Section 7
of Housing Developers Project Account Rules 1995
Section 7
No monies in a Project Account of a housing development shall be withdrawn by a licensed housing developer except for all or any of the following purposes:
(a)
the payment of all outgoings including quit rent, rates, taxes, assessments and other charges levied in respect of the land on which the housing development is carried out;
(b)
the payment of stamp duty payable on a charge, caveat, debenture, guarantee or memorandum of deposit of title to secure any loan for the construction of housing accommodation in the housing development;
(c)
the payment of legal fees in respect of –
(i)
the sale and purchase agreement of the housing accommodation;
(ii)
a charge, caveat, debenture, guarantee or memorandum of deposit of title to secure any loan for the construction of the housing accommodation;
and
3
(iii)
any other matters relating to the housing development;
(d)
the payment of –
(i)
insurance premiums; and
(ii)
architect’s fees, engineer’s fees, quantity surveyor’s fees and consultant’s fees, for the housing development;
(e)
the costs of carrying out –
(i)
soil investigations;
(ii)
earthworks;
(iii)
foundation works;
(iv)
building works;
(v)
external works;
(vi)
site and boundary survey for each lot;
(vii)
infrastructure works;
(viii)
relocation of squatters; and
(ix)
other works, relating to the housing development;
(f)
the payment of monies for the contribution towards the supply of water and electricity to the housing development and any other fees payable thereof to the relevant authority responsible for the supply of water and electricity in respect of the housing development;
4
(g)
the payment of any lawful charges to any Government department or other bodies in respect of the housing development;
(h)
any refund of the progress payment pursuant to the sale and purchase agreement of a housing accommodation in the housing development;
(i)
the payment of interest and such charges to the banks or finance companies on any loan taken for the housing development;
(j)
the payment of any capital sum to redeem, in full or in part, the loan for the purchase of land for the housing development in proportion to the housing accommodations that have been sold;
(k)
the payment of cost of land where no loan is taken for the purchase of land for the housing development, to be made as follows:
(i)
an amount equal to ten per centum (10%) of the purchase price pursuant to the sale and purchase agreement in respect of a housing accommodation in the housing development where up to fifty-five per centum (55%) of the purchase price has been paid; and
(ii)
a further amount equal to the amount referred to in subparagraph (i)
where up to sixty-five per centum (65%) of the purchase price has been paid:
Provided that payment of such amounts shall be in proportion to the housing accommodations that have been sold;
(l)
the payment of any capital sum to redeem, in full or in part, the loan for the construction of housing accommodation in the housing development;
(m)
any administrative expenses (including marketing and advertising expenses)
incurred on the housing development, subject to a maximum of twenty per centum (20%) of the total cost of construction of the housing development as evaluated by the quantity surveyor and certified by the architect or engineer in charge of the housing development;
5
(n)
the payment for tax imposed on the licensed housing developer in respect of that housing development by the Inland Revenue Department; and
(o)
any other expenses reasonably incurred in relation to the housing development but such amount shall only be released by the bank or finance company with whom the Project Account is maintained upon receipt of the prior approval in writing of the Controller.
Conditions for withdrawal of monies from Project Account.