Purchasing a condominium unit in Singapore is a major financial and legal commitment. To ensure a smooth and successful transaction, it is essential for buyers to understand and follow the necessary legal procedures. This is especially true when considering a development like Faber Residence Condo, which has become a desirable option for homeowners and investors alike due to its prime location and comprehensive amenities.
If you’re planning to buy a unit at Faber Residence, it is vital to review a legal checklist before signing any agreement or transferring funds. This checklist will help safeguard your interests and ensure compliance with Singapore’s property laws.
1. Verify Developer Credentials and Project Approval
Before proceeding with a purchase, confirm that the developer is registered with the Urban Redevelopment Authority (URA) and has obtained all the required approvals for the project. This includes building plans, sale licenses, and permits from the Building and Construction Authority (BCA).
Faber Residence is developed by an experienced team, but as a buyer, it is your responsibility to ensure that the development is fully approved and complies with legal requirements.
2. Appoint a Qualified Conveyancing Lawyer
It is essential to engage a licensed conveyancing lawyer to handle your property transaction. Your lawyer will carry out legal due diligence, draft and review contracts, verify title deeds, and handle the submission of necessary documents to government agencies.
A good lawyer also ensures that you understand your legal obligations under the Option to Purchase (OTP) and Sale and Purchase Agreement (S&P), which are binding legal documents.
3. Understand the Option to Purchase (OTP)
When you decide to buy a unit at Faber Residence, the developer will issue an Option to Purchase. This legal document gives you the exclusive right to purchase the property within a stipulated period, usually 14 to 21 days. A booking fee—commonly 5% of the purchase price—is paid to secure the OTP.
During this option period, your lawyer should conduct a title search, confirm the developer’s rights to sell the property, and ensure no encumbrances exist on the title.
4. Review the Sale and Purchase Agreement (S&P)
The S&P Agreement outlines all the key terms of the property purchase, including payment timelines, completion schedule, and penalty clauses. It is a legally binding contract, so it must be thoroughly reviewed by your lawyer before signing.
Ensure that the contract includes provisions for any promised features or amenities, unit specifications, and warranty periods. Check that the completion date and penalties for late delivery are clearly stated.
5. Check for CPF Usage and Loan Eligibility
If you are planning to use CPF funds for the purchase, confirm with your lawyer and the Central Provident Fund Board that your usage is in compliance with CPF rules. This includes ensuring the remaining lease tenure of the property meets the minimum eligibility criteria.
You should also secure an In-Principle Approval (IPA) from a bank before committing to the purchase. This determines the amount you can borrow and affects how much cash you need to pay upfront. Your lawyer will work with your banker to ensure all loan documentation is in order.
6. Understand Stamp Duties and Taxes
Before completing your purchase, be aware of the taxes involved. This includes:
- Buyer’s Stamp Duty (BSD): A mandatory tax based on the purchase price or market value of the property, whichever is higher.
- Additional Buyer’s Stamp Duty (ABSD): Applicable if you already own other properties or are a foreign buyer, subject to prevailing rates.
Your lawyer will calculate and ensure timely payment of these duties, as failure to do so may result in penalties or delays.
7. Review Schedule of Payments
Faber Residence, like most new developments, follows a progressive payment schedule based on construction milestones. It is important to understand this timeline and ensure you have the financial readiness to meet each stage.
Your lawyer will coordinate with the developer and financial institutions to release payments accordingly. Keeping to the schedule is essential to avoid late payment penalties and legal complications.
8. Ensure Proper Handover and Completion
Once the project is completed, the developer will issue a Notice of Vacant Possession. At this stage, conduct a thorough inspection of your unit. Report any defects under the one-year Defects Liability Period (DLP).
Your lawyer will facilitate the transfer of title and ensure you receive a clean title deed and Certificate of Strata Title. This marks the legal completion of your property purchase.
Conclusion
Buying a unit at Faber Residence Condo offers numerous benefits, but it is also a process that demands careful legal scrutiny. By following this legal checklist—covering developer verification, contract review, financing compliance, and tax obligations—you can protect your interests and avoid common pitfalls. With the right legal guidance and due diligence, your investment in Faber Residence can be a secure and rewarding decision for years to come.