The Residential Property (Amendment) Act 2006 (Act 9 of 2006) ("RPA Changes") came into effect on 31 March 2006. The RPA Changes have advantages all round for developers and home purchasers. It has also simplified some of the procedures for submission of documents.
The key highlights of the RPA Changes are as follows:
For Developers
Developers Under A Qualifying Certificate
- Banker's Guarantee reduced to 10%
- Restriction on sale of vacant undeveloped land/sale of shares
Developers Under A Clearance Certificates (Singapore Members)
The RPA Changes provide that the developer shall submit a list of the developer's members and directors with particulars of their nationality and such other particulars as required by the Controller. The application process for the Clearance Certificate and compliance to retain the Clearance Certificate has also been made much simpler. There is no requirement to file the Memorandum and Articles of Association or a yearly statutory declaration in relation to the status of the developer's members and directors. However, the developer may be required to produce the register of members and directors for the Controller's inspection at any time.
For Purchasers
Foreigners Buying Residential Properties
Under the RPA Changes, there is more flexibility to allow a foreigner to buy any flat used for residential purposes. This includes a unit in a condominium or an executive condominium. There is no change to the existing position that foreigners cannot buy dwelling houses (ie landed properties, including strata landed developments).
Where consent is required from the Controller, Section 25 of the Residential Property Act (as amended by the RPA Changes) continues to apply but with a new provision that the Controller may require security (which may be in the form of a banker's guarantee) to be provided by the foreign person to ensure compliance with the terms imposed by the Controller on the foreign person buying the dwelling house.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.