Q MORE than six years ago, I bought a 1,200 sq ft apartment for $750,000.
There were several defects which the developer was supposed to rectify. The developer made the promise verbally after a few inspections, but it has never been fulfilled completely despite numerous reminders.
Now, my patience has run out. There's $14,000 still withheld by the Singapore Academy of Law because of this dispute. I would like to know the following:
As the developer has not rectified the defects during this time, can I claim back the deposit to rectify them myself? Besides lodging a civil suit against the developer, which may be costly, what non-legal options are open to me? There are a few units in my estate facing the same problem. Most of the owners have paid up fully for their homes and feel that there's no recourse left for them.
A I assume you bought your property from a licensed developer and you refer to defects discovered within 12 months of the date you took possession of it from the developer.
In licensed development projects, the standard sale and purchase agreement prescribes the manner in which a portion of the purchase price has to be paid to the Singapore Academy of Law.
The amount is either 5 per cent or 13 per cent, depending on whether the certificate of statutory completion comes before or after the legal completion.
The academy will hold this sum for the vendor (that is, the developer) and the purchaser ('the stakeholder's sum'). I assume you have already quantified your claim for rectification and if so, you have to follow the academy's rules for making the claim.
Briefly, you have to file a prescribed form with the academy if you want a deduction to be made from the stakeholder's sum. If the developer disputes your claim, the developer will file another prescribed form with the academy.
The academy will release the disputed amount in either of the following circumstances:
The developer and the purchaser have come to an agreement on the disputed sum; or There is a court order on the final apportionment or division of the disputed amount. If you and the developer cannot come to an agreement, you may have to resort to litigation to have the dispute adjudicated by the court.
I assume your case is within the 'limitation period': Action cannot be brought six years after the date on which the cause of action accrued. If you do not wish to litigate, you may refer your claim, provided the developer agrees, for mediation by an independent third party.
- Thomas Toh
Honorary Secretary
Association of Management Corporations In Singapore
