# Enhancements to the COVID-19 (Temporary Measures) Act to Cover Options to Purchase and Sale and Purchase Agreements for Commercial and Industrial Properties

- **Source:** Ministry of National Development
- **Published:** 2020-10-12T09:00:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/enhancements-to-the-covid-19-(temporary-measures)-act-to-cover-options-to-purchase-and-sale-and-purchase-agreements-for-commercial-and-industrial-properties
- **Topics:** Commercial & Industrial, Government & Policy, Transactions & Deals

## Featured rationale

The protection could reduce COVID-19-driven forfeitures and terminations, giving purchasers and developers more time to preserve transactions amid financial and operational disruption.

## AI summary

From 9 October 2020, COVID-19 contractual relief covered eligible developer OTPs and S&P Agreements for commercial and industrial properties entered before 25 March 2020.

## Original article

Part 2 of the COVID-19 (Temporary Measures) Act (“the Act”) provides temporary relief from stipulated types of legal action in relation to the inability to perform certain contracts as a result of COVID-19.

In May 2020, the Government included (i) Options-to-Purchase (“OTPs”) and (ii) Sale and Purchase Agreements (“S&P Agreements”) or Agreements for Lease (“AFL”) with housing developers under Part 2 of the Act. 

The Ministry of National Development (“MND”) has considered feedback from purchasers and developers, and will be extending the relief to OTPs and S&P Agreements for commercial and industrial properties to ensure parity in treatment. Only OTPs and S&P Agreements between developers and purchasers will be covered. These changes came into effect on 9 October 2020. 

The relief period for the following relief under Part 2 of the Act is intended to expire on 31 December 2020.

Inclusion of additional contracts

OTPs and S&P Agreements for commercial and industrial properties will be included in the list of scheduled contracts covered by the Act. Like other contracts covered under the Act, these contracts must have been entered into before 25 March 2020, with contractual performance due on or after 1 February 2020.

The purchaser may serve a Notification for Relief (“NFR”) on the developer to enjoy relief under the Act. 

(a) OTP. The developer will be prohibited from withholding or forfeiting any part of the booking fee paid under the OTP during the relief period.

(b) S&P Agreement. The developer will be prohibited from terminating the agreement on the basis of the purchaser’s non-payment.

The developer may also serve an NFR on purchasers, to seek temporary protection from being sued during the relief period, if it is unable to perform any contractual obligation due to COVID-19.

Parties are encouraged to discuss and reach a mutual agreement. If the parties are unable to reach an agreement even after the NFR is served, either party to an OTP or S&P Agreement may make an Application for an Assessor’s Determination.1 The Assessor will consider both parties’ arguments, and will seek to achieve an outcome that is just and equitable in the circumstances.

Further details on the processes under the Act can be found at: http://www.mlaw.gov.sg/covid19-relief. 

Prohibition of unilateral increase of interest rates, charges, and other types of actions

Additionally, once an NFR has been served, the developer will not be permitted to unilaterally increase interest rates or impose new charges on delayed payments beyond what is provided for in the S&P Agreement. Further, late payment interest or charges under S&P Agreements will also be capped at an amount equal to 5% per annum of simple interest. These reliefs apply during the relief period. Similar reliefs also apply to certain other types of contracts set out in the Schedule of the Act.

## Chinese translation

> Translation model: grok_cli

### 加强《2019冠状病毒疾病（临时措施）法令》，将商业与工业房地产的购买选择权及买卖协议纳入保障

《2019冠状病毒疾病（临时措施）法令》（“该法令”）第2部分，就因2019冠状病毒疾病而无法履行若干合约的情况，提供对特定类型法律行动的临时救济。

2020年5月，政府将（i）购买选择权（“OTP”）以及（ii）与房屋发展商订立的买卖协议（“S&P协议”）或租赁协议（“AFL”）纳入该法令第2部分。

国家发展部（“MND”）已考虑买家与发展商的反馈，并将把救济范围扩展至商业与工业房地产的OTP及S&P协议，以确保待遇对等。仅涵盖发展商与买家之间的OTP及S&P协议。这些修订自2020年10月9日起生效。

该法令第2部分下下列救济的救济期拟于2020年12月31日届满。

纳入额外合约

商业与工业房地产的OTP及S&P协议将纳入该法令所涵盖的附表合约清单。与该法令涵盖的其他合约一样，这些合约必须在2020年3月25日之前订立，且合约履行义务须在2020年2月1日或之后到期。

买家可向发展商送达救济通知书（“NFR”），以享有该法令下的救济。

（a）OTP。在救济期内，发展商将被禁止扣留或没收根据OTP已支付的任何部分订金。

（b）S&P协议。发展商将被禁止以买家未付款为由终止协议。

若发展商因2019冠状病毒疾病而无法履行任何合约义务，亦可向买家送达NFR，以在救济期内寻求免被起诉的临时保障。

当局鼓励各方协商并达成双方协议。若在送达NFR后仍无法达成协议，OTP或S&P协议的任何一方均可提出评估员裁定申请。1评估员将考虑双方论点，并力求在有关情况下达致公正及公平的结果。

有关该法令下程序的进一步详情，可浏览：http://www.mlaw.gov.sg/covid19-relief。

禁止单方面上调利率、收费及其他类型行动

此外，一旦送达NFR，发展商不得单方面上调利率，或对逾期付款施加S&P协议规定以外的新收费。此外，S&P协议下的逾期付款利息或收费亦将以每年5%的单利为上限。这些救济在救济期内适用。类似救济亦适用于该法令附表所列的若干其他类型合约。