What is the difference between the Progressive Payment Scheme and the Deferred Payment Scheme?

Under the **Progressive Payment Scheme (Normal)**, the buyer pays instalments **tied to construction milestones** at percentages prescribed by the Housing Developers Rules: a booking fee of **5% to 10%** (topped up to **20%** within 8 weeks of the Option), **10%** on foundation, **10%** on the reinforced concrete framework, **5%** each on partition walls, roofing, internal finishes and the car parks/roads/drains, **25%** on TOP and the final **15%** on legal completion and CSC (part held by the SAL as stakeholder until the CSC). The loan is drawn down progressively, so interest accrues only on what has been disbursed. A **Deferred Payment Scheme**, which defers most of the price at a **higher price**, cannot be offered on uncompleted private residential property, nor on ECs whose land tender closed on or after 8 May 2026 (MND, 8 May 2026).

Is a booking fee for a new launch refundable if the buyer changes their mind?

Only partly. The booking fee is normally **5% of the purchase price** (rule 8 of the Housing Developers Rules allows 5% to 10%), paid in cash on the grant of the OTP. If the buyer does not exercise the Option within **3 weeks** of receiving the S&P, the developer is entitled to forfeit **25% of the booking fee** and must refund the remaining **75%**. So it is neither fully refundable nor wholly forfeit — never tell a client either.

What is the difference between TOP and CSC?

**TOP (Temporary Occupation Permit)** allows the building to be **occupied** — buyers can typically move in, and the **25%** instalment falls due. **CSC (Certificate of Statutory Completion)** is the **final legal completion** of the project, issued after outstanding requirements are met; the final **15%** is tied to it and to legal completion, with 13% held by the SAL as stakeholder (8% released after the CSC issues, the last 5% on the Final Payment Date). The **defects liability period** is **12 months** from the earlier of the date vacant possession is delivered and the 15th day after the buyer receives the TOP (or CSC) and the developer's notice that the building and its services are complete (prescribed S&P, clause 17), during which the developer must make good defects at its own cost.

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Paper 2 · Sale of Private Properties (New, Resale & En Bloc) · 22 min read

Sale of Uncompleted Private Property (New Launches)

Practise this section (73 questions) → · 4.1 Sale of uncompleted private properties, in sets of about 30

Must-know for the exam

Developing more than 4 units of housing needs the Controller of Housing's licence; commercial developers need no licence, but cannot sell before building plans are approved.
The booking fee is 5% to 10% of the price (r 8), in cash; if the option lapses, the developer keeps 25% of it and refunds the rest within 4 weeks.
The developer must deliver the S&P within 14 days of granting the OTP, and the buyer then has 3 weeks (21 days) from receipt to exercise it.
Under the Progressive Payment Scheme, 20% including the booking fee is due within 8 weeks of the OTP, before any construction milestone; 10% each follows for foundation and framework.
25% falls due on TOP; of the last 15%, 13% usually goes to SAL as stakeholder, which keeps 5% until the defects liability period ends.
Late vacant possession costs the developer liquidated damages of 10% a year on instalments paid, calculated daily; an area shortfall cuts the price only beyond 3%.
Before taking a booking fee the developer gives the Form 3 particulars, including a scaled floor plan, and the CDD notice; unapproved projects may not collect cheques (CEA PC 04-13).
A developer's option can never be assigned, but the S&P can: the developer signs a new S&P with the assignee within 3 weeks of her notice, or on the assignment if later.
The defects liability period runs 12 months from the earlier of handover and the 15th day after the buyer receives the TOP and completion notice; repairs are due within 1 month.
BCA's CONQUAS (since 1989) scores workmanship; banding ranks projects, developers and builders from Band 1 (fewest defects) to 6; the Quality Mark certifies individual private homes.

On this page · 12 sections

A new launch is the sale of an uncompleted (under-construction) private residential property directly by a licensed housing developer. Unlike a resale, the buyer is committing to a home that does not yet physically exist, so the law wraps the transaction in a set of statutory protections — a sale licence, prescribed forms, staged payments and a ring-fenced project account. This lesson covers the framework you need for RES Paper 2 and how it differs from a completed/resale deal.

The regulatory framework

The sale of uncompleted private residential property is governed by the Housing Developers (Control and Licensing) Act (HDCLA) and the Housing Developers Rules. Anyone in the business of developing more than 4 units of housing accommodation is a housing developer and needs a written licence from the Controller of Housing (HDCLA ss 2 and 4(1), sso.agc.gov.sg, current at 3 Oct 2026). Commercial uncompleted property sits under a different law, the Sale of Commercial Properties Act, which does not license developers at all; it controls when and on what prescribed terms a commercial unit may be sold (see the commercial section below).

The developer must be licensed and comply with the applicable Act before selling uncompleted units.
Sales must be documented using prescribed statutory forms — the buyer cannot be asked to waive the built-in protections.
A project account must be maintained so that buyers' monies are ring-fenced for the project.
The salesperson never holds the money. The booking fee is paid into the developer's project account, and the prescribed OTP is void if payment does not reach that account (prescribed OTP cl 1.2). A salesperson must not hold or handle money for any party in a sale (Estate Agents (Estate Agency Work) Regulations 2010, reg 7).

Prescribed forms: OTP and S&P

New launches use prescribed forms with buyer protections built in — you cannot substitute a private template. The two key documents are the statutory Option to Purchase (OTP) and the Sale and Purchase Agreement (S&P) in the standard prescribed form. On booking, the buyer pays a booking fee and is issued the OTP; the developer must then deliver the S&P for the buyer's exercise. Because the S&P is in a standard statutory form, terms such as construction milestones, timelines and buyer remedies are largely fixed by law rather than freely negotiated.

Booking fee — normally 5% of the purchase price, paid on the grant of the OTP. Rule 8 of the Housing Developers Rules sets it at not less than 5% and not more than 10% (sso.agc.gov.sg, current at 22 Sep 2026). It must be paid in cash; CPF and the bank loan cannot be used at this stage.
The developer must deliver the S&P within 14 days of granting the OTP.
The buyer then has 3 weeks (21 days) from receipt of the S&P to exercise the Option by signing and returning it.
If the buyer does not exercise, the developer may forfeit 25% of the booking fee and must refund the remaining 75% within 4 weeks after the option expires (prescribed OTP cl 5.1) — so on a $2m unit the $100,000 booking fee costs $25,000 to walk away from, not the whole sum and not nothing.
The option is personal. The buyer may not assign or transfer the developer's OTP, and the developer need not sell to a nominee (prescribed OTP cl 6). There is also no cooling-off period on a booking; the 3-week exercise window is the buyer's protection.

Feature	New launch (uncompleted)	Resale (completed)
Seller	Licensed housing developer	Private individual owner
Documents	Prescribed statutory OTP + standard S&P	Private OTP + completion
Payment	Progressive (or deferred, where offered)	Deposit + balance on completion
Monies protected by	Project account	Solicitors' conveyancing process
Typical completion	On TOP / CSC of the project	Roughly 8–12 weeks after option exercised

New launch (uncompleted) vs resale (completed) — how the transaction differs

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A buyer pays a 5% booking fee on a $1.6m new launch, then lets the option lapse. What does she lose?Show answer
$20,000. The fee is $80,000; the developer may forfeit 25% and must refund the other 75% ($60,000) within 4 weeks. She had 3 weeks from receiving the S&P, which the developer must deliver within 14 days of the OTP.
Under the Progressive Payment Scheme, what is due at TOP and what is left for CSC?Show answer
25% within 14 days of receiving the TOP and the developer's completion notice, and the final 15% on legal completion and CSC. Only 20% is payable before any construction milestone.
When does the defects liability period start and how long does it run?Show answer
12 months from the earlier of delivery of vacant possession and the 15th day after receiving the TOP (or CSC) with the completion notice. It does not run from CSC. The developer has 1 month to rectify after written notice.
What does a developer owe if it hands over vacant possession late?Show answer
Liquidated damages at 10% a year, calculated daily on all instalments the buyer has paid, from the day after the vacant possession date until delivery. The buyer need not prove actual loss.

Common questions

What is the difference between the Progressive Payment Scheme and the Deferred Payment Scheme?: Under the **Progressive Payment Scheme (Normal)**, the buyer pays instalments **tied to construction milestones** at percentages prescribed by the Housing Developers Rules: a booking fee of **5% to 10%** (topped up to **20%** within 8 weeks of the Option), **10%** on foundation, **10%** on the reinforced concrete framework, **5%** each on partition walls, roofing, internal finishes and the car parks/roads/drains, **25%** on TOP and the final **15%** on legal completion and CSC (part held by the SAL as stakeholder until the CSC). The loan is drawn down progressively, so interest accrues only on what has been disbursed. A **Deferred Payment Scheme**, which defers most of the price at a **higher price**, cannot be offered on uncompleted private residential property, nor on ECs whose land tender closed on or after 8 May 2026 (MND, 8 May 2026).
Is a booking fee for a new launch refundable if the buyer changes their mind?: Only partly. The booking fee is normally **5% of the purchase price** (rule 8 of the Housing Developers Rules allows 5% to 10%), paid in cash on the grant of the OTP. If the buyer does not exercise the Option within **3 weeks** of receiving the S&P, the developer is entitled to forfeit **25% of the booking fee** and must refund the remaining **75%**. So it is neither fully refundable nor wholly forfeit — never tell a client either.
What is the difference between TOP and CSC?: **TOP (Temporary Occupation Permit)** allows the building to be **occupied** — buyers can typically move in, and the **25%** instalment falls due. **CSC (Certificate of Statutory Completion)** is the **final legal completion** of the project, issued after outstanding requirements are met; the final **15%** is tied to it and to legal completion, with 13% held by the SAL as stakeholder (8% released after the CSC issues, the last 5% on the Final Payment Date). The **defects liability period** is **12 months** from the earlier of the date vacant possession is delivered and the 15th day after the buyer receives the TOP (or CSC) and the developer's notice that the building and its services are complete (prescribed S&P, clause 17), during which the developer must make good defects at its own cost.

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