The Residential Property (Amendment) Act 2010, which was enacted by Parliament on November 22, is set to come into effect on January 17.
One of the major changes to the Residential Property Act (RPA) is the requirement for individuals who renounce or lose their Singapore Citizenship or Permanent Residency to sell their restricted residential properties in two years.
Foreign beneficiaries of restricted properties will also need to dispose of their properties within five years, down from the current 10 years.
Currently, foreign property developers who are unable to complete their residential projects within a stipulated Project Completion Period (PCP) may see their Banker’s Guarantee forfeited. With the amendments, an extension charge will be levied for any time extension beyond the PCP.
The fine for unauthorised disposal of restricted residential property during the non-disposal period will also be raised to up to S$200,000. The Controller of Residential Property will be authorised to lodge a caveat on restricted residential properties acquired pursuant to an approval granted under the RPA.
Meanwhile, those found guilty of unauthorised rental of restricted residential property will face a financial penalty of S$10,000 or as high as three times the rental income earned over the period of breach, whichever is higher.