GEM Residences
BT understands that under a "specimen cheque scheme", the joint developers - Gamuda, Maxdin, and Evia Real Estate - issued cheques of S$7,500 or S$10,000 to prospective buyers who then submitted these for expressions of interest. The buyers could have used these cheques to offset their booking fee on balloting day.
But the plan was scuttled after the Controller of Housing directed these developers on Thursday night not to proceed with the use of such cheques, as this circumvents the requirement of a minimum 5 per cent booking fee for a residential purchase.
In response to BT queries, an Urban Redevelopment Authority (URA) spokesman said the offer of the "specimen cheque scheme" by the developers to offset part of the booking fee to be paid by the purchaser does not comply with the requirement under the Housing Developers Rules for a minimum booking fee of 5 per cent of the purchase price for an option to buy a unit in a licensed housing project.
"It is also a circumvention of the minimum 5 per cent cash downpayment requirement of the Monetary Authority of Singapore," the spokesman said.
http://business.asiaone.com/news/ura-kills-gem-projects-cheques-buyers-scheme