Buyer Beware: The Truth Behind Some “Post-Handover Payment Plans”

Recently, we encountered a serious issue with a developer whose name we cannot disclose for legal reasons.

The developer markets properties using an attractive post-handover payment plan. These terms are clearly presented in the promotional materials and booking form, giving buyers the impression that part of the purchase price will only become payable after the property has been completed and handed over.

However, the terms written in the Sale and Purchase Agreement (SPA) tell a very different story.

In the SPA, the instalments are based on fixed payment dates rather than being linked to construction progress or the actual handover of the property. The agreement also allows the developer to delay completion by as much as two years under certain contractual provisions.

This creates a serious risk for buyers. If the project is delayed and the payment schedule is not linked to construction or handover, the buyer may still be required to continue paying every instalment on its original due date—even though the property has not been completed or handed over.

In practical terms, the advertised “post-handover payment plan” may not truly operate as a post-handover plan at all.

Our Advice to Buyers

If you are purchasing a property because you need flexible instalments or a genuine post-handover payment plan, do not rely only on:

• Advertisements
• Sales presentations
• WhatsApp messages
• Brochures
• Booking forms
• Verbal promises made by sales representatives

Before signing, carefully review the SPA and confirm that the following points are clearly stated:

• The advertised payment plan is accurately reflected in the SPA.
• Post-handover instalments are genuinely conditional upon handover.
• Payments are linked to construction progress where this has been promised.
• The contractual completion date and permitted extension period are clearly defined.
• The developer’s delay provisions do not unfairly expose you to continued payments without delivery.

If the SPA does not match what was advertised or promised, do not sign it until the terms are corrected in writing. Request clarification, seek independent legal advice and, where appropriate, formally request the return of your deposit.

One of the biggest concerns is that some buyers receive the SPA only after paying approximately 24% of the property price. At that stage, withdrawing from the purchase may put part of the amount already paid—potentially including the 4% registration fee—at risk, depending on the transaction status and contractual circumstances.

Losing 4% is painful. However, in some situations, it may be less damaging than signing an unfavourable agreement and facing much larger financial problems later.

The most important rule is simple:

Never sign an SPA that does not reflect the payment plan, delivery terms and promises on which you based your decision to purchase.

A brochure sells the property—but the SPA determines your legal rights and financial obligations.