Your Ultimate EC Buying Guide

All You Need To Know To Get A New HDB EC (Executive Condominium) Flat
Published by admin on 16 Aug 2021 • Last Updated on 13 Dec 2021
BACKGROUND
  • Executive Condominiums (ECs) are comparable to private condominiums in terms of design and facilities. Built and sold by private developers, they are attractive options for higher-income Singaporeans.
  • ECs are considered HDB properties for their first 10 years, making them bound by HDB rules during that time.
  • When ECs hit their 11th year, they are automatically privatised, which makes them easier to buy and sell.

CHECK ELIGIBLITY
  • Qualify for one of the following HDB Eligibility Schemes: Public Scheme, Fiancé/Fiancée Scheme, or Orphans Scheme (Vast majority of Applicants are on the Fiancé/Fiancée Scheme).
  • Check which CPF Grant(s) & HDB Payment Schemes you are eligible for.
  • At least 21 years old (or 35 for Single Applicant).
  • At least one Singapore Citizen, and at least one other Singapore Citizen or PR (or a Singapore Citizen for Single Applicant).
  • Combined monthly income of not more than $16,000.
  • No Applicants own any non-HDB properties (Any non-HDB properties must be sold at least 30 months before EC application).
  • No Applicants have bought more than 1 new HDB, DBSS or EC flat (or HDB Resale flat) before.
  • No Applicants currently own an EC flat (bought from Developer).
  • No Applicants have received more than 1 CPF Housing Grant before.

ARRANGE FINANCING
Check with various banks and choose a bank for the mortgage loan amount and payment terms (See: Mortgage & Financing Guide) and to get your Approval-In-Principle (AIP) Bank Letter (HDB Loans are not valid for ECs).

I highly recommend Redbrick for their excellent mortgage advisory services. They will discuss with you the optimum bank package and can also give you a contact for a Conveyancing (Property) Lawyer at attractive rates.

  • Redbrick Mortgage Advisory — Daniel (+65 9875 4262)

SELECTION & BOOKING

SUCCESS > RECEIVE OTP
  • On Appointment Day, bring your Identity Card, Income Documents, AIP, and any grant application forms to the developer.
  • Pay the Option Fee (5% of purchase price, cash only, non-refundable) to the developer who will grant you an grant you an Option to Purchase (OTP) and Property Details Information (PDI) (such as floor plans, site plan, rules and regulations).
  • The developer will submit your documents to HDB for review.

EXERCISE OTP & SIGN S&P
  • Secure your Bank Loan, Conveyancing Lawyer, and Letter of Offer (LO). 
  • If using CPF to pay for your house, fill up and send the CPF Withdrawal Form to CPF. 
  • After about a month, HDB will approve/reject your application. If successful, you will receive the Sales & Purchase Agreement (S&P) from the developer.
  • Within 3 weeks of receiving the S&P, "exercise" your OTP by signing and delivering the S&P back to the developer. Ensure you remain eligible to pay for the EC unit or the developer can impose a financial forfeiture amounting to 20% of its purchase price.
  • Pay the developer the downpayment (15% of purchase price), stamp duties, and legal fees (can use CPF and grants, within certain limits).
  • If you choose not to go ahead, you will forfeit 25% of the Option Fee.

PROGRESSIVE PAYMENTS

  • NPS is a progressive payment scheme whereby you pay the developer according to certain construction milestones. This means that your home loan repayments will commence much earlier:
    • First 6-9 months: Foundation Work — 10% (5% Cash or CPF, 5% Bank Loan)
    • Subsequent 6-9 months: Reinforced Concrete Framework — 10%
    • Subsequent 3-6 months: Partition Walls — 5%
    • Subsequent 3-6 months: Roof — 5%
    • Subsequent 3-6 months: Doors, Windows, Plastering, Electrical Wiring, Piping — 5%
    • Subsequent 3-6 months: Car Park, Roads, Drains — 5%
    • Subsequent 3-6 months: Building, Roads, Drainage, Sewerage, Water, Gas, Electricity — 25% (Usually also  Temporary Occupation Permit (TOP) Date)
    • Subsequent 1-12 months: Final Payment Date — 15% (Usually also Certificate of Statutory Completion (CSC) Date)

  • DPS is a delayed payment scheme whereby you pay the developer the remaining 80% only when their EC receives its Temporary Occupation Permit (TOP) and you collect your keys. The downside to this is that you need to pay more for the EC (Recommended to those with outstanding mortgage loans). 

KEY COLLECTION & HOUSE INSPECTION
  • After 3-4 years, your EC is complete and you will be requested by the developer to collect your keys.
  • Apply for Fire Insurance & setup your Utilities.
  • Check your home for defects (such as wiring, plumbing, leakages, uneven flooring, defective power points, hollow/cracked tiles, scratches, chips)
  • Report any defects to the developer via their own channel (online and offline) within 7 days to avoid disputes.

RESTRICTIONS
  • You cannot rent out/sub-lease out any part of the house before the Minimum-Occupancy-Period (MOP) of 5 years from collecting the keys.
  • You cannot sell the house (except back to HDB) before the MOP of 5 years from collecting the keys.
  • You cannot buy another house before the MOP of 5 years from collecting the keys.
  • You can only sell the house to SC or PRs within the MOP of 5 years from collecting the keys. 
  • You can only sell the house to SC or PRs before the Privatisation date of 10 years after TOP.
  • You can only keep 1 dog from the list of approved breeds in your flat and cats are not allowed  before the Privatisation date of 10 years after TOP.

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