I RECENTLY bought a resale flat and the completion was scheduled for October.
However, the seller refused to move out of her home then as she had not obtained the keys to her new flat. So, she asked HDB to delay the completion to November.
Delaying completion invites ‘late completion interest’. In private property transactions, this interest is deducted from the sales proceeds before they are disbursed to the seller. However, in HDB transactions, I have been told that the seller has to issue a separate cheque to pay the interest.
And to my understanding, if the seller refuses to pay the interest on completion, I will have to seek legal action to pursue it.
I was also told by HDB that most buyers desist from legal action to avoid the hassle.
Why is there a difference in the law governing ‘late completion interest’ in private and HDB property transactions?
Buyers become innocent victims when sellers come up with a selfish reason not to complete the transaction on time. The law governing ‘late completion interest’ in HDB transactions needs to be tweaked so sellers do not abuse the system and abide by the schedule set by HDB.
Cheryl Tan (Miss)
Source : Straits Times – 11 Dec 2009
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