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1. Upon agreeing to buy a property, an earnest deposit (sometimes referred to as booking fee) amounting to 2% – 3% of the agreed selling price is collected in the name of the stakeholder (usually the real estate agent).
2. Earnest deposit is collected and the Letter of Offer is completed and signed by purchaser. Owner (or vendor) will also sign the Letter of Offer to indicate acceptance of Offer.
3. Balance of 10% (i.e. 7% or 8%) of the purchase price is payable within 14 working days and upon signing of the Sale and Purchase Agreement (SPA) or on an agreed period of time. Consult your solicitor if you want to amend any clauses before signing the SPA.
4. Balance of 90% of the purchase price is to be paid within 3 months with an extension period of 1 month from date of execution of SPA or date of receipt of consent from the Developer / Statutory Body and / or relevant authorities or from the date of issuance of Certificate of Fitness, whichever is later. Interest may be chargeable on the unpaid sum calculated on daily basis.
5. If State Authority consent is needed, a six month period is given to get consent. Then, the 3+1 months commence from the date the consent is obtained.
6. Loan arrangements to be made earlier to ensure full settlement within the completion period.
7. The solicitor will ensure the property is free from any charges or encumbrances when the property is delivered to the Purchaser with or without vacant possession.
8. Vendor and Purchaser are to bear all costs and fees of their own Solicitors.