Progressive Payments are also known as the Normal Payment Scheme (NPS). This term is commonly heard when buying new launches in Singapore. It refers to part payments that are made to the developer’s as the property is being built; starting from foundation all the way till about a year after completion.
A deferred Payment Scheme (DPS) is another option apart from the Normal Progressive Payment Scheme (NPS). In the case DPS, the purchaser after paying the down payment and stamp duty that is needed to exercise the Sales and Purchase agreement, do not need to pay anything until the property is completed. This option is usually only available for Executive Condominiums. In the recent years, some completed residential properties also offer something like DPS. Some call it Stay and Pay Later, etc. Usually is for a period of one to two years before purchasers have to pay the balance after exercising the Sales and Purchase agreement.
Do take note that the purchase price of the property will be higher if opting the Deferred Payment Scheme compared to the Normal Payment Scheme.
As progressive payments apply for new launches and building under construction (BUC), this means that there are different milestones and building stages in the construction process.
- Completion of Foundation Works. – Usually takes between six to nine months.
- Completion of Reinforced Concrete Framework. – Usually takes between six to nine months.
- Completion of Brick Walls of the unit. – Usually takes between three to six months.
- Completion of Roofing and Ceiling of the unit. – Usually takes between three to six months.
- Completion of Electrical Wiring, Internal Plastering, Plumbing & Installation of Doors & Window Frames. – Usually takes between three to six months.
- Completion of Car Parks, Roads & Drains serving the project. – Usually takes between three to six months.
- Notice of Vacant Possession & Temporary Occupation Permit (TOP)
- Date of Legal Completion and/or Certificate of Statutory Completion (CSC).