Guide to Buying Executive Condominium
By Lin Zhiqin
/ The Edge Property |
June 10, 2016 12:00 PM SGT
Executive Condominiums (EC) are a hybrid housing type that are built and sold by private developers but have eligibility conditions for purchase and sale, similar to HDB flats.
Pre-purchase checks
Time bar
- Buyers and essential occupiers who currently own the following types of properties will need to fulfill a 5-year Minimum Occupation Period (MOP):
- starting from date of key collection for flats bought directly from HDB
- starting from date of resale completion or date of transfer for HDB resale flat
- starting from date of key collection for DBSS flats bought from developers
- Buyers and essential occupiers who currently own an Executive Condominium bought from a developer will need to
- fulfill a 5-year MOP starting from the date of key collection
- wait a 30-month period from the date of disposal of the existing EC
before they can apply for a new EC or be listed as an essential occupier.
- Buyers and essential occupiers must not own or have disposed of any HUDC flats or private residential properties within the 30 months before the date of application for a new EC. In other words, if you own a private home, you must sell it and wait 30 months before you can apply for a new EC.
Prior ownership of residential property
- Persons who have bought or owned two of the following types of properties will not be eligible to apply for a new EC or be listed as an essential occupier in an application
- Flat bought directly from HDB
- EC/DBSS flat bought from developer
- HDB resale flat bought using CPF housing grant
Eligibility
- Buyer must be a Singapore citizen at least 21 years old applying with at least one other applicant that is at least 21 years old and either a Singapore citizen or Singapore permanent resident
- All applicant must be Singapore citizens if applying under Joint Singles Scheme
- Gross household income must not exceed $14,000
- Buyers must qualify under one of the following schemes:
- Public Scheme
- Form family nucleus with any of the following
- Spouse
- Parents
- Children under legal custody, care and control (for widowed or divorced applicants)
- Fiancé/fiancée scheme
- Form family nucleus with fiancé/fiancée
- Must produce Marriage Certificate to developer within 3 months from taking possession of the EC unit
- Must produce Marriage Certificate to developer before taking possession of the EC unit for buyers taking CPF housing grant
- Orphans scheme
- Form family nucleus with any of the following
- Unmarried siblings
- At least one of the deceased parents was Singapore citizen or Singapore permanent resident.
- All unmarried siblings must be listed in the same application. Siblings cannot qualify under separate Orphans schemes.
- Another single unrelated orphan
- Joint singles scheme
- Form family nucleus with another single
- Both singles must be at least 35 years old
- Not eligible for CPF housing grant for singles
- Buyers of dual-key EC units must form a multi-generation family comprising one of the following
- Married couple with parents/grandparents
- Fiancé and fiancée couple with parents/grandparents
- Widowed or divorced with children and parents/grandparents
Application and purchase procedure
- Obtain an Approval in Principle (AIP) for a bank loan
- This can be done before or after submitting e-Application
- An AIP lets you know your eligible loan quantum and the monthly mortgage
- Having an AIP before booking prevents the forfeiture of your booking fee should there be hiccups in the process of mortgage approval
- Submit e-Application to developer for eligibility check
- e-Application will be processed and developer will issue ballot number to eligible buyers
- Visit show flat and select your unit
- Buyers can back out of the purchase at any point up to this without suffering any financial penalty
- Booking of unit
- Pay 5% booking fee in exchange for Option to Purchase (OTP)
- The developer will deliver the Sales and Purchase Agreement (S&P) within 2 weeks to your address or your lawyer
- Option to Purchase is valid for 3 weeks from delivery of S&P
- Check for and pay Resale Levy
- Buyers who have received a CPF housing grant or previously bought one of the following properties then sold it, and then buys an EC from a developer where the land sale tender was not launched or closed on or before 9 December 2013 will have to pay resale levy
- new flat from HDB
- Design, Build and Sell Scheme flat
- EC from a developer
- Buyers who buy an EC from a developer where the land sale was launched or closed on or before 9 December 2013 will not need to pay a resale levy
- The resale levy payable is dependent on the flat-type of the property previously owned and the date it was sold
Resale levy for flats sold on or after 3 March 2006
Flat-type | Resale levy for households | Resale levy for Singles Grant recipients |
|---|---|---|
2-room | $15,000 | $7,500 |
3-room | $30,000 | $15,000 |
4-room | $40,000 | $20,000 |
5-room | $45,000 | $22,500 |
Executive | $50,000 | $25,000 |
Resale levy for flats sold before 3 March 2006 – based on resale price of the sold flat or 90% of the market valuation, whichever is higher
Flat-type | Resale levy for households | Resale levy for Singles Grant recipients |
|---|---|---|
2-room | 10%* or 15% | 5%* or 7.5% |
3-room | 20% | 10% |
4-room | 22.5% | 11.25% |
5-room and Executive | 25% | 12.5% |
*Only for 2-room flat owners upgrading to larger flat-type
- Submit OTP to bank
- Receive Letter of Offer (LO)
- The LO is a contract stating the terms of the loan offered by the bank to the borrower
- Sign Letter of Offer (LO)
- This forms a binding contract between the bank and the borrower
- Sign and send S&P to the developer, and pay the balance down payment of 20% of purchase price, less booking fee paid
- The developer may allow buyers to pay the balance down payment within 8 weeks of the Option date
- If Option is not exercised, 25% of the booking fee will be forfeited with the remaining 75% refunded to buyer
- Pay Stamp Duty within 2 weeks of signing S&P
- The Buyer’s Stamp Duty (BSD) is computed based on the purchase price or market value of the property, whichever is higher
- Buyer needs to pay BSD of 1% on the first $180,000, 2% on the next $180,000 and 3% on the remaining amount of the purchase price
- Bank makes loan disbursement to developer according to schedule of payment
- The bank will send a Loan Disbursement Advice and notice to start monthly repayment
- Start monthly repayment for your home loan
Schedule of payment
- The purchase price will be paid in installments according to the Standard Payment Scheme
- Notice of progress payments must be supported by the architect’s Certificate of Stage Completion
Stage | Payment under a standard payment scheme ( % of purchase price ) |
|---|---|
Upon the grant of Option to Purchase | 5% - 10% (booking fee) |
Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date | 20% less booking fee |
Completion of foundation work | 10% |
Completion of reinforced concrete framework of unit | 10% |
Completion of partition walls of unit | 5% |
Completion of roofing/ceiling of unit | 5% |
Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit | 5% |
Completion of car park, roads and drains serving the housing project | 5% |
Temporary Occupation Permit or Certificate of Statutory Completion | 25% |
On completion date | 15% |
Expected TOP and Vacant Possession Date
- The developer may provide an estimated Temporary Occupation Permit (TOP) date. The actual TOP date may vary depending on construction progress
- The developer is contractually bound to deliver Vacant Possession of the property by the date stated in the OTP and S&P. Failing which, the developer has to pay liquidated damages to the buyer
Source: HDB , URA, IRAS, The Edge Property
https://www.edgeprop.sg/property-news/guide-buying-executive-condominium
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