FAQs for EC
Read FAQs for EC purchase and check the useful EC buyer guide here. When buy EC project like Parc Canberra, we often receive quite some enquiries and a group of Frequently Asked Questions (FAQs) from EC buyers. We collect them here to assist you to experience a smooth and happy purchase process.
Section 1: General Information
Q1. What is Executive Condominium housing?
A1: The Executive Condominium Housing Scheme (ECHS) is the Government’s housing scheme to cater to the aspirations of Singaporeans to live in private properties.Executive Condominiums (ECs) are developed and sold by property developers. They are comparable in design and facilities to those in private condominiums but are sold at more competitive prices.
Similar to private condominiums, ECs are sold with strata titles. This allows buyers like you to collectively own the common property like car parks and recreational facilities. You will form a management corporation to manage and upkeep the estate that best meets the interests and requirements of the residents.
You must meet the eligibility conditions to buy an EC unit. You must remain eligible and physically occupy the EC unit for at least five years after the Temporary Occupation Permit is obtained for the EC development.
Q2. I understand that ECs are developed and sold by private property developers. What are the roles of the developers?
A2: ECs are governed by the ECHS Act. Private property developer will develop, price and sell the EC units. The developer also work with you directly on all enquires, requests or appeals. Some examples are given below.
Q3. What types of facilities are provided in an EC development? What are the selling prices?
A3: The facilities available in an EC development are generally similar to those provided in private condominiums, such as a clubhouse, swimming pool, tennis court, etc. The exact facilities and selling prices will vary from project to project. The developer will inform the public during the launch of its project.
Section 2: Eligibility To Buy An EC Unit
Q4. I am interested to buy an EC unit and would like to find out more, such as if I am eligible to buy. Who can I approach?
A4: You can approach Emmett Li (contacted @ +65 96170846) if you wish to buy an EC unit in the development. Emmett Li is a licensced professional real estate realtor at PropNex Realty Pte. Ltd. He will guide you with first hand information about EC projects in the market and eligibility check of buying EC home from the developer.
Q5. I am going through divorce proceedings and the divorce has yet to be finalised. Can I and my fiancé or fiancée apply to buy an EC Unit from the developer?
A5: No. If you and your fiancé or fiancée wish to buy an EC unit, please approach the developer after the divorce is finalised. That is after you have obtained the Certificate of Making Interim Judgment Final or Divorce Certificate for a Muslim divorce.
Q6. Can I buy an EC unit if I own a private property?
A6: If you, your spouse, or any family member to be listed in an EC application owns a private property in Singapore or overseas, you are not eligible to buy an EC unit. If you have disposed of your private property, you may apply for an EC unit after 30 months from the date of disposal of the private property.
If you wish to make an appeal, please provide the supporting documents to the developer to assess your case.
Q7. I am in arrears in paying mortgage installments for the HDB housing loan for my current flat. Do I need to pay off my debts before I can apply to buy an EC unit?
A7: Yes. You must pay the amount owed to HDB (with interest if this applies) before you may apply for a subsidised flat, which includes a DBSS flat or EC unit to be bought from property developer. You can make the payment at your HDB branch and show proof of payment to the developer when you book an EC unit.
Section 3: Application Procedures And Cancellation
Q8. What documents do I give to the developer when I book an EC unit?
A8: You have to produce documents to the developer to check your eligibility when you book an EC unit. Please refer to the procedures and terms and conditions attached in the EC sales brochure. You may also wish to check with the developer to confirm the required documents.
Q9. I have applied for a flat from HDB but have not booked a flat yet. Can I apply to buy an EC unit?
A9: Yes. If you have not booked a flat with HDB, you can apply and book an EC unit with the developer. HDB will cancel your flat application after you have booked an EC unit.
Q10. I have booked an HDB flat and have signed the Agreement for Lease. Can I buy an EC unit?
A10: If you have booked a flat in the Build-To-Order or Sale of Balance Flats exercise launched on or after March 2012 and decide to cancel the booking, you will not be eligible to apply for an EC unit within one year after the cancellation.
However, if you have booked a flat in a sale exercise launched before March 2012, you have to cancel your booking with HDB, before you can book an EC unit. You will forfeit the booking fee (if you have not signed the Agreement for Lease) or 5% of the flat’s purchase price (if you have signed the Agreement for Lease) when you cancel the booking.
Q11. What is the forfeiture if I were to give up my EC unit after I have paid the booking fee and obtained the Option To Purchase but before I execute the Sale and Purchase Agreement?
A11: If you are eligible and you choose to give up your EC unit before you execute the Sale and Purchase Agreement, the developer will impose a forfeiture of 25% of the booking fee as provided in the Option To Purchase.
Q12. I have been granted an Option To Purchase for an EC unit or DBSS flat in another project. Can I buy an EC unit in this EC project now?
A12: If you decide not to exercise the Option To Purchase for the other EC unit or DBSS flat you had booked earlier, you must inform the other developer of your decision and cancel your booking, before you can buy an EC unit in this project. Part of your booking fees will be forfeited by the other developer in accordance with the earlier Option To Purchase.
Q13. I have signed the Sale and Purchase Agreement for an EC unit or DBSS flat in another project. Can I buy an EC unit in this EC project now?
A13: If you have signed the Sale and Purchase Agreement for another EC unit or DBSS flat, you must check with the other developer on whether you can still buy another EC unit. Please note that the developer can impose a forfeiture of 20% or 5%* of the selling price (whichever applies for the project) upon termination of the Sale and Purchase Agreement and may take other actions as set out in that Sale and Purchase Agreement.
Note: * Please check with your solicitor on the forfeiture amount that applies for your EC development.
Q14. My fiancé or fiancée and I have booked an EC unit under the Fiancé or Fiancée Scheme. What is the financial forfeiture if I were to give up my EC unit after I have signed the Sale and Purchase Agreement?
A14: Under the Fiancé or Fiancée Scheme, you must produce your marriage certificate for the developer’s verification (for further details on the scheme, please refer to the EC terms and conditions). If at any point in time, there is a break-up in the fiancé and fiancée relationship, you will become ineligible to continue with your EC purchase. In this situation, the developer can terminate your Sale and Purchase Agreement and impose a forfeiture amounting to 5% of the purchase price.
If you have received a CPF Housing Grant for your purchase, you and your fiancé or fiancée will have to return the CPF Housing Grant together with accrued interest. If the full amount cannot be recovered at that juncture, the outstanding amount will be treated as a debt owed by you and your fiancé or fiancée to the Government. Both of you will also not be eligible to rent or buy or take over the ownership of an HDB flat, DBSS flat or EC unit until you have paid up this debt in full (with interest).
For more details, please approach the developer to help you further.
Q15. What is the consequence if my purchase of the EC unit is terminated after I have executed the Sale and Purchase Agreement?
A15: If your Sale and Purchase Agreement with the developer is terminated in accordance with the Sale and Purchase Agreement (for example, because you have ceased to be eligible to continue with the purchase of the EC unit), the developer will impose a financial forfeiture amounting to 5% of the unit’s purchase price. Please also check with your solicitor on other expenses related to the termination.
It is therefore very important for you to ensure that you remain eligible to buy the EC unit before and after you sign the Sale and Purchase Agreement. You must remain eligible from application to the expiry of the 5-year minimum occupation period of the EC unit.
For more details, please approach the developer to help you further.
Section 4: EC Financing
Q16. How much do I have to pay when I book an EC unit with the developer? If I proceed to sign the Sale and Purchase Agreement, how much more do I need to pay?
A16: You must pay an option fee (equivalent to 5% of the purchase price) in cash, cheque or cashier’s order upon booking of an EC unit. You must also pay the balance 15% of the purchase price according to the time frame as stated in your Option To Purchase. The CPF Housing Grant given to eligible buyers may be used for this balance down payment.
The developer may offer a progress payment scheme or a deferred payment scheme in the sale of EC units. Please check with the developer for details about the payment schedule that applies for your EC purchase.
Other payments include legal fees payable to your solicitors and stamp fees and registration fees on the legal documents for the transaction. Please check with your bank or solicitor for more information on financing matters.
Q17. I noticed that there are developers who offer both Normal Payment Scheme (NPS) and Deferred Payment Scheme (DPS). Are there any differences between the two schemes?
A17: Yes. NPS refers to the payment schedule set out in the standard Sale and Purchase Agreement. DPS is a payment scheme where a developer allows buyers to pay in a manner other than the standard payment. If you have opted for DPS, this may affect the purchase price of your EC unit. Please check with the developer for more details.
Q18. Can I use CPF money to finance the purchase of an EC unit?
A18: Yes. Under the existing CPF rules, only buyers(s) can use their CPF money to pay for their EC unit. The occupiers listed in the application are not allowed to do so.
There is a limit on the amount that can be withdrawn from CPF monies. The CPF Housing Grant will be treated as part of the CPF funds of the buyers and will be included in the computation of the CPF withdrawal limit. For more details, please check with the CPF Board.
Q19. How do I finance my EC purchase?
A19: HDB does not grant housing loan for EC purchase. Similar to private property buyers, EC buyers have to arrange for their own mortgage financing from financial institutions regulated by the Monetary Authority of Singapore.
Please check that you are able to take a home loan from a financial institution before you apply to buy an EC unit.
Section 5: CPF HOUSING GRANT
If your housing grant application is successful and you have booked an EC unit, you must complete and send the CPF Withdrawal Form RPS/1A (Residential Properties Scheme) to CPF Board for processing. This will enable you to use your CPF monies and/or the CPF Housing Grant towards the payment for your EC unit. However, if the developer has served the Notice to take Vacant Possession, you will not be eligible for the CPF Housing Grant.
Q20. How do I apply for the CPF Housing Grant?
A20: You must complete and sign the application form for CPF Housing Grant and submit to the developer when you book an EC unit. The supporting documents (for example, payslips and marriage certificate) that are required can be found in the procedures and terms and conditions enclosed in the EC brochure, as well as the application form for CPF Housing Grant. You can get the application form for CPF Housing Grant from the developer.
If you did not bring any of the supporting documents, you have to submit the outstanding ones to the developer within one week from the date of booking. If the complete set of documents is not received within the one-week deadline, you will not be considered for the CPF Housing Grant.
Q21. How will the CPF Housing Grant be given?
A21: For eligible buyers who are husband and wife and are both Singapore citizens, the CPF Housing Grant will be divided equally and credited into their respective CPF accounts. For the other cases, the CPF Housing Grant will be credited into the CPF account of the buyer who is a Singapore citizen and has not taken any housing subsidies before.
Q22. Can I use it as the downpayment for my EC unit?
A22: The first 5% of the purchase price of your EC unit must be paid in cash. You can use the CPF Housing Grant to pay for the remaining down payment (in other words, 15% of the selling price) after you have signed the Sale and Purchase Agreement.
To ensure that the CPF Housing Grant is available for your use, please submit all the documents to the developer within one week after booking an EC unit. Please also complete and submit the CPF Withdrawal Form RPS/1A to CPF Board for processing immediately upon your booking of an EC unit.
Q23. How will the CPF Housing Grant be treated if I do not complete the purchase of the EC unit?
A23: You must return the CPF Housing Grant with accrued interest to the Government if you do not proceed with the purchase of the EC unit.
Please refer to the CPF Housing Grant Form application form for more details. If you need more information, please check with the developer.
Q24. Am I eligible for the CPF Housing Grant if I apply to buy an EC unit where the Temporary Occupation Permit for the EC unit has been obtained?
A24: Yes. You will be eligible for the CPF Housing Grant if you meet the conditions for the grant and the developer has not served the Notice of Vacant Possession on you.
Q25. When I sell my EC unit in the open market in future, do I need to refund the CPF Housing Grant to the Government?
A25: No. However, when you dispose of your EC unit, you must refund all the CPF monies, including the CPF Housing Grant which had been withdrawn for the purchase of the EC unit, to your CPF account. You may then use the CPF monies returned to your CPF account in accordance with the prevailing CPF rules and policies.
Q26. Can I apply for the Additional CPF Housing Grant and the Higher-tier CPF Housing Grant to buy the EC unit?
A26: No. These grants do not apply to purchase of an EC unit.
Section 6: Premium Or Resale Levy
Q27. I am a second-timer. Do I have to pay a premium or resale levy when I buy an EC unit?
The second-timer applicants who buy EC units directly from property developers are requested to pay resale levy when apply for EC development which land sales are launched on or after 9 Dec 2013, including those where the tenders have not closed. please refer to Resale Levy page for more details.
Q28. I still own my first subsidised flat. How do I pay the resale levy when I buy an EC unit?
A28: You are given up to six months from the date of issuance of Temporary Occupation Permit for the EC development, to sell your existing flat.
However, if you have applied to buy an EC unit where the Temporary Occupation Permit has been obtained, you will have to sell or transfer your existing flat within six months from the date the developer serves the Notice of Vacant Possession on you.
The resale levy you have to pay will depend on the type of subsidised flat you own. Please refer to Part 7 and Annex C of the terms and conditions for more details.
Q29. If I buy an EC unit with or without the CPF Housing Grant from the developer now, what is the resale levy payable if I sell the EC unit and buy an HDB flat in future?
A29: After you have waited out 30 months from the sale of the EC unit and if you are eligible to buy a second subsidised flat, you must pay a resale levy of $55,000. This levy has to be paid in one cash lump sum before you can collect the keys to the second subsidised flat.
Q30. Can I proceed with the purchase of an EC unit if I do not pay the premium or resale levy?
A30: No. You will not be able to proceed as payment of the premium or resale levy is one of the eligibility conditions for EC purchase.
Section 7: Ownership Administration
Q31. Can I give up my EC unit after I have taken possession of it but within the five-year occupation period?
A31: Owners are not allowed to dispose of their EC unit before the expiry of the five-year minimum occupation period as it will be an infringement of the Executive Condominium Housing Scheme Act (Cap 99A).
Q32. What will happen if an EC owner infringes the Executive Condominium Housing Scheme Act (Cap 99A)?
A32: If an owner infringes the Executive Condominium Housing Scheme Act or its relevant regulations, his EC unit may be compulsorily acquired. The compensation payable to the owner will be in accordance with the Executive Condominium Housing Scheme (Compensation & Order of Priority) Regulations.
Q33. Can an owner sublet the bedrooms in his/her EC unit?
A33: EC owners may sublet bedrooms subject to all the subletting terms and conditions stated in HDB InfoWEB.
While no prior approval is required from the HDB, the EC owner must register the subletting of bedrooms with HDB within seven days of doing so. They must also notify HDB when they renew or terminate the subletting of bedrooms, or when there are changes to the subtenants’ details.