Singapore legislation

Clause 8

of COVID-19 (Temporary Measures) (Amendment No. 3) Bill

Clause 8

New Part 8C

The principal Act, as amended by section 7, is amended by inserting, immediately after section 39F, the following Part:“PART 8CEXTENSION OF DELIVERY DATEInterpretation of this Part39G. In this Part, unless the context otherwise requires —“affected agreement” means an agreement described in section 39H;“cash equivalent”, in relation to any payment, includes payment by a cheque, a credit or debit card or any electronic funds transfer;“commercial developer” means any person that engages in the business of commercial development, and includes the Housing and Development Board established by the Housing and Development Act (Cap. 129) and the Jurong Town Corporation established by the Jurong Town Corporation Act (Cap. 150);“commercial development” means the construction or causing the construction of any number of units of commercial property, including any building operations in, on, over or under the land for the purpose of erecting such commercial property, and the sale of land which would be appurtenant to such commercial property;“commercial property” means any building or other premises which are permitted by or under any written law for use for a commercial or an industrial purpose, or for mixed purposes the predominant purpose of which is a commercial or an industrial purpose;“delivery date” means the delivery possession date or vacant possession date provided by an affected agreement on or before which the housing developer or commercial developer must deliver possession of one or more units of housing accommodation or commercial property to the purchaser under the affected agreement;“developer” means the housing developer or commercial developer (as the case may be) that is a party to an affected agreement;“extended delivery date” means the delivery date treated as being provided by an affected agreement after an extension under section 39I;“housing accommodation” includes a building or tenement wholly or principally constructed, adapted or intended for human habitation, or for human habitation and as business premises;“housing developer” means any person that engages in a business of housing development, and includes the Housing and Development Board established by the Housing and Development Act;“housing development” means the construction or causing the construction of any number of units of housing accommodation, including any building operations in, on, over or under the land for the purpose of erecting such housing accommodation, and the sale of land which would be appurtenant to such housing accommodation;“original delivery date” means the delivery date provided by an affected agreement before any extension of that date under section 39I;“qualifying costs” means —

(a)

where, as a result of the delay in receiving possession of the unit or units in question under an affected agreement, alternative housing accommodation or alternative commercial property (as the case may be) (called in this Part alternative premises) must be obtained, any rent for such alternative premises for the period —

(i)

from and including the original delivery date provided by the affected agreement; and

(ii)

to and including the earlier of —

(A)

the actual date of delivery of possession of the unit or units in question; and

(B)

the extended delivery date; or

(b)

any of the following costs:

(i)

where, as a result of the delay in receiving possession of the unit or units in question under an affected agreement, alternative premises must be obtained —

(A)

any estate agent fees incurred for securing the alternative premises; and

(B)

any moving costs incurred in moving to the alternative premises;

(ii)

such other costs as may be prescribed;“rent” includes any licence fee and any matter that is prescribed as being rent, but excludes any service charge and maintenance charge and any other matter that is prescribed as not being rent;“unit” means a horizontal stratum of any building or part of a building, whether such stratum is on one or more levels, whether the building or part of the building is a housing development or commercial development, and which is intended for use in accordance with the provisions of any written law as a complete and separate unit for residential, commercial or industrial purpose, as the case may be.Application of this Part39H.—

(1)

This Part applies in relation to an agreement where —

(a)

the agreement was entered into —

(i)

between —

(A)

a housing developer and a purchaser for the sale and purchase of one or more units of housing accommodation; or

(B)

a commercial developer and a purchaser for the sale and purchase of one or more units of commercial property,before 25 March 2020 or pursuant to an option granted before that date; or

(ii)

between the Housing and Development Board and a purchaser for the sale and purchase of one or more units of housing accommodation or commercial property where an option for any unit of housing accommodation or commercial property within the housing development or commercial development was granted before 25 March 2020;

(b)

the agreement provides for a delivery date that is on or after 1 February 2020;

(c)

a permit to carry out structural works in any building works for the housing accommodation or commercial property was granted under section 6(3) of the Building Control Act (Cap. 29) before 7 April 2020; and

(d)

as at 7 April 2020, a temporary occupation permit in respect of the housing accommodation or commercial property has not been granted under section 12(3) of the Building Control Act.(2) However, this Part does not apply to any agreement if —

(a)

any of the following, namely:

(i)

proceedings before a court;

(ii)

arbitral proceedings under the Arbitration Act (Cap. 10);

(iii)

such other proceedings as may be prescribed,have, before 2 November 2020, been commenced in relation to a failure to deliver possession of one or more units of housing accommodation or commercial property to the purchaser under the affected agreement by the original delivery date, including any such proceedings for purposes of enforcing any order or judgment obtained in those proceedings; or

(b)

any judgment, arbitral award, or compromise or settlement entered into in the course or as a result of any proceedings in paragraph (a), has been given or made before 2 November 2020 in relation to the failure mentioned in that paragraph.Extension of delivery date39I.—

(1)

Despite any law or anything in the affected agreement, the delivery date provided by the affected agreement for the unit or units in question is extended by a period not exceeding 122 days after that date, if the developer notifies the purchaser of the period of the extension —

(a)

in the prescribed form and manner; and

(b)

within the prescribed time.(2) The delivery date may be extended under subsection (1) one or more times, except that the total period of all extensions must not exceed 122 days.(3) Despite subsection (2) —

(a)

the original delivery date may be extended for a period exceeding 122 days;

(b)

the delivery date following any one or more extensions under subsection (2) may be extended such that the total period of all extensions exceeds 122 days; or

(c)

where the delivery date has been extended under paragraph (a) or (b), the extended delivery date may be further extended,in accordance with subsections (4) and (5).(4) For the purpose of subsection (3), the developer must notify the purchaser of its intention to extend the delivery date and of the proposed period of extension —

(a)

in the prescribed form and manner; and

(b)

within the prescribed time.(5) For the purpose of subsection (3), where an assessor certifies under section 39O(1)(a) that —

(a)

the developer is unable to deliver possession of the unit or units of housing accommodation or commercial property by the delivery date in question and the inability is to a material extent caused by a COVID‑19 event; and

(b)

the developer may only be reasonably expected to deliver possession of the unit or units by the end of a specified period after the delivery date in question,then the delivery date in question is extended by the specified period in paragraph (b).(6) The developer must notify the purchaser of the assessor’s certification —

(a)

in the prescribed form and manner; and

(b)

within the prescribed time.(7) Where the delivery date is extended under subsection (1) or (5), then, despite any law or anything in the affected agreement —

(a)

the extended delivery date following the extension is treated as the delivery date provided by the affected agreement, for the purposes of the affected agreement; and

(b)

any liability for a failure to comply with the delivery date (without the extension) is extinguished, except in prescribed circumstances or to the extent prescribed.Moratorium39J.—

(1)

Despite any law or anything in an affected agreement, a purchaser of an affected agreement who is notified under section 39I(4) must not take any of the actions described in subsection (2) during the moratorium period described in subsection (3) in relation to the developer’s failure to deliver possession of one or more units of housing accommodation or commercial property to the purchaser under the affected agreement by the original delivery date or extended delivery date, as the case may be (called in this section the subject failure).(2) The actions mentioned in subsection (1) are —

(a)

making any deduction from any instalment or payment due under the affected agreement for any damages or liquidated damages and any other cost allowed under the affected agreement for a failure by the developer to comply with the delivery date; and

(b)

any prescribed action.(3) The moratorium period mentioned in subsection (1) —

(a)

starts on the day on which the purchaser is notified under section 39I(4) in relation to the affected agreement; and

(b)

ends on the earlier of the following:

(i)

the day the purchaser is notified under section 39I(6) of the assessor’s certification;

(ii)

the prescribed date.(4) Where the purchaser makes a deduction in contravention of subsection (2)(a), the purchaser is liable to repay the developer the amounts so deducted and those amounts are recoverable from the purchaser as a debt due to the developer.(5) Where any prescribed action in subsection (2)(b) is an action mentioned in section 5(3), then sections 5(5), (7), (9), (10) and (11) and 8(2), (3), (4), (5) and (6) and the regulations under section 5(12) (whichever is applicable), apply with the necessary modifications in relation to that prescribed action as they apply in relation to an action mentioned in section 5(3), and for this purpose —

(a)

a reference to the subject inability is to the subject failure;

(b)

a reference to the notification for relief is to the notice given to the purchaser under section 39I(4);

(c)

a reference to the period mentioned in section 5(7) is to the moratorium period mentioned in subsection (1);

(d)

a reference to section 5(2) is to subsection (1); and

(e)

a reference to regulations made under section 19 is to regulations made under section 39P.(6) Where any prescribed action in subsection (2)(b) is the commencement or continuation of any proceedings against the developer or the developer’s guarantor or surety before a court, an arbitral tribunal or other person or body, then any such proceedings that are already pending at the start of the moratorium period, must be stayed on the lodgment by the developer of a copy of the notice given to the purchaser under section 39I(4) with the court, arbitral tribunal or other person or body before which proceedings are brought, until the end of the moratorium period.Reimbursement by developer for costs of purchaser in extension period39K.—

(1)

Despite any law or anything in the affected agreement, where the delivery date is extended under section 39I, the developer —

(a)

is only liable to the purchaser for the qualifying costs incurred by the purchaser, up to the prescribed amount; and

(b)

is not liable for any other cost, expense, loss or other sum that the developer would, but for the extension, be liable to pay under any law or the affected agreement for failing to deliver possession of the unit or units in question on or before the original delivery date provided by the affected agreement.(2) The purchaser claiming reimbursement from the developer of the qualifying costs incurred by the purchaser, as permitted under subsection (1)(a), must do so —

(a)

in the prescribed form and manner; and

(b)

within the prescribed time.(3) The claim must be accompanied by such information or document as may be prescribed.(4) Upon receiving a claim mentioned in subsection (2), if the developer does not dispute the claim, the developer must pay the purchaser the amount claimed —

(a)

up to the prescribed amount;

(b)

in cash or cash equivalent; and

(c)

within the prescribed time.(5) The purchaser may set‑off the whole or part of any amount that the developer is liable to pay under this section against any instalment payment payable by the purchaser to the developer under the affected agreement, but may only do so —

(a)

after the moratorium period mentioned in section 39J(3); and

(b)

if the purchaser and developer have agreed on the amount that the developer is so liable to pay or an assessor has made a determination under section 39O(1)(b) on the amount that the developer is so liable to pay.Registrar of assessors39L.—

(1)

The Minister is to appoint a Registrar of assessors to whom applications may be made —

(a)

by a developer in relation to an affected agreement — for the purpose of a certification under section 39O(1)(a)(ii); and

(b)

by a developer or a purchaser in relation to an affected agreement — for a determination as to the amount the developer is liable to reimburse the purchaser under section 39K.(2) The Minister may in addition appoint Deputy Registrars of assessors.(3) Subject to regulations made under section 39P, all the powers and duties conferred and imposed on the Registrar of assessors may be exercised by a Deputy Registrar of assessors.Panel of assessors39M. For the purposes of section 39N(4), the Minister must appoint a panel of assessors comprising persons who satisfy the requirements prescribed for the purposes of this section.Application for certification or determination39N.—

(1)

An application mentioned in section 39L(1) must be submitted within the prescribed time, and in the prescribed form and manner, and be accompanied by the following:

(a)

any prescribed application fee;

(b)

any prescribed certification fee;

(c)

any other prescribed fee;

(d)

any declaration, information or document that the Registrar of assessors requires.(2) In relation to an application under section 39L(1)(b), a copy of the application and the declaration, information or document mentioned in subsection (1)(d) must be served within the prescribed time by the applicant on the other party to the affected agreement.(3) The Registrar of assessors may reject an application if —

(a)

the application is incomplete or otherwise not made or served in accordance with this section;

(b)

the Registrar of assessors reasonably suspects that any information or document provided by the applicant in or accompanying the application is false or misleading in a material particular; or

(c)

it appears to the Registrar of assessors, from the application or any information or document provided by the applicant, that the application is frivolous or an abuse of process.(4) Unless the Registrar of assessors rejects an application under subsection (3), the Registrar of assessors must appoint an assessor to determine the application and must notify the following of the same:

(a)

in relation to an application under section 39L(1)(a) — the developer;

(b)

in relation to an application under section 39L(1)(b) — the parties to the affected agreement.Assessor’s determination39O.—

(1)

The assessor must —

(a)

in relation to an application under section 39L(1)(a) —

(i)

determine whether the developer is unable to deliver possession of the relevant unit or units of housing accommodation or commercial property by the delivery date in question, and whether the inability is to a material extent caused by a COVID‑19 event; and

(ii)

determine and certify the period at the end of which the developer may reasonably be expected to deliver possession; and

(b)

in relation to an application under section 39L(1)(b) —

(i)

determine whether any costs claimed by the purchaser are qualifying costs and the amount of reimbursement that the purchaser is, under section 39K, entitled to claim from the developer; or

(ii)

where it is just and fair to do so, determine that the amount of reimbursement that the purchaser is entitled to claim under section 39K is instead, the aggregate of —

(A)

the costs set out in paragraph (a) of the definition of “qualifying costs” in section 39G; and

(B)

a prescribed percentage of the costs mentioned in sub‑paragraph (A),up to the prescribed amount mentioned in section 39K(1)(a).(2) The assessor’s certification under subsection (1)(a) —

(a)

if made in relation to all the units in a housing accommodation or commercial property — is binding on the developer and the purchaser of each of those units; and

(b)

if made in relation to any number of specified units in the housing accommodation or commercial property — is binding on the developer and the purchaser of each of those specified units.(3) The assessor’s determination under subsection (1)(b) is binding on the developer and the purchaser.(4) There is no appeal from an assessor’s determination.Regulations for this Part39P.—

(1)

The Minister may make regulations for or with respect to any matter that is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Part.(2) Without limiting subsection (1), regulations may be made for or with respect to —

(a)

the procedure and practice for proceedings before an assessor, including requiring the proceedings to be held in private and the treatment of confidential information;

(b)

the forms to be used and the information or documents to be furnished;

(c)

the manner in which the Registrar of assessors or an assessor is to exercise his or her functions or perform his or her duties;

(d)

the manner of service of any document and when it is deemed served;

(e)

the extension by the Registrar of assessors or an assessor of any time within which any document is to be filed or furnished;

(f)

the other fees to be paid in respect of an application under section 39L(1);

(g)

enabling the recovery by a party to an affected agreement of an amount from the other party that was paid before 2 November 2020 for any liability extinguished under section 39I(7)(b); and

(h)

exempting any person from any requirement under this Part, whether in whole or in part.”.