Penalised for delay caused by CPF Board
WITH the current property craze, I want to share with other home buyers my experience when dealing with the CPF Board.
In May last year, my husband and I bought an apartment. I wanted to use my CPF funds as part of the first 20 per cent payment.
My lawyer, Drew & Napier (D&N), assisted us with the paperwork, including requesting the release of my CPF funds to the developer. All went well and we waited in anticipation as our dream apartment is being built.
A week ago, we received a letter from the developer charging us interest on late payment of the instalment under our sales and purchase agreement.
After much investigation and clarification with D&N, it has been determined that while all papers were prepared and handed in on time, the CPF Board did not release my CPF funds to the developer in accordance with the payment schedule.
The payment was made two days late and as a result, we were charged interest at the base rate of 6.75 per cent.
When D&N contacted the Board, its response was that there is no service-level agreement in place so the CPF Board will not be held responsible.
As a consequence, we were penalised for its lack of due diligence in handling my CPF funds.
By not taking responsibility for its actions, there is nothing to keep the CPF Board from making the same mistake again.
Author: Jennifer Ho Shu Yun (Ms)
Source : Straits Times - 22 Oct 2007
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