Selling of JTC Factory | Self-Created Checklist
Selling of JTC Factory (Jurong Town Corporation) industrial property sales in Singapore Seller Checklist.
You got to be very careful with a few important factors when you decided to sell.
Selling JTC Factory Seller Checklist visual selection
How the sellers should prepare in advance of the sale?
Selling of JTC Factory | Seller Checklist:
Property Valuation Report (Optional) But Recommended
Previous JTC lease agreement
Property sketches and technical specifications
Approval of any approved amendments
Environmental reports (if available)
Up-to-date tax for property and maintenance fee
Companies registration files
Sales and Purchase contract Post-Sale Considerations
Are there any obligations of the seller following completion?
Most obligations are extinguished on completion, but there are still warranties and indemnities under the OTP which run to completion. Additionally, if JTC is imposing further terms as a condition of the sale then both deal parties are still required to comply with this.
Dealing with problems which was found after the completion of the sale
Even worse from the sellers perspective, there is liability for un-disclosed problems which should have been known to seller. This is why you need transparency during the sale.
If JTC imposes further conditions after completion?
Clear charge for purchaser if JTC requires new owner to meet these
Of course, if these conditions apply to the seller’s prior use or modifications that they make apply to the property itself then the Seller might still own something in those conditions too😉▼
These are the properties that falls under a specific regulatory framework and hence the selling process is very different from that of residential properties. Before you move forward, you should know the following:
THE NUMBER 1 RULE FOR JTC FACTORY: JTC Approval is Mandatory
The JTC must give written approval before I can sell a property under JTC ( All JTC projects/plantations) key points:
Seller and buyer must tender to JTC within 21 days of Option Exercised
Approval can take about 8 weeks, but is often longer
Taking into consideration what the other party has to do within the condition.
The transaction will be nullified if you will not get approval
Environmental Considerations : Selling of JTC Factory | Seller Checklist
It is extremely unlikely that an EBS will not be mandated on industrial properties by JTC:
You usually pay the EBS as the seller
If there are environmental hazards discovered, you will be responsible for the decontamination
Hiring a registered environmental consultant early can help identify potential issues before marketing the Property.
Property Condition Requirements
To be sold, you must first purchase JTC factory:
Since you are selling an “as is where is”. If any Overhead Cranes to be left behind please also make clear.
Nevertheless, it must be fulfilled with the correct approval for unauthorized works or modifications at the off-plan stage
Make sure your building complies with JTC’s Conditions when they ask for it
Site ready at completion
Financial Considerations : Selling of JTC Factory | Seller Checklist
You need to understand the nuts and bolts:
Industrial Property GST will usually be payable at an industrial property transaction
The commission of our agent is approximately 2% of the sale price agreed, plus GST
Factor in property tax, land rental, and maintenance fees as of the completion date
Prepare yourself for deposit unlicensed should the seller default underride approval
Steps in managing your time
Here is a handful of time urgent steps you will need to go through when selling a JTC property.
Buyer then 2 weeks to exericse the Oposion to Purchase
JTC application must be submitted within 21 days from Option exercise
Completion shall take place 10 weeks from Option exercise OR 4 weeks from JTC approval (whichever is later)
JTC approval ideally by 8 weeks will be nice
Legal Requirements
The legal function entails
Selling Points Conditions of Sale by Singapore Law Society
Conveyancing & Law of Property Rules
Conveyancing Money Rules — Singapore Academy of Law
Inquiries and consents to government or private authorities
What the Seller Should Know when selling JTC Factory (Practical Tips)
Advice good players: Work with estate agents and lawyers that specialize the sale or trans-story eal to JTC properties
A preemptive inspection: So that you can find any unauthorized works, fix them now before listing
Prepare papers: Gather all key property papers, including current JTC lease terms
Be aware of buyer needs: JTC shall be apply the utilization of the property by the buyer,
Good communication: Keep the buyer updated on jars TC application status
Common Pitfalls to Avoid
Time past due: Delays trigger agreement dissolution
Property condition disclosure misstatement: Do you disclose if there are issues
Withholding legal requisitions: Buyers can throughout the purchase process rescind if a response is provided with any legal bill.
By appreciating those necessary considerations, you will be a lot better at handling the genuine challenges of selling your JTC factory property and preventing potential problems through the process.
Selling JTC Factory: Commonly Asked Questions
Before Signing the Option to Purchase, Does a buyer get JTC approval before the Option fee gets paid?
No, standard process would be to sign Option to Purchase (OTP) and pay the Option fee and then the application for JTC approval goes in. Both parties under the OTP are also required to apply to JTC within strictly 21 days from the date of the Option Exercise by them respectively. But, potential buyers can enquire with JTC beforehand to find out if there is a possibility of THEM qualifying for OTP.
Can a seller walk away once the seller accepted the Option fee?
After the seller accepts your Option fee they are contractually obligated to sell the property to the buyer if the buyer exercises the Option in time (this usually hits a 2 week mark). The seller has no right to back out of the agreement unless the buyer does not opt to exercise the Option or final JTC approval is not forthcoming.
Option fee refunded by Seller/Vendor if sale not allow by them
This means that, if JTC does not approve the sale, no matter who was to blame (the buyer, seller or both), then full Option fee will be returned to Buyer not a cent as interest or compensation. However, if an application is rejected by the buyer’s default JTC might not be able to compensate for the deposit if an appropriate excuse.
JTC Approval Process
JTC approval takes such a long time?
Standard JTC approval time frame is approximately 8 weeks from time of application submission. The actual timescale may vary according to the nature of the case and the thoroughness of documentation submitted.
Why would JTC reject an application on sale?
Reasons why JTC may reject applications are many and include:
Seller’s intended use not compatible with property zoning
Not meeting the criteria of JTC Buyer
Ongoing compliance problems with the property
Environment pure concerns that cant be adequately remediated
Application contains incomplete or incorrect information
With JTC’s consent to sell with conditions?
Yes, JTC may approve the sale subject to additional conditions. The OTP states that “both parties shall accept and obey and perform all other terms and conditions as may reasonably imposed by JTC in the exercise of these Contractually”.
Environmental and Property Condition
What does the Seller Pay for the (EBS)?
Typically, the EBS is provided by the seller (assuming one assumed in the OTP).
Reasons the property as listed may be denied due to JTC
JTC may reject applications for various reason, and here are some of them:
Buyer’s stated zoning or use not consistent with property
Purchaser does not qualify for JTC
Outstanding compliance challenges on the property
Environmental concerns that are simply too broad and un-focusable
Incomplete, or even when incorrect information was entered into the application.
JTC may walk away from the deal due the conditions imposed by JTC withholding the completion?
Conditional approval, explicitly stipulated in the OTP:Both parties agree to “accept and observe and perform all the terms and condition as may reasonably be imposed by JTC.”
Is the buyer responsible for inspecting the property condition?
Yes — the property is sold “as is where is” and the Buyer will be taken as being aware of defects. The exception being on sale of a JTC property, there is no protection for the seller to cure unauthorized works.
Financial Considerations
What other costs go into selling JTC factory,
Beyond legal fees and notehold Agent commission (typically 2%), sellers should anticipate
The cost of EBS and possible decontamination
Property tax and maintenance deductible throughout the period up to completion.
Non-compliant features are to have corrective action taken on them.
The GST implications of this transactionMinimum 9% GST charged on industrial property transfer
Yes, the GST is payable on industrial property transactions. As per the OTP, the buyer will have to pay GST in the purchase price. Legal & Procedural
Then what if legal requisitions point out errors about the property?
If a buyer is told through legal indemnification that the property had defects of import (MRT, Go plans, drainage projects etc.) then by contract (Deposit Release), it is within their absolute right to cancel unless the seller rebates refund.
Extension of Completion date
The completion date is dependent on when JTC will approve your application From the Time Stamp you can not extend, Completion will automatically extended based to allowed time if JTC approval is delayed (not due to party’s default)
