PROMISES BY DEVELOPERS IN HOUSING BOOM

PROMISES BY DEVELOPERS IN HOUSING BOOM

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(Assistance to buyers when developers cannot meet standards): **

1.

Dr Fatimah Lateef asked the Minister for National Development in light of the housing boom and increasing purchases of properties such as condominiums, whether the Building and Construction Authority will assist buyers when developers cannot meet the standards promised in their initial brochures and agreements as claimed.

Mr Mah Bow Tan: The Government has put in place safeguards under the Housing Developers (Control and Licensing) Act to protect the interests of purchasers who are buying uncompleted private residential properties. Under the Act, developers are required to ensure that no false or misleading information is included in advertisements for their housing projects, including the sales brochures.

Licensed developers(1) are required to use the prescribed Option to Purchase, and Sale and Purchase (S & P) Agreement forms in the sale and purchase of the units. These prescribed forms seek to ensure a fair contract in the sale and purchase of the property, and provide an avenue for a purchaser to seek recourse should the developer fail to complete the unit according to the specifications as stated in the S & P Agreement.

Licensed developers are also required to build the unit and housing project according to the approved building plans and specifications set out in the S & P Agreement. These include the type of floor tiles, sanitary fittings, cabinets and wardrobes provided in the unit. If there are any defects in the unit or housing project that surface within the 1-year defects liability period provided for in the prescribed S & P Agreement, the purchaser is entitled to require the developer to rectify these defects at no charge. In the event that the developer fails to rectify the defects, the purchaser may follow the procedures set out in the S & P Agreement to claim the cost of rectification works from the stakeholding money held by the Singapore Academy of Law.

In addition, the Building and Construction Authority (BCA) conducts Temporary Occupation Permit (TOP) inspections to ensure that buildings are constructed according to the approved building plans and comply with Building Control Regulations to ensure the safety of occupants.

While BCA cannot intervene in private contractual disagreements between buyers and developers, BCA will try to facilitate meetings between the parties concerned to resolve such disputes, as part of its Standard Operating Procedure for good service, whenever it receives such feedback or complaints from home owners.

(1) Developers building more than four residential units will need to obtain a Housing Developer's licence from URA

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