formula First 180000 1% of Purchase Price Second 180000 2% of Purchase Price Remainder Amount 3% of Purchase Price (Stamp Duty = Purchase Price x 3% minus $5,400/-)

BOOKING PROCEDURES (IMPORTANT)

Upon Reservation or Booking

1. To fill booking form (The Authorization Letter as attached)
2. Booking Form attached with PASSPORT of all Buyers. In order Developer to notice the Owners of Property and to prepare the Option To Purchase (Booking Contract)
3. Booking will be with consideration from Buyers (5% Booking Fee) upon submission of Booking.
4. Developer must issue the Option To Purchase with no delay and Buyer Sign with no delay.

With-in 3 Weeks from Date of Booking

1. Developer’s Lawyer to sent Sale and Purchase Agreement (S&P) to you, sign and sent back to the Lawyer (ther are stipulate time frame in the S&P

With-in 8 Weeks from Date of Booking

1. Pay 15% + The Amount according to Contraction Stage
2. You will pay up to 85% when TOP, remain 15% for 6 month for Tittle Deed issuance 1years of Liability Period (Warranty Period).

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