BTO flat buyers affected by Covid-19 construction delays may be able to cancel booking without penalties
The Straits Times, 7 July 2021, Wed 12:45pm
By Michelle Ng
Home buyers affected by Build-To-Order (BTO) construction delays may be able to cancel their flat booking without penalties. They can appeal, and the Housing Board will consider each case depending on the individual circumstances.
For instance, there could be buyers hoping to cancel their BTO booking to get a resale flat to meet urgent housing needs, the Ministry of National Development (MND) said in various written parliamentary replies on Monday (July 5).
"We recognise the challenges faced by flat buyers given the Covid-19 situation and HDB will consider waiving forfeiture based on an assessment of the flat buyers' specific circumstances," said MND.
Typically, buyers who cancel their flat booking will have to forfeit either their option fee which ranges from $500 to $2,000, or the 5 per cent of the flat purchase price paid in advance, depending on which stage of the process they are in.
In addition, they have to wait out a one-year period before they can apply for another subsidised unit, either BTO or a resale flat with grants.
"These measures are in place to ensure that buyers are serious when they buy a flat and do not deprive others with urgent housing needs of the opportunity to do so," said MND.
However, if buyers are successful in their appeal, the HDB will waive the financial penalty and the one-year wait-out period.