The provisions in the COVID-19 (Temporary Measures) Act have been expanded to offer protection to buyers who have purchased residential properties directly from developers or HDB, and who now find themselves unable to fulfil their obligations due to the disruptions caused by Covid-19.
In the first instance, both parties are encouraged to come to a mutual agreement on their contract extension terms, failing which the purchaser may apply for temporary relief against the developer.
“The expanded provisions provide an avenue for a deserving buyer caught in a difficult situation to seek up to 6 months extension to make payments for a new home purchase from a developer. In so doing, the developer cannot terminate the contract and forfeit the deposits paid. This is not a free pass for a buyer to terminate a purchase contract with a developer. This also does not cover a sale and purchase contract of a resale property,” says Mr Karamjit Singh, chief executive of Showsuite Consultancy.
He adds, “Likewise, this new provision also includes property developers who may now need some temporary relief from being sued for failing to fulfil contractual obligations arising from Covid-19.”