0
Reading Time: 7 minutesSingapore has one of the highest home ownership rates globally (about 90% of the population). As such, most Singaporeans will be involved in at least one property transaction in their lifetime. Purchasing or selling a property for the first time can be a daunting experience, especially when one is confronted by the mountain of legal documents involved in the transaction.
In this article, we explain some common terms found in contracts for the sale and purchase of (1) resale HDB flats and (2) condominium/apartment units under construction from developers with a view to assisting sellers and buyers to understand their legal obligations when selling or purchasing properties.
Every agreement for the sale and purchase of HDB flats must be in the standard HDB-prescribed Option to Purchase format. This is provided for under the Housing and Development (Agreements for Sale and Purchase) Rules. No amendment can be made to the standard Option to Purchase format without the authorisation of HDB.
The common terms found in the standard Option to Purchase are set out in the table below:-
| Clause | Explanation |
| Details |
(a) remove all unauthorised works carried out to the flat;
(b) repair any defects in the flat due to the removal of the unauthorised works; and
Every agreement for the sale and purchase of condominium/apartment units under construction from developers must be in the standard prescribed Sale and Purchase Agreement format. This is provided for under the Housing Developers Rules. No amendment can be made to the standard Sale and Purchase Agreement format without the prior approval of the Controller of Housing.
The common terms found in the standard Sale and Purchase Agreement are set out in the table below:-
| Clause | Explanation |
| Agreement for Sale and Purchase (Clause 2) | This clause specifies the tenure of the property (whether it is freehold or leasehold). Where the tenure is stated to be leasehold (typically for 99 years or 999 years), the buyer should take note of the commencement date of the lease to ascertain the number of years remaining on the lease |
| Payment Schedule (Clause 5) | This clause sets out when the buyer has to make payment to the developer. Save for the deposit of 20% of the purchase price, payments are made by way of instalments according to the stage of completion of the construction and must be paid within 14 days of the buyer’s receipt of the notice from the developer. |
In conclusion, sellers and buyers should familiarise themselves with the terms and conditions contained in contracts for the sale and purchase of properties and clarify any doubts which they may have with their lawyers so that they fully understand their legal obligations when selling or buying properties.
If you are in need of legal advice, you can request a quote with Tan Ee Nin or get a Quick Consult with other lawyers . With Quick Consult, from a transparent, flat fee of $49, a lawyer will call you back on the phone and give you legal advice.
This article does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and practice in this area. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article.
Ee Nin was admitted as an Advocate and Solicitor of the Supreme Court of Singapore in July 2012 and practised general litigation with an emphasis on family law and probate and administration for about 2 years before commencing her practice in real estate and conveyancing in 2014.
