With property cooling measures such as the Additional Buyer’s Stamp Duty (ABSD), developers have implemented several different methods to improve sales. One method is the Deferred Payment Scheme (DPS).
The Ministry of National Development has called on property buyers to “exercise due diligence and prudence” before committing to acquire a property under a deferred payment scheme.
This comes as such schemes are only applicable for completed private residential developments.
“Since October 2007, the government has disallowed deferred payment schemes for uncompleted private residential properties,” said the ministry in a written answer to Parliament on Monday (6 May).
It made the statement in response to MP Zainal Sapari’s query on the ministry’s position on developers offering two-year deferments to potential buyers.
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He also asked whether the buyer and seller stamp duty will be based on the date of signing the Option-to-Purchase or the Sale and Purchase (S&P) Agreement.
To this, the ministry explained that a unit is only considered sold once the S&P Agreement has been executed.
This means the buyer’s and seller’s stamp duties will be based on the date of signing of the S&P Agreement.
“Likewise to qualify for ABSD remission, developers will have to ensure that all units within the development are sold, with the S&P Agreements executed, within the prescribed period of five years,” it added.
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Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
