Following a no-sale order from the Urban Redevelopment Authority (URA), potential buyers who had issued cheques for units at Forestville executive condominium (pictured) are still in the dark as to the outcome of their applications, The Straits Times reported.
Without providing details on when sales can begin, the URA stated that when the development “will be made available for sale will depend on many factors, including the outcome of the investigation and the developer’s business plan”.
Developer Hao Yuan Investment could not offer a concrete answer on the timeline, but said that “there were some technical issues with regards to Forestville EC”, and its architects are trying to address them as they work closely with the authorities.
This has caused potential buyers to wonder if they can still get their preferred unit and if its layout will change.
The URA explained that changes proposed by the developer for the project had not been approved and this could lead to changes in floor layouts and unit sizes, which ultimately affect a unit’s share value.
Share value determines the share of a buyer in a housing development as well as their contribution to maintenance fees and charges for the common property.
With URA’s no-sale order, the cheques issued cannot be taken as an Option-to-Purchase (OTP), but rather as an “expression of interest”.
Unlike the OTP, an expression of interest does not have binding effect on developers, noted several experts.
“An OTP is essentially an irrevocable offer by the vendor to sell the property or unit to you based on the terms and conditions,” said Lee Liat Yeang, a partner at Rodyk & Davidson’s real estate practice group.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
SeaSuites draws strong pre-launch interest
SeaSuites the first launch in 2013
EC launch halted due to unapproved changes: URA