However, have it cross over your mind on the
implications of these residential properties build on
commercial development land?
Trend No. 3: Building residential on commercial development land
The effort of the legislation to protect the homebuyers did not halt the development of residential properties on commercial lands as there is demand for
these sort of properties. The concern for homebuyers nowadays are more focus on the convenience, connectivity and facilities such as having eateries,
shops and public transportation right beneath or within stone throw distance from their place of stay. Not to mention the location for such commercial
development land are usually more strategic if compare to residential land.
However, have it cross over your mind on the implications of these residential properties build on commercial development land?
Despite the effort of the legislation to circumvent such situation, the Developer may present to the authorities that the development is for commercial usage
such as office, SoHo, SoVo and SoFo notwithstanding presentations made to the homebuyer that the property is fit for residential. These include scenarios
such as the Developer is selling the units of the development as offices, the homebuyer may buy and use the unit as residential purposes without restriction.
Thus it is worth to note that the sales and purchase agreement under these scenarios are drafted by the solicitors for the Developer which naturally the
terms are in favour to the Developer. The delivery of vacant possession may exceed 36 months period, the defect liability period may be lesser than 24
months period, the forfeiture of deposit amount upon any default may be much above 10% or 20%, the payment of quit rent and assessment may not be
from the delivery of vacant possession and the list goes on whereby the purchaser has minimal bargaining power if he is to buy the property.
Meanwhile, ݡ