Progressive Payment Scheme
Fast Facts
Standard Payment Scheme refers to the payment schedule set out in the
standard Sale & Purchase Agreement (SPA).
Under the standard SPA, purchasers are required to make installment payments
of the purchase price, typically referred to as progress payments, as and
when the developer completes the different stages of construction of the
housing project. All installment payments up to the issue of Temporary
Occupation Permit are to be paid into the Project Account which the
developer is required to maintain with a bank or financial institution.
Deferred Payment Scheme is a payment scheme whereby developers allow
purchasers to defer the due date for the progress payments under the
standard payment scheme to a later date.
Besides the progress payments, other payments which a purchaser is required
to make under the Sale & Purchase Agreement include property tax and
maintenance charges.
On 26 Oct 2007, the Government withdrew the deferred payment scheme, i.e.
applications from developers to offer deferred payment scheme for new
housing projects will not be approved. However, developers who have already
obtained the Controller's approval to offer a deferred payment scheme may
continue to offer it to purchasers after 26 Oct 2007. Purchasers are advised
to check with the developers on the payment scheme being offered.
Other Payments
Besides the purchase price, there are other payments which a purchaser is
required to make under the SPA, such as the following:
• all property tax levied in respect of the unit after the purchaser
receives from the developer the Notice of Vacant Possession.
• if the unit is in a strata-titled housing project, maintenance charges for
the maintenance of the common property and the provision of cleaning and
other services from the date the purchaser actually takes possession of the
unit or the 15th day after the purchaser receives the Notice of Vacant
Possession in respect of the unit, whichever is the earlier.
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