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calaislily

Late Completion Penalty For Condo

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Need some help here... anyone knows what's the formula for calculation of late completion charges? And is it calculated on a per day basis? TIA

Are you refering to Liquidated Damages? That has to depend on the contractual documents signed between developer & BCA in the initial. Usually the penalty amount is calculated based in term of weeks (1 yr= 52 wks). If using "day" will give rise to ambiguity like "non working day", 'holiday"....

May I know what is happening?

Edited by bepgof
 

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Are you refering to Liquidated Damages? That has to depend on the contractual documents signed between developer & BCA in the initial. Usually the penalty amount is calculated based in term of weeks (1 yr= 52 wks). If using "day" will give rise to ambiguity like "non working day", 'holiday"....

May I know what is happening?

We're purchasing a condo unit and selling our HDB so there's some timing issue. We have requested the condo seller for an extension of the completion date. Seller is agreeable to give the extension but wanted the late completion penalty to be imposed. I think it's not an unfair request since it's a rule but would like to know what's the formula to calculate the penalty sum.

 

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We're purchasing a condo unit and selling our HDB so there's some timing issue. We have requested the condo seller for an extension of the completion date. Seller is agreeable to give the extension but wanted the late completion penalty to be imposed. I think it's not an unfair request since it's a rule but would like to know what's the formula to calculate the penalty sum.

There is no fixed formula. Perhaps the seller will compute interest on sale proceeds. In any case, I suggest you negotiate with the seller a fixed amount that both are happy with.

 

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We're purchasing a condo unit and selling our HDB so there's some timing issue. We have requested the condo seller for an extension of the completion date. Seller is agreeable to give the extension but wanted the late completion penalty to be imposed. I think it's not an unfair request since it's a rule but would like to know what's the formula to calculate the penalty sum.

Paiseh, mis-understood yr question. There is no such thing as "late completion penalty", not to mention any formular. I suggest you to settle this in the form of "Angbao" as a goodwill gesture of appreciation.

If the seller is objective and understandable sort, you should "open book" disclose your difficulties to him.....

 

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Hi silverfins & bepgof

Thanks for your replies but it's really quite strange... cos I was told that there is such a thing as late completion penalty. Hmm...

Ask the one who told you to elaborate.

Logically speaking, the damage should be borned by the party who's caused the late completion, or who expressly asked for "late" completion. However, on the other hand, seller "earns" by able to stay longer. Resale pty usually takes abt 12 wks to exchange ownership, however there is a blank field in the OTP doc, which specifically for seller to fill in the intended completion date (last day to submit keys....)I'm not sure if you are aware of such. The "late completion" is defined as any other date later the date stated in this field, it is quite unlike HDB's OTP, which HDB and both buyer/seller have the say.

While selling my pte, I specifically asked agent abt this, as I anticipated & for safe reason, I would take longer than expected date to move to HDB due to major reno (close to cny) & agent specifically highlight the field to me.

In common law, seller is entitled to seek compensation arises out of dispute to earlier agreed completion date(in OTP). Beside based on the proceeds amount being received late (charge u prevailing mkt interest), there could be some other tangible or intangible damages done to the seller due to the delay..... Doc only mentions seller/buyer entitle to seek compensation due to disputes, but never specifically mention HOW....

Not to let yr imagination run wild, give u examples:

1. If the late completion has caused seller not being able to procure a property in due time and has "lost" the deal, consequences could be serious.

2. The interest to be earned. Say "late" amount = 500K, prevailing interest rate at 1.0% pa, and delay = 2 months. Interest payable = 500000x 0.01 x 2/12 = $833.3, so now you know roughtly the amount of the said "angbao"?.

Edited by bepgof
 

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Paiseh, mis-understood yr question. There is no such thing as "late completion penalty", not to mention any formular. I suggest you to settle this in the form of "Angbao" as a goodwill gesture of appreciation.

If the seller is objective and understandable sort, you should "open book" disclose your difficulties to him.....

Actually there is. If either party cannot complete the transaction on an agreed upon date made during the OTP, then there is a case to charge interest.

 

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