More Covid-19 time relief for HP, property deals

Janice Heng

Published Mon, Nov 16, 2020 · 09:50 PM

Singapore

TEMPORARY Covid-19 relief for options-to-purchase as well as sale and purchase agreements with property developers will now be extended until until March 31 next year, instead of its original Dec 31, 2020 expiry.

This was announced by the Ministry of Law (MinLaw) in a press release on Monday.

The extension will assist purchasers of residential, commercial and industrial properties who require more time to make their payments, particularly those who pay developers directly without taking a bank loan, with minimal impact to developers' cash flow.

It will also allow developers and purchasers to seek temporary protection from being sued during the relief period, if they are unable to perform any contractual obligations due to Covid-19.

Two other types of contracts under the Covid-19 (Temporary Measures) Act also saw their relief periods extended.

Hire-purchase and conditional sales agreements for commercial equipment or vehicles, excluding those with banks or financial institutions regulated by the Monetary Authority of Singapore, will be extended to Jan 31, 2021, from Nov 19 this year.

Rental agreements for commercial equipment or commercial vehicles will similarly also be extended to Jan 31 next year, from Nov 19 this year.

MinLaw said the other contracts covered by the Covid-19 (Temporary Measures) Act will not be affected. The Act grants temporary relief from certain contractual obligations that cannot be fulfilled due to Covid-19.

The ministry said the extension of the three types of contracts is to ensure firms can still get temporary relief up till the implementation of the recently announced Re-Align Framework, and upcoming relief related to delays in the delivery of possession.

For instance, the Re-Align Framework gives the option of an arrears repayment scheme for eligible hirers or renters of equipment or vehicle.

Extending the relief period will prevent their agreements from being terminated before they get a chance to take up the new repayment scheme.

The relief periods that will still end on Nov 19 are those for secured loans to small and medium-sized enterprises; leases and licences of non-residential property; and hire-purchase and conditional sales agreements for commercial equipment or vehicles with banks or financial institutions.

Singapore property private home sales Property developers Covid-19

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