Hi everyone,

Would like to confirm if I’ve signed LO from bank, bank need at least 3 months to disburse the money to the developer?

If that’s true, is there any way can avoid this circumstance?

I just received email from developer to arrange settlement from the progressive payment.

I am worry progressive late payment will charge by developer to me as heard many people facing the same issue.

This post has been edited by wkchee95: Jun 9 2022, 08:19 PM

Not necessary 3 months. If everything clear already, within 1-2 weeks should disburse. The 90 days upon signing SPA is the time given by vendor (developer) to purchaser to settle the outstanding payment.

The LO is just an acceptance of the loan application that is being offered by the bank. It still has to go through the process of signing the Loan Agreement, stamping and developer complying with the bank requirements b4 the first progressive sum is disburse.

Depending at what stage of completion is the property during the signing of SnP. If still during launching stage, then you dont have problem with the 3 months BUT if completed few stages, then you have to pay interest pending bank release the loan.

The SnP is between the purchaser and developer and doesnt concern the bank.

Similarly, the loan dusbursement is between the purchaser cum borrower and the bank and doesnt concern the developer. The developer wants the money ... who pays isnt their concern.

If indeed buyer is charge interest for late payment, he can try to request the developer to waive on goodwill basis as most interest charged are generated by the system once payment is not received by due date.

This post has been edited by mini orchard: Jun 10 2022, 07:36 AM

usually for cases like these, developer will give grace period 2-3 months from date of SPA for bank to release money.

i believe developer also know that for loan to release need roughly 2 month from spa stamping date.