Landed Housing

Where houses are erected on a piece of land, and where the land title represents ownership of the entire land.

Condominium Apartments

Where apartments are erected on a piece of land and where the strata title represents ownership of the apartment and a proportionate share in the land.

Land / Strata Titles

The titles may be Freehold i.e. an absolute perpetual title or Leasehold i.e. where land is "leased" for a number of years, for example 99 years or 999 years.

Foreign Individuals or Entities

Foreigners may seek approval from the Government if they wish to purchase landed properties in Singapore. Criteria for purchase of landed properties in Sentosa Island are less stringent. There are no restrictions on foreigners purchasing condominium apartments.

Developer's Sale

The sale of a property by a developer of the development before the issuance of the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title, or the Certificates of Title for all the units in the development.

Sub-Sale

The sale of a property from a private owner other than the developer of the development before the issuance of the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title, or the Certificates of Title for all the units in the development.

Resale

The sale of a property after the issuance of the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title, or the Certificates of Title for all the units in the development.

Overview

Before accepting / offering any deposits or booking fee on a property, vendors / purchasers are advised to determine the following:

• Eligibility to purchase (eg foreigners buying a landed property)
• Stamp duties payable (eg Seller's stamp duty or Additional buyer's stamp duty)
• Mortgage eligibility and amount
• Total debt servicing ratio (TDSR)
• Any other conditions that may affect the transaction

Option to Purchase

The OTP is used as a Sale & Purchase Agreement in almost all resale or sub-sale transactions and also by Developers as a literal option pending a Sale & Purchase Agreement. The consideration or booking fee is usually 1% for resale and sub-sale, and 5% in a developers' sale, of the agreed purchase price.

Sale & Purchase Agreement

The S&P is formed by the exercise of the OTP, either by endorsing on the Option that incorporates the Sale & Purchase clauses, or by endorsing on a separate Sale & Purchase Agreement and by paying an agreed deposit (exercise fee). The deposit is usually 4 or 9% in a resale or sub-sale, and 15% in a developer's sale, of the agreed purchase price.

Legally Binding

In whichever forms the legal agreement takes, it must be in writing and endorsed by all vendors and purchasers or their authorised representatives and the following terms must also be present in order for the agreement (for the sale of property) to be legally enforceable:

• Identification of the subject property
• Date of Option / exercise of Option
• Sale price
• Deposit/s paid
• Completion Date
• Other agreed conditions of the sale

Legal Advice

Purchasers should consult a lawyer immediately after paying the consideration or booking fee and obtaining the prescribed OTP. The lawyer will peruse and advise on the terms of the S&P before the purchaser accepts the same by exercising the Option.

Stakeholding

From 1st of August 2011, lawyers will no longer be allowed to receive and hold monies used for purchases or sales of properties unless they are:

• deposited in a specific conveyancing account with five appointed banks,
• kept with the Singapore Academy of Law (SAL) under its Conveyancing Money Service or
• placed in an escrow account jointly opened by lawyers acting for the respective parties.

Conveyancing money is held until the completion of the purchase because the transaction for sale are subject to:

• The discharge of encumbrances like mortgage and CPF charge
• Payment of stamp duties
• The land or strata title being in order
• Satisfactory replies on legal requisitions from the various Government departments

Where a purchase is made through developers and the development is still under construction, the Singapore Academy of Law will hold a portion of the purchase monies as stakeholders until the expiry of the defects liability period provided in the agreement.

The Law Society's Conditions of Sale

Most contracts for the sale and purchase of a property in Singapore will incorporate standard terms called the Singapore Law Society's Conditions of Sale 1999. If the terms of the sale and purchase agreement or of the option are silent on certain points, then the provisions of these conditions will apply. These conditions may also be modified by expressed terms in the agreement.

Lawyer's Role in a Property Purchase

The responsibilities of a lawyer representing a purchaser include and are not limited to:

• Ensure that the purchaser's interests are protected
• Review and explain the terms and conditions of the agreement
• Conduct searches and confirm on the accuracy of title of the property
• Check on all encumbrances to the title of property
• Payment of applicable stamp duties
• Lodgement of a caveat against the title to the property
• Liaise with banks and the CPF Board for drawdowns
• Complete the sale (a technical term referring to the transfer the ownership)

Lawyer's Role in a Property Sale

The responsibilities of a lawyer representing a vendor include and are not limited to:

• Ensure that the vendor's interests are protected
• Review and explain the terms and conditions of the agreement
• Liaise with purchaser's lawyer
• Where applicable, arrange with banks' and CPF Board's lawyers for payments toward any outstanding mortgage loan out of the sale proceeds
• Ensure payment of applicable seller's stamp duty
• Arrange payments for disbursements and agent's fee
• Ensure that the property is free from mortgage and CPF charge
• Complete the sale

Estate Agent and Salespersons' Role in a Property Purchase

The responsibilities of a salesperson representing a purchaser include and are not limited to:

• Ensure that the purchaser's interests are protected
• Recommend and propose suitable properties
• Arrange and schedule viewing appointments
• Ascertain accurate property ownerships and relevant details
• Negotiate for fair market purchase prices
• Prepare / Vet relevant agreements
• Obtain and verify signatories
• Ensure that agreements are proper and legally enforceable

Estate Agent and Salespersons' Role in a Property Sale

The responsibilities of a salesperson representing a vendor include and are not limited to:

• Ensure that the vendor's interests are protected
• Assist to set statistically realistic sale prices
• Implement marketing strategies
• Conduct viewings and manage liaisons
• Negotiate for fair market sale prices
• Prepare / Vet relevant agreements
• Obtain and verify signatories
• Ensure that agreements are proper and legally enforceable

Overview

Stamp duties are applicable to both the purchaser and vendor in relation to the following variables:

• The profile of the purchaser
• The count of property ownership of the purchaser
• The property's holding period of the vendor

Find out the applicable stamp duties payable here or refer to the IRAS website for more information on exemptions, remissions, refunds, reliefs, or other applicable liabilities.

Offer to Purchase

The purchaser endorses a form to express interest to purchase, usually accompanied by a consideration money (1% of offered purchase price).

Option to Purchase

The vendor accepts the offer and consideration, endorses and issues prescribed Option to Purchase (usually upon acceptance of the Offer to Purchase).

Exercise of Option

The purchaser exercises the Option and furnishes the exercise fee (usually within 14 days from the date of Option).

Payment of Stamp Duty

The purchaser and vendor satisfy payments for all applicable stamp duties within:

• 14 days from the date of execution if the Option is exercised in Singapore or
• 30 days from the date of execution if the Option is exercised in overseas.

Completion

The remaining contract sale price is disbursed and the ownership is transferred (usually from 8 to 12 weeks from the exercise date).

Option to Purchase

The purchaser furnishes a 5% booking fee and the developer endorses and issues a prescribed Option to Purchase.

Sale & Purchase Agreement

The developer delivers the Sale & Purchase Agreement to the purchaser within 14 days from Option date.

Exercise of Option

The purchaser has 21 days from the receipt of the Sale & Purchase Agreement to exercise the Option.

Payment of Stamp Duty

The purchaser and vendor satisfy payments all applicable stamp duties within:

• 14 days from the date of execution if the Option is exercised in Singapore or
• 30 days from the date of execution if the Option is exercised in overseas.

Progress Payment

The purchaser or the mortgagee pays the remaining 80% of purchase price progressively according to the prescribed schedule of payments.

Temporary Occupation Permit (TOP)

Construction of the development is completed and ready for occupation.

Certificate of Statutory Completion (CSC)

Usually after 1 year from TOP, where the conveyance of titles are completed.