Why are there almost no rotten properties in Singapore? What measures does the Singapore government take to protect the rights of homebuyers?

Payment according to the progress of the project

After a buyer decides to buy a property, he or she signs two contracts and pays 20% of the house price within a specified period.

The first contract is the OTP and is accompanied by 5% of the property price as a deposit.

The second contract is a Sales & Purchase Agreement, which requires a down payment of 15% of the price of the house within 8 weeks of signing the contract, with the rest of the payment to be made under the supervision of the government, depending on the completion of the project phase.

During this period, the government will inspect the construction of the house, but if there are minor defects, the government will ask the developer to re-build until the standards are met before giving the developer the advance payment to ensure the high quality of the house.

Below are the details of the phases of work and payments.

• Phase 1, foundation completion, 10% payment.

• Phase 2, concrete structure completion, 10% payment.

• Phase 3, completion of brick wall, 5% payment.

• Phase 4, ceiling and roofing completed, 5% payment.

• Phase V, completion of windows, doors, electrical wiring, plumbing and interior wall laying, paid 5%.

• Phase 6, parking lot, road and drainage system in the unit campus completed, pay 5%.

• Phase 7, obtain TOP to receive the keys of the unit, pay 25%.

• Phase 8, acquisition of CSC, payment of 15%.

High liquidated damages

Generally, the text of TOP will clearly state the date of Delivery of Vacant Possession by the buyer, which is commonly known as key collection.

Once the developer fails to deliver the Vacant Possession on time and according to the date on the document, he/she will be required to fulfill the indemnity obligation.

This matter can directly affect the interests of the developer and the contractor. In order to avoid lawsuits, bankruptcy and other negative situations, both parties will abide by the contractual provisions to allow the homebuyer to successfully obtain the keys to the new home.

The developer must complete and sell within five years.

Singapore's Qualifying Certificate states that developers need to complete construction and sell all units within five years, otherwise the government will have the right to take due action against the developer.

In addition to checking the sales permit of the developer's next project, there will also be full monitoring of any ongoing or upcoming development projects.