The proposed changes would require builders to offer extra accurate facts on their housing projects nd unit floor plans

URA proposes amendments in The Housing Developers Rules to enhance the existing consumer protections for buyers of homes. It is proposed that the Housing Developers Rules protect home buyers ‘ interests through developers’ demands and typical contracts for the sale of private residential properties that are not completed. properties.

Piccadilly Grand Northumberland Road situated in a corner with the main road. It is possible to produce the development of 405 dwelling units.

In the meantime, before the amendments are approved, HDB is inviting the public to submit any feedback regarding the changes proposed starting the moment they are released until February 5. The public can submit their feedback online at go.gov.sg/hdr-consult.

More details can be found on ads
The amendment proposed will oblige developers to give more precise and precise information about their housing projects in their advertisements.

Developers must also get prior approval from appropriate authorities for the features of their development, including drop-off and pick-up points for vehicles landscapes, water features and landscaping before these features can be used in ads.

Furthermore developments that have received the temporary Occupation Permit (TOP) (also known as the Certificate of Statutory Completion (CSC) must include that the TOP date or CSC date on the ads for the development. This allows homeowners to know when they are able to move into the apartments once they have paid the final installments due.

Helping buyers make more informed choices

In the new amendments proposed, developers will have to present their past and record projects to prospective buyers. They must provide the Construction Quality Assessment System and Quality Mark scores, as in addition to Green Mark certification for their completed projects within the last five years.

Further details about the floor plans of the unit must be made available to homeowners. Developers must clearly define the areas that are not needed in the unit, describe the abbreviations they use, and also provide detailed floor plans for land-based properties.

The developer will also have to get the approval of buyers in order to make any changes to the floor plan of the unit, or make major modifications to the site layout for the common areas after an Option to Purchase date of issue. This is not the case when the changes are made in order to meet new requirements of the government.

URA is also aware that certain developers offer properties with freehold or 999 year leasehold land belonging to the landowner to buyers with a shorter duration. In this instance the landowner is the one with legally the right to demand homebuyers ground rent.

In these cases, URA plans to require developers to provide details on the owner’s identity and the amount of ground rent due to the landowner, if applicable in the Option to Purchase as well as within the Sale and Purchase Agreement.

Simplified payment schedule

URA is also seeking to simplify its current schedule of payments, so that home buyers only have to follow a single sequence flow to follow the payment timetable.

This involves making the initial payment on the time of the Certificate of Statutory Completion (CSC) consisting of 8% towards developer developer in addition to the remaining 5% to be administered at Singapore Academy of Law. Singapore Academy of Law, then the final payment in the amount of two% for the developers after the Completion Date Notice of Payment is sent out following the CSC.

URA proposes to delay the Defects liability period to the 35th day following receiving the TOP notice or the date the unit was delivered to the homeowner which is the earlier date. Other changes proposed include reducing the threshold of claims for shortfalls in actual size that the property is located from% to%.
The amendment will make it mandatory for developers to pay back interest in loans as well as loan cancellation costs as well as legal fees paid by home buyers in the event that the Sale and Purchase Agreement is cancelled with a maximum at 15% on the total purchase cost. This is in addition to reimbursements for all instalment payments along with any stamp duty that is paid by the homeowner.

Larger burden on developers

Although those proposed modifications to Housing Developers Rules are beneficial to buyers of homes but they also put an increased burden on developers and raise the cost of compliance in a aggressive market, says Lee Sze Teck, senior director of research at Huttons Asia.

“Examples include the lower threshold for claims for shortfalls in certain areas, the later start of DLP period, and enhanced reimbursement coverage in the event of an annulment. More details are in the plans, reduction in thresholds for claims will lead to increased construction costs, which are already significantly more expensive in the wake of interruptions caused by Covid-19.” Lee says. Lee.

He also says that the reimbursement for costs incurred by buyers, which is set at 15% is a bit high and adds that some of these expenses could be transferred to the buyers.