Q1:

What is Stamp Duty?

Q2:

How much Stamp Duty do I have to pay?

Q3:

When do I have to pay for the stamp duty?

Q4:

Does a seller of a property need to pay stamp duty?

Stamp Duty is a tax levied on documents which record transactions, such as disposition or transfer of interest from one party to another. Therefore, stamp duty is payable by the person who purchases both residential and non-residential properties in Singapore.

Example: Calculate the Stamp duty for a purchase of a $1,000,000 property.

Depends on whether the property bought is completed or still under construction. For completed properties, the stamp duty is payable within 14 days after signing the Sale and Purchase Agreement if the document is signed in Singapore. If the document is signed outside Singapore, the stamp duty has to be paid within 30 days after the Sale and Purchase Agreement is received in Singapore.

For uncompleted properties, the Stamp Duty is payable within 14 days after the TOP (Temporary Occupation Permit) is issued or when you sell the property, whichever is earlier.

No. Under the Anti-speculation curbs announced by the government on 15 May 1996, the seller of a residential property needs to pay for the stamp duty if the sale of property was made within 3 years after the purchase of the property. This regulation was suspended by the government on 18 November 1999.

Q1:

What is property tax?

Q2:

What is the rate of property tax?

Q3:

Does the owner-occupier's concessionary tax rate apply to companies with ownership of the property?

Q4:

If I reside in 2 different properties, can I be granted the owner-occupied rate for both properties?

Q5:

If I own a HDB flat and a private apartment, can I choose to have the owner-occupied rate of 4% for the private apartment?

Q6:

I have just purchased a property and found out that the previous owner did not pay for the outstanding property tax prior to the sale. Am I then liable to pay for him?

Q7:

How can I find out the amount of property tax for the property I wish to purchase?

Q8:

How can I be sure that the Seller has already paid for the property tax ?

It is a tax payable by a property owner, based on the annual value of the property. The annual value is calculated from the potential gross rental the property can generate in a year after deducting the costs for repairs, insurance, and maintenance (excluding GST).

The property tax rate varies. If you are occupying the property, the property tax is only 4% of the annual value of the property. If the property is not owner-occupied, you have to pay the tax rate of 12% of the annual value of the property. Foreigners have to pay a surcharge for landed properties at 10% of the annual value of the property.

No. Only individual owners are qualified. Even if the property owned by a company has been used as living quarters for employees, the company is still liable for the property tax rate of 12%.

No. You can only be granted the owner-occupied rate for only 1 property.

No. If you own both a HDB flat and a private apartment, the owner-occupied rate can only be for your HDB flat. However, if you own 2 private properties, you may then choose to have the owner-occupied rate for any of them.

Unfortunately, the government looks to the property and not the owner for collecting the property tax. Therefore, in this case, you are liable to pay for the property tax bills for the previous owner. This is however quite rare as your lawyer will ensure all taxes payable are paid by the Sellers before completion.

The easiest way to find out is to ask the Seller for his current property tax bill.

Your Lawyer can request for the Seller to produce the receipt for property tax or the Confirmation Note issued by the Comptroller of Property Tax

Q1:

What are the services that I can expect from my conveyancing lawyer when I purchase a property?

Q2:

How are legal fees charged by Lawyers for conveyancing matters?

Q3:

Can I engage the same lawyer as my seller?

The services expected of your lawyer are as follows :

Before paying the Option Money :

1) Title Search: to verify and confirm the property's ownership before advising you to go ahead to pay or sign the Option to Purchase

2) Make a bankruptcy or winding-up & judicial management search: to check that the seller is not in the bankruptcy list or winding up judicial management list

3) Option to Purchase or Sale and Purchase Agreement Check: to make sure that the terms of the contract are fair and agreeable to you

After exercising the Option :

1) Caveat Lodge: to make sure that another person cannot make any deals with your property.

2) Make an official enquiry on the Title: a detailed check is made on the Title of your property to ensure that it is in order.

3) Send official enquiries to various government agencies: to find out whether there is any legal obstacle on the real property.

4) Prepare for transfer documentation: prepare the transfer in your favour, send them to the seller's lawyer for approval, and then engross the document.

5) Preparing or vetting the mortgage loan and/or CPF Board documentation: arrange with your banker & the CPF Board for the necessary documentation.

6) Notify the Management Corporation: (if a strata titled property is purchased) the MC will be notified, and particulars of the maintenance and service charges obtained

7) Completion Account - inform and arrange for you that to make the necessary payments.

8) Sales Completion - after making a final search to confirm that that the Title is free from any encumbrances, your lawyer will arrange and meet all parties involved to exchange the documents, payments and keys.

The legal fees on conveyancing matters charged by Lawyers used to be prescribed by law under the Solicitors' Remuneration (Amendment) Order 1994}. It was based on a fixed non negotiable sliding "scale" which must be strictly complied with by Singapore lawyers.

With effect from 1st February 2003, legal fees on coneyancing is now negotiable, i.e. mutually agreed between the Law Firm and the client.

Yes. There is no law in Singapore that prohibits a lawyer from acting for both the seller (except if he is a developer) and purchaser concurrently. However, it is not advisable to use the same lawyer in the transaction as there may be the problem of conflict of interest.