Search within Legislation

Search Results

Sale of Commercial Properties Act

(CHAPTER 281, Section 10)

Sale of Commercial Properties Rules

R 1

G.N. No. S 4/1985

REVISED EDITION 1990

(25th March 1992)

[4th January 1985]

Citation

1. These Rules may be cited as the Sale of Commercial Properties Rules.

Definition

2.—(1) For the purposes of these Rules, “developer” means any person who owns the land on which any commercial property is erected or in the course of erection.

(2) A person is said to own land if he holds, or is entitled to dispose of an estate, whether legal or equitable, in the land on which any commercial property is being or will be erected, which is —

(a)	a leasehold estate having an unexpired term of not less than 21 years computed from the date of the completion of the relevant contract for the sale and purchase of the commercial property; or
(b)	a freehold estate in the land.

No payment exceeding 10%

3. A developer of commercial properties shall not require a prospective purchaser to pay for an option or the right to purchase any commercial property a booking fee, or make any other payment by whatever name it is called, exceeding 10% of the purchase price of the property.

Developer to maintain register

4.—(1) A developer of commercial properties shall maintain a register as shown in Form A in the Schedule showing the particulars of those persons who have obtained options for the purchase of his commercial properties.

(2) The Controller or any officer authorised by him may require a developer to produce the register referred to in paragraph (1) for his inspection.

Option Form and Notice Form

5.—(1) An option for the purchase of a commercial property given by the developer of the commercial property to a prospective purchaser shall be in Form B in the Schedule.

(2) A developer who grants an option to a prospective purchaser to purchase a commercial property shall at the same time give a notice in Form C in the Schedule to the prospective purchaser.

(3) The option granted by the developer shall not be assignable or transferable.

(4) No amendment, deletion or alteration to the option referred to in paragraph (1) shall be made except with the approval in writing of the Controller.

Exclusive option

6.—(1) Where a developer has granted a person an option to purchase any commercial property, he shall not grant to any other person an option to purchase the same property until after the first-mentioned option granted by him has lapsed.

(2) An option to purchase any commercial property shall remain in force for a period of 3 weeks from the date of delivery to the option holder’s solicitors of the title deeds or copies thereof and the draft agreement for the sale and purchase of the property.

Sale and purchase agreement

7.—(1) An agreement made between a developer and a purchaser for the sale and purchase of any commercial property to which the Act applies shall be in Form D in the Schedule.

(2) No amendment, deletion or alteration shall be made to the agreement referred to in paragraph (1) without the prior approval in writing of the Controller.

Development plan

8. The developer of a commercial property shall attach a plan of the commercial property sold by him to the agreement for the sale and purchase of the property and the plan shall contain such particulars as are sufficient to enable the purchaser to lodge a caveat against the land on which the commercial property is being erected.

Assignment

9.—(1) Where the purchaser of a commercial property intends to assign or has assigned all his right, title and interest under an agreement for the sale and purchase of the commercial property made between him and a developer, the developer shall, within two weeks of service on him of a request for a new agreement to be entered into between the assignee and the developer and —

(a)	a notice of such intention to assign; or
(b)	notice of such assignment with a copy of the assignment,

serve on the assignee a proposal for the new agreement containing such terms and conditions as shall place the developer and the assignee in the same position as regards their respective rights and obligations as if the assignee were substituted for the purchaser in the original agreement.

(2) Within one week of acceptance by the assignee of the proposal referred to in paragraph (1), the developer shall, where under these Rules the proposal requires or contains any amendment, deletion or alteration to an agreement for the sale of the commercial property that requires the approval of the Controller, submit an application to the Controller for such approval or, where the approval of the Controller is not required, deliver to the assignee the new agreement for the assignee’s execution.

(3) Where a developer submits an application to the Controller pursuant to paragraph (2), he shall forthwith deliver to the assignee the new agreement for the assignee’s signature after the Controller has notified him that the proposal, amendment, deletion or alteration is approved with or without such modifications as the Controller may require.

(4) Within one week of receipt of the new agreement signed by the assignee and upon the terms and conditions of the proposal being accepted by the assignee, the developer shall sign and deliver to the assignee a copy of the new agreement.

(5) A proposal made under this rule shall be subject to the new agreement being signed by the developer and the assignee and the original agreement being rescinded and the terms and conditions thereof may provide for the following and other matters, namely, instalments of the price paid and due and payable under the original agreement and interest thereon, obligations under any agreement with the purchaser collateral with the original agreement, property tax and other outgoings, fees for maintenance of the common property, defects, rent and income and payment of fees and costs.

(6) The developer shall be entitled to charge the assignee a fee not exceeding $200 and to require the assignee to reimburse him up to the amount of $200 for costs payable to his solicitor.

(7) In this rule, “assignee” includes an intended assignee where pursuant to paragraph (1) a purchaser has given notice of intention to assign all his right, title and interest under an agreement for the sale and purchase of a commercial property made between him and a developer.

Penalty

10. Any person who refuses or fails to comply with or acts in contravention of any of the provisions of these Rules shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 6 months or to both.

Savings and transitional provisions

11.—(1) An option which has been granted by a developer prior to the 4th January 1985 to any person for the purchase of a commercial property shall continue to be in force until it has lapsed or has been exercised by the intending purchaser as if these Rules had not been made.

(2) Except as provided in paragraph (2), these Rules shall apply to any agreement for the sale and purchase of a commercial property executed at any time before or after 4th January 1985.