Ever heard of the term Building under construction (BUC) and have no idea what it is? Read on:

Unlike properties that has been completed, BUC properties are those that have yet to be completed. Buyers usually will visit showflats located near the actual site where the properties are build. They will rely on developer brochures or scaled models to make their purchase decision. The "Housing Developers Act and Sale of Commercial Properties Properties Act" are enacted to protect the buyers of BUC property.

Once you have decided the to buy BUC unit, the process will be as follow:
1) Pay a booking fee of 5-10% of the purchase price

2) Developer will deliver Sales & Purchase agreement (S&P) within 2 weeks from the date of option.

3) The option will expire 3 weeks from the date of delivery from developer. (Usually 5-7 weeks extension can be obtained)

4) Signed the S&P and pay 20% of the purchase price (Less booking fee)

* If your bank loan is granted at 60%, the bank loan can only be disbursed after the 40% is paid to the developer. Hence, the bank loan will commence on the 4th payment.

Next, the payment of the remaining 80% will be as follow:

1st PaymentSigning of S&P20%
2nd PaymentOn completion of foundation work10%
3rd PaymentOn completion of reinforced concrete framework10%
4th PaymentOn completion of brick walls5%
5th PaymentOn completion of roof/ceiling5%
6th PaymentDoors, window frame, electrical wiring, plumbing and plastering completion5%
7th PaymentOn completion of external work - Carpark, drain ,roads5%
8th PaymentIssuance of TOP/CSC25%
9th PaymentCSC15%