Section 16

The developer of a building comprising more than 4 flats, which is a building intended for strata subdivision after its completion, shall deposit in cash with the Commissioner such sum as may be prescribed by the Minister.

The Commissioner may accept in lieu of cash an undertaking from a bank or finance company to pay the full amount or part thereof.

The deposit referred to in subsection (1) shall be paid to the Commissioner prior to the issue of the temporary occupation licence by the competent authority for any flat in the development.

The Commissioner may use the deposit for the purpose of carrying out any work which, in his opinion, is necessary to rectify any defects in the common property of the development.

Where the Commissioner has used the deposit or part thereof for the purpose of carrying out any work referred to in subsection (4), the Commissioner may direct the developer to deposit within 21 days such further sums as the Commissioner may determine in order to ensure that the developer maintains a deposit with the Commissioner of such an amount as may be prescribed by the Minister.

The deposit or the balance thereof shall be refunded to the developer on the expiry of 3 years from the date of the last certificate of fitness issued by the competent authority for any flat in the development.

Any developer who fails to comply with a direction issued by the Commissioner under subsection (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and to a further fine not exceeding $100 for every day during which the offence continues after conviction.

The Minister may exempt any statutory body or any other person from this section.

This section shall apply to any building erected before, on or after 1st December 1982.[7H