When buyers book a unit at a pre-launch, they are often told they can't sign the sale and purchase agreement yet because the developer has no APDL. Most don't know what that is.
What is an APDL, and what does it mean for a buyer?
“this is to protect consumers like us”
APDL stands for advertising permit and developer's licence, approved by the housing ministry. A developer can only apply after its building plans are approved, and can only sell once it has one, so until then you can't sign an SPA. Its details on every ad tell you a lot about a project.
Why
Ads must show the licence details
Each ad lists the developer's licence and advertising permit numbers and validity, the building plan approval, the land tenure and any restriction in interest, the number of units, and the minimum and maximum prices.
It comes after plan approval
After buying land, a developer submits drawings to the local council and then building plans to many authorities, such as fire and landscape. Only once those are approved can it apply for an APDL.
Pre-launches come before it
Pre-booking or pre-launch campaigns offer rebates to collect interest early. You can't sign the SPA until the APDL is approved.
What to do
- Read the APDL details printed on a project's ad before calling in.
- Note the land tenure, restriction in interest and the price range.
- Ask when the APDL is expected if you book at a pre-launch.
- Prepare your down payment for when the SPA can actually be signed.
- Be extra careful with commercial projects, which lack the same buyer protection.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
What is APDL?
Sources & Verification Data
Summarised from Sean's English captions for this April 2018 video. The quoted line is verbatim; everything else is paraphrased. The number of authorities that review building plans is unclear in the captions and is left out.
