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Real Estate

Extension of Relief Period for Specified Contracts under the COVID-19 (Temporary Measures) Act

The COVID-19 (Temporary Measures) Act ("Act") provides temporary relief for parties that are unable to perform their contractual obligations due to the COVID-19 pandemic. Amongst its measures, Part 2 of the Act provides relief from certain legal and enforcement measures for prescribed categories of contracts, and Part 8B provides for cost sharing between parties to qualifying construction contracts for additional costs caused by delays.

On 26 March 2021, the COVID-19 (Temporary Measures) (Extension of Prescribed Period) Order 2021 extended the relief period to 19 April 2021 for certain measures relevant to the Built Environment and Real Estate sectors. This is to allow Parliament to consider the COVID-19 (Temporary Measures) (Amendment No. 2) Bill 2021 ("Bill"), which the Ministry of National Development intends to introduce on 5 April 2021. The Bill would further extend the relief period to 30 September 2021 for (a) Part 8B of the Act; and (b) construction contracts or supply contracts, or any performance bond granted thereto, under Part 2 of the Act. It would also extend the relief period to 30 June 2021 for options to purchase and sale and purchase agreements with developers under Part 2 of the Act.

Singapore | Real Estate | 30 March 2021

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