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The Urban Redevelopment Authority (URA) is seeking public feedback on proposed changes to the Sale of Commercial Properties Act (SCPA) and Sale of Commercial Properties Rules (SCPR).
It noted that the changes “will enhance transparency and raise industry standards to help buyers make informed decisions”.
Under the proposed changes, non-residential developers will be required to obtain a sales licence before they can sell the units.
“Developers will be required to apply for a licence if they are developing and selling units in uncompleted non-residential projects with more than four strata units,” said URA.
They would also be required to open and maintain a project account, in which instalments of the acquisition price received from buyers up to the issue of temporary occupation permit and construction loans for the project must be deposited.
Withdrawals would only be allowed for purposes related to the project’s development.
Non-residential developers would be required to provide basic and accurate information on the project, such as an expected date of vacant possession and tenure in advertisements.
The developers would also be required to provide additional key information on the project prior to accepting a booking fee from a prospective buyer.
“The payment schedule will be amended to set aside four percent of the purchase price for defects rectification, so that purchasers can claim the cost of rectification works if the non-residential developer fails to carry out the works,” added URA.
Meanwhile, URA will also consult the public on the proposed anti-money laundering (AML) and counter financing of terrorism (CFT) requirements for residential and non-residential developers.
URA revealed that it will “take the feedback into consideration before finalising the changes to the SCPA and SCPR legislation”.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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