Can I deduct rectification costs from the money held by the Singapore Academy of Law?
Yes, if you follow the SPA procedure. The Singapore Academy of Law holds 5% of the purchase price as stakeholder until the Final Payment Date. Clause 17.4 lets you deduct the cost of rectification works you were entitled to carry out from that sum. You must serve a notice of deductions on the stakeholder and the developer on the same day, at least 7 working days before the Final Payment Date. If the developer disputes it, the stakeholder holds the disputed amount.
From the RRD Field Guide, checked against the sources cited in Defects in a New Condo or Landed Home Bought from a Developer: The 12-Month DLP, Your Rights and How to Claim. General information, not advice for your project.
The fuller picture
A private home bought from a licensed developer has a 12-month defects liability period under the prescribed Sale and Purchase Agreement, starting from vacant possession or 15 days after you receive the TOP or CSC papers, if earlier. The developer must fix notified defects within one month; if not, give 14 days' notice with a quotation, then rectify and deduct the cost from the 5% stakeholding.
More questions on this topic
- How long is the defects liability period for a new condo in Singapore?
- How long does the developer have to fix defects?
- What happens to defects I reported but the developer did not fix before the DLP ended?
- Who deals with defects in the common property of a new condo?
- Does BCA force developers to fix defects?
- Can the Strata Titles Board order the developer to fix defects?
- What is a good CONQUAS band or Quality Mark?