Property Hunter Magazine August Issue 2014 | Page 35

The core of all property transactions, for both
the purchaser as well as vendor, is the Sale and
Purchase Agreement (SPA)

Trend No 4: Understanding yourmonetary obligations under the standard SPA in HDA
1. Manner of Payment

3. Payment and Interests

This is also known as the second determining factor in the SPA, falling
right after the Purchase Price. It is worth to take into consideration that
Developer Interest Bearing Scheme or any similar scheme is no longer
allowed and the initiative of the Government to promote transparency in
property transactions has made it clear that the manner of payment has to
be consistent with the HDA. Below is a simple comparison on manner of
payment in different types of SPA under the HDA.

Attention ought to be given to the due date of the payment towards the
purchase price especially if your loan sum does not fully cover your balance
purchase price else interest will kick in upon late payment. It was prescribed in
the HDA that upon the expiration of 21 working days after Purchaser’s receipt
of the notice of payment, the late payment interest at the rate of 10% per
annum will be imposed on the unpaid amount and to be calculated on daily
basis until the full settlement thereof.

SCHEDULE G & H

SCHEDULE I & J

“Sell then Build” housing development

“Build then Sell” housing development

10% of purchase price when signing
the SPA

10% of purchase price when signing
the SPA

90% of purchase price is paid progressively throughout the construction period according to the stage
o