Have you bought or leased the property from the developers? Good news! You can now apply for temporary legal protection should you encounter difficulties making payments because of the COVID-19 pandemic.
The (Temporary Measures) Bill provides temporary relief from certain legal action for non-residential leases, construction or supply contracts, event agreements, tourism-related contracts and secured loan facilities. The relief measures took effect from 20 April and will last for six months.
What does the Temporary Measures Bill extension cover?
With the circuit breaker extension, the Act will now cover buyers who have entered:
- Option to purchase (OTP) agreements
- Sale and purchase agreements (S & PA)
- Agreements for lease for residential properties
The Bill does not cover agreements made between individuals, only contracts between:
- Buyers and private property developers
- Buyers and the Housing & Development Board (HDB)
Like other contracts covered by the Act, these contracts must have been entered into before 25 March 2020, with contractual performance due on or after 1 February 2020.
What are the steps to apply for the relief measures?
- Before applying for relief, you should first seek an extension from the developer.
- If you are unable to agree on the terms of the extension, or if negotiations with the developer are not possible, you must serve a Notification for Relief (NFR) on the developer to enjoy relief under the Act.
What are the implications of this?
- For OTP agreements, the developer will then be prohibited from withholding or forfeiting any part of the booking fee paid under the agreement during the relief period.
- For S & PA or agreement for lease, the developer will be prohibited from terminating the agreement on the basis of the buyer’s non-payment.
The Real Estate Developers’ Association of Singapore (REDAS) said the relief measures will help property buyers during these challenging times.
Keep your family safe during this period by boosting your body’s natural defences.
Source: Channel News Asia