Relief from forfeiture of deposit, termination of contract
SINGAPORE (May 15): The Ministry of Law updated the Covid-19 (Temporary Measures) Act on May 13 to include those who have purchased residential properties directly from housing developers or from HDB, and who now find themselves unable to fulfil their obligations due to disruption caused by Covid-19.
“The expanded provisions provide an avenue for a deserving buyer caught in a difficult situation to seek up to six months’ extension to make payments for a new home purchase from a developer,” says Karamjit Singh, CEO of Showsuite Consultancy. “In so doing, the developer cannot terminate the contract or forfeit the deposits paid.” The Updated Relief will apply to those who have signed an option to purchase (OTP) a residential property, or have entered into a sale & purchase agreement (SPA) with a housing developer for the purchase of a new residential or commercial unit in a housing project.
