The standard S&P Agreement – Singapore house for sale/ rent
The standard S&P Agreement is a binding sales contract for both the developer and buyer. Withdrawal from the agreement will constitute penalty and gives the other party right to sue. Usage of the prescribed standard S&P agreement under HDA, ensures that there is protection for the buyer and importantly transparency in the sale process. Singapore house for sale/ rent.
Some salient features of the standard S&P Agreement
- The purchase price is to be paid by instalments according to the progress of the development.
- The stages which the developer can call for payment and the amount is listed and stipulated in the agreement.
- If the buyer does not pay any of the instalments within 14 days, interest is chargeable at 2% above the base rate (the average prevailing prime rate of the local banks) or the developer can treat the S&P Agreement as having been repudiated by the buyer. A “contract is repudiated by buyer” means buyer does not wish to continue with the contract and hence has breached the contract.
- In addition, the developer must give another 21 days’ notice in writing to the buyer stating his intention to treat the S&P Agreement as having been repudiated by the buyer.
- The developerhasto deliver vacant possession by a date as specified in the contract. Also to ensure that the property is fit for occupation.
- If the developer fails to deliver Notice of Vacant Possession or failed to complete the development, the buyer can claim liquidated damages at 10% of all instalments paid.
- The developer is responsible for defects, shrinkages or other faults (due to defective workmanship or materials or to the building not constructed in accordance to specifications and plans) that becomes apparent within 12 months after the date of delivery of vacant possession.
- If the developer does not make good the defects within one month of being informed, the buyer may notify the developer of intention to rectify and provide cost estimated. If after 14 days, developer still does not carry out the work, the buyer may proceed to make good the defect and charge it to the developer.
- No error or misstatement as to the description of the area shall annul any sale or entitle the buyer to be discharged from the purchase. But the buyer is entitled to an adjustment to the purchase price. The maximum allowed size variation is 3%. Any shortfall beyond 3% will be entitled to an adjustment in the price by the developer for the buyer.
Developer’s obligations in the sales process
- Property should be built according to the specification and approved plans
- All relevant and necessary consents and approval must be obtained from authorities
- To obtain the necessary subsidiary strata certificate of title
- Subdivision approval must be obtained from the Chief Planner
- All necessary title surveys are to be conducted
- Rectification of all defects within 12 months from the date of notice of vacant possession
- Compensation to buyer for any shortfall in floor area of more than 3% from agreed size based on the selling price.
Buyer’s obligations in the sale process
- To pay fees for turning on utilities
- Before issue of Certification of Statutory Completion (CSC), no A&A should be made without the prior consent of the developer
- To make good any damage to common property
- Payment of maintenance charges from either the date of actual possession or 15th day after receiving Notice of Vacant Possession, whichever is earlier
- Payment of all property taxes and other outgoings from the date of taking possession
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