Guide to Buying Executive Condominium

By Lin Zhiqin

/ The Edge Property |

June 10, 2016 12:00 PM SGT

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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

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