Obtaining Eligibility to Buy an Executive Condominium Unit and Paying the Option Fee, Downpayment and Other Costs Related to the Purchase

Executive condominiums (ECs) are a unique housing option in Singapore that are becoming increasingly popular. ECs are built by private developers, but are subject to public housing regulations and restrictions. As such, they offer buyers the advantages of both public and private housing. While ECs may be significantly more expensive than public housing, they offer more options for customization and better amenities.

In order to buy an executive condominium unit, buyers must first meet certain eligibility criteria. The rules governing who is eligible to buy ECs are set by the Housing & Development Board (HDB) in Singapore. Generally speaking, buyers must meet the following criteria in order to be eligible to purchase an EC unit:

1. Be a Singapore Citizen or a Permanent Resident;

2. Be 21 years old or older;

3. Have a minimum annual income of $14,000;

4. Have not owned more than one public housing flat (including HDB flats and ECs) previously;

5. Have not disposed of any public housing flat within the last 30 months;

6. Have not owned any private property in the last 30 months;

7. Have not taken a housing loan from HDB for the purchase of a private property in the last 30 months;

8. Have not owned any executive condominium unit in the last 30 months;

9. Have not applied for or taken a loan from HDB for the purchase of any executive condominium unit in the last 30 months;

10. Have not taken a loan from any financial institution for the purchase of any executive condominium unit in the last 30 months;

11. Have not been declared bankrupt in Singapore; and

12. Have not been declared bankrupt in any other country.

Once a buyer has been deemed eligible to purchase an EC unit, they must pay an option fee to the developer. The option fee is usually 5% of the purchase price of the unit and is non-refundable. It is intended to give the buyer the exclusive right to purchase the unit.

After the option fee is paid, the buyer must then pay the downpayment. The amount of the downpayment depends on the purchase price of the unit. For units purchased for less than $500,000, the downpayment is 10%. For units purchased for $500,000 or more, the downpayment is 25%.

The buyer must then pay the remaining balance of the purchase price in instalments over a period of time. The buyer must also pay the legal fees, stamp duty and other miscellaneous costs associated with the purchase.

Once the EC unit has been purchased, the buyer must pay a maintenance fee to the management corporation of the EC. The management corporation is responsible for the upkeep of the EC, including the common areas and amenities. The maintenance fee is usually payable on a monthly basis.

Buying an executive condominium unit is a complex process. It requires careful consideration of the eligibility criteria, payment of the option fee and downpayment, and the payment of other costs associated with the purchase and maintenance of the unit. However, it is an attractive option for many buyers in Singapore due to the potential for customization and better amenities.

For many individuals, the thought of buying a home of their own is daunting. The purchasing process can be long, tedious, and confusing, especially when it comes to executive condominiums (ECs). In Singapore, ECs are a type of housing that is partially subsidized by the government and can be purchased by eligible citizens and permanent residents. The process of obtaining eligibility and making the payments related to the purchase of an EC unit is complex and involves many different stages. This article will outline the steps needed to buy an EC and make the necessary payments related to the purchase.

The first step in obtaining eligibility to purchase an EC is to meet the eligibility criteria. These criteria include meeting the age requirements, having an appropriate income level, and being a Singapore Citizen or Permanent Resident. In addition, buyers must not have previously purchased a private property, and must not have disposed of any public housing in the past 30 months.

Once eligibility has been established, the next step is to submit the necessary documents for the application. This includes submitting a copy of the buyer’s identity card and income documents, such as a payslip or employer’s letter. In addition, the buyer must provide documents that prove the buyer’s relationship to any other applicants, such as a marriage or birth certificate. The application must then be submitted to the Housing & Development Board (HDB) for approval.

Once the application has been approved, the buyer will be required to pay the option fee and downpayment. The option fee is a non-refundable fee that must be paid within one week of the application being approved. The downpayment, which is usually 10% of the purchase price, must be paid within eight weeks of the application being approved. The downpayment can be paid in cash Tengah Plantation Close EC or through a bank loan.

In addition to the option fee and downpayment, the buyer will also be required to pay other costs related to the purchase of an EC. These costs include the stamp duty, legal fees, and the valuation fee. The stamp duty must be paid within one month of the application being approved, and the legal fees and valuation fee must be paid within two months of the application being approved.

Once all the necessary payments have been made, the buyer will receive the keys to the EC unit. However, before the buyer can move in, there are still a few more steps that must be taken. The buyer must first register the unit at the HDB and pay the registration fee. The buyer must also obtain a Certificate of Statutory Completion from the HDB, and must register for an HDB Home Protection Scheme (HPS) policy.

In conclusion, buying an EC in Singapore requires a lot of preparation and paperwork. The buyer must meet the eligibility criteria and submit the necessary documents to the HDB. Once the application has been approved, the buyer will be required to pay the option fee, downpayment, and other costs related to the purchase. Once all the necessary payments have been made, the buyer will receive the keys to the EC unit and must complete the registration process before they can move in.