What’s wrong for buying a SoHo, which is not following Schedule H sale & purchase agreement? Please look at the example of payment schedule shown on below.
Did you found anything wrong about it?
“Within fourteen (14) days after receipt by the Purchaser of the Vendor’s written notice of the commencement of: -”
Whenever the developer COMMENCE works for each stage, they are starting to claim your bank, which means you have to start paying the progressive interest!
Whereas, under Schedule H, the word of “COMPLETION” is used instead of “COMMENCEMENT”, can you see the difference now?
Table: Schedule of Payment for SoHo (Not Following Schedule H SPA)
| No. | Installments Payable | % |
|---|---|---|
| 1. | Immediately upon the signing of this Agreement | 10 |
| 2. | Within fourteen (14) days after receipt by the Purchaser of the Vendor’s written notice of the commencement of: - | |
| a) the earthwork to the said building comprising the said Parcel | 12.5 | |
| b) the piling, foundation and footing works of the said building comprising the said Parcel | 15 | |
| c) the reinforced concrete framework of the said building comprising the said parcel from foundation up to podium level | 10 | |
| d) the reinforced concrete framework and floor slab of the said Parcel | 12.5 | |
| e) the wall of the said Parcel | 10 | |
| f) the electrical wiring, plumbing (without fittings) to the said Parcel | 5 | |
| g) the internal plastering of the said Parcel | 5 | |
| h) the road serving the said building comprising the said Parcel | 5 | |
| i) the drain serving the said building comprising the said Parcel | 5 | |
| j) the sewerage works serving the said building comprising the said Parcel | 5 | |
| 3. | Upon handing over of vacant possession of the said Parcel | 5 |
| Total | 100 |
Before 2007, serviced apartment (apartment or condominium built on land with commercial status) was categorized as commercial property and not protected by HDA (Housing Development Act). In another words, Schedule H was not applicable.
In 2007, thanks to ex-Minister of Housing and Local Government, Tan Sri Ong Ka Ting, who had initiated to the amendment of Housing Development (Control and Licensing) Act 1966 in providing protection for buyers of serviced apartment built on commercial land.
Related Articles: Is SoHo Covered / Protected by HDA (Housing Development Act)?
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