This is one of the questions I get asked at my public talks.
Getting keys to your property is also known as delivery of vacant possession.
Buying sub-sale properties
If you are buying properties from the sub-sale market, delivery of vacant possession takes place once the bank has disbursed the money to the seller and is usually between 3 months to 6 months.
Why 3 to 6 months? Once the SPA is signed and the balance 10% is paid, legal procedures will be initiated by our lawyers to start the title transfer process. This depends on whether –
1. it’s a leasehold property or a freehold property
2. the property is with strata title or without title
Buying from developer
A developer is required to deliver vacant possession (VP) within 24 or 36 months. If VP is delivered after the prescribe period, developer needs to compensate purchaser DAILY, unless extension of time is granted under the HDR 1989 (Read: When does time for delivery of vacant possession of property start?)
And the jury is still our when does the 24-month or 36-month period start. Is it from the date of booking fee paid? Or from the date of the S&P? (Read: When does time for delivery of vacant possession of property start?)
Of late I’ve been hearing delay in VP from my friends. There is one particular project that I am personally familiar with, was launched in January 2011, but has yet to deliver VP even today (October 2019)! And I’m still unsure when VP can be delivered as I write …
But for some of my friends who have, at last, get their keys ended up very happy. This is because, not only do they receive keys to their property, but also a big checked (in the region of 5 figures) from the developer.
As a property investor, I’ve always preferred buying from the subsale market as compared to from developer.
Not only do I get my property faster, I also get to receive my rental faster and this enable me to continue buying my properties and create more passive income.
If you have any questions or comment, feel free to drop me a personal reply or in the comment box below.