Building Under Construction
This refers to property that is normally sold off the plans while the physical building is still under construction. For such properties, the Temporary Occupation Permit (TOP) and/or Certificate of Statutory Completion (CSC) have not yet been issued.
For BUC properties, financial institutions today offer financing tagged to the developer’s Progressive Payment Scheme.
Progressive Payment Scheme are based on the developer’s predetermined schedule of payment (payments are normally called for in percentages). This schedule is set out based on the different stages of development; as such payments made for the purchase would be spread out through out the course of the development process. Once the developer has completed a certain stage, the developer would call for the required payment. The respective financial institutions would then disburse the loan progressively according to the schedule.
The borrower’s monthly repayment would increase gradually based on the loan disburse.
If you had purchased a BUC property, the progressive payment schedule is based on the following work schedule:
|Order of payment
||% of purchased price
||Obtaining Option to Purchase (Booking Fee)
||Within 8 weeks from date of Option to Purchase
||Completion of Foundation
||Completion of Reinforce Concrete Framework of the building unit
||Completion of Brick Walls of the building unit
||Completion of Ceiling of the building unit
||Completion of Doors, Window Frames, Electric Wiring, Plumbing and Internal Plastering of the building unit
||Completion of Car Park, Roads and Drains serving to the housing project
||Temporary Occupation Permit (TOP)
||Certificate of Statutory Completion (CSC)
|*9 ) Payable 14 days after notice of vacant possession and the Temporary Occupation Permit of Certificate of Statutory Completion in respect of the unit or a certified copy thereof. A certificate by the qualified person engaged by the vendor that the building and all roads and drainage and sewerage works serving the Housing project have been completed and that the water and electricity supplies, and gas supplies (if any) have been connected to the unit.
**10(i) Completion of the Sales & Purchase takes place before issuance of the CSC.
- 2% to be paid to vendor (i.e. the developer) on completion of the Sales & Purchase.
- 13% to be paid to the Singapore Academy of law as stakeholders as follow:
- (8% to be released within 7 days of production of CSC.
- 5% to be released to the vendor on expiry of 12 months from date of notice to take vacant possession.
**10(ii) CSC issued before completion of the Sales & Purchase.
- 13% to be paid in the following manner upon issuance of CSC.
- 8% to be paid to vendor.
- 5% to be paid to the Singapore Academy of law as stakeholders which shall be released to the vendor on expiry of 12 months from date of notice to take vacant possession.
- 2% to be paid to the vendor on completion of the Sales & Purchase.
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Besides the purchase price, there are other payments which a purchaser is required to make under the Sale & Purchase Agreement, such as the following:
- all property tax levied in respect of the unit after the purchaser receives from the developer the Notice of Vacant Possession.
- if the unit is in a strata-titled housing project, maintenance charges for the maintenance of the common property and the provision of cleaning and other services from the date the purchaser actually takes possession of the unit or the 15th day after the purchaser receives the Notice of Vacant Possession in respect of the unit, whichever is the earlier. More information on maintenance charges can be found in BCA’s publication Strata Living in Singapore.
Whether you have purchased your property for personal lodging, investment purpose, or rental income, your key concern should be to have the power to own a property with the least cash outlay possible at any given time. Having made this decision, your chief consideration should be to sniff out a golden opportunity and capitalise on it by securing a housing loan first. It is important that you secure an advantageous mortgage package while the banks are dishing out all the goodies. Low rates mean more savings, which translates to clearing your housing loan in lesser years.
Your property may have enjoyed an appreciation in value and while the value can still be supported, it is prudent to lock in a housing loan so that you do not have to fork out any more cash than you had originally anticipated. It would be wise to consider securing a housing loan for your property. Lock in your housing loan with the best package in town and have a peace of mind knowing that your investment is secure!
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*Please note that information provided is as it is basis, whilst every effort has been made to provide up-to-date information. The author is not responsible for inaccuracies or whatsoever as a result from using this information.