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VIEW2OFFER
– FREE REAL ESTATE LEGAL ADVICE
AT YOUR FINGERTIPS!
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Understanding
The Conveyancing Process
Land
In Singapore, the term “land”
includes building. A unit in a building
may be separately owned. The Planning
Act / Property Act requires where
a part, and not the whole, of the
land (or building) is to be disposed
of; subdivision approval from the
planning authority must be obtained.
In this context, a disposal includes
a lease for a term of move than 7
years.
Tenure of Land
The
tenure of land may be:
• |
Freehold |
• |
Leasehold,
or |
• |
In
perpetuity (which is subject
to conditions such as payment
of rent, permitted use). |
Sale & Purchase of Land
A
contract for sale is usually entered
into before the actual conveyance,
assignment or transfer of the land.
For the contract to be enforceable
against any party, it must be in writing
or evidenced in writing and signed
by that party.
Most contracts incorporate certain
standard conditions called The Singapore
Law Society’s Conditions of
Sale 1999 but any of those conditions
may be modified by the special conditions
of the contract. It is common for
a purchase of land to be made subject
to there being no notices or schemes
that adversely affect the land, such
as road and drainage schemes. Standard
inquiries (called legal requisitions)
may be sent to ascertain if there
are such notices or schemes.
For the contract to be enforceable
against any party, it must be in writing
or evidenced in writing and signed
by that party.
How Much Do You Have To Pay
In Legal Fees?
The fee for your lawyer’s services
is calculated on a fixed schedule
laid down by the Legal Profession
Act. These legal fees are known as
‘scale costs’. The fees
do not include fees for title searches
or registration, values’ or
auctioneers’ fees. The fees
include the time of the lawyer and
his clerks. The charges are for the
usual ACTIVITIES NECESSARY
TO CARRY OUT HIS DUTIES.
Further you must pay the costs of
your banker’s lawyer and the
CPF Board’s lawyer. All in all,
the legal fees usually do not exceed
2 percent of the purchase price.
However, when the lawyer is acting
on behalf of both the seller and the
buyer, he should charge the full scale
as the buyer’s lawyer and only
a quarter of the scale as the seller’s
lawyer.
How Much Is Stamp Duty &
Legal Fees?
To transfer a property title from
the seller to buyer, the buyer must
pay the stamp duty. These are fees
charged by the government for transferring
titles and mortgage deeds. Generally,
stamp duties and legal fees, amount
to 5 percent of the total purchase
price of the property.
Bankruptcy Search State
Once the buyer obtains an option to
purchase, the buyer’s lawyer
will make both the title and bankruptcy
searches of the legal owners.
Lodging A Caveat
Once the option is exercised, a caveat
will be lodged by the buyer’s
lawyers. This is a means of protecting
the buyer’s interest by preventing
others from registering an interest
in the property.
Legal Requisitions & Examination
Of Title Deeds
The buyer’s lawyer will write
to seven relevant government departments
to ensure that there are no proposals
or plans adversely affecting the property.
The buyer’s lawyer will examine
the title deed of the property. They
will also send out the requisitions
on the title to the seller’s
lawyer. These are questions relating
to the title of the property.
Preparation Of Legal Documents
The buyer’s lawyer
will do the following:
• |
Prepares
the Deed of Conveyance / Instrument
of transfer; |
• |
Prepares
the mortgage documents; |
• |
Obtains
the total discharge of mortgage
held by the bank; |
• |
Examines
the replies from legal requisitions. |
Completion
Upon completion, final title and bankruptcy
searches will have to be done.
On the date of completion, the outstanding
balance of 90 percent of the purchase
price is given to the seller in return
for the Deed of Conveyance, Instrument
of Transfer and keys to the property.
The Deed of Conveyance must be lodged
with the Registry of Deeds to effect
the transfer of title from the seller
to the buyer. The crucial event in
a transfer of an interest in land
is registration.
The buyer can occupy the property
only when the legal title is transferred
to him upon completion unless otherwise
agreed.
Acting
For Buyer Checklist
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• |
Making
a title search |
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• |
Making
Bankruptcy or winding
up search |
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• |
Checking
the option or sale contact |
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• |
Lodging
a caveat |
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• |
Sending
requisitions on title
to seller’s lawyer |
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• |
Sending
legal requisitions to
various government departments
including road drainage
interpretation plans |
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• |
Preparing
for transfer documentations |
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• |
Preparing
the mortgage loan or CPF |
|
|
• |
Notifying
the management corporation |
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• |
Sending
the completion account
to purchaser |
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• |
Joint
inspection of property |
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• |
Arrange
completion |
|
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• |
Making
final title and bankruptcy
searches |
|
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• |
Attending
the completion to exchange
balance of purchase price
for transfer documents |
|
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• |
Reporting
completion |
|
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• |
Make
notice of change of ownership
to Management Corporation |
|
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Acting
For Seller Checklist
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• |
Receipt
of instructions from client
or agent |
|
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• |
Prepare
option or sale contact
for seller’s approval |
|
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• |
Arrange
title search |
|
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• |
Receive
the deposit as stakeholders |
|
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• |
Redeem
the mortgage / CPF charge |
|
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• |
Get
property tax and maintenance
bills |
|
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• |
Inform
the management corporation
of sale |
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• |
Answer
requisitions on title |
|
|
• |
Check
the transfer |
|
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• |
Send
completion account |
|
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• |
Arrange
for completion account |
|
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• |
Attend
to completion |
|
|
• |
To
buyer’s lawyer –
In exchange for payment
(cashier’s order) |
|
|
• |
Sign
Transfer, Certificate
of Title, Total Discharge
of Mortgage, receipts
for property tax and maintenance
fees. |
|
|
• |
Send
copy of signed Statutory
Notice of Transfer to
Property Tax Department |
|
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|
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• |
Inform
change of ownership to
Management Corporation |
|
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• |
Keys
to property |
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• |
To
seller’s mortgage
– cashier’s
order for redemption money |
|
|
• |
To
Property Tax Department
– send statutory
Notice of Transfer |
|
|
• |
To
Management Corporation
– notify change
of ownership |
|
|
• |
Deliver
the title deeds |
|
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• |
Report
completion |
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When
you are in doubt over any
matter relating to the law,
it is advisable to consult
a lawyer. This is for your
own protection. It is also
advisable to take legal advice
at an early stage; it can
save you a lot of time, energy
and money. For free real estate
legal advice, click
here to ask a question
of our lawyers at View2Offer.com. |
..............................................................................................................
Disclaimer
The
information and free real
estate legal advice provided
on Legal Advice on View2Offer
is not intended to be specific
advice, but merely conveys
general information related
to Legal issues commonly encountered.
Free real estate legal advice
provided in this column is
not meant as a substitute
for comprehensive professional
advice. View2Offer and our
contributors shall not be
responsible for any liability
arising from your reliance
of any information or use
of this site for your dealings
with any third party. Permission
is NOT granted to reproduce,
copy or distribute any part
of this website without prior
approval from View2Offer.com.Your
access to and use of this
website is subject to additional
Terms
and Conditions.
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Ian
Chang LLB (Hons)
Aptus Law Corporation Parkway Parade Office
For over 11 years, Ian Chang has
successfully represented thousands
of clients involving a wide range
of practice on conveyancing, litigation
and other legal issues.
[ more
on Ian Chang
] |
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