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Singapore Property Laws
Some common Property Laws you should
know related to the sale and purchase of properties in Singapore.
Here are some Frequently Asked Questions related to:
>>
Common Property Laws
>>
Foreigner Home Buyers
Common Property Laws
| Q1: |
What
is
considered "residential
property"? |
| Q2: |
Are conservation shophouses considered as restricted
residential properties? |
| Q3: |
What are "joint tenants" and "tenancy in common" in
property co-ownership? |
| Q4: |
Can
I make a gift of my real estate property during my lifetime? |
| Q5: |
What
is the effect of a gift of property? |
| Q6: |
What
is an Option to Purchase? |
| Q7: |
What
are the main terms to include, in order that the Option
is valid? |
| Q8: |
What
is "exercising" the Option? |
| Q9: |
What
happens if I have paid the Option money but cannot
exercise the Option within the agreed due date? |
|
|
|
| Q1: |
What
is considered "residential
property"? |
|
It means all residential landed properties,
including vacant land, detached houses, semi-detached houses, terrace
houses; and any land or building zoned or gazetted for residential
purposes, such as flat comprised in a building of less than 6-storey.
|
| Q2: |
Are conservation shophouses considered as restricted
residential properties? |
|
1. Under the
Residential Property Act, if the shophouse (mixed commercial and residential use)
is not strata subdivided and is in an area zoned for commercial use,
it is not a 'residential property'.
2. If the shophouse (mixed commercial and residential use)
is not strata subdivided and is in an area zoned 'residential'
within the meaning of the Residential Property Act, it is a
restricted residential property.
|
| Q3: |
What are "joint tenants" and "tenancy in common" in
Property co-ownership? |
|
1.
A property held by 2 or more persons as
joint tenants means that upon the death of one joint owner, his interest
in the property is taken over by the surviving owner(s). The joint owner may
not will away his interest in the property to others in his Will.
2.
A property held by 2 or more persons as tenants in
common means that each owner has a specified or distinct share or
proportion in the property. For example, such share could be on an equal
basis (50%-50%) or 90% - 10% basis etc. Each owner may be able to dispose
his share in the property either by sale or under his Will. Upon the death
of one owner, the surviving co-owner(s) do(es) not take over the
deceased's interest in the property as is in the case of joint tenancy.
His share shall be passed under his will or in accordance with the law of
intestacy, as the case may be.
|
| Q4: |
Can
I make a gift of my real estate property during my lifetime? |
|
Yes, but you may have to engage a Lawyer to draft the Deed of
Gift, and seek his advice on the effects and consequences
of a gift of real property.
|
| Q5: |
What
is the effect of a gift of property? |
|
1. In the event the Grantor (person giving the property) dies
within 5 years form the date inserted in the Deed of
Gift, estate duty will be attracted on the whole of the
property as if it is still formed part of the Grantor's
estate (section 8, Estate Duty Act, Cap. 97)
2. If
the Donor (person giving the property) is bankrupt
within 2 years from the date of the Deed of Gift, the
gift becomes absolutely void as against the Official
Assignee
3. Up
to a period of 10 years form the date of the Deed of
Gift, the Grantor's bankruptcy will make the instrument
voidable at the option of the Official Assignee only
being rebuttable on evidence being furnished of the
Grantor's solvency at the date of the gift (section 52
of the Bankruptcy Act, Cap. 20)
Please
note that because of the serious consequences, before
any gift of real properties, it is important that you discuss
your intended gift with your Lawyer, so that you are fully aware
of the implications resulting from such gift.
|
| Q6: |
What
is an Option to Purchase? |
|
It is an irrevocable
offer made by the seller to the buyer which prevents the
seller from offering another buyer of the same property
within the agreed time period (usually 14 days). To
ensure that a contract is enforceable the buyer pays the
Option Money which is usually 1% of the purchase price to the seller. However 5% to 10% is
the standard norm for the purchase of new properties.
|
| Q7: |
What
are the main terms and conditions in the Option to
Purchase |
| The
main terms are: |
| a) |
the
names of the parties involved in the
transaction;
|
| b) |
the
description of the property and the
price;
|
| c) |
the
option money or consideration and
|
| d) |
the
validity period within which the
Buyer must exercise the option in
order to purchase the property.
|
|
| Q8: |
What
is "exercising" the Option? |
|
It means
that the Buyer is complying with all the terms in of the
Option made by the Seller for selling his/her property.
A binding contract is created, and the Buyer will also
pay the 10% deposit minus the option money of the purchase price of the
property.
|
| Q9: |
What
happens if I have paid the Option money but cannot
exercise the Option within the agreed due date? |
|
If you do not exercise
the Option within the validity period stated, the Option
would expire and your seller is entitled to forfeit the
option money and sell the property to another buyer. |
| Q1: |
Who
are those classified as "foreign person"? |
|
A "foreign
person" is defined in the Residential Property Act
as the follows: 1) Any person who is
not a citizen of Singapore (including a permanent
resident, employment pass holder, work permit holder or
a social visit pass holder
2) Any foreign company
or converted company or
3) Any society or
converted society which has not been granted approval or
received exemption by the minister
|
| Q2: |
What
are the restrictions for "foreign person" wanting to own
properties in Singapore? |
|
Yes. "foreign
person" can only buy the
following type of properties listed below. However for
Restricted residential properties, they can apply for a
written approval from the Controller of Residential
Property Land Dealings: 1) Any flat in a
development approved as condominium development under
the Planning Act
2) Any flat in a
building that has at least 6 levels, including the
ground level and any level below the ground including
HUDC Phase I, Phase II flats and privatised HUDC Phase
III and IV flats
3) A leasehold estate
in restricted residential property for a term not
exceeding 7 years including any further term which may
be granted by way of an option for renewal.
4) Any non-residential,
commercial or industrial property
However, a "foreign
person" cannot buy all the flats or all the units
in any of the buildings/developments in (1) and (2)
above.
A "foreign
person" needs to
apply to the authority if he/she wants to purchase the
following Restricted residential properties:
1) Any landed
residential properties including detached houses,
semi-detached houses and terrace house
2) Any flat in a
building of less than six levels
3) Any vacant land
zoned for residential use
The application forms
can be obtained from:
Controller of
Residential Property, Land Dealings Unit and
applications are
evaluated on a case-by-case basis, and the entire
process should take about three months. Contact
us if you need assistance in the application.
|
| Q3: |
What
factors would the government consider when evaluating my
application? |
|
The
government will consider the following main factors:
1) your
ability to make an economic contribution to Singapore
2) your
qualifications
3) whether
you are a Permanent Resident of Singapore
|
| Q4: |
Can
I appeal if my application is rejected? |
|
Yes. You may appeal to
the Minister of Law within three months from the date of
notice of rejection. However, the Minister's decision is
final and you will not be able to appeal again.
|
| Q5: |
Are
there any restrictions on home loans for foreigners? |
|
Yes. Foreigners is only
allowed one Singapore dollar loan to purchase a
residential property. They are also able to borrow loans up to
70% of the
purchase price of the property. Please check with the
Banks
for details |
For more information
... on Property Laws, please feel free to
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