Frequently Asked Questions

A private property is any property in Singapore that is not owned by the Housing & Development Board (HDB) or the Jurong Town Corporation (JTC). Such HDB and JTC properties have rules and regulations of their own which affect the sale and purchase of such properties.

Properties in Singapore are either freehold or leasehold.

Owners of freehold properties are entitled to hold the property forever.

Leasehold properties can be held until the lease expires. Most leases for residential properties in Singapore are for 99 years. There are some that are for 999 years and others for 30 or 60 years. Please remember that the leases would have commenced some time ago so you may have much less than the lease period remaining.

You should ask you lawyers to check this before you buy any property.

If you are buying a landed property, a title search done by your lawyers will tell you what is the land area. However this will not tell you the "built-up" area of the house.

If you buy a flat, the title search should tell you the built-up area of the flat. However for some old flats (which have not been issued with "strata titles"), the area stated in the title searches and documents is only an estimated area.

Properties that you are buying from developers are unlikely to have title documents issued yet. Thus the only way to check the area of the property is from the sale and purchase agreement.

No if you are buying a residential property classified as "condominium" or if it is a flat within a building that is at least 6 storeys. As used in Singapore, condominium has a very specific meaning. Title documents for condominiums have the word "condominium" printed on the top of the document. Many developments which have swimming pool and other facilities normally found in condominiums are in fact not classified as condominiums.

If you are buying a landed property or a flat in a building that is below 6 storeys, you must apply to the Controller of Residential Properties for approval. Singapore Permanent Residents have to seek this approval also if they are buying such properties.

If you or any of your co-purchaser is not a Singapore citizen, you should seek the advise of lawyers before committing to a purchase. The sale and purchase agreement or the option to purchase must allow for the approval from the Controller of Residential Properties if such approval is required.

Failure to do so will render the contract illegal and void. In such circumstances, you may not be able to obtain a refund of the deposit.

The answer to this question will depend on your circumstances. If you are very sure of your financing, then go ahead and look for a property. However it would still be prudent to check with your bank before paying the option money or signing the agreement.

For the average purchaser, check with the banks to find out how much the bank can lend you based on your financial situation, age, available Central Provident Funds ("CPF") money and amount of cash you can raise on your own for the initial deposit. With this information you will be able to concentrate your search for a property in the right price range. When you have found a property you like, you should check with the banks once again to see if the property is not over-priced.

An Option to Purchase is an agreement by the seller of a property giving you the right to purchase the property on the terms and conditions set out in the option. Usually you will have to pay the seller an option fee of 1% of the sale and purchase price of the property to secure the option. Only the seller has to sign the option when it is granted. During the option period (usually 14 days) the seller cannot sell the property to any other person. You exercise/confirm you purchase by signing on the Acceptance Copy and returning this together with payment of a deposit (usually 10% of the purchase price less the option fee you had paid earlier) to the seller. The option when exercised forms the contract between the seller and yourself. Almost all options are expressly made subject to the Singapore Law Society's Conditions of Sale 1999. Please see the answer to the question below for details of this.

An option allows you as a buyer to change your mind during the option period. However you will not be able to obtain a refund of the option fee if you fail to exercise the option.

Often options are prepared by property agents. While many of such options are adequate for the majority of transactions, it is always advisable to seek the assistance of lawyers before you part with any money. Checks can then be done on the property before you pay the option fee.

Sometimes the seller will insist on a binding agreement for the property. You as a buyer will not have the option of subsequently refusing to do ahead with your purchase.

Likewise the seller, if a sale and purchase agreement is signed cannot refuse to sell the property to you. Often a deposit equivalent to 10% of the purchase price is paid when the agreement is signed. Unlike an option, both the buyer and seller signs the agreement when the money is paid.

It is usual for any sale and purchase of property in Singapore to be made subject to the Singapore Law Society's Conditions of Sale 1999. You should be able to obtain a copy of these conditions from your lawyers.

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.

Assuming that you are taking a loan and utilising your CPF moneys for your purchase, you will have to ensure that you have funds for the following:-

• Bank loan processing fee. The amount varies from bank to bank and some banks will waive this fee.
• stamp duty on the sale and purchase agreement or option and on the loan documents
• legal fees for your lawyers, the bank's lawyers and the CPF Board's lawyers and incidental legal expenses.
• there will also be other incidental expenses that have to be settled.

• the purchase price.
• the stamp fees, legal fees and incidental legal expenses.
• monthly instalments for repayment of the loan.

When you buy a property and engage the services of a lawyer, the lawyer will do the following:-

• approve the terms and conditions of your sale and purchase of the property. It is very important that you not pay any money before your lawyers approve the terms as otherwise you may be bound to purchase the property on terms that may not be favourable to your interests.
• make searches to check the title to the property. This is to ensure that you are in fact purchasing the property that you want and that the seller is actually the owner of the property.
• send out requisitions (request for information) to various government departments to check that all is satisfactory with such departments.
• prepare the documents of transfer
• liaise with the lawyers for the bank and the CPF Board to ensure that your funds can be released in time
• attend to completing the purchase of the property.

As you can see the lawyer's function is important in ensuring that your purchase of the property is carried out as smoothly as possible. Because of this it is always wise to consult them as soon as possible.