1. Commitment Fee
This represents the first 2 year rental. It is paid upfront upon acceptance of the offer letter.
It is equivalent to a two year RTO rental value but may vary from one project to the other
and at the discretion of the developer.
2. Legal Fee
This fee is paid at the handover of the unit. This fee is usually 10% of the market value of the property
3. RTO Rental
This is the annual rental fee that will be paid by the home owner over the tenure of the contract.
It consist of two inseparable components
- (i) The annual rental is equivalent to the average rent within the environment where the project is located.
- (ii) Equity contribution represents home owners instalment or annual down payment towards the final purchase of the house.
4. Transfer Fee
Where homeowners decide to transfer their equity to a third party, upgrade or transfer their equity to another property within the RTO scheme, a transfer fee is applied to the transaction. This transfer fee is 2.5% of the equity of the current property.