Property investment guidelines telling first time home buyer the correct procedure and effective home buying process. Here provide important home buying tips for first time home buyer.

Ensure the type of housing
The expected date of completion for landed properties such as bungalows, semi-detached houses and terrace houses is 24 months from the date of signing of the Sales & Purchase Agreement (SPA)

Subdivided buildings such as condominiums, apartments, flats and townhouses, the expected date of completion from the date of signing of the SPA is 36 months.

First time home buyer are advised to obtain complimentary brochures from housing developers, which states all necessary information such as the developers’ license number, advertisement and permit.

Land Category
Please check if the land is:
·Freehold – in its perpetuity.
·Leasehold – check number of years still valid.
Encumbrance – if the land has been mortgaged to the bank for mortgage loan.
Further info on the land can be obtained from the Land Office or the State Land Register.

Property Developer
Prior to purchase a housing property, you must ensure that the housing developer has:
·A license and it is still valid.
·An advertisement and sales permit and it is still valid.

Complimentary Brochure from Housing Developers
All brochures from developers must contained the following:
·All relevant information about the housing developer (the license number, advertisement, sales permit and the expiry date)
·Land category
·Location description and specification of building area, materials, size of building and amenities / services.
·Expected date of completion
·Price of each type of house and number of units for each type
·Reference number of the approved building plan and name of the local authority
·Rights and interest of home buyer in the SPA
As per Schedule G & H of the Housing Development (Control & Licensing) Regulation 1989.

First Payment
First payment of 10% must be made upon signing the SPA. Please note that the date of signing of SPA and payment are the same. (The housing developer is not allowed to collect any payment without the SPA being signed).

Architect Certification
A certificate duly signed by an architect or a certified engineer must support every request from the developer for payment.

Interest on late payment
An interest of 10% per annum will be charged on the home buyer or the end financer for the home buyer who fails to pay the progressive payment within 21 working days from the date of the written notice of payment from the developer.

Termination of SPA
The developer has the right to terminate the SPA if the home buyer fails to make the progressive payment or interest charged on late payment exceeding 28 days. The developer shall then send a written notice via AR registered post of its intention for the termination of SPA. First time home buyer should take seriously on the period of payment.

Infrastructure Maintenance Fee
Infrastructure is defined as road, driveway, drains, sewerage, pipelines and sewerage tank for the housing development (for land & building), road, drive, drains, sewerage, pipelines and sewerage tank for the building (for subdivided buildings).
The home buyer must pay the cost of maintaining of the infrastructure from the date of vacant possession till responsibility is taken over by the local authority or Management Corporation.

Maintenance & Management Fee
From the date of delivery of vacant possession, the home buyer shall be responsible to pay for services for:
i) Land & Building:Refusal removal, upkeep of drains and grass cutting on the road reserves until such responsibility is taken over by the relevant authority. The home buyer must pay a Six (6) months’ deposit upon handling of vacant possession. After Six (6) months, any subsequent payment shall be payable on a monthly advance if the services are still not taken over by the relevant authority.

ii) Subdivided Building:Payment starts when vacant possession is handed over for the cost of maintaining and managing the common area. The home buyer shall pay One (1) months’ deposit and three (3) months’ advance. Any payment thereafter shall be payable on a monthly advance. Under the Strata Title Act 1985, the maintenance fee must be paid to the developer from the date of vacant possession until the formation of a Management Corporation to handle the maintenance services. Then, the home buyer must pay to the Management Corporation and no longer the developer.
“Note: It is compulsory for the home buyer to pay the maintenance fee for as long as he / she owns a parcel in the said maintained building.”

Payment of Quit Rent, Assessment, etc.
The home buyer is responsible for the payment of quit rent, assessment, rate payment and other charges on subject property bought from the date of vacant possession or date of assignment, whichever is earlier.

Sinking Fund – For subdivided building only
Upon vacant possession of the subject property, the home buyer shall contribute to the sinking fund, an amount equivalent to 10% of the service charges. In respect of service charges to the sinking fund, the home buyer shall pay One (1) months’ deposit and three (3) months’ advance. Any payment thereafter shall be payable on a monthly advance. First time home buyer must take in calculation for all this fees. All the fees & charges must pay, then only obtain the housing keys from developer property.

Damages
Should the developer fails to deliver vacant possession to the home buyer within the time frame as stipulated in the SPA, the developer shall compensate to the home buyer as liquidated damages calculated on a daily rate at 10% per annum of the Purchase Price.

Vacant Possession
Vacant Possession of the building completed with water and electricity connection must be handed over within 24 calendar months for landed property and 36 calendar months for subdivided buildings from the date of signing of the SPA.

The home buyer must ensure the property is free from encumbrances before accepting notice of vacant possession. The developer must have applied for Certificate of Fitness (CFO) through Form E and the local authority must have issued a notice stating that Form E has been checked and accepted by relevant authority at time of delivery of vacant possession.

The home buyer is only entitled to enter into occupation of property upon issuance of the CFO. Renovation may be carried out after which, together with approval of the plans by the relevant authorities. The home buyer must also inspect and record for any defects, and handover to the developer for rectification works, especially first time home buyer.

Defect Liability Period
The defect liability period is 18 months after the date of delivery of vacant possession.

The Formation of Management Corporation
The Management Corporation will be created once the strata title of each individual parcel is issued to the owners. Other functions are to insure and maintain a building.

Above are buying a home knowledge for first time home buyer. Better estimate your costs, get a thorough inspection before you buy a home.

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