Executive Condominiums (EC) are a hybrid housing type that are built and sold by private developers but have eligibility conditions for purchase and sale, similar to HDB flats.

Pre-purchase checks

Time bar

• Buyers and essential occupiers who currently own the following types of properties will need to fulfill a 5-year Minimum Occupation Period (MOP):

• starting from date of key collection for flats bought directly from HDB
• starting from date of resale completion or date of transfer for HDB resale flat
• starting from date of key collection for DBSS flats bought from developers

• Buyers and essential occupiers who currently own an Executive Condominium bought from a developer will need to

• fulfill a 5-year MOP starting from the date of key collection
• wait a 30-month period from the date of disposal of the existing EC

before they can apply for a new EC or be listed as an essential occupier.

• Buyers and essential occupiers must not own or have disposed of any HUDC flats or private residential properties within the 30 months before the date of application for a new EC. In other words, if you own a private home, you must sell it and wait 30 months before you can apply for a new EC.

Prior ownership of residential property

• Persons who have bought or owned two of the following types of properties will not be eligible to apply for a new EC or be listed as an essential occupier in an application

• Flat bought directly from HDB
• EC/DBSS flat bought from developer
• HDB resale flat bought using CPF housing grant

Eligibility

• Buyer must be a Singapore citizen at least 21 years old applying with at least one other applicant that is at least 21 years old and either a Singapore citizen or Singapore permanent resident

• All applicant must be Singapore citizens if applying under Joint Singles Scheme

• Gross household income must not exceed $14,000
• Buyers must qualify under one of the following schemes:

• Public Scheme

• Form family nucleus with any of the following
• Spouse
• Parents
• Children under legal custody, care and control (for widowed or divorced applicants)

• Fiancé/fiancée scheme

• Form family nucleus with fiancé/fiancée
• Must produce Marriage Certificate to developer within 3 months from taking possession of the EC unit
• Must produce Marriage Certificate to developer before taking possession of the EC unit for buyers taking CPF housing grant

• Orphans scheme

• Form family nucleus with any of the following
• Unmarried siblings
• At least one of the deceased parents was Singapore citizen or Singapore permanent resident.
• All unmarried siblings must be listed in the same application. Siblings cannot qualify under separate Orphans schemes.
• Another single unrelated orphan

• Joint singles scheme
• Form family nucleus with another single
• Both singles must be at least 35 years old
• Not eligible for CPF housing grant for singles

• Buyers of dual-key EC units must form a multi-generation family comprising one of the following

• Married couple with parents/grandparents
• Fiancé and fiancée couple with parents/grandparents
• Widowed or divorced with children and parents/grandparents

Application and purchase procedure

• Obtain an Approval in Principle (AIP) for a bank loan

• This can be done before or after submitting e-Application
• An AIP lets you know your eligible loan quantum and the monthly mortgage
• Having an AIP before booking prevents the forfeiture of your booking fee should there be hiccups in the process of mortgage approval

• Submit e-Application to developer for eligibility check
• e-Application will be processed and developer will issue ballot number to eligible buyers
• Visit show flat and select your unit

• Buyers can back out of the purchase at any point up to this without suffering any financial penalty

• Booking of unit

• Pay 5% booking fee in exchange for Option to Purchase (OTP)

• The developer will deliver the Sales and Purchase Agreement (S&P) within 2 weeks to your address or your lawyer
• Option to Purchase is valid for 3 weeks from delivery of S&P

• Check for and pay Resale Levy

• Buyers who have received a CPF housing grant or previously bought one of the following properties then sold it, and then buys an EC from a developer where the land sale tender was not launched or closed on or before 9 December 2013 will have to pay resale levy
• new flat from HDB
• Design, Build and Sell Scheme flat
• EC from a developer
• Buyers who buy an EC from a developer where the land sale was launched or closed on or before 9 December 2013 will not need to pay a resale levy
• The resale levy payable is dependent on the flat-type of the property previously owned and the date it was sold

Resale levy for flats sold on or after 3 March 2006

Resale levy for flats sold before 3 March 2006 – based on resale price of the sold flat or 90% of the market valuation, whichever is higher

*Only for 2-room flat owners upgrading to larger flat-type

• Submit OTP to bank

• Receive Letter of Offer (LO)

• The LO is a contract stating the terms of the loan offered by the bank to the borrower

• Sign Letter of Offer (LO)

• This forms a binding contract between the bank and the borrower

• Sign and send S&P to the developer, and pay the balance down payment of 20% of purchase price, less booking fee paid

• The developer may allow buyers to pay the balance down payment within 8 weeks of the Option date
• If Option is not exercised, 25% of the booking fee will be forfeited with the remaining 75% refunded to buyer

• Pay Stamp Duty within 2 weeks of signing S&P

• The Buyer’s Stamp Duty (BSD) is computed based on the purchase price or market value of the property, whichever is higher
• Buyer needs to pay BSD of 1% on the first $180,000, 2% on the next $180,000 and 3% on the remaining amount of the purchase price

• Bank makes loan disbursement to developer according to schedule of payment

• The bank will send a Loan Disbursement Advice and notice to start monthly repayment

• Start monthly repayment for your home loan

Schedule of payment

• The purchase price will be paid in installments according to the Standard Payment Scheme
• Notice of progress payments must be supported by the architect’s Certificate of Stage Completion

Expected TOP and Vacant Possession Date

• The developer may provide an estimated Temporary Occupation Permit (TOP) date. The actual TOP date may vary depending on construction progress
• The developer is contractually bound to deliver Vacant Possession of the property by the date stated in the OTP and S&P. Failing which, the developer has to pay liquidated damages to the buyer

Source: HDB , URA, IRAS, The Edge Property