Executive Condominiums (ECs)
What is an Executive Condominium?
The Executive Condominium Housing Scheme (ECHS) is the Government’s housing scheme to cater to the aspirations of Singaporeans to live in private properties. Executive Condominiums (ECs) are developed and sold by private developers. They are comparable in design and facilities to private condominiums but are sold at more competitive prices. Similar to private condominiums, ECs are sold with strata titles. This allows buyers to collectively own common property like car parks and recreational facilities. When a management corporation is formed by them, it will manage and maintain the estate in a manner that best meets the flat owners’ interests and requirements. ECs are different from private condominiums in that only applicants who meet the basic eligibility conditions are entitled to buy an EC unit. Buyers are required to maintain their eligibility and physically occupy the EC unit for the first 5 years.
What types of facilities are provided in the Executive Condominium (EC) development?
The facilities available in the EC development are generally similar to those
provided in private condominiums such as a clubhouse, swimming pool, tennis
court, etc. Details of these facilities will vary from project to project. These
details will be made known by the developer during the launch of each EC
project.
What is a dual-key EC unit? Who are eligible to buy such dual-key EC units?
Generally, a dual-key EC unit is an apartment that:
- a) Has one strata title with a main door leading to both the primary and
- secondary units. The secondary unit can have its own kitchenette and
- toilet/bathroom; or
- b) Has such other layout or configuration which, creates a secondary
- space/unit within the primary EC unit, such that (for all intents and
- purposes), it is a dual-key EC unit or is one which has the potential to be
- converted into a dual-key EC unit. Dual-key EC units can only be sold to
- eligible multi-generation families.
What is a multi-generation family?
In the context of ECs, a multi-generation family refers to:
a) A married/courting couple or widow/widower/divorcee with child(ren),
who include their parent(s) and/or grandparent(s) in the EC application
either as co-owner(s) or occupier(s). Conversely, the buyers can be the
parents and/or grandparents with the married child as occupiers; or
b) Such other combinations which the HDB may, based on its prevailing
policies, consider a multi-generation family.
Eligibility to Buy an EC Flat
If a person is interested in the purchase of an EC project and would like to find out if he is eligible to buy, who can he approach?
He can approach the developer to find out on his eligibility to buy an EC unit.
Can a person who is currently going through divorce proceedings and waiting for the divorce to be finalized, apply to buy an EC Unit from the developer with his fiancée?
No, he can only apply to buy an EC unit from the developer under the Fiancé / Fiancée scheme after his divorce has been finalized. That is after he has obtained the Certificate of Making Interim Judgment Final or Divorce Certificate for a Muslim divorce
Can I buy an EC Unit if I own a private property?
If you, your spouse, or any family member to be listed in the EC application owns a private property in Singapore or overseas, you are not eligible to buy an EC unit. If you have disposed of your private property, you may apply for an EC unit after 30 months from the date of disposal of the private property.
If you, your spouse, or any family members to be listed in the EC application have a minority interest in a private property, you may wish to appeal to us for exemption from the private property rule and by submitting the necessary documents to support your appeal. Please check with the developer for more details.
I owe HDB money, for example arrears for my existing HDB flat. Do I need to pay off my debts before I can buy an EC?
Yes, you will need to pay the amount owed to HDB (with interest if applicable) before you can qualify for another subsidized housing, which includes DBSS flats and Executive Condominium units that are sold directly by private developers. You can make the payment at your HDB Branch and show proof of payment to the developer when you book an EC unit.
Application Procedures and Cancellation
What documents do I give to the developer when I book an EC unit?
You have to produce documents to the developer to check your eligibility when you book an EC unit. These documents include proof of:
- a) identity / citizenship, e.g NRIC;
b) relationship and marriage certificate;
c) income,e.g. 3 months’s pays lips (that is, payslips issued for the month of the EC application and the preceding 2 months) or an official letter from your employers stating your 3 months’ gross monthly income (that is, gross monthly income for the month of the EC application and the preceding 2 months), income tax return / assessment; and
d) other documents as the developer may require.
For further details you can refer to the Executive Condominium Application Procedures and Terms and Conditions attached in the EC sales brochure. You may also wish to check with the developer directly to know more about the required documents.
I have applied for a flat from the HDB but have not booked a flat yet. Can I apply to buy an EC Unit?
Yes, if you have not booked a flat with HDB, you can apply and book an EC unit
directly with the developer. HDB will cancel your flat application after you have
booked an EC unit.
I have booked an HDB flat and have signed the Agreement. Can I buy an EC Unit?
If you have booked a flat in the Build-To-Order or Sale of Balance Flats exercise launched on or after March 2012 and decide to cancel the booking, you will not be eligible to apply for an EC unit within one year after the cancellation. However, if you have booked a flat in a sale exercise launched before March 2012, you have to cancel your booking or terminate the Agreement for Lease with HDB before you can book an EC unit. Upon the cancellation, a financial forfeiture will be imposed by HDB.
What is the forfeiture if I were to give up my EC Unit after I have paid the Booking Fee and obtained the DzOption to Purchasedz but before I execute the Sale and Purchase Agreement?
If you give up your EC unit before you execute the Sale and Purchase Agreement with the developer, we will impose a forfeiture of 25% of the booking fee as provided in the Option to Purchase.
I have been granted an Option to Purchase for an EC Unit or DBSS flat in another project. Can I buy an EC unit in this EC project now?
If you decide not to exercise the Option to Purchase for the other EC unit or DBSS flat you had booked earlier, you will have to inform the other developer of your decision and cancel your booking, before you are allowed to buy an EC unit with us. Part of your booking fees will be forfeited by the other developer in accordance with the terms of the earlier Option to Purchase.
I have signed the Sale and Purchase Agreement for an EC Unit or DBSS flat in another project. Can I buy an EC unit in this EC project now?
If you have signed the Sale and Purchase Agreement for another EC unit or DBSS flat, you will need to check with us or the other developer on whether you can still buy another EC unit. Please note that the developer can impose a forfeiture of 20% of the selling price upon termination of the Sale and Purchase Agreement and may take such other action as set out in that Sale and Purchase Agreement.
My fiancée and I have booked an EC unit under the Fiancé/Fiancée Scheme. What is the financial forfeiture if I were to give up my EC unit after I have signed the Sale and Purchase Agreement, e.g. due to a break-up in the Fiancé / Fiancée relationship?
Under the Fiancé / Fiancée Scheme, you will need to produce your marriage certificate for the developer’s verification (for further details on the scheme, please refer to the EC Terms and Conditions). If at any point in time, there is a break-up in the fiancé / fiancée relationship, you will become ineligible to continue with your EC purchase. In this situation, the developer can terminate your Sale and Purchase Agreement and impose a forfeiture amounting to 20% of the purchase price.
If you have received a CPF Housing Grant for your purchase, you and your fiancé / fiancée will be required to return the CPF Housing Grant together with accrued interest. If the full amount cannot be recovered at that juncture, the outstanding amount will be treated as a debt owed by you and your fiancé/fiancée to the Government. Both of you will also not be eligible to rent / buy or take over the ownership of another HDB flat, DBSS flat or EC unit until you have paid up this debt in full (with interest).
For more details, please check with the developer to help you further.
What is the consequence if my purchase of the EC Unit is terminated after I have executed the Sale and Purchase Agreement?
If your Sale and Purchase Agreement with the developer is terminated in accordance with the provisions found in the Sale and Purchase Agreement (for example, because you have ceased to be eligible to continue with the purchase of the EC unit), the developer can impose a financial forfeiture amounting to 20% of the unit’s purchase price. Please also check with your solicitor on other expenses related to the transaction in the event of a termination.
It is therefore very important for you to ensure that you remain eligible to buy the EC unit before you sign the Sale and Purchase Agreement. This is because you must be able to maintain this eligibility starting from the execution of the Sale and Purchase Agreement and also throughout the period of the ownership of the EC unit.
For more details, please check with the developer to help you further.
Financing
How much do I have to pay when I book an EC unit with the developer? If I proceed to sign the Sale and Purchase Agreement, how much do I need to pay?
You will need to pay an option fee (equivalent to 5% of the flat’s selling price) in cash, cheque or Cashier’s Order upon booking of the flat. You will also need to pay the balance 15% of the Purchase Price according to the timeframe as stated in your Option to Purchase. The CPF Housing Grant given to eligible buyers may be used for this balance downpayment.
The developer may offer a progress payment scheme or a deferred payment scheme in the sale of EC units. Under the progress payment scheme, you will need to pay the balance purchase price progressively to the developer depending on the progress of the construction. The balance payments for the EC unit are by instalments based on different stages of completion as stated in the Sale and Purchase Agreement. Please check with the developer for details about the payment schedule that applies for your EC purchase.
Other payments include legal fees payable to your solicitors and stamp fees & registration fees on the legal documents for the transaction. You may wish to check with your banks or solicitor for more information regarding financing matters.
I noticed that there are developers who offer both Normal Payment Scheme (NPS) and Deferred Payment Scheme (DPS). Are there any differences between the two schemes?
Yes, there are differences between the two schemes. NPS refers to the payment schedule set out in the standard Sale and Purchase Agreement. DPS is a payment scheme where the developers allow purchasers to pay in a manner other than the standard payment. If you have opted for DPS, this may affect the selling price of your EC. You may wish to check with the developer for more
details.
Can I use CPF money to finance the purchase of an EC unit?
Yes, you may use your CPF savings to buy an EC unit.
Under the existing CPF rules, only buyers(s) can use their CPF money to pay for their EC unit. The occupiers listed in the application are not allowed to do so.
There is a limit on the amount that can be withdrawn from CPF monies. The CPF Housing Grant will be treated as part of the CPF funds of the buyers and will be included in the computation of the CPF withdrawal limit. For more details, please enquire with the CPF Board directly.
How do I finance my EC purchase?
HDB does not grant any loan for purchase of EC units. Similar to private property buyers, EC buyers will have to arrange for their own mortgage financing through banks and/or financial institutions.
You are advised to check with a bank or a financial institution that provides loans for the purchase of an EC unit on its financing terms before you submit an EC application.
CPF Housing Grant
How do I apply for the CPF Housing Grant?
You must complete and sign the Application Form for CPF Housing Grant and submit it together with all your supporting documents for example, payslips and marriage certificate to the developer when you book an EC unit. The supporting documents that are required can be found in the EC brochure on Application Procedures/Terms and Conditions, as well as the Application Form for CPF Housing Grant. You can get the Application Form for CPF Housing Grant from our show apartment office at the site of the development.
If you did not bring any of the supporting documents, you have to submit the outstanding ones to the developer within one week from the date of booking. If the complete set of documents is not received within the one-week deadline, you will not be considered for the CPF Housing Grant.
If your housing grant application is successful and you have booked an EC unit, you must complete and send the CPF Withdrawal Form RPS/1A (Residential Properties Scheme) directly to CPF Board for its processing. This will enable you to use your CPF monies and/or the CPF Housing Grant towards the payment for your EC unit [If the developer has served the Notice to take Vacant Possession, you will not be eligible for the CPF Housing Grant.
How will the CPF Housing Grant be given and can I use it as the downpayment for my EC unit?
If you are eligible for the CPF Housing Grant, it will be credited into your CPF account. The first 5% of the selling price must be paid in cash. You can use the CPF Housing Grant to pay for the remaining downpayment (i.e. 15% of the selling price) after you have signed the Sale and Purchase Agreement. To ensure that the CPF Housing Grant is available for your use, please complete and submit the CPF Withdrawal Form RPS/1A to CPF Board for their processing upon your booking of an EC unit.
How will the CPF Housing Grant be given to buyers buying the EC unit?
For eligible buyers that are husband and wife and are both Singapore citizens, the CPF Housing Grant will be divided equally and credited into their respective CPF accounts. For the other cases, the CPF Housing Grant will only be credited into the CPF account of the buyer who is a Singapore citizen and has not taken any housing subsidies before.
How will the CPF Housing Grant be treated if I do not complete the purchase of the EC unit, for example, if I do not sign the Sale and Purchase Agreement?
You must return the CPF Housing Grant with accrued interest to the Government if you do not proceed to sign the Sale and Purchase Agreement or if you are found to be ineligible for the CPF Housing Grant or to buy the EC unit in the first instance.
Do I need to return the CPF Housing Grant if I cancel my purchase of the EC unit after I have signed the Sale and Purchase Agreement?
Yes. For example if you have:-
a) bought the EC unit with your spouse and subsequently annul the marriage; or
b) bought the EC unit with your fiancé / fiancée and are unable to produce the marriage certificate as required under the Fiancé/Fiancée scheme,
you and your ex-spouse or ex-fiancé/fiancée will be required to return the CPF Housing Grant together with accrued interest. If the full amount cannot be recovered at that juncture, the outstanding amount (inclusive of interest) will be treated as a debt owed to the Government. Both of you will not be eligible to rent/buy or take over the ownership of another HDB flat, DBSS flat or EC unit until you have paid up this debt in full (with interest).
You may refer to the CPF Housing Grant Form application form for more details. If you are unsure about your case, please check with the developer.
Am I eligible for the CPF Housing Grant if I apply to buy an EC unit where the Temporary Occupation Permit for the EC unit has been obtained?
Yes, you will be eligible for the CPF Housing Grant if you satisfy the conditions for the grant and the developer has not served the Notice of Vacant Possession on you.
When I sell my EC unit in the open market in future, do I need to refund the CPF Housing Grant to the Government?
When you dispose of your EC unit, you are required to refund all the CPF monies including the CPF Housing Grant which had been withdrawn for the purchase of the EC unit to your CPF account. Please note that the CPF monies returned to your CPF account can be used in accordance with the prevailing CPF laws and policies.
Can I apply for the Additional CPF Housing Grant and the Higher-tier CPF Housing Grant to buy the EC unit?
No, the Additional CPF Housing grant and the Higher-tier CPF Housing grant are not applicable for the purchase of an EC unit.
Levy/Premium
If I buy an EC unit from the developer with the CPF Housing Grant now, what is the resale levy payable if I subsequently sell the EC unit and buy a HDB flat in future?
You will need to pay a resale levy if you subsequently buy a flat direct from HDB. This levy has to be paid in one lump sum cash before you can collect keys to the HDB flat.
Ownership Administration
Can I give up my EC unit after I have taken possession of it but within the 5-year occupation period?
Owners are not allowed to dispose of their EC units before the expiry of the 5-year minimum occupation period as it will be an infringement of the Executive Condominium Housing Scheme Act (Cap 99A).
What will happen if an EC owner infringes the Executive Condominium Housing Scheme Act (Cap 99A)?
If an owner infringes the Executive Condominium Housing Scheme Act (Cap 99A) or it’s relevant Regulations, his EC unit may be compulsorily acquired. The compensation payable to the owner will be in accordance with the Executive Condominium Housing Scheme (Compensation & Order of Priority) Regulations 1996.
Can an owner sublet the bedrooms in his EC unit?
EC owners are allowed to sublet bedrooms subject to all the subletting terms and conditions stated in our HDB InfoWeb (Buying of flat > Procedures > Conditions after Purchase of EC).
While no prior approval is required, the EC owners must register the subletting of bedrooms with HDB within 7 days of doing so. They are also required to notify HDB when they renew, terminate the subletting of bedrooms, and when there are changes to the subtenants details. They may approach the HDB Branch managing their EC to register the subletting of bedroom.
Can an owner sublet the bedrooms in his Dual-key EC unit?
Private developers market and sell dual-key EC units as one entity under one strata-title to enable multi-generation families to live together, thereby encouraging them to provide mutual care and support to each other. This is particularly important given Singapore’s ageing population. At the same time, the dual-key EC unit has the advantage of allowing such families to enjoy the privacy of separate living spaces.
The multi-generation families are required to live in the dual-key EC units for 5 years from the Temporary Occupation Permit date (i.e. within the minimum occupation period). EC owners who wish to sublet bedrooms must comply with HDB’s subletting terms and conditions. You can read more about the terms and conditions at the HDB InfoWEB under: Buying of flat > Procedures > Conditions after Purchase of EC. You must register the subletting of bedrooms with HDB within seven days of doing so. A copy of the registration form can be obtained at the HDB Branches.
Can I buy or invest in private residential property in Singapore/overseas after I have bought an EC Unit?
You cannot buy or invest in private residential property in Singapore or overseas from the time of your EC application to the expiry of the 5-year MOP.
The MOP is computed from the Temporary Occupation Permit date of the EC unit. You can buy private residential property in Singapore/overseas only after the expiry of the 5-year MOP.
When can I sell my EC unit in the open market?
You can sell your EC unit in the open market to Singapore Citizens or Singapore Permanent Residents after the 5-year MOP which starts from the Temporary Occupation Permit date in respect of the EC unit. However, you can sell it to any persons after 10 years from the Temporary Occupation Permit date.
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