BUC | SquareFootProperty https://squarefootproperty.com RAY @ 9-10-60-300 Sun, 31 Aug 2014 03:50:53 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://squarefootproperty.com/wp-content/uploads/2020/01/20200129_223637_0000-66x66.png BUC | SquareFootProperty https://squarefootproperty.com 32 32 BUC (Building under Construction) Payments https://squarefootproperty.com/blog/buc-building-under-construction-payments https://squarefootproperty.com/blog/buc-building-under-construction-payments#respond Tue, 25 Mar 2014 09:43:23 +0000 http://squarefootproperty.com/?p=4332

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 two parties, Developer and Controller of Housing) 
  • Payment of 15% to exercise shall be paid on the exact day when client meets the lawyer. 

 4. Progression Payments of (40%) to developers:

  • Payment of 15% to exercise shall be paid on the exact day when client meets the lawyer.
  • Completion of foundation work (10%)
  • Completion of reinforced concrete framework of unit (10%)
  • Completion of brick Walls of unit (5%)
  • Completion of roofing /Ceiling of Unit (5%)
  • Completion of electrical wiring, internal plastering, plumbing and installation of door and window frames of unit (5%)
  • Completion of Car Park, roads and drains serving the house project (5%)

5. Temporary Occupancy Permit (25%)

6. Final 15% of payments go to?

  • If declaration of completion of unit (Meaning getting the strata title) is before CSC:
    • 2% will be paid to developers
    • 13% will be paid towards Singapore Academic of Law
  • If CSC is before Completion (This is the usual norm and developers’ prefer this):
    • 8% will be paid to developers
    • 5% will be paid to Singapore Academic of Law

Source : Sterling Law Corporation

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