If you are buying an under construction landed property directly from the developer, the payments to the developers will be based on the construction progress of said property. Buyer (or the lender) is required to pay progressive payment (mostly within 21 days) once the construction milestones achieved & approved by the architect.
Take notes that after the purchaser takes the vacant possession (buyer is able to stay in the property), there is still 5 percent of the total purchase price being held. This amount will be paid to the property developer in two stages, 2.5% each after 6 months and 18 months after the date the purchaser takes vacant possessions.
The table below is the progressive payment schedule for landed property. This schedule also appeared in Schedule 3 of Sales & Purchase Agreement.
|No||Installments Payable||Percentage (%)|
|1||Immediately upon signing of Sales & Purchase Agreement||10|
|2||Within twenty-one (21) working days after receipt by the Purchaser of the Vendor’s written notice of the completion of:|
|a||the foundation and footing works of the said Building||10|
|b||the reinforced concrete framework of the said Building||15|
|c||the walls of the said Building with door and window frames placed in position||10|
|d||the roofing, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telephone trunking and cabling to the said Building||10|
|e||the internal and external plastering of the said Building||10|
|f||the sewerage works servings the said Building||5|
|g||the drain serving the said Building||5|
|h||the roads, drains and sewerage works serving the said Building||5|
|3||On the date the Purchaser takes vacant possession of the said Building, with water and electricity supply ready for connection.||12.5|
|4||Within twenty-one (21) working days after receipt by the Purchaser or the Purchaser’s solicitors of the separate document of title to the said Lot together with a valid and registrable Memorandum of Transfer to the Purchaser duly executed by the Vendor or on the date the Purchaser takes vacant possession of the said Building, whichever is later||2.5|
|5||On the date the Purchaser takes vacant possession of the said Building as in item (3) and to be held by the Vendor’s solicitor as stakeholder for payment to the Vendor as follows:||5|
|a||two point five per centum (2.5%) at the expiry of six (6) months after the date Purchaser takes vacant possession of the said Building;|
|b||two point five per centum (2.5%) at the expiry of eighteen (18) months after the date Purchaser takes vacant possessions of the said Building|
The above solely covering residential property covered under HDA act. Can you also cover mode of progressive payments for commercial properties. Based on my (working) knowledge, the above is one of the method for commercial properties but rarely adopted. The other method is start paying upon commemncement of works instead of after completion..
Yes, this schedule is mainly for residential property. Sorry for the confusion. I will check on the schedule for commercial property.
commercial properties are not protected under HDA. so i doubt there is any standard progress payment schedule. it is solely depends on the contract / terms agreed in the SPA signed by both parties
TQ for the information 🙂
Is that mean if my purchased parcel is in higher floor means I will be starting to pay the interest in a later date?