Relaxation provided to residential property buyers with payment problems

    • The Singapore government is providing a temporary relief to home buyers facing difficulties in paying their EMIs due to Covid-19 by passing a law that provides additional time to individual and businesses to satisfy their contract requirements.
    • The Covid-19 (Temporary Measures) Act has been extended to support home buyers. The act which was put into effect from April 20, 2020, originally covered lease contracts in the industrial, commercial sectors along with some loans for small businesses.
    • The temporary measures will be in effect for next six months with probability of being extended for another six months. The measures have been put in place to provide some relaxation to home buyers affected by Covid-19 and have committed to buy to HDB and/or private homes as well as to safeguard the loss against their deposit or booking fees in case they are unable to fulfil the terms of their contract.
    • The temporary measures only covers agreements between property buyers and housing developers for HDB and private housing and these contracts must have been signed before March 25 with payments due on or after Feb 1, 2020. It does not cover individual to individual agreements.
    • The developers cannot terminate the agreement if the buyer is unable to make payments during the relief period but the buyer won’t get any relief for deposits and bookings that have already been forfeited.
    • The temporary measures do not cover purchase contract with developers as well as sale and purchase contract for resale properties.
  • Wherever affected parties have been provided with temporary relief from making payments, property or landowners aren’t allowed to increase interest rates or impose additional charges on delayed payments.

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