SETIA 10:90 is the build-then-sell (BTS) scheme where purchasers pay only 10% upon signing of sale and purchase agreement (SPA) and pay the balance 90% only after the completion of property. The spa used will be either schedule I (for landed property - individual title) or schedule J (for subdivided building - strata title properties).
In a deferred payment scheme, purchaser is still invoiced according to the payment schedule allowed by schedule G & H. The developer then allows the purchaser to make payments either later or in instalments, either charging or waiving any late payment interest.
In a BTS scheme, there is no need to defer any payments. Apart from the first 10% being billed at the point of signing SPA, there is no other progressive billings until the completion of property. The remaining 90% of purchase price is invoiced upon delivery of vacant possession supported by the certificate of completion and compliance.
Purchaser has to sign the SPA within 14 days from the date of letter of offer to purchase. 10% of the purchase price has to be paid upon signing of SPA.
Purchasers who wish to apply for end financing shall do so within 30 days after receiving the stamped SPA. However, they are encouraged to apply for financing as early as possible even within 14 days after receiving the letter of offer to ensure there is sufficient funding for the purchase.
Same as above.
Banks will not disburse the loan until the building is certified completed and the developer issues the invoice for 90% of the balance of purchase price. As such purchasers need not service any progressive loan interest during construction period.
Certain banks may require that the purchasers undergo for re-assessment and re-validation of their ability to service the loan either18 months after loan contracts are signed or 6 months before the vacant possession of the property.
In a residential property purchase where schedule I & J is relevant, as long as the SPA is not signed, no penalty is charged and the entire amount of any payment made is refunded. After the SPA is signed, 10% of the purchase price shall be forfeited by the developer. In a commercial property purchase, the penalty amount is determined by the terms and conditions of the purchase as stated in the SPA.
Should be the loan cover less than 90% of the purchase price (“loan amount”), the purchaser is to pay the difference between loan margin and 90% payment due (“balance differential sum”) upon receipt of the developer’s written notice of delivery of vacant possession supported by the certificate of completion and compliance (“VP billing”).
Both payment of balance differential sum and loan amount is due within 30 working days after the receipt of VP billing. Failure to comply will attract late payment charges at the rate of 10% p.a. For any sum outstanding.
10% payment shall be forfeited if a purchaser wishes to discontinue the sale for whatever reasons. The developer has the rights to sell the property to another purchaser.
The purchaser may assign his rights to a third party after full payment of the purchase price. The conditions may differ in a commercial property purchase.