Wednesday, February 9, 2011

Application & Cancellation


Application and Cancellation

(DBSS & ECs)

How do I go about buying a DBSS flat / EC unit?
You can submit your application to me, - the Developer Sales Team.
To expedite the processing of your application, please submit all the required supporting documents promptly.
Upon selection of the unit, you will be required to pay a booking fee of 5% of the purchase price of the DBSS / EC  flat by cash/Cashier’s Order or cheque to the developer in exchange for an Option to Purchase.
After you have selected your unit/s, detailed eligibility checks on all persons listed in your application will be conducted. The developer or your solicitors will inform you on or before the signing of the Sale and Purchase Agreement whether you are eligible for the purchase. You must continue to maintain this eligibility even after you have taken possession of your unit

What documents do I need to give to the Developer when I book a unit?
You have to produce documents to the Developer for verification of your eligibility when you book a DBSS /EC flat.
These documents include proof of:


a) identity/citizenship, e.g. NRIC;
b) relationship and marital status, e.g. birth certificate and marriage certificate;
c) Income, e.g. payslip as at date of application or an official letter from their employers stating their gross income as at date of application, Income Tax Return/Assessment; and
d) other documents as required by the Developer/HDB.
For further details on documents required, please refer to the  Application Procedures and Terms and Conditions provided in your selection brochure.

I have submitted an application to buy a direct-purchase HDB flat but have not booked a flat yet. Can I apply to buy a DBSS/EC flat?
Yes, if you have not booked a flat with HDB yet, you can apply and book a DBSS /EC flat directly with the Developer. HDB will cancel your HDB flat application after you have booked a DBSS / EC flat with the Developer.

 I have booked an HDB flat and sign the Agreement. Can I buy a DBSS flat?
  If you have already booked an HDB flat and signed the Agreement but are interested in applying for a DBSS flat, you have to cancel your booking or terminate the Agreement with HDB before you can book a DBSS flat. Upon the cancellation, a financial forfeiture will be imposed by HDB.

 I have been granted an Option to Purchase/signed the Sale and Purchase Agreement for an Executive Condominium (EC) unit or another DBSS flat. Can I buy a DBSS flat now?
If you have been granted an Option to Purchase for an EC Unit or a DBSS flat and have decided not to exercise it, you will have to inform the developer of your decision not to exercise that Option to Purchase before you are allowed to buy  a unit. A forfeiture will be imposed by the developer.
If you have already exercised the Option/signed the Sale and Purchase Agreement for the EC unit or another DBSS flat, you will not be eligible to buy a DBSS flat unless the Sale and Purchase Agreement for your DBSS/EC flat purchase is rescinded. The developer must agree to the rescission and if they allow it, a forfeiture may be imposed by them.

What is the penalty if I were to give up my DBSS flat after I have paid the Booking Fee and obtained the Option To Purchase but before I execute the Sale and Purchase Agreement?
  If you give up your DBSS/EC  flat before you execute the Sale and Purchase Agreement with the Developer, the Developer will impose a forfeiture of 25% of the booking fee paid as provided in the Option To Purchase.

What is the consequence if my purchase of the DBSS flat is terminated after I have executed the Sale and Purchase Agreement?
If your Sale and Purchase Agreement with the Developer is terminated in accordance with the provisions found in the Sale and Purchase Agreement (for example, because you have ceased to be eligible to continue with the purchase of the DBSS flat), the Developer can impose a financial forfeiture amounting to 20% of the flat’s purchase price. Please also check with your solicitor on other expenses related to the transaction in the event of a termination.
It is therefore very important for you to ensure that you remain eligible to buy the DBSS/EC  flat before you sign the Sale and Purchase Agreement. This is because you must be able to maintain this eligibility starting from the point of execution of the Sale and Purchase Agreement and also throughout the period of ownership. HDB also reserves the right to take the relevant action pursuant to the Housing and Development Act (Cap 129) and its prevailing policies.

What are the possible consequences if I were to give up my DBSS/EC  flat due to a break-up in the fiancé/fiancée relationship after I have signed the Sale and Purchase Agreement?
 Under the Fiancé/Fiancée Scheme, you will need to produce your marriage certificate for the Developer’s verification as required under the Fiancé/Fiancée Scheme (for further details on the scheme, please refer to the DBSS/EC Terms and Conditions).
If at any point in time, there is a break-up in the Fiancé/Fiancée relationship, you will become ineligible to continue with the DBSS/EC purchase. In this situation, the Developer can terminate your Sale and Purchase Agreement and impose a forfeiture amounting to 20% of the purchase price paid. If you have received a CPF Housing Grant for your purchase, you and your fiancé/fiancée will be required to return the CPF Housing Grant together with accrued interest. Any shortfall has to be repaid in cash. If the full amount cannot be recovered at that juncture, the outstanding amount will be treated as a debt owed by you and your fiancé/fiancée to the Government.
Both of you will also not be eligible to rent/buy or take over the ownership of another HDB flat, DBSS flat or Executive Condominium unit until you have paid up this debt in full (with interest).

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