Jul 27, 2011 - PropertyGuru.com.sg
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Another Design Build and Sell Scheme (DBSS) flat buyer has been issued a 20 percent penalty after his wedding was cancelled. After PropertyGuru published a story about a couple who was required to pay a penalty after they called off their wedding, another reader, John (not his real name), reported a similar incident.
He purchased a DBSS home for S$660,000 in 2008 from a developer, under the Fiancé / Fiancée Scheme and was required to turn over a copy of his marriage certificate by 20 April 2011. However, since the wedding is off, he is now disqualified from the scheme. He is also required to pay 20 percent of the purchase price as a penalty, which comes to S$132,000.
Despite his numerous appeals and even after consulting with his MP twice, he was advised to get married again. Otherwise, the developer is entitled to forfeit his deposit.
“I will be destroying my life the next three years as I need to save up again for my marriage. This is too heavy a penalty for me,” said the 29-year-old, whose monthly salary is S$2,500.
“I was with my ex-girlfriend and the location is nice. That’s why we chose this DBSS flat,” he explained, when asked why he did not opt for a more affordable Built-to-Order (BTO) flat.
When contacted, a spokesperson for the developer said, “The developer reserves the rights to terminate the sales and purchase agreement by serving a 21-day notice and forfeit 20 percent of the deposit as stipulated in clause 20 of the agreement should the buyer be no longer eligible to buy the DBSS unit.”
To keep the flat, John was told to form a family nucleus, as approved by the HDB. He is, however, unable to do so, as his parents already own a private property.
“Under such circumstances, the developer can allow another buyer, provided there is an eligible one, to take over such a unit,” added the spokesperson.
John's potential partner will have to be a non-Chinese, as the quota for a Chinese applicant has already been met.
Until such an applicant steps forward, John has to face the penalty.
To contact the journalist, you may send your message to editor@propertyguru.com.sg
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Reader Comments: (10 comments)
check before commit,not committed than then start to check.LOL
HS Tan : ya i agree. but he's such a lame guy !
YA, not SUKA SUKA you want to buy, than SUKA SUKA you don't want buy. your family biz you can do that.
maggie: if this guy really earns only 2.5k, a lot of help might be coming from his folks who owns private properties. he might be renting the dbss later for all you know. ;)
buying a home a not like buying your bags extra. think he never think twice before purchasing the flat. that's show that he never read the rules apply. when things gone wrong, he trys to blame it, also not fair.
1. I suggest we only allow couples who are legally married (with official ROM cert) to apply. If they eventually get divorce, and provide divorce papers, then they qualify for a reduced penalty of 10% say.
2. On the other hand, couples who are sure they are going to get married can apply. If they do not eventually get married, they are liable for the 20% penalty. In this case, there is an option and couples cannot complain the system is unfair.
poor guy. think marry must think twice. this poor guy so daring to purchase it, how silly of him. He is earning $2,500/-, this show that he never study is monies spending power. Wish him luck.
Danny and Sim: If you buy private, you end up losing more, especially with progressive payment. He booked the house since 2008, not 8-12 weeks ago. :D
Derek: All public policies are created for a reason. And all is fair. There has to be some compelling pros and cons between buying a DBSS and private flat. No free lunch in this world. Lol.