BUC (Building under Construction) Payments
1. What is BUC? UC (Building under Construction), refers to private residential properties that are newly launched, that an interested Client wishes to buy a unit from the Developer directly. Payments are according to stages of the aforementioned development. 2. What to take note of in BUC? - All payments must follow through in this format:- Cash payments --> CPF --> Bank Loan. For further Breakdown in 1st Property as an example: 5% OTP (Option-to-Purchase) - Cash Payment 15% S&P (Sales & Purchase Agreement) - CPF 80% Remainder - Bank Loan - Upon TOP (Temporary Occupancy Permit), there will be 12 months of warranty for clients to inform Developer accordingly for the rectification works for any sighted defects. - Upon TOP, before collection of key(s); Clients are to pay Developers (aka Vendor) the Survey Fee + 6 months of Maintenance Fees. - Property Tax to commence upon TOP. 3. Any important details pertaining to S&P? It is very important to take note of some particular details pertaining to the exercise period of S&P. Details are as follows: Date to Exercise S&P = 3 weeks from the date of receipt of S&P. (Can be indicated in the Developer's lawyer's letter, or the date that document was couriered over.) Missing the date would cause the clients to be subjected to deduction by Vendor of 25% of the amount paid at the OTP. Do not exercise last minute. (Reasons are that CPF takes a long time to process [Probably 3 weeks], especially if client wishes to pay BSD (Buyer's Stamp Duty) via CPF, and the maximum due date for BSD payment is 14 days only. Exercising period --> 10 days. (Reason is due to waiting for the approval of [...]