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Lecture 2 - Taking Instructions

PRELIMINARY MATTERS when taking instructions

a) Taking Instructions from Proper Parties

• Determine if acting for Purchaser/Vendor


• If someone calls claiming to be speaking on client’s behalf e.g. client is overseas, must:
- Check for Power of Attorney
- Take down instructions in writing
• Failure to check could result in solicitor acting without any authority

Suleman v Shahsavari (1988) 1 WLR 1181


- V’s solicitor purported to sign contract of sale for his V clients, husband and wife, when he had only been
given express authority to sign it on behalf of wife only
- Pf agreed to purchase house, contracts were exchanged and signed by Vs’ solicitor
- At date of completion, Vs refused to complete maintaining that solicitor had no authority to sign contract on
their behalf
- Pf continued to press for completion, brought action for specific performance against Vs and damages against
their solicitor for breach of warranty of his authority to act for Vs in respect of contract for sale.
- Held:
- Although V wife had authorised solicitor to sign contract on her behalf, she had neither represented nor
authorised solicitor to act on behalf of husband
- In absence of husband's consent to exchange of contracts, no valid contract for sale of property
- Although usual measure of damages at CL for loss of bargain for sale of a house was difference between
contract price and market value at date of completion, not an absolute rule and damages could be assessed by
reference to value at some other date if it was more just to do so
- P purchaser had acted reasonably throughout in pressing for completion and, in a market where house prices
were rising, he only knew that contract was lost when court determined that solicitor had not been authorised
to sign on behalf of Vs
- Damages would be assessed as difference between purchase price and value of property at time of judgment
- Solicitor liable to P for damages for breach of warranty
- Solicitor had taken a risk, should have said that would only sign contract and exchange it if he received
letter from her instructing him to do so on behalf of herself and her husband and confirming that she
had her husband's authority

b) The questions to ask:

Scenario
Client: I am buying a property.
Please act for me.

4 basic questions when acting in a purchase


- Note: The choice of questions and the order of asking them, is a matter of style. Use them as a
springboard for other questions. Be thorough and cover all the grounds.

1. What property did you buy?


- • Relates to subject matter of transaction – house? Flat? Residential? Commercial? If still under construction,
certain rules apply ie not in existence yet.
- • Dictates how transaction proceeds
- • Identify property (the address) and then the type
o Types of property
 Residential/ Commercial/ Industrial
 Vacant land
 Landed- bungalow/ semi-d/ terrace house
 Apartment/ condominium
 HDB flat
 Shop/ Office/ Factory/ Workshop/ Warehouse
O PARTICULARS OF PROPERTY
 Address\
 mukim/town subdivision and lot nos.
 zoning and user
 type
o Issues arising from type of property
 Title issued/ not issued
 Completed/ under construction
 First-hand/ second hand, direct from owner
 Shop/Office/Factory/Workshop/ Warehouse – is property approved for the purpose client
has in mind?
 “Residential” property triggers off:
• Is it a residential property within the meaning of the Residential Property Act
• If yes, is client prohibited from buying?
o Is buyer local or foreign? (see above)
• If uncertain whether client would be prohibited from buying, contract should
provide for a condition precedent. Otherwise if the client is prohibited from
buying and he has bought property under the RPA, the contract would be an illegal
contract and would be declared null and void, and if your client has paid out any
money he cannot claim his money back.
 HDB flat
• Does client own a HDB flat?
• Note that there are restrictions on the private ownership of property when you own
a HDB flat
• Note that when you buy a new flat from the HDB, you must have 5 years of
occupation after purchase.
RPA
Flats in buildings and condominiums
4. —(1) Subject to this section, this Act shall not apply to any transfer to or any purchase or acquisition by any
foreign person of any estate or interest in any of the following residential properties:
(a) any flat (including any share in land appurtenant to that flat) that is comprised in any building in a
development permitted to be used under the Planning Act (Cap. 232) for residential purposes, and that is not a
landed dwelling-house;
(b) any unit comprised in a development which is shown in an approved plan bearing the title “condominium”
and issued by the competent authority under the Planning Act;
(c) any unit in a development comprising housing accommodation sold under the executive condominium
scheme established under the Executive Condominium Housing Scheme Act (Cap. 99A).
(2) Notwithstanding subsection (1) but subject to subsection (7), no foreign person shall, without the prior
approval of the Minister, purchase or acquire (whether in a single transaction or a series of transactions)

(a) all the flats in every building in a development permitted to be used for residential purposes under the
Planning Act;
(b) all the units in a development approved by the competent authority under the Planning Act (Cap. 232) as a
condominium development; or
(c) all the units in a development sold under the executive condominium scheme established under the Executive
Condominium Housing Scheme Act (Cap. 99A).
(3) Any foreign person who contravenes subsection (2) shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $10,000.
(4) Where a foreign person is convicted of an offence under subsection (3) in respect of any development, the
Minister may direct the Controller to serve a notice on that person to divest and transfer, within a period of 6
months from the date of service of the notice on that person or within any extension of time granted by the
Minister under subsection (5), all his estate or interest in the entire development, or any flat or unit in that
development as the Minister may specify to another person who is not —
(a) his nominee; or
(b) if the foreign person is a company, a related company within the meaning of the Companies Act (Cap. 50).
(5) The Minister may, on an application being made by a foreign person before the expiration of the period of 6
months from the date of service of the notice referred to in subsection (4), grant such extension of time as the
Minister thinks fit for the transfer of his estate or interest in the development or any flat or unit therein.
(6) Any foreign person who fails to comply with the Controller's notice referred to in subsection (4) shall be
guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a
continuing offence, to a further fine not exceeding $500 for every day during which the offence continues after
conviction.
(7) Nothing in subsection (2) shall prevent a foreign person from acquiring any estate or interest in any
development under any agreement, lease or assignment for a term not exceeding 7 years, inclusive of any further
term which may be granted by way of an option for renewal.
(8) Without prejudice to subsection (6), where a foreign person on whom a notice under subsection (4) has been
served fails to satisfy the Controller that he has divested and transferred his estate or interest in the development
concerned or any flat or unit therein within the time limited by subsection (4) or any extension thereof, the
Minister may issue to the Controller a notice to attach and sell the estate or interest in the development or any flat
or unit therein.
(9) The notice to attach and sell referred to in subsection (8) shall specify the estate or interest in the
development or any flat or unit therein to be attached and sold by the Controller, and a copy of that notice shall
also be served on —
(a) the foreign person who is the owner of the estate or interest in the development or any flat or unit therein to
be attached and sold; and
(b) each subsisting mortgagee or chargee thereof (if any) who appears as such in the relevant records in the Land
Titles Registry or the Registry of Deeds of the Authority, as the case may be.
(10) In this section —
"approved plan" means a plan approved by the relevant competent authority;
"competent authority" means a competent authority appointed under the Planning Act (Cap. 232);
"landed dwelling-house" means a detached house, a semi-detached house or a terrace house (including a linked
house or a townhouse), whether or not comprised within a strata title plan registered under the Land Titles
(Strata) Act (Cap. 158);
"unit" includes a flat or dwelling-house.

- →If yes, is client prohibited from buying?


- →Should contract be conditional?
- →Even if RPA does not apply, does client own HDB flat? – needs HDB’s approval. Or to notify them that they
are buying private property.

2. Have you paid anything yet? - if has paid money, then offer made and cannot change terms of offer. becomes
counter offer and revokes orig offer.
o • Relates to contractual issues
o • If $ paid, terms settled
o • Vendor not obliged to amend terms
o • Eg option fee paid (usually 1% or more), 10% deposit paid at auction, tender fee paid, booking fee paid to
Developer
o • Even though terms no longer negotiable, you should still advise client on terms

- The best time to get advice from a conveyancing lawyer is before you pay up any money.
- Cos the moment you pay $, consideration is given and the terms are settled and any attempt to change the
terms is a counter-offer and the vendor is not obliged to amend the terms. he can actually forfeit the 1% if the
seller is not willing to condone the changes, unless the Seller is desparate to sell it
- E.g. option fee paid, 10% deposit paid at auction, tender fee paid, booking fee paid to Developer.
- Even though terms no longer negotiable, you should still advise client on terms.
o Yeo Yoke Mui v Ng Liang Poh (1999) 3 SLR 529
- imposes the duty on the conveyancer to put the client alert on the provisions of the option even
though the clients only comes to you after they have signed the option etc
- Aplt (P) was granted option to purchase property which was affected by splay corner of 6X6
metres
- Option contained clause stating that P ‘is fully aware of road reserve shown on the PWD plan
provided by V’
- But no road interpretation plan was annexed to option itself, and option was unclear whether
deposit of 10% of purchase price less option fee already paid was to be held by V’s solicitors as
stakeholders pending completion of sale, or to be released to V directly
- On receipt of option, Aplt instructed Rspdt (P’s solicitor) to act for her in purchase
- Rspdt after receiving option wrote to Aplt stating that he was unable to comment on extent of
road reserve disclosed to her pending his perusal of road interpretation plan
- Rspdt wrote to Aplt enclosing copy of road interpretation plan obtained from LTA and informed
her that property was affected by ‘Categories 4 and 5 Road Proposal’ but did not say anything
as to extent to which property would be so affected
- Aplt went to Rspdt’s office to sign option with view to exercising it
- Rspdt alleged that before Aplt signed option, he reminded her of existence and effect of
Categories 4 and 5 road reserves as well as uncertainty as to treatment of balance of 10% deposit
less option fee paid
- Aplt however, denied having received such advice
- Subsequently, Rspdt sent completed option and balance of 10% deposit to V’s solicitor without
stipulating that money was to be held as stakeholders pending completion
- Sum was released to V
- Aplt later found out that property was affected by that road in qn being a Category 4 road
- Aplt subsequently commenced proceedings against V and Rspdt
- As against V, sought declaration that sale and purchase of property had been rescinded and for
order that deposit be returned to her
- As against Rspdt, claimed he was negligent in failing to explain to her effect and significance of
road reserves affecting property, and to warn her of risk involved in releasing balance of 10%
deposit to V pending completion
- Held:
- No merit in Aplt’s contention that Rspdt was negligent in failing to warn her of risk involved in
agreeing to release balance of 10% deposit to V pending completion
- Even if Rspdt had been negligent in this respect, Aplt suffered no loss as a result of her payment
of that sum since she was not entitled to annul purchase of property and to refund of this sum
- Scope of Rspdt’s duty was to examine and consider terms of option and advise Aplt on any
unusual terms contained in it and to make searches and investigation on property and
advise Aplt of any material fact/matter adversely affecting property
- Rspdt realised likelihood of road reserve affecting property, because he very promptly wrote to
Aplt stating that he 'was unable to comment on the extent of the road reserve disclosed' to her
- From time of receipt of option till date option was signed, Rspdt did not advise Aplt as to effect
of road reserves on property, all he did during the this time was to send to Aplt copy of road
interpretation plan and point out toot her existence of ‘Categories 4 and 5 Road Proposal’
- This was plainly inadequate and Rspdt ought to have gone further and advised her on
meaning of ‘Categories 4 and 5 roads’ and how they affected property
- With help of explanatory notes pertaining to road interpretation plan, he must have realised and
understood, at least roughly if not precisely, meaning of Categories 4 and 5 roads and how they
affect property abutting them, such as property itself
- Not imputing too high a standard to a conveyancing lawyer if we say that he must have
some knowledge of road interpretation plans and meaning of various terms appearing
thereon since applications for road interpretation plans are frequently made by
conveyancing lawyers, as a matter of good practice, and one can justifiably assume that they
obviously understand purpose of such plans and what such plans say or mean.
- Even if Rspdt had advised Aplt of effect of road reserves on property just before she signed
option, he would still have been in breach of duty in leaving such material advice till very
late stage when Aplt was about to sign agreement to purchase property
- Mere fact that Rspdt complied with standard conveyancing practice in Sg in sending road
interpretation plan and accompanying explanatory notes to Aplt did not preclude finding that he
had not done enough to advise her on road reserves
- Evidence on standard conveyancing practice was at most only a general guideline of what was
expected of a reasonably competent lawyer
- In circumstances of case, it was not sufficient for Rspdt merely to send Aplt road interpretation
plan and explanatory notes and leave her to read these notes herself
- Requisite causal link between Rspdt’s breach of duty and Aplt’s loss since presence of Category
4 road reserve affected a sizeable part of land on which property stood and would hamper Aplt’s
use of property since on evidence adduced, Aplt would very probably not have exercised option
if Rspdt had advised her on effects of road reserves on property

• S will argue that since Option exercised, B cannot change terms of Option even if he is really
unhappy, B just has to forfeit his 1% deposit then
- As B’s solicitors, try to negotiate
- Option usually termed in favour of V

• firstly, when the client buyer comes to you with a signed option, 1% paid… and you notice no provisions for
stakeholders and some onerous obligations, 1st thing to do is to put it on record that he came to see you only
after the option signed
• 2nd thing is to go through the clauses and highlight the ones that are onerous
• 3rd thing is to propose to buyer client steps to take to lessen his worries
o e.g. explain what is the stakeholders’ clause etc
- always prefer such a clause, because the buyer can actually rescind on unsatisfactory searches on
title/property/owner of property, can get money from V’s lawyers
(a) Search on property
You have to check the title search to see if there are encumbrances
• if the seller can show you that the mortgage is only 1/3 of the purchase price, then it is
alright
(b) Search on owner of property
• for situation for non-stakeholder
• should do a bankruptcy search, to find out also whether he is involved in any civil suit
etc
- (c) you will also want to ensure that the seller is resident in Singapore for tax purposes, easier to get
money
- (d) you will also want to advise your client that if the property is encumbered e.g. mortgages, or there
are other caveats, then you will want to advise that all these should be paid off first so can use
stakeholding monies to pay it off

(e) ==> After all the searches are done, you should go a step further and state that all searches
turned out fine, and want an instruction in writing that it is alright to proceed with the purchase
on the clients’ behalf
Yeo Hoke Mun [1999] 3 SLR 529
• (see paragraph 12) judge expressly mentioned that it was negligent not to advise
• should not leave the buyer client in a lurch, should give him all the facts (relevant) and
let him decide whether or not to proceed
Summary
- put it on record that option was given and that was paid
- go through the clauses and highlight the onerous clauses
- first thing to do is to write to the S’s lawyers to amend… but most of the time, they would not agree
- to advise on the methods to overcome these
- and to lay out all the facts and ask for instructions

- If money has not been paid yet, can still negotiate the terms.
o Peruse contract and advise client
o Liase with vendor’s solicitor, not agent.
o Balance client’s rights against losing the deal – “must have” vs nice to have clauses” (e.g. “title free
from encumbrances” is a very important clause which is a MUST HAVE)
o Client would be grateful if deal not lost over semantics.
o Leave commercial decisions to client (don’t take the risk of decision making for them)
o More in Lecture on preparing contracts

3. Are you buying it alone? – want 1 principal to give all the instructions
o • Relates to client as purchaser
o • Ask for client’s particulars
o • Examine client’s NRIC/passport – must be satisfied that he is the person he claims to be! Certificate of
Correctness
o • S59 LTA - more in Lecture on Preparing Transfer
o • Some firms get warrant to act signed by client. Some take view that clients’ attending at office, and
handing over
o documents etc is enough. Note that warrant to act for litigation and conveyancing are different! Some
lawyers say that by conduct, sufficient to indicate that client instructing the solicitor.
o If more than 1 buyer …
o • Establish who may give instructions – not practical to call both to confirm each other’s instructions.
Write letter to cover yourself – sent to correspondent’s address given at first meeting. Clients may live at
diff address
o • Advisable to put in writing, clients’ instructions on manner of holding.
o Use of CPF monies to pay for properties
 If CPF is used for residential properties, proof of relationship required
• E.g. married siblings, parent/ child
• Rules relaxed. Singles can now use CPF jtly to buy residential propert
 CPF money can also be used to pay for commercial properties. In such cases you don’t have to
be related.

4. Do you need financing?


o Cash
o Proceeds fr sale of existing property
o • CPF?
o • Loan? If yes, which bank?
o • Any bridging loan? At which pt do you need bridging loan?
o • If yes, any conditions precedent?
o • When is release required?
o • More in Lecture on Mortgages and CPF

5. Other questions
o • Price vs valuation. Important for loan and CPF purposes
o • Furniture and fittings?
o • Vacant possession or subject to tenancy?
o • Completion date? – longer or shorter time required?
o • Any special conditions eg subject to planning approval; no road or drainage reserves
o inform them as to the entire contract clause – what is not included in option will not be taken into
consideration or held to be binding

Scenario
Client: I am selling a property.
Please act for me.

4 basic questions when acting in a sale

1. How many owners?


o • Relates to who are selling
o • Cannot assume just 1 owner or H&W
o • If more than 1 owner, establish who may give instructions
o • Are all owners entitled to sell? -
 A minor needs a court’s sanction to dispose of an interest in land.
 A minor can acquire property but needs a court’s sanction in order to dispose of it.

2. Any charges, mortgages, encumbrances, outstanding notices or payments?


o • Relates to vendor’s obligation to give good title free from encumbrances – negative equity – whatever price
selling property for, not enough to pay bank, need to top up in cash. Seller must be careful that enough money
to pay off all encumbrances to discharge. Must be paid in full
o • Be tactful. Remind client to check that he can pay outstandings, especially in these bad times
o • Only client knows of encumbrances eg unauthorized alterations, encroachment, payments due to MC etc
o Redemption of existing mortgage over property: notice and amount.
o Discharge of existing CPF charge over property: Notice and amount to be refunded.

What if I sell my property before reaching 55, and have not fully paid-up the housing loan?
Generally, when you sell your property, you’d need to refund the CPF savings you had earlier withdrawn for the
purchase of the property. This includes the interest you would have earned, had the savings remained in your CPF
account

It’s a straightforward matter when the sales proceeds are enough to pay the remaining loan to HDB or the lending
bank, as well as making a full refund of your CPF savings.

What happens if the sales proceeds aren’t enough?

Here’s a simplified table showing the “priority” of payments, ie. how the sales proceeds would be applied

HDB Flat Private Property Private


Financed with Bought Before 1 Property
Bank Loan September 2002 Bought or
Priority of HDB Flat Financed with
Refinanced
Payment HDB Loan
After 1
September
2002
First Outstanding HDB loan and Outstanding CPF savings Outstanding
interest, and resale levy if housing loan with withdrawn for housing loan
applicable bank purchase of with bank
property
Second CPF savings withdrawn for CPF savings Outstanding CPF savings
purchase of property, and withdrawn for housing loan with withdrawn for
CPF interest purchase of bank purchase of
property property
Third* Outstanding HDB Housing loan’s Housing loan’s Housing
upgrading cost if any interest, and CPF interest, and CPF loan’s interest,
interest interest and CPF
interest

*
the housing loan interest here is applicable only in the event of a forced sale, and is calculated from the date of
payment default.

3. Completion date
o • Can owner move out in time if sale is with vacant possession?
o • Does owner need sale proceeds by certain date for another transaction?
o Will money come in time for the other transaction or is a bridging loan needed?
o bear in mind:
o time required for the replies to legal requisitions to be received
o time required for loan and/or CPF documentation to be completed
o whether court orders or consent of beneficiaries are required
o whether approval of JTC, HDB or other competent authority required

4. Vacant or with furniture & fittings, or subject to tenancy?


o • With furniture & fittings? Should have inventory to avoid future dispute
o • Subject to tenancy? If rental is good, some vendors want best of both worlds 8-12 wks the usual time.
c) Attendance notes
At the end of the interview, your attendance note must contain …
- • Details of the property
- • Clients’ particulars
- • Clients’ questions and instructions
- • Solicitor’s explanations of the procedure and salient terms of sale
- • Solicitor’s replies to clients’ questions
- • Solicitor’s advice on eligibility to buy, coownership, financing, the timeline, and other relevant matters
- An attendance note is NOT a verbatim transcript!
- Organize into topics after taking the notes – give headings to the notes!

You have a duty to take your client’s instructions


- not your secretary, not your clerk, not your paralegal, not your pupil and not your attachee.
- Because no two clients are the same and as you ask questions it may trigger other questions.

VERY IMPORTANT!
o • Record instructions in attendance note because
o • You can’t remember every little detail, and you may be handling many cases at any one time
o • Someone else may take over the matter
o • To play safe, send letter to clients confirming instructions – also gives clients security. And so that client can
rebut the instructions.

d) Initial Letter to Client Confirming Instructions

• If potential client calls making numerous inquiries and asking for quotations, never assume that you will act
for him
- Ask him expressly whether he wants you to act for him and if so to write to you with such effect
- Circular issued 2 years ago as to standard 1st letter, stating costs and scope of what lawyers would be doing for
them
- Good practice to use this precedent especially if clients do not write to you, whereby you take initiative and
write to them

• Letter would include:


- Name of solicitor
- Contact of solicitor
- GST clause
- Stakeholder’s clause
- CPF Payment
- Estimated costs since different scales:
- Purchaser: Full scale
- Bank: ½ scale
- Borrower: ¼ scale

• Do all these before incurring costs, conducting searches etc

e) Conflict of Interest

• Cannot act as lawyer for both Purchaser and Vendor IF there is conflict of interest
- No law that same firm cannot act for both parties, only that cannot do so if it involves a conflict of interests
- Especially for fractional purchases e.g. Father selling to son at a cheap price, there would be no conflict
position, can act for both sides

• Situation of acting for both bank and borrower common because of class savings
- If act for both, must inform both sides of potential conflict and that if it materialises, will have to discharge
yourself (make note that this was told to clients)
- Keep proper documentation of on-goings just in case later client turns his back and claims that there is conflict
of interest and that he was not properly informed about it

- cannot act for both a housing developer and a purchaser unless Certificate of Statutory Completion
has been issued (s. 79 Legal Profession Act)

s79 Legal Profession Act:


(1) Where solicitor acts for housing developer in sale of immovable property developed under a housing
development, no specified person shall, in sale of any immovable property developed under SAME
housing development, act for P of property unless certificate of fitness for occupation in respect thereof
has been issued by Commissioner of Building Control/other relevant authority
(2) ‘Develop’, ‘housing developer’, ‘housing development’ have meanings assigned to them, respectively, in
Housing Developers (Control and Licensing) Act;‘sale of immovable property’ includes grant of lease for
term exceeding 3 years;
‘specified person’ in relation to a solicitor, means-
(a) solicitor himself;
(b) any member/assistant of firm of which solicitor is member as partner/consultant/employee; OR
(c) any director/employee of law corporation of which solicitor is director/employee
(3) Sub-s(1) is without prejudice to any law affecting solicitors who act for parties where there is a conflict of
interest/where a conflict of interest may arise
(4) Disciplinary proceedings may be taken against solicitor who acts in contravention of sub-s(1)

 If lawyer acts for housing developer in that particular development, no ‘specified person’ can act for P in that
same development unless Certificate of Statutory Completion (CSC) has been issued

* Qn: Who is a ‘specified person’?


 s79(2) LPA states that it is solicitor himself, or any member/assistant of firm in which he works in, or any
director/employee of law corporation he works in

* Qn: Who is a ‘housing developer’?


 Person(s)/society/company engaging in/undertaking housing development, which is to develop/provide money
for developing or purchasing of more than 4 units of housing accommodation

s2 Housing Developers (Control and Licensing) Act:


‘Housing developer’ means any-
(a) person;
(b) group of persons, in partnership/otherwise;
(c) society, co-operative society/otherwise; OR
(d) company,
who/which engages in/undertakes housing development, but does not include any-
(i) bank which is in possession of valid license granted by MAS under Banking Act;
(ii) insurance company registered under s7 Insurance Act,
so long as such bank/insurance company only lends/provides money for housing development

"housing development" means the business of —


(a) developing;
(b) providing the money for developing or for the purchase of,
more than 4 units of housing accommodation; or
(c) developing and providing the money for the purchase of more than 4 units of housing accommodation
resulting from such development;
"develop" means to construct or cause to construct housing accommodation, including any building operations
in, on, over or under the land for the purpose of erecting housing accommodation and the sale by a housing
developer of land which would be appurtenant to such housing accommodation;

 Need license
s4 Housing Developers (Control and Licensing) Act:
Housing development to be carried out only by licensed housing developer.
4. —(1) No housing development shall be carried out or undertaken in Singapore except by a housing developer
who or which is in possession of a licence in writing from the Controller authorising it to do so.
(7) Any housing developer that contravenes subsection (1) shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $20,000 and shall also be liable to imprisonment for a term not exceeding 5
years.

s2:
‘Licensed housing developer’ means housing developer holding a valid license

‘Licence’ means licence granted under s4(4)


(4) Upon receiving an application under subsection (2), the Controller may, subject to section 5, grant a licence,
with such conditions as may be imposed for carrying out the purposes of this Act or without conditions.

- Although no similar provision enacted in respect of commercial properties, would apply likewise where clear
conflict of interest if P engages same solicitor as developer (Practice Directions and Rulings 1989 p. 98 item 1)

• If different law firms appointed for 1 mega project, should use appointed law firm
- e.g. Firm A acting for Blks 1 and 2, Firm B acting for Blks 3 and 4, and client
buys unit in Blk 3, cannot use Firm A, must stick to Firm B

• Cannot act for sub-Purchaser either because when completed, Purchaser would drop out of the picture and sub-
Purchaser would now be put into direct contact with housing developer and since acting for Developer already,
would be in conflict position

NATURE OF TRANSACTION
a) Sale/Purchase (whole/fractional)
b) Mortgage/Refinancing

• Re-financing (Bank A  Bank B)


• Sale of building

WHO IS THE CLIENT?


(a) a natural person?
(b) A company?
(c) An unincorporated association. Society/ trust?

Statutes Dictating Required Particulars from Client

o For particulars required for purchaser’s caveat for land under common law system (RODA), see Section 8
Registration of Deeds Act and Rule 29 of ROD Rules

Caveats.
8. —(1) Subject to this section and the rules, a caveat in respect of any land may be —
(a) given by the proprietor of the land for any estate or interest therein in favour of any person named in the caveat;
or
(b) lodged by any person claiming an estate or interest in the land.
(2) Such a caveat shall contain the following particulars:
(a) the names of the caveator and the caveatee and their addresses for the service of notices under this Act;
(b) a description of the estate or interest in the land given to or claimed by the caveator and, if the caveator is the
purchaser or sub-purchaser of the estate or interest claimed in the caveat, the amount of the purchase price and the
date of the caveator’s contract or the date on which he exercised the option to purchase the interest in the land, as
the case may be.
(3) Where a part of a Government survey lot is affected, the caveat shall have a plan annexed edging with sufficient
identity that part of the lot affected.
(4) The Registrar shall not register a caveat which does not —
(a) disclose any estate or interest in land; or
(b) state the Government survey lot number maintained in the records of the Chief Surveyor or, in the case where a
part of a Government survey lot is affected, does not state that part of the existing lot and does not clearly identify
that part of the lot in one or more plans annexed to the caveat.
(5) Where, after the acceptance of any caveat for provisional registration, the Registrar discovers that the caveat
does not comply with any of the requirements under this section or the rules, the Registrar may cancel the
provisional registration.
(6) Notwithstanding subsections (4) and (5), the Registrar shall not be concerned to consider whether or not a
caveator’s claim is justified.
(7) Where a caveat is lodged by a person claiming an estate or interest in land or by his solicitor or agent, such a
person shall serve a notice by registered post on the proprietor of the land and all persons who have prior claims as
shown in the register, and the Registrar shall not be concerned to inquire whether or not such a notice has been
effected.
(8) If within the period during which a caveat remains in force any subsequent assurance made or executed in
favour of the person to whom a caveat has been granted under subsection (1) (a) or in favour of the person who has
lodged a caveat under subsection (1) (b) and conveying the same estate or interest protected by and so described in
the subsisting caveat is presented and accepted for registration, that assurance when registered shall have priority as
though it had been registered on the date the caveat was registered and that date shall be deemed to be the date of
registration of the assurance for all purposes and to have been substituted in all certificates and other instruments
for the date on which the assurance was actually presented for enrolment accordingly.
(9) A caveat registered under this Act shall, unless withdrawn by the caveator or cancelled by an order of court, be
in force for a period of 5 years.

Particulars of acquiring party to be disclosed in instruments


29. —(1) For the purpose of complying with the requirements of section 19 of the Residential Property Act (Cap.
274), every instrument under which a person acquires an estate or interest in land shall disclose —
(a) in the case of a natural person, the following particulars:
(i) where the person is a citizen of Singapore, his citizenship status and the number of his identity card;
(ii) where the person is a citizen of Singapore but has yet to be issued with an identity card, his citizenship status,
the number and date of issue of his birth certificate, and the number of his passport or citizenship certificate;
(iii) where the person is not a citizen but a permanent resident of Singapore, his citizenship, the number of his
identity card, if any, his permanent resident status, his unique identification number relating to his permanent
resident status issued to him by the relevant Government department or statutory authority in Singapore and the
number and place of issue of his passport; or
(iv) where the person is neither a citizen nor a permanent resident of Singapore but holds a pass, assigned with a
foreigner identification number, issued to him by the relevant Government department or statutory authority in
Singapore, his citizenship, the foreigner identification number and the number and place of issue of his passport;
(b) in the case of a body corporate, the following particulars:
(i) where the body corporate is incorporated in Singapore and registered under the Companies Act (Cap. 50), its
place of incorporation, the registration number of the company assigned to it by the Registrar of Companies and its
registered address in Singapore;
(ii) where the body corporate is incorporated outside Singapore and has a registered office or place of business in
Singapore, its place of incorporation, the registration number of the company, if any, assigned to it by the Registrar
of Companies and its address for service of notice in Singapore; or
(iii) where the body corporate is incorporated outside Singapore and has no registered office or place of business in
Singapore, its place of incorporation and its address for service of notice within Singapore; or
(c) in the case of an unincorporated body, its place of formation, and where formed in Singapore, its registration
number as assigned by the relevant Government department or statutory authority in Singapore.
(2) Where the person or body corporate has obtained —
(a) a clearance certificate from the Controller of Residential Property; or
(b) the approval of the Minister for the acquisition of an estate or interest in land under the Residential Property Act
(Cap. 274),
the instrument shall be lodged together with a copy of the clearance certificate or letter of approval and such other
documents as the Registrar may require.
(3) The family name, surname or the first name of a person (where applicable) acquiring any estate or interest in
land under an instrument shall be underlined and shall be shown in the instrument in the same order as that shown
in his identity card, birth certificate, passport or other document of identity, as the case may be.
(4) In this rule, “identity card” means an identity card issued under the provisions of the National Registration Act
(Cap. 201).

o For particulars needed for purchaser’s caveat for Land under LTA/ Torrens system, see Section 115(1) Land
Titles Act and Rule 9 of Land Titles Rules

Section 115. —(1) Any person claiming an interest in land (whether or not the land has been brought under the
provisions of this Act), or any person otherwise authorised by this Act or any other written law to do so, may lodge
with the Registrar a caveat in the approved form which shall include the following particulars:
(a) the name of the caveator and the caveatee;
(b) an address in Singapore at which notices may be served on the caveator and the caveatee;
(c) particulars of the estate or interest claimed by the caveator;
(d) the grounds in support of the claim;
(e) the nature of the prohibition of the dealing in land;
(f) the lot affected by the caveat and, where that lot is comprised in a folio, the folio;
(g) where the caveat relates to only part of the land, such description of that part as will enable it to be identified to
the satisfaction of the Registrar;
(h) if the caveator is a purchaser or sub-purchaser of the interest in the land, the amount of the purchase price and
the date of the caveator’s contract or the date on which he exercised the option to purchase the interest in the land,
as the case may be; and
(i) the particulars required by section 19 of the Residential Property Act (Cap. 274).

Section 19 of the Residential Property Act


Every transfer of land to specify citizenship status of purchaser or place of registration or incorporation of
a body corporate.
19. —(1) In every instrument of transfer of land (other than a mortgage, charge or reconveyance) lodged with the
Registrar on or after 1st July 1977 there shall be specified, after the name of the person acquiring an estate or
interest in land, the name of the country of which he is a citizen, together with the number of the identity card
issued to him under the National Registration Act or other evidence of his citizenship if he is a citizen of
Singapore and, if he is a citizen of any other country, the number of his passport and of his identity card (if he has
been issued with one); and where the purchaser is a body corporate there shall be specified its place of
registration or incorporation.
Cap. 201.
(2) Every such person acquiring a title or interest in land under such instrument shall certify on the instrument
that the particulars specified in accordance with subsection (1) are correct, and if that person employs an
advocate and solicitor to act for him, the advocate and solicitor shall so certify in such form as may be approved
by the Registrar. For the purposes of this subsection, the Registrar may require the production of such document
as he may think fit.
(3) The Registrar has the power to refuse registration of any such transfer wherein the particulars required by
subsection (1) are not specified or wherein the certification required by subsection (2) has not been effected, and
where the Registrar has accepted any such transfer, he has the power to cancel the provisional registration of any
such transfer or require the person lodging the transfer to withdraw it from registration.
(4) Where the Registrar intends to exercise the power conferred on him by subsection (3) to cancel the
provisional registration of any such transfer or to require the person lodging such transfer to withdraw it from
registration, he shall give notice in writing to that effect, and shall not for a period of 6 weeks of the date of the
notice cancel the provisional registration of any such transfer; and where any such notice requires the transfer to
be withdrawn and if during that period subsection (1) or (2) has not been complied with, the Registrar may
cancel the provisional registration of such transfer and shall not be bound to give any further notice before
effecting such cancellation.
(5) This section shall apply to every instrument of transfer of land irrespective of whether the land is residential
property or otherwise.
Particulars of acquiring party to be disclosed in instruments
9. —(1) For the purpose of complying with the requirements of section 19 of the Residential Property Act (Cap.
274), every instrument under which a person acquires an estate or interest in land shall disclose —
(a) in the case of a natural person, the following particulars:
(i) where the person is a citizen of Singapore, his citizenship status and the number of his identity card;
(ii) where the person is a citizen of Singapore but has yet to be issued with an identity card, his citizenship status
and either the number and date of issue of his birth certificate or the number of his passport or citizenship
certificate;
(iii) where the person is not a citizen but a permanent resident of Singapore, his citizenship, his permanent resident
status, the number of his identity card (if any) or his unique identification number relating to his permanent resident
status issued to him by the relevant Government department or statutory authority in Singapore, and the number
and place of issue of his passport; or
(iv) where the person is neither a citizen nor a permanent resident of Singapore but holds a pass, assigned with a
foreigner identification number, issued to him by the relevant Government department or statutory authority in
Singapore, his citizenship, the foreigner identification number and the number and place of issue of his passport; or
(b) in the case of a body corporate, the following particulars:
(i) where the body corporate is incorporated in Singapore and registered under the Companies Act (Cap. 50), its
place of incorporation, the registration number of the company assigned to it by the Registrar of Companies and its
registered address in Singapore;
(ii) where the body corporate is incorporated outside Singapore and has a registered office or place of business in
Singapore, its place of incorporation, the registration number of the company, if any, assigned to it by the Registrar
of Companies, and its address for service of notice in Singapore;
(iii) where the body corporate is incorporated outside Singapore and has no registered office or place of business in
Singapore, its place of incorporation and its address for service of notice within Singapore; or
(c) in the case of an unincorporated body, its place of formation, and where formed in Singapore, its registration
number as assigned by the relevant Government department or statutory authority in Singapore.
(2) Where the person or body corporate has obtained a clearance certificate from the Controller of Residential
Property or the approval of the Minister for the acquisition of an estate or interest in land pursuant to the
Residential Property Act (Cap. 274), the instrument shall be lodged together with a copy of the clearance certificate
or letter of approval and such other documents as the Registrar may require.
(3) The family name, surname or the first name of a person (where applicable) acquiring any estate or interest in
land under an instrument and shall be shown in the instrument in the same order as that shown in his identity card,
birth certificate, passport or other document of identity, as the case may be.

 R.29 Registration of Deeds Rules contains exact same provision as R.9 LT Rules

Local address for service of notice

s115(1) LTA:
Caveator in lodging caveat must include names of caveator and caveatee and their address in Sg at which notices
may be served
 If foreign client ,can c/o Solicitor’s address

s8(2)(a) RODA:
Caveat must contain name and address for service of notices of caveator and caveatee

(1) Requirements for Natural Persons:


- Name (and alias, if any)
- Address in Sg
- Occupation (if P)
- Conjugal status (if P)
- Manner of holding (if P)
- Citizenship (if P)
- NRIC/Passport Number (if P)
- Date of birth and BC No., if infant (if P)
- Capacity (if V) (e.g. if below age of majority need court order to sell)
o If property was transmitted to Vendors upon the death of the previous owner, check to see if the Vendor’s
names are contained in the will of the deceased so as to be sure that transmission was in accordance with the
will. If deceased died without a will, check grant of letters to see if good title can be given to the purchaser.
o Also check to see if the sale of the property is taking place before or after 6 years of the death of the deceased.
If after 6 years after the death of the deceased, you need a court order under Section 35(2) CLPA.

- s35(2) Conveyancing and Law Property Act:


No sale/mortgage of land belonging to estate of deceased person shall be made by legal PR of that person
after expiration of 6 years from his death unless with court sanction/unless it is done in pursuance of
power of sale/trust for sale or mortgage which is expressly contained in/may be implied from terms of will of
deceased
o If you the Vendors are trustees of the property, make sure that they are authorised by their trust instrument
with a power of sale to sell the property in question – Section 18(1) Trustees Act. Note that under Section
15(1) and (2) Trustees Act, two trustees are needed to give a valid receipt (Your client as purchaser needs
to be able to get a valid receipt after he has paid the trustees to show that he has paid them)

Trustees act
Power of trustees for sale to sell by auction, etc.
13. —(1) Where a trust for sale or a power of sale of property is vested in a trustee, he may sell or concur with
any other person in selling all or any part of the property, either subject to prior charges or not, and either
together or in lots, by public auction or by private contract, subject to any such conditions respecting title or
evidence of title or other matter as the trustee thinks fit, with power to vary any contract for sale, and to buy in at
any auction, or to rescind any contract for sale and to resell, without being answerable for any loss.
(2) A trust or power to sell or dispose of land includes a trust or power to sell or dispose of part thereof, whether
the division is horizontal, vertical, or made in any other way.

Power of trustees to give receipts


15. —(1) The receipt in writing of a trustee for any money, securities, or other personal property or effects payable,
transferable or deliverable to him under any trust or power shall —
(a) be a sufficient discharge to the person paying, transferring or delivering the same; and
(b) effectually exonerate him from seeing to the application or being answerable for any loss or misapplication
thereof.
(2) This section does not, except where the trustee is a trust corporation, enable a sole trustee to give a valid
receipt for the proceeds of sale or other capital money arising under a trust for sale of land.
(3) Notwithstanding anything to the contrary in a disposition on trust for sale of land or in the settlement of the net
proceeds, the proceeds of sale or other capital money arising under the disposition shall not be paid to or
applied by the direction of fewer than 2 persons as trustees of the disposition, except where the trustee is a
trust corporation.
(4) Subsection (3) does not affect the right of a sole personal representative as such to give valid receipts for or
direct the application of the proceeds of sale or other capital money mentioned in that subsection; nor, except where
capital money arises on a transaction, render it necessary to have more than one trustee.
(5) This section shall apply notwithstanding anything to the contrary in the instrument, if any, creating the trust.

Power to raise money by sale, mortgage, etc.


18. —(1) Where trustees are authorised by the instrument, if any, creating the trust or by law to pay or apply capital
money subject to the trust for any purpose or in any manner, they shall have and shall be deemed always to have
had power to raise the money required by sale, conversion, calling in, or mortgage of all or any part of the trust
property for the time being in possession.
(2) This section shall apply notwithstanding anything to the contrary contained in the instrument, if any, creating
the trust, but shall not apply to trustees of property held for charitable purposes.

Section 19 Trustees Act


19. No purchaser or mortgagee, paying or advancing money on a sale or mortgage purporting to be made under any
trust or power vested in trustees, shall be concerned to see that such money is wanted, or that no more is raised than
is wanted, or otherwise as to the application thereof.

- s77(1) Bankruptcy Act:


When person adjudged bankrupt, any disposition of property made by him during period beginning with
day of presentation of bankruptcy petition and ending with making of bankruptcy order shall be void except to
extent that such disposition has been made with consent of/subsequently ratified by, court

- s4 Settled Estates Act:


(1) The court/a judge, if it is considered proper and consistent with due regard for interests of all
parties entitled under settlement, may from time to time authorise sale of whole/any part of any
settled estates, to be conducted and confirmed in same manner as sale of lands sold under judgment
of court
(4) On every sale under this Act the court/a judge may direct what person(s) shall execute deed of
conveyance

- s15 Mental Disorders & Treatment Act:


The court may, if it appears to be just/for benefit of mentally disordered person, order that any
property, movable/immovable, and whether in possession, reversion, remainder, contingency or expectancy,
be sold, charged by way of mortgage, or otherwise disposed of as may seem most expedient for purpose of
raising money to be applied for certain stipulated purposes

Natural person client with HDB address

• Need to be more cautious because might need HDB’s written consent for client to buy private property (when
client is lessee), as per HDB’s policy
- Applicable when unit directly purchased from HDB/from open market under CPF Housing Grant Scheme
- Else client could end up losing his option money/even losing his HDB flat

* Qn: If it is only a policy as opposed to a law, possibly can ignore it?


* Qn: Is it lawyer’s duty to tell client that must get HDB consent if he acts in transaction in purchase of private
property?

• If stay in Executive Condominium, cannot buy commercial property of more than $250,000 unless approval
obtained (Executive Condominium Act)
• If stay in HDB flat, cannot buy commercial property of more than $350,000 unless approval obtained

(2) Company
- Name
- Place of incorporation (if P)
- Registration No.
- Address in Sg
- Nature of company (if P)
s23(2) Companies Act
A company formed for the purpose of providing recreation or amusement or promoting commerce,
industry, art, science, religion or any other like object not involving the acquisition of gain by the
company or by its individual members shall not acquire any land without the approval of the Minister but
the Minister may empower any such company to hold lands in such quantity and subject to such
conditions as he thinks fit.
- Company’s Memorandum & Articles of Association and Resolution

(3) Unincorporated Association/Society/Trust:


- Name
- Name of Trustees
- Place of registration
s19(1) RPA:
In every instrument of transfer of land (other than mortgage/charge/reconveyance) lodged with Registrar,
there shall be specified its place of registration/incorporation

- Address for service of notice in Sg


- Association’s/Society’s Constitution and Rules and Regulations or Trust Deed
Nationality

a) Natural Person Client

• NRIC: Follow sequence of client’s name as per NRIC


• Passport: NB that passport number usually changes
• To determine ID of client: Singaporean, Sg PR, Foreigner
- Bears implication on what client can/cannot buy, his capacity to hold property

• Foreign persons cannot acquire residential property


- Exception if property consists of a flat (not HUDC flat) in building 6/more storeys (including ground level and
any level below ground) OR a Condominium unit in an approved plan issued by relevant authority under
Planning Act
- BUT cannot acquire ALL units in such buildings/Condominium unless get Minister’s approval

FAQ on Restrictions on Foreign Ownership of Land under the Residential Property Act (The Act)

What is restricted residential property under the Residential Property Act


A foreign person cannot acquire or purchase restricted residential property unless he obtains the prior approval of
the Minister for Law. Such property includes:
a. vacant residential land;
b. landed property [i.e detached house, semi-detached house, terrace house (including linked
house or townhouse)]; and
c. landed property in strata developments which are not approved condominium developments
under the Planning Act.

What are the properties a foreign person can acquire without having to apply for approval under the
Residential Property Act?

What is non-restricted residential property under the Residential Property Act


A foreign person is not restricted from acquiring:

• any apartment within a building;

• any unit in an approved condominium development under the Planning Act; and

Note: A foreign person is not allowed to acquire all the apartments within a building or all the
units in an approved condominium development without the prior approval of the Minister for
Law.
• 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.

The following properties are not under the purview of the Residential Property Act. Intended purchasers of these
properties are advised to enquire directly with the Housing and Development Board (HDB) regarding their
eligibility:

• An HDB flat purchased directly from HDB;

• A resale HDB flat where HDB has consented to the sale;

• An HDB shophouse; and

• An Executive Condominium purchased under the Executive Condominium Housing Scheme Act,
1996.
s3 Residential Property Act:
Prohibition on transfer to, or purchase or acquisition by, foreign persons of residential property.
3. —(1) Except as provided in this Act —
(a) no person shall, whether for consideration or by way of gift inter vivos or otherwise, transfer any residential
property or any estate or interest therein to any foreign person;
(b) no person shall create any trust for sale in respect of any residential property or any estate or interest therein
in favour of any foreign person; and
(c) no foreign person shall purchase or acquire any residential property or any estate or interest therein except by
way of a mortgage, charge or reconveyance.
(2) Any —
(a) transfer of any residential property or of any estate or interest therein by any person to a foreign person made
in contravention of subsection (1) (a);
(b) trust for sale in respect of any residential property or any estate or interest therein created by any person in
favour of any foreign person in contravention of subsection (1) (b); and
(c) purchase or acquisition of any residential property or of any estate or interest therein by any foreign person,
except by way of a mortgage, charge or reconveyance, made in contravention of subsection (1) (c),
shall be null and void.
(3) No estate or interest in any residential property belonging to a deceased person who dies on or after 11th
September 1973 shall pass by bequest, succession or inheritance to any foreign person who is beneficially
entitled under a will or under any written law governing intestate succession.
(4) Where a foreign person would, but for subsection (3), be beneficially entitled to an estate or interest in
residential property, the legal personal representatives to whom probate or letters of administration are granted in
respect of such residential property shall, subject to subsection (5), be bound to sell such estate or interest in the
residential property to a citizen or an approved purchaser within a period of 10 years of the date of the death of
the deceased person and upon such sale to pay, subject to the law of wills and intestate succession, the proceeds
thereof, less any expenses necessarily incurred on such sale or by reason of the administration of a deceased’s
estate, to or for or on behalf of the foreign person so beneficially entitled.
(5) Where the legal personal representatives have not sold, or have not been able to sell, the estate or interest in
the residential property within the period specified in subsection (4), the legal personal representatives or the
trustees of the will or estate of the deceased person for the time being shall furnish to the Controller (within such
period not exceeding 6 months as the Controller may require) a statement setting out the particulars of the
residential property which has not been sold, giving reasons for their failure or omission to sell.
(6) The Controller shall, after receipt of such statement or where no such statement has been received within the
time specified, seek the direction of the Minister, and the Minister may issue to the Controller a notice to attach
and sell the residential property, and a copy of such notice shall be served on —
(a) the legal personal representatives to whom probate or letters of administration have been granted in respect of
the residential property in question; and
(b) the subsisting mortgagees or chargees (if any) of the residential property who appear as such in the relevant
records in the Land Titles Registry or the Registry of Deeds of the Authority, as the case may be.
(7) Deleted by Act 9/2006, wef 31/03/2006.
(8) Deleted by Act 9/2006, wef 31/03/2006.
(9) Deleted by Act 9/2006, wef 31/03/2006.
(10) Where the Controller has sold the residential property pursuant to the notice to attach and sell under
subsection (6), the Controller shall pay the proceeds of the sale less any costs incurred to the legal personal
representatives or the trustees of the will or estate of the deceased person for the time being and upon the
acknowledgment of the receipt of such proceeds of sale by the legal personal representatives or the trustees, the
Controller shall be discharged from all liability in respect of the application of the proceeds of sale; or the
Controller, if he is unable to make payment of the proceeds of sale and to obtain such acknowledgment as
aforesaid, may make payment into court of such proceeds of sale less all costs incurred thereby.
(11) Where payment of the proceeds of sale has been made by the Controller as provided in subsection (10),
every foreign person beneficially entitled under a will or by intestate succession shall be entitled to receive and
shall be paid such proceeds of sale by the legal personal representatives or trustees of the will or estate of the
deceased person for the time being, and in any case where the proceeds of sale have been paid into court, that
foreign person shall be entitled to make application to court for payment out of court of the proceeds of sale to be
made to him, and the payment of the proceeds of sale in either case shall be in accordance with the terms of the
will or the law of wills or intestate succession, as the case may be.
(12) Notwithstanding subsections (4) and (6), the Controller may, after receipt of the statement referred to in
subsections (5) and (6), with the approval of the Minister, allow such extension of time, as the Controller may
think fit, for the sale of the estate or interest in such residential property.
(13) The provisions of this Act shall not apply to a foreign person who is a surviving joint tenant of any estate or
interest in land.
(14) In this section, “letters of administration” and “probate” have the same meanings as in the Probate and
Administration Act.

(1)(c): No foreign person shall purchase/acquire any residential property/estate/interest therein


except by way of mortgage/charge/reconveyance
(2)(c): Any purchase/acquisition of any residential property/estate/interest therein by any foreign
person, except by way of mortgage/charge/reconveyance made in contravention of sub-s(1)
shall be null and void
s4:
(1) s3(1) shall NOT prohibit purchase/acquisition by, or a transfer to, a foreign person of any
estate/interest in —
(a) any flat, not being a HUDC flat, comprised in any building consisting of 6/more levels
including ground level and any level below ground; or
(b) any flat/dwelling-house shown as a unit in an approved plan bearing title “Condominium”
and issued by relevant competent authority under Planning Act 1998.
(2) Nothing in sub-s(1) shall be construed to permit a foreign person to purchase/acquire —
(a) ALL flats in every building consisting of 6/more levels in a development permitted to be used
under Planning Act 1998 for residential purposes; or
(b) ALL units in development approved by relevant competent authority under Planning Act 1998
as a condominium development,
without having obtained approval of Minister
(3) A foreign person who purchases/acquires any estate/interest in —
(a) all flats in every building consisting of 6/more levels in any development permitted to be used
under Planning Act 1998 for residential purposes; or
(b) all units of a development approved by relevant competent authority under Planning Act 1998 as
a condominium development,
without having obtained approval of Minister shall be guilty of offence and shall be liable
on conviction to fine not exceeding $10,000
(7) Nothing in sub-s(3) shall prevent foreign person from acquiring any estate/interest in any development
under any agreement/lease/assignment for term not exceeding 7 years, inclusive of any further term
which may be granted by way of an option for renewal

* Qn: What is non-restricted residential property then?


 s4(1) and s33(d) RPA:
 Flats in buildings of 6 levels/more (including ground and below ground level)
 Flats/house in a development designated as ‘condominium’
 Leasehold estate of residential property of not more than 7 years (including option to renew)

• Foreigners allowed to buy only certain types of property unless approval obtained from Land Dealings
Approval Unit
- Minister may approve if residential property to be used for occupation of applicant and his family as dwelling-
house and not for other purpose
- Further, applicant must be PR/must be of economic benefit or be able to make adequate economic
contribution/possess profession or other qualifications or experience which is of value or benefit or
advantageous to Sg (s25(5))
- Minister could required written undertaking that property shall be used for occupation as dwelling house and
for no other purpose (s25(7)(a))
- Minister could also ask applicant to furnish statutory declaration as to whether applicant/spouse/their children
own residential property in Sg and full particulars of such ownership (s25(9)(a))

s25:
Application by foreign person for approval to purchase, acquire or retain residential property.
25. —(1) For the purposes of this Act, there shall be a committee to be known as the Residential Property
Advisory Committee which shall consist of a Chairman and such number of other members as the Minister may,
from time to time, appoint for such period as he may think fit. Any member so appointed who ceases to be a
member shall be eligible for reappointment.
(2) Subject to subsection (14), any foreign person who desires to purchase, acquire or retain any estate or
interest in any residential property other than non-restricted residential property shall apply to the Minister
through the Controller for the grant of the Minister’s approval to acquire or to retain residential property, as the
case may be.
(3) Every such application shall be in such form and shall state such particulars as the Controller may require.
(4) The Controller shall forward every such application to the Committee; and after consideration thereof, the
Committee shall make recommendations thereon to the Minister who may, in his discretion, grant, with or
without conditions (or refuse to grant), approval —
(a) for the purchase or acquisition of the estate or interest in the residential property in respect of which the
application was made or for the retention of such estate or interest; or
(b) for the purchase or acquisition of the estate or interest in residential property of such class or nature as the
applicant may desire to purchase or acquire.
(5) Without prejudice to the generality of the powers of the Minister under subsection (4), he may, in his
discretion, grant approval, with or without conditions, to any applicant, being a natural person, who intends to
purchase or acquire residential property for the purpose of his own occupation and that of his family as a
dwelling-house and not for the purpose of rental or any other purpose; and for the purposes of this subsection “an
applicant” means one —
(a) who is a permanent resident;
(b) who, in the opinion of the Minister, is of economic benefit to Singapore or who, in the opinion of the
Minister, makes or is able to make an adequate economic contribution to Singapore; or
(c) who, not being a citizen, possesses professional or other qualifications or experience which, in the opinion of
the Minister, are of value or of benefit or advantageous to Singapore.
(6) Without prejudice to the generality of the powers of the Minister under subsection (4), he may grant
approval, with or without conditions, to an applicant, being a foreign company or a foreign limited liability
partnership which —
(a) in the opinion of the Minister —
(i) is of economic benefit to Singapore; or
(ii) makes or is able to make an adequate economic contribution to Singapore; and
(b) intends to purchase or acquire, or retain any interest in, residential property for the purpose of occupation as a
dwelling-house by its executives, managers, partners, employees or other personnel and their families and not for
any other purpose.
(7) The conditions that the Minister may impose under subsection (4), (5) or (6) shall include all or any of the
following:
(a) that the applicant —
(i) being a natural person, shall use the residential property for his own occupation and that of his family as a
dwelling-house and not for any other purpose; or
(ii) being a foreign company or a foreign limited liability partnership, shall use the residential property for
occupation as a dwelling-house by its executives, managers, partners, employees or other personnel and their
families and not for any other purpose;
(b) that the applicant shall provide such security as may be determined by the Minister for the purposes of
complying with any condition imposed by the Minister;
(c) that the applicant shall give an undertaking in writing to comply with the conditions imposed by the Minister.
(7A) Where an applicant has failed to comply with any of the conditions imposed by the Minister under this
section, the Minister may forfeit the security provided by the applicant under this section after giving 21 days'
notice in writing to the applicant of his intention to forfeit the security and the grounds thereof.
(7B) An applicant may, upon receipt of the notice under subsection (7A), appeal to the Minister within 3
months of such notice.
(7C) The decision of the Minister on any appeal made under subsection (7B) shall be final and shall not be
called in question in any court.
(8) Any natural person or any foreign company or foreign limited liability partnership who or which is in breach
of any undertaking given pursuant to subsection (7) shall be guilty of an offence and shall be liable on conviction
to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both.
(9)
(a) Every applicant referred to in subsection (5) shall furnish a declaration as to whether the applicant or the
applicant’s spouse or any of their children owns residential property in Singapore, and if so shall state full
particulars thereof.
(b) Every applicant referred to in subsection (6) shall furnish a declaration as to whether the applicant owns
residential property in Singapore, and if so shall state full particulars thereof; and such declaration shall —
(i) where the applicant is a foreign company, be made by a director, manager or secretary thereof or a person
holding an analogous position; and
(ii) where the applicant is a foreign limited liability partnership, be made by a manager or partner thereof or a
person holding an analogous position.
(10) Nothing in this section shall be construed as detracting from or prejudicing in any way the power conferred
on the Minister by subsection (4) to approve or to refuse to approve any application.
(11) The decision of the Minister to approve or to refuse to approve any application shall be conveyed to the
applicant by the Controller by notice in writing.
(12) Where the Minister has refused an application and the Controller has conveyed the Minister’s decision by
notice in writing to the applicant, the applicant may, within a period of 3 months of the date of the notice (or such
later period as the Minister may allow in the circumstances of any particular case), make representations to the
Minister against his decision; and if the applicant makes representations within that period (including any
extension which may be allowed), the Minister, having considered those representations, shall direct the
Controller to convey to the applicant his decision to accept or to reject the representations.
(13) The decision of the Minister to approve or to refuse to approve any application or, if any representations are
made pursuant to subsection (12), his decision to accept or reject the representations, shall be final and shall not
be called in question in any court.
(14) Where a foreign person is a natural person or a society, he or it shall not be required to make application for
the retention of any estate or interest in any residential property vested in him or it immediately before the date of
commencement of this Act.

(1) Residential Property Advisory Committee consisting of such number of members as Minister may appoint
(2) Subject to sub-s(14), any foreign person who desires to purchase/acquire/retain any estate/interest in
any residential property (‘the Applicant’) shall make application (‘the application’) to Controller, in
such form as he may require, for grant of approval to acquire/retain such residential property
(3) Every such application shall state such particulars as Controller may require
(4) Controller shall forward every such application to Committee, who, after consideration thereof, shall
make recommendations to Minister who, in his discretion, may grant (with/without conditions) or refuse
to grant approval
(5) Without prejudice to generality of powers of Minister under sub-s(4), Minister may, in his discretion,
grant approval with/without conditions, to any applicant, being a natural person, who intends to
purchase/acquire residential property for purpose of his own occupation and that of his family as
dwelling-house and not for rental/any other purposes; and for purposes of this sub-s, ‘applicant’ means
one-
(a) who is a PR;
(b) who, in Minister’s opinion, is of economic benefit to Sg/makes or is able to make an
adequate economic contribution to Sg; OR
(c) who, not being a citizen, possesses professions/other qualifications/experience which, in
Minister’s opinion, are of value/benefit/advantageous to Sg
(6) Without prejudice to generality of powers of Minister under sub-s(4), Minister may, in his discretion,
grant approval with/without conditions, to any applicant, being a foreign company, which-
(a) which, in Minister’s opinion, is of economic benefit to Sg/makes or is able to make an
adequate economic contribution to Sg; AND
(b) intends to purchase/acquire/retain any interest in residential property for purpose of occupation
as dwelling-house by its executives, managers, employees or other personnel and their
families and not for any other purposes
(7) Minister may require applicant referred to in sub-s(5), (6) to give undertaking in writing in such form
as may be required that applicant being-
(a) natural person, will use residential property for his own occupation and that of his family as
dwelling-house and not for any other purpose; OR
(b) foreign company, will use residential property for occupation as dwelling-house by its
executives, managers, employees or other personnel and their families and not for any other
purposes
(8) If breach undertaking pursuant to sub-s(7), shall be guilty of offence and liable on conviction to fine not
exceeding $5000/imprisionment not exceeding 3 years/both
(9) (a) Every applicant referred to in sub-s(5) (natural person) shall furnish statutory declaration as to
whether applicant/spouse/any of their children owns residential property in Sg and if so shall state full
particulars thereof
(b) Every applicant referred to in sub-s(6) (foreign company) shall furnish statutory declaration as
to whether applicant owns residential property in Sg, and if so shall state full particulars
thereof; and such statutory declaration shall be made by director/manager/secretary
thereof/person holding an analogous position
(10) Nothing in this section shall be construed as detracting from/prejudicing in any way the power conferred
on Minister by sub-s(4) to approve/refuse to approval any application
(11) Minister’s decision shall be conveyed to applicant by Controller by notice in writing
(12) Where Minister has refused application and Controller has conveyed Minister’s decision by notice in
writing to applicant, applicant may, within 3 months of date of notice (or such later period as Minister
may allow in circumstances of any particular case), make representations to Minister against his
decision; and if applicant makes representations within that period (including any extension which may
be allowed), Minister, having considered those representations, shall direct Controller to convey to
applicant his decision to accept/reject representations
(13) Minister’s decision made pursuant to sub-s(12) shall be final and shall not be called in qn in any court
(14) Where foreign person is natural person/society, he/it shall not be required to make application for
retention of any estate/interest in any residential property vested in him/it immediately before date of
commencement of this Act

 For Sg PRs, approval would usually be granted (by virtue of PR status) subject to condition that:
- Property must be for owner occupation
- Must give statutory declaration to such effect

* Qn: Who is a ‘Sg citizen’?


 s2(1) RPA:
"citizen” or “citizen of Singapore" means any person who, under the provisions of the Constitution of the
Republic of Singapore, has the status of a citizen of Singapore;
 So Sg PR still considered ‘foreigner’
 Foreigners can only buy units in buildings with more than 6 storeys and some HUDC units as per 1st and 2nd
Schedule
 Cannot buy ALL units without prior approval

* Qn: Who is a ‘foreign person’?


 s2(1) RPA:
"foreign person" means any person who is not any of the following:
(a) a citizen of Singapore;
(b) a Singapore company;
(c) a Singapore limited liability partnership;
(d) a Singapore society;
"foreign society" means any society other than a Singapore society;
who or which has not been granted approval under section 25 or has not been exempted by the Minister under
section 32, but does not include any body, corporate or otherwise, declared by the Minister by notification in the
Gazette to be a public authority or an instrumentality or agency of the Government;

* Qn: Who is an ‘approved P’?


 s2(1) RPA:
2. —(1) In this Act, unless the context otherwise requires —
"approved purchaser" means —
(a) a Singapore company;
(b) a Singapore limited liability partnership;
(c) a Singapore society;
(d) a foreign person to whom approval has been granted under section 25, 30 or 31;
(e) any person, company, limited liability partnership, society, association or other organisation or body who or
which has been exempted by the Minister under section 32; or
(f) any body, corporate or otherwise, declared by the Minister by notification in the Gazette to be a public
authority or an instrumentality or agency of the Government;

* Qn: What is a ‘transfer’?


 s2(1) RPA:
‘Transfer’ includes a ‘declaration of trust’ transaction
"to transfer" , with reference to residential property, means to convey, sell, assign, settle, create by declaration of
trust, assent or in any manner dispose of any estate or interest in residential property, and includes the vesting of
any estate or interest in residential property, but does not include a transfer by way of mortgage, charge or
reconveyance; and “transfer” includes a conveyance, sale, assignment, settlement, declaration of trust, assent,
disposition of whatever nature, the vesting of any estate or interest in residential property by an instrument or
under a vesting order of court and every instrument capable of vesting any estate or interest in residential
property upon registration of such instrument by the Registrar, but does not include a mortgage, charge or
reconveyance.

- No holding on trust for foreigners

s23:
Residential property not to be purchased or acquired by a citizen or an approved purchaser as a nominee
of a foreign person.
23. —(1) No —
(a) citizen or approved purchaser shall purchase or acquire any estate or interest in any residential property that is
not non-restricted residential property as a nominee of any foreign person with the intention that the citizen or
approved purchaser shall hold it in trust for that foreign person; and
(b) foreign person shall authorise or appoint as his nominee any citizen or approved purchaser to purchase or
acquire any estate or interest in any residential property that is not non-restricted residential property with the
intention that that citizen or approved purchaser shall hold it in trust for that foreign person.
(2) Any trust created in whatever manner or form pursuant to subsection (1) shall be null and void and there shall
be no resulting trust in favour of the foreign person; and any contract or covenant between such citizen or
approved purchaser and the foreign person in respect of such residential property or any estate or interest therein
shall be null and void.
(3) The Registrar, upon discovering that any instrument of transfer contains any such void trust and the
instrument is pending final registration or has been finally registered by the Registrar, shall enter a note in that
instrument or the registration copy thereof, as the case may be, stating that such trust is null and void by virtue of
subsection (2).
(4) Any person who contravenes subsection (1) (a) or (b) shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.
(5) The court shall, in respect of any defendant charged with committing any offence under subsection (1) (a) or
(b) —
(a) take into account any confiscation order made under section 23A before imposing any fine on the defendant;
and
(b) subject to paragraph (a), leave the confiscation order out of account in determining the appropriate sentence
or other manner of dealing with the defendant.

(1) No-
(a) citizen/approved P shall purchase/acquire any estate/interest in any residential property as
nominee of any foreign person with intention that citizen/approved P shall hold it in trust for
that foreign person; AND
(b) foreign person shall authorise/appoint as his nominee any citizen/approved P to purchase/acquire
any estate/interest in any residential property with intention that citizen/approved P shall hold it
in trust for that foreign person
(2) Any trust created in whatever manner/form pursuant to sub-s(1) shall be null and void and no resulting
trust be created in favour of foreign person; and any contract/covenant between them in respect of such
property/any estate or interest therein shall be null and void

s36(1):
Any person contravening/failing to comply with any of provisions of this Act for which no penalty is expressly
provided shall be guilty of offence and shall be liable on conviction to fine not exceeding $5000/imprisonment not
exceeding 3 years/both

• Even foreign person who is V placed under duty to sell to citizen/approved P


s21:
(1) Where estate/interest in any residential property is vested in any foreign person and he is desirous of
transferring the same, he shall not transfer any estate/interest in residential property to any person other
than citizen/approved P
(2) Else, transfer null and void

b) Corporate Client

• ACRA Bizfile search


• Memorandum and Articles of Association of company
- Must have power to hold property
- Must state who it is that has power to sign contract e.g. director/secretary/both
* Qn: Simple Director’s Resolution sufficient/need shareholders’ Resolution via
EOGM e.g. when taking mortgage?

• For Sg companies, ALL members and directors must be Singaporeans


- Else there would be a loophole whereby since cannot acquire property as a natural person because you are
a foreigner, incorporate a local company and by-pass RPA via a corporate entity

s10 RPA:
Vesting of residential properties in Singapore companies
10. —(1) Notwithstanding anything in any written law, a Singapore company which intends to acquire any
estate or interest in any residential property other than non-restricted residential property shall, prior to the
vesting of the estate or interest in that property in the company, furnish the Controller with a list of its directors
and members containing the particulars of their nationality and such other particulars as the Controller may
require.
(2) The Controller may, if he is satisfied that the requirements of subsection (1) are complied with and that the
company is a Singapore company, issue to the company a certificate stating that the company may acquire and
retain residential properties subject to the provisions of this Act.
(3) The Controller may at any time require a Singapore company which has been issued a certificate under
subsection (2) to produce its register of members and directors for his inspection if the Controller desires to
ascertain whether the Singapore company has ceased to be a Singapore company.
(4) The Controller may at any time cancel a certificate issued under subsection (2) if he is satisfied that —
(a) in the case of a Singapore company which does not own any residential property that is not non-restricted
residential property, the Singapore company has become a foreign company without obtaining the prior written
approval of the Controller under section 14; or
(b) in the case of a Singapore company which owns any residential property that is not non-restricted residential
property, the Singapore company has become a converted foreign company without obtaining the prior written
approval of the Minister under section 26.
(5) The Controller shall, upon the application by any Singapore company which is a holder of a certificate
issued by the Controller under subsection (2), cancel the certificate if the Controller is satisfied that the
Singapore company does not own any residential property that is not non-restricted residential property.
(6) Any Singapore company which contravenes subsection (1) shall be guilty of an offence and shall be liable
on conviction to a fine not exceeding $2,000.

 Seems that Sg companies cannot buy condominiums


 Preventing of Sg companies trying to hold prohibited properties
 BUT provision widely ignored because if foreigner can buy such properties with approval, Sg company should
be able to do so likewise

* Qn: What is a ‘Sg company’?


 s2(1):
"Singapore company" means any company which satisfies the following requirements:
(a) the company is incorporated in Singapore and its directors and members are all citizens;
(b) if any member of the company is another company, that other company satisfies the requirements of
paragraph (a);
(c) if that other company referred to in paragraph (b) has a member which is a company, which in turn has a
member which is also a company and so on, all the members of each such company consist only of any or any
combination of the following:
(i) citizens; and
(ii) companies that satisfy the requirements of paragraphs (a) and (b); and
(d) if any member of the company is a limited liability partnership, that limited liability partnership is a
Singapore limited liability partnership;

 Essentially all members must be citizens


 Even if member is another company, that company’s members must also all be citizens

• Foreign companies allowed to buy only certain types of property unless approval obtained from Land Dealings
Approval Unit
- Minister may approve if residential property to be used for occupation as dwelling-house of its employees
generally and not for other purpose
- Further, applicant must be of economic benefit or be able to make adequate economic contribution to Sg
(s25(6))
- Minister could require written undertaking that property shall be used for occupation as dwelling house and for
no other purpose (s25(7)(b))
- Minister could also ask applicant to furnish statutory declaration made by director/manager/secretary as to
whether applicant owns residential property in Sg and full particulars of such ownership (s25(9)(b))

* Qn: What is a ‘foreign company’?


 s2(1):
"foreign company" means any company (whether a holding company or otherwise) other than a Singapore
company;
 Encompasses both foreign incorporated companies as well as Sg companies in which not all
members/directors are Sg citizens

 Foreign Companies can get Qualifying Certificate to purchase property for development purposes in Singapore
s.31 RPA: Apply to Controller of Housing for Certificate (under MND)
must be for purposes of developing residential ppty.
Banker’s guarantee vs. default (with regards to completion of project/ sale of all units) required before QC
granted.

Housing developers.
31. —(1) Except as provided in subsection (4), section 25 shall not apply to housing developers.
(2) A housing developer shall, before he purchases or acquires an estate or interest in any residential property, apply
to the Controller of Housing for a certificate (referred to in this section as a qualifying certificate) that he is
qualified to purchase or acquire that residential property.
(3) After receipt of an application under subsection (2), notwithstanding the provisions of the Housing Developers
(Control and Licensing) Act, the Controller of Housing may, with the approval of the Minister for National
Development, issue a qualifying certificate and may impose such terms and conditions upon the housing developer,
including the following, as he may think fit:
(a) that the housing developer shall provide such security, as may be determined by the Controller of
Housing, for the purpose of developing that residential property;
(b) that such security may be forfeited if the housing developer —
(i) does not proceed with or complete the development within such period as may be fixed by the Controller of
Housing; or
(ii) does not sell all the flats or dwelling-houses in the development, or where the development comprises one or
more buildings which have not been subdivided into units for sale, does not sell the whole development, to citizens
or approved purchasers within a period of two years from the date of the issue by the relevant Government
authority of a Temporary Occupation Licence permitting the occupation of such flats, dwelling-houses or any of the
buildings; and
(c) that the applicant shall undertake, in writing, to comply with the conditions imposed by any competent authority
appointed under the Planning Act to carry out the development of that residential property after the applicant has
become the registered owner of that residential property under a transfer registered with the Registrar.
(4) Where a housing developer who has been issued with a qualifying certificate desires to retain one or more
dwelling-houses or flats after completion of his housing development, he may make application for such retention
in the manner provided in section 25.
(5) The Controller of Housing may extend the periods fixed under subsection (3) (b) and may, in his discretion,
dispense with the provision as to security referred to in that subsection.
(6) The Controller of Housing shall, prior to forfeiting any security provided by a housing developer pursuant to
subsection (3) (b), give 14 days’ prior notice in writing to the housing developer of his intention to forfeit the
security and the grounds therefor.
(7) The housing developer may, after receipt of the notice mentioned in subsection (6) or after having been
informed in writing by the Controller of Housing that he will not extend the period fixed under subsection (3) (b),
appeal to the Minister for National Development within 3 months of the receipt of such notice or information.
(8) The decision of the Minister for National Development in any appeal made under subsection (7) shall be final
and shall not be called in question in any court.
(9) Upon the Controller of Housing issuing a qualifying certificate to the housing developer under subsection (3),
the Controller of Housing shall forward a copy thereof to the Registrar.
(10) The Registrar, before registering any instrument of transfer in respect of any residential property made in
favour of a housing developer, may require a statutory declaration together with an undertaking from that housing
developer to be endorsed on the instrument of transfer in such form as he may require; and the Registrar has the
power to refuse to accept or to register the instrument of transfer unless the statutory declaration and undertaking
made by that housing developer has been endorsed on the instrument of transfer itself.
(11) For the purposes of this section, “housing developer” means —
(a) any person who is not a citizen of Singapore;
(b) a foreign company, a converted foreign company, a society or a converted society;
(c) a Singapore company which has not complied with section 10 (1) and (2); or
(d) a Singapore society which has not complied with section 16 (1) and (2),
who or which constructs or intends to construct dwelling-houses for sale to citizens or approved purchasers or flats
comprised in buildings containing 6 or more storeys (including the ground floor), whether or not such person,
company or society is licensed or required to be licensed as a housing developer under the Housing Developers
(Control and Licensing) Act.

c) Society

• All members and trustee of Society must be Sg citizens/registered trust company


Vesting of residential properties in Singapore societies
16. —(1) Notwithstanding anything in any written law, a Singapore society which intends to acquire any estate
or interest in any residential property other than non-restricted residential property shall, prior to the vesting of
the estate or interest in that property in the trustees of the society, furnish the Controller with a list of its trustees
and members containing the particulars of their nationality and such other particulars as the Controller may
require.
(2) The Controller may, if he is satisfied that the requirements of subsection (1) are complied with and that the
society is a Singapore society, issue to the society a certificate stating that the society may acquire and retain
residential properties in accordance with the provisions of this Act.
(3) The Controller may at any time require a Singapore society which has been issued a certificate under
subsection (2) to produce its list of members and trustees for his inspection if the Controller desires to ascertain
whether the Singapore society has ceased to be a Singapore society.
(4) The Controller may at any time cancel a certificate issued under subsection (2) if he is satisfied that —
(a) in the case of a Singapore society which does not own any residential property that is not non-restricted
residential property, the Singapore society has become a foreign society without obtaining the prior written
approval of the Controller under section 17; or
(b) in the case of a Singapore society which owns any residential property that is not non-restricted residential
property, the Singapore society has become a converted society without obtaining the prior written approval of
the Minister under section 26.
(5) The Controller shall, upon the application by any Singapore society which is a holder of a certificate issued
by the Controller under subsection (2), cancel the certificate if the Controller is satisfied that the Singapore
society does not own any residential property that is not non-restricted residential property.
(6) Any Singapore society which contravenes subsection (1) shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $2,000.

• In every transfer of land, P must specify citizenship status/place of registration/place of incorporation of body
corporate

• P’s solicitors to certify that information is correct - verification


s19:
Every transfer of land to specify citizenship status of purchaser or place of registration or incorporation of
a body corporate.
19. —(1) In every instrument of transfer of land (other than a mortgage, charge or reconveyance) lodged with the
Registrar on or after 1st July 1977 there shall be specified, after the name of the person acquiring an estate or
interest in land, the name of the country of which he is a citizen, together with the number of the identity card
issued to him under the National Registration Act or other evidence of his citizenship if he is a citizen of
Singapore and, if he is a citizen of any other country, the number of his passport and of his identity card (if he has
been issued with one); and where the purchaser is a body corporate there shall be specified its place of
registration or incorporation.
Cap. 201.
(2) Every such person acquiring a title or interest in land under such instrument shall certify on the instrument
that the particulars specified in accordance with subsection (1) are correct, and if that person employs an
advocate and solicitor to act for him, the advocate and solicitor shall so certify in such form as may be approved
by the Registrar. For the purposes of this subsection, the Registrar may require the production of such document
as he may think fit.
(3) The Registrar has the power to refuse registration of any such transfer wherein the particulars required by
subsection (1) are not specified or wherein the certification required by subsection (2) has not been effected, and
where the Registrar has accepted any such transfer, he has the power to cancel the provisional registration of any
such transfer or require the person lodging the transfer to withdraw it from registration.
(4) Where the Registrar intends to exercise the power conferred on him by subsection (3) to cancel the
provisional registration of any such transfer or to require the person lodging such transfer to withdraw it from
registration, he shall give notice in writing to that effect, and shall not for a period of 6 weeks of the date of the
notice cancel the provisional registration of any such transfer; and where any such notice requires the transfer to
be withdrawn and if during that period subsection (1) or (2) has not been complied with, the Registrar may
cancel the provisional registration of such transfer and shall not be bound to give any further notice before
effecting such cancellation.
(5) This section shall apply to every instrument of transfer of land irrespective of whether the land is residential
property or otherwise.

 Hence P’s solicitors also become duty bound to check that particulars specified by P client are correct
 ID number, citizenship status
 Company registration number, place of incorporation (attach copy of clearance certificate issued by
Controller of Residential Property)

• If no need approval, must certify why approval not required e.g. non-residential property, condominium
development etc

s20:
Presumption by Registrar.
20. —(1) The Registrar may presume that every instrument of transfer of land (other than a mortgage, charge or
reconveyance) made in favour of a foreign person and lodged for registration with the Registrar is in respect of
residential property and that any agreement for sale and purchase of the land was made after the date of
commencement of this Act unless evidence to the contrary is produced to the satisfaction of the Registrar.
(2) Where any person acquiring an estate or interest in land under any such instrument of transfer employs an
advocate and solicitor to act for him, the Registrar may require the advocate and solicitor to furnish an
appropriate certificate or certificates in such form or forms as the Registrar may require. Such certificates shall
be endorsed on the instrument of transfer.
(3) The Registrar has the power to refuse to accept any instrument of transfer for registration or to refuse to
complete registration of such instrument —
(a) where he is not satisfied with the evidence produced in accordance with subsection (1); or
(b) where any certificate required under subsection (2) has not been furnished.

Section 30 RPA
Diplomatic and consular missions and religious groups in Singapore.
30. —(1) Any government of a foreign State or territory outside Singapore or any accredited agent of that
government or any religious group in Singapore which intends to purchase or acquire any estate or interest in any
residential property which is not non-restricted residential property for any diplomatic, consular or official
purpose of that government or for the purposes of an official residence for any accredited agent of that
government or, in the case of a religious group, for its use shall not be bound by the procedures laid down in
section 25 but shall first seek the permission in writing of the Minister for such purchase or acquisition.
(2) For the purposes of this section, “religious group” includes any group, body, denomination, institution or
organisation which professes any religion.
(3) The requirement under subsection (1) for the permission in writing of the Minister shall not apply to the
purchase or acquisition (whether by lease, deed of assignment or other agreement) of a leasehold estate or
interest for a term not exceeding 7 years, inclusive of any further term which may be granted by way of an option
for renewal.

- Marital status/relationship

a) Eligibility to Purchase

• Family unit in Executive Condominium


• Occupiers and Purchaser must form a ‘family unit’

b) Loan Application

c) Use of CPF savings

• Only if by blood relations/marriage for residential properties and HDB flats, for commercial properties don’t
have to be related.

Manner of Holding
 Joint Tenants & Tenancy in common

What’s the difference between “joint tenancy” and “tenancy-in-common”?


- The law provides for two forms of ownership: “joint tenancy” and “tenancy-in-common”. The form of
ownership is stated on the title document for the property.

Joint tenancy
- This is where all the owners have an equal interest in the property regardless of the amount of money each co-
owner had contributed towards the purchase of the property.
- Married couples usually opt for joint tenancy when they buy a property. A joint tenancy overrides any will, and
the survivor always gets the automatic right to assume ownership of the deceased’s share.
- Thus, if a husband passes away first, then the wife as the survivor automatically takes over the husband’s share
of the property. Even if the husband had made a will which stated how his share of the property should be
distributed, his wife will automatically get to inherit his share.

Tenancy-in-common
- This is where each co-owner holds a separate and definite share in the property.
- This arrangement is more common where the owners are not related to each other, eg. friends buying a
property together for investment.
- There is no right of survivorship in a tenancy-in-common. In other words, unlike a joint-tenancy, the
deceased's interest does not pass automatically to the remaining co-owners.
- Upon the death of a tenant-in-common, the deceased's interest can be distributed in accordance with his will (if
any) or under the provisions of the Intestate Succession Act.

• If silent, LTA assumes joint tenancy under Section 53(1) LTA, and if tenants in common but shares not stated,
shall be presumed to hold equal shares
• Section 53(2) LTA
53. —(1) In every instrument affecting registered land, co-tenants claiming under the instrument shall, unless they
are described as tenants-in-common, hold the land as joint tenants; and if they are described as tenants-in-common,
the shares in the registered land to be held by them shall, subject to subsection (2), be specified in the instrument.
(2) Persons described as tenants-in-common shall, in the absence of any expression to the contrary, be presumed to
be entitled in equal shares.

s53 LTA:
 Tenancy in common to joint tenancy
(3) Tenants in common who intend to hold their estate/interest in land as joint tenants may jointly declare
by instrument of declaration in approved form that they hold estate/interest as joint tenants of entire
estate/interest thereof
(4) Upon registration of instrument of declaration referred to in sub-s(3):
(a) where all tenants in common of entire estate/interest in registered land are declarants,
estate/interest which they held in respective shares as tenants in common immediately
before such registration shall vest in them as joint tenants; OR
(b) where not all tenants in common of entire estate/interest in registered land are declarants-
(i) estate/interest which declarants held in their respective shares as tenants in
common immediately before such registration shall vest in declarants as joint
tenants; AND
(ii) declarants and other tenants in common shall continue to hold their
estate/interest in their respective shares as tenants in common in accordance
with sub-s(1), (2)

 Joint tenancy to tenancy in common


(5) Without prejudice to any rule/principle of law relating to severance of joint tenancy, any joint
tenant may sever joint tenancy of estate/interest in registered land by an instrument of declaration in
approved form and by serving a copy of instrument of declaration personally/by registered post on other
joint tenant
(6) Upon registration of instrument of declaration which has been duly served as required by sub-s(5),
respective registered estates and interests in registered land shall be held by declarant and remaining
joint tenants as tenants in common in their respective shares

• Severance by notice
- Purposive approach taken
- Sign instrument of declaration in approved form and serve it on other joint tenant
- Severance then effective on service as between 2 joint tenants
- Registration done later just mere reflection of position rather than being the effective severance date

Diaz Priscillia v Diaz Angela (1998) 1 SLR 361 (CA)


- Aplt and her mother were joint tenants of property under LTA
- Mother signed instrument of declaration in approved form under s53(5) LTA declaring her intention to server
joint tenancy and hold property as tenants in common with Aplt
- Mother made formal declaration of intention to server which was endorsed on instrument
- Instrument stamped by not registered as per s53(6) LTA
- Mother appointed Rspdt, Aplt’s sister, as sole executrix of her will and bequeathed to her entire estate
- Mother died
- Rspdt lodged caveat as beneficial owner as tenant in common of undivided half share in property
- Aplt applied to get caveat removed on basis that since mother had died before registering instrument,
severance not effected and by virtue of rule of survivorship, entire property devolved to her
- Rspdt defended her caveat by maintaining that mother had duly effected severance of joint tenancy prior to her
death and thereafter held property as tenant in common of undivided half share
- Argued that as sole beneficiary of mother's estate, entitled to undivided half share and has caveatable interest
therein
- Held:
- Whether making of instrument of declaration in approved form and service on other joint tenant
effectively severed joint tenancy turned on construction of s53(5) and (6) LTA
- Purpose of provision was to enable joint tenant to have full dispositive power for servering a joint
tenancy without need to obtain consent of other joint tenants
- This could not be achieved if registration was necessary to effect severance
- Therefore joint tenant can sever joint tenancy by signing instrument of declaration in approved
form and serving copy thereof on other joint tenant, whereupon severance, as between joint tenants,
is effected
- Upon registration of declaration under s53(6) LTA, severance was completed in the sense that
severance was reflected on the register, and the tenants hold land as tenants in common thenceforth on
register

- s45(1) LTA which requires registration in order to transfer an estate/interest in land, is not applicable since
there was no passing of interest involved here
- Mother and Aplt were registered proprietors already before severance, the severance only serving to
quantify their interests in property
- Both joint tenancy and tenancy in common were mere forms of co-ownership

 Muslim owners

Distribution of estate in accordance with the Administration of Muslim Law Act


Syariah Court empowered to issue Certificate of Inheritance setting out shares
Purpose of Registration of T at SLR

Very important
- Record Instructions in attendance note.
- Someone else may take over the matter
- To play safe, send letter to clients confirming instructions.
- You want to avoid situations like the one below, where Mr Tan Yah Piang, a lawyer from Wong Tan and
Molly Lim, nearly got into trouble with the Law Society simply because he didn’t keep attendance notes
of client’s instructions. It’s a 25 September 2004 news article, so its VERY RECENT.

Sept 25 2004 Straits Times

Loan case, in which businessman sued law firm for negligence, leads judge to urge Law Society to consider
rules to avoid conflict of interest
By Elena Chong

A JUDGE has urged the Law Society to consider whether clearer policies and rules are needed to avoid conflict of
interest, especially in conveyancing and loan transactions.
It is in the interest of the profession and the public for it to do so, said Judicial Commissioner V.K. Rajah on
Thursday, when he ruled against businessman Hendri Rusli Lie who had sued law firm Wong Tan & Molly Lim for
negligence.
The present position, bereft of clear guidelines, is far from satisfactory, said JC Rajah.
The issue arose because Wong Tan & Molly Lim had acted for Mr Lie, the bank and the borrower, in a
conveyancing transaction.
However, this is 'a norm' in Singapore, noted JC Rajah, who went on to remind lawyers to keep records.
They should document the scope and nature of their retainer, keep reliable minutes of discussions with clients, and
consider carefully whether to put in writing significant advice given, he said.
The 40-year-old Indonesian Chinese alleged that the firm, which has since been dissolved, did not advise or alert
him on what his personal liability would be.
Mr Lie claimed the conveyancing lawyer had been negligent in failing to explain and advise him on consequences
that could arise from signing the mortgage documents on a flat he had just bought to get more financing.
He thought his liability was limited to the $1.7 million value of the Paterson Edge flat, which was mortgaged in
November 1999 to Maybank to get credit facilities for a company he had business dealings with, Alps Investment,
an electronic goods distributor.
Mr Lie paid the bank $500,000 last year to settle $12.9 million owed by Alps.
He then sought to claim this amount from the law firm.
In rejecting his claim, JC Rajah found that lawyer Tan Yah Piang had indeed given proper advice to Mr Lie, who, in
any event, would have signed the mortgage documents, he said.
JC Rajah said Mr Tan struck him as 'a cautious and experienced solicitor'.
He also accepted Mr Tan's evidence that it was not his practice to keep attendance notes in routine matters.
'While it is good practice to maintain such contemporaneous notes, the absence of such notes, in the event of a
dispute, does not inexorably mean a solicitor is to be disbelieved,' said the judge.
On the other hand, he found Mr Lie's evidence to be a 'mixture of dissemblance and feigned naivety'.
In rejecting his version of what happened at the meeting, the judge said Mr Lie's evidence was tarnished by
'evasiveness, elasticity and exaggeration'.
JC Rajah said the law firm had been exonerated in this case simply by dint of Mr Lie's lack of credibility.
The proceedings could have been thwarted if reliable written records of what had transpired had been
maintained, he added.
'Would it be too much to expect members of the legal profession to take this case as a cue to exercise foresight in
future by maintaining satisfactory written records of dealings with and for their clients?' he asked

Practice Directions & Rulings 1989, P. 98 (Item 2)

• Financing arrangement:
- Must comply with MAS Regulations (15/5/96)
- S$ loan only to Singaporeans/Sg PR upon compliance with certain conditions
- Foreign currency loans to others

- Two issues to consider – financing for (1) 20% initial downpayment and (2) the rest of the 80%. (Typically
cash + CPF (see below for eligibility) + bank loan)

Making the initial downpayment for the property:


- Basically, you can use your CPF and cash savings, and a housing/mortgage loan to finance your property
purchase.
- In Singapore, banks, finance companies and HDB can only loan you up to 80% of the purchase price or the
valuation of the property, whichever is lower. This means you will have to make a deposit or downpayment of
20%.

Type of Property
Making the Downpayment

How much of CPF can you use for:

a) A new flat bought directly from HDB


b) A resale flat bought in the open market
c) Private property
a) A new flat bought directly from HDB

If you are taking the HDB housing loan for your new flat bought directly from HDB, you can use up to 100%
of your CPF Ordinary Account savings to pay the initial 10% deposit as well as the balance of the purchase
price.

If your existing CPF balance is not enough for full payment of the purchase price, you may take up a housing
loan from HDB subject to credit assessment by HDB, and use all the monthly contributions to your Ordinary
Account for the instalment payment of the loan.

Also, HDB requires you to exhaust all your CPF Ordinary Account savings first before granting you any housing
loan.

If you are taking a bank loan to finance the purchase of your new flat bought directly from HDB, you can use
your Ordinary Account savings, and the future monthly CPF contributions in your Ordinary Account to buy the
flat and/or to pay the monthly installments of the housing loan up to 100% of the Valuation Limit (VL). The VL
is the lower of the purchase price or the value of the property at the time of purchase.

If your housing loan is still outstanding when your total CPF withdrawals towards payment of the flat had
reached the Valuation Limit, you may continue to use your CPF savings up to the applicable Housing Withdrawal
Limit to repay the housing loan, provided you have the AHWL1.

Effective Date 2 Housing Withdrawal Limit


1 Jan 2003 - 31 Dec 2003 150% of VL
1 Jan 2004 - 31 Dec 2004 144% of VL
1 Jan 2005 - 31 Dec 2005 138% of VL
1 Jan 2006 - 31 Dec 2006 132% of VL
1 Jan 2007 - 31 Dec 2007 126% of VL
1 Jan 2008 onwards 120% of VL

1
FOR MEMBERS BELOW 55 YEARS OLD
The AHWL is the available Ordinary Account balance after setting aside the prevailing Minimum Sum cash
component. Savings in the Special Account (including the amount used for investment) and Ordinary Account
can be used to meet the prevailing Minimum Sum cash component.

FOR MEMBERS 55 YEARS OLD AND ABOVE


The AHWL is the available Ordinary Account balance less the shortfall in member’s Minimum Sum cash
component.

2
For new flats, it refers to the date of booking.

The following example shows how the additional CPF amount is computed when the 100% Valuation Limit is
reached. The computation is based on 132% Valuation Limit and a Minimum Sum of $94,600 (of which the cash
component is $47,300).

(A) Valuation Limit = $150,000


(lower of the purchase price or the value of the property at the time of purchase)
(B) CPF Withdrawal Limit (132% of VL) = $198,000
(C) Amount of CPF Used = $150,000
Additional CPF Allowed = Lower of Balance CPF Withdrawal Limit or AHWL
(D) Balance CPF Withdrawal Limit =$198,000 - $150,000
= (B) – (C) = $48,000
AHWL Is Computed As:
(E) Net Balance in Ordinary Account = $30,000
(F) Net Balance in Special Account = $10,000
Young couples who book a new 4 or 5-room flat under construction can pay the 20% downpayment in 2 stages.
This allows them to buy their flats earlier.

CPF
 Under Section 15(1) CPF Act, no sum of money standing to the credit of a member of the Fund may be
withdrawn from the Fund except with the authority of the Board.
 However, under Section 77(n) and () and of the CPF Act, the CPF Board may make regulations
(n) to provide for members of the Fund to apply, assign or withdraw all or part of the contributions and
interest standing to their credit in the Fund for the purpose of making such investments as may be approved
by the Minister, or for the reimbursement of the cost of the making of any such investments, including the
payment of any fees, charges or incidental expenses incurred for such investments;
(i) to provide for members of the Fund to apply or withdraw all or part of the contributions and interest
standing to their credit in the Fund —
(i) for the repayment of any loan taken to finance or re-finance the purchase or acquisition of any land (with
or without any building thereon) and the cost incurred for the construction of any dwelling-house thereon,
including the payment of any cost, fee or other incidental expense incurred for the purchase or acquisition of
that land and the construction of the dwelling-house; and
(ii) for the reimbursement of the cost for the purchase or acquisition of any land (with or without any
building thereon) and the construction of any dwelling-house thereon, including the payment of any cost, fee
or other incidental expense incurred for the purchase or acquisition of that land and the construction of the
dwelling-house;

- Therefore, your CPF Ordinary Account savings can be used to buy a home under the CPF housing schemes.
You can buy an HDB flat under the Public Housing Scheme, or a private property / empty piece of land under
the Residential Properties Scheme. Your CPF savings can be used for full or part payment of the property, and
to service the monthly housing payments.
- You can also buy commercial properties in Singapore such as shop premises and warehouses for investment
under the Non-Residential Properties Scheme.
- Each scheme is governed by a set of regulations -

Please print out the following and read them:


Public Housing Scheme – is governed by the CENTRAL PROVIDENT FUND (APPROVED HDB-HUDC
HOUSING SCHEME) REGULATIONS
Residential Properties Scheme – is governed by the CENTRAL PROVIDENT FUND (RESIDENTIAL
PROPERTIES SCHEME) REGULATIONS
Non-Residential Properties Scheme – is governed by the CENTRAL PROVIDENT FUND (NON
RESIDENTIAL PROPERTIES SCHEME) REGULATIONS
The essential provisions of each scheme have been extracted below:
Public Housing Scheme
CENTRAL PROVIDENT FUND (APPROVED HDB-HUDC HOUSING SCHEME)
REGULATIONS

Definitions
2. —(1) In these Regulations, unless the context otherwise requires —
"Approved HDB-HUDC Housing Scheme" means the scheme approved by the Minister for the purchase of
properties by members of the Fund from the Housing and Development Board or from its lessees;
"approved mortgagee" means —
(a) the Minister for Finance incorporated under the Minister for Finance (Incorporation) Act (Cap. 183)
(b) any statutory body established by or constituted under any Act; or
(c) Credit POSB Pte. Ltd., a company incorporated under the Companies Act (Cap. 50)
"Housing and Development Board" means the Housing and Development Board established under section 3 of the
Housing and Development Act (Cap. 129);
"housing loan" means a loan obtained by any member on the security of a property from an approved mortgagee to
pay the whole or part of the purchase price of the property;
"property" means a house or flat in any HUDC Housing Estate which is sold by the Housing and Development
Board or by its lessee, but does not include a house or flat in Phase I or Phase II of such Estate or a house or flat in
such Estate sold after the issue of a subsidiary strata title in respect of it pursuant to an application under section
126 of the Land Titles (Strata) Act (Cap. 158).
(2) A reference in these Regulations to the purchase of a property includes a purchase made under an agreement for
the sale and purchase of the property where title to the property will be conveyed, transferred or assigned to the
purchaser on payment of the full purchase price.
Withdrawal of moneys in Fund for payment of deposit for purchase of property
3. Where a member has made an application to the Housing and Development Board to purchase a property, the
Board may, on the application of such member and subject to such terms and conditions as it may impose, authorise
the whole or part of the amount standing to his credit in the Fund to be withdrawn from the Fund and paid to the
Housing and Development Board as a deposit for the purchase of the property.
Withdrawal of moneys in Fund for purchase of property or repayment of housing loan or for both
4. A member who, before 16th November 1998 has purchased a property or has obtained a housing loan for the
purchase of a property or both may submit an application to the Board to withdraw the whole or part of the amount
standing to his credit in the Fund to be used for the payment of the purchase price or part thereof or for the
repayment of any housing loan in full or in part, or for both.
Disbursements in connection with purchase, etc.
5. —(1) Where a member is required to pay any stamp duties, fees or other charges in connection with —
(a) the purchase of a property by the member, whether or not moneys were withdrawn under these Regulations for
such purchase;
(b) the transfer or assignment of a property to the member;
(c) the creation of any mortgage before 16th November 1998 or the discharge of such mortgage on a property
purchased by, or transferred or assigned to, the member; or
(d) the withdrawal of moneys under these Regulations,
the Board may, on the application of the member and subject to such terms and conditions as the Board may
impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn and used for
that purpose.
(2) For the avoidance of doubt, where a member is required to pay any stamp duties, fees or other charges in
connection with —
(a) any divestment, whether by sale, transfer, assignment or otherwise, of any interest or title by the member in a
property; or
(b) the discharge of any mortgage created before, on or after 16th November 1998 on a property upon divestment
by the member of his interest in such property,
no amount standing to his credit in the Fund shall be withdrawn for that purpose.
Moneys withdrawn from Fund to be paid by Board to specified persons
7. All moneys withdrawn from the Fund under these Regulations shall be paid by the Board to the Housing and
Development Board or the approved mortgagee or such other person as the Board thinks fit to receive such moneys.
Repayment to Board of moneys withdrawn from Fund
8. Except as otherwise provided in these Regulations, all moneys withdrawn by a member under these Regulations
together with any interest that would have accrued thereto if the withdrawal had not been made shall become due
and payable to the Board on the occurrence of any of the following events:
(a) if the property or any interest therein is sold, transferred, assigned or otherwise disposed of by the member;
(b) if the property or any interest therein is sold, transferred, assigned or otherwise disposed of by any mortgagee or
by any other person with or without the consent of the Board;
(c) if any mortgage or encumbrance is created over the property in favour of a person without the consent of the
Board;
(d) if the member has committed a breach of any of the terms and conditions imposed by the Board in connection
with the withdrawal of moneys under these Regulations;
(e) if the property or any interest therein is sold, transferred, assigned or otherwise disposed of pursuant to an order
of court.
Repayment of moneys to Board if no property is purchased
10. All moneys withdrawn from the Fund under these Regulations by a member shall become due and payable to
the Board —
(a) if the member withdraws his application for the purchase of a property; or
(b) if the agreement entered into by the member and any person for the purchase of a property is rescinded.
Member may sell, transfer, assign, etc., property subject to Board’s approval
11. —(1) The Board may, in its discretion and subject to such terms and conditions as it may impose, permit a
member who has withdrawn money under these Regulations to sell, transfer, assign or otherwise dispose of the
property or any of his estate or interest therein in respect of which the withdrawal has been made to any person, if
the Board is satisfied that adequate arrangements have been made to secure the repayment into the member’s
account in the Fund the amount specified in this regulation or such other amount as the Board may allow.
(2) Subject to paragraphs (3) and (9), where the member making the sale, transfer, assignment or disposal is below
the age of 55 years at the time of the sale, transfer, assignment or disposal, the member shall repay to his account in
the Fund, in such manner as the Board may determine, either of the following amounts, whichever is the less:
(a) the net proceeds of the sale, transfer, assignment or disposal; or
(b) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A of the Act in connection with such purchase), together with any
interest that would have accrued thereto if the withdrawal had not been made.
(3) Notwithstanding paragraph (2), where the member making the sale, transfer, assignment or disposal —
(a) is below the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b) sells, transfers, assigns or disposes of the property to an immediate family member without consideration or for
a consideration below the market value of the property,
he shall, unless the Board otherwise directs, repay to his account in the Fund all moneys withdrawn by the member
in connection with the purchase of the property (including any outstanding loan granted to him under section 14A
of the Act in connection with such purchase), together with any interest that would have accrued thereto if the
withdrawal had not been made unless the Board allows the repayment without such interest.
(4) Subject to paragraphs (5) to (8), (10), (11) and (12), where the member making the sale, transfer, assignment or
disposal —
(a) has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b) is required to set aside a minimum sum under section 15(6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any
interest that would have accrued thereto.
(5) Notwithstanding paragraph (4) and subject to paragraph (11), where the member making the sale, transfer,
assignment or disposal —
(a) was adjudicated a bankrupt before attaining the age of 55 years;
(b) has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer,
assignment or disposal; and
(c) is required to set aside the sums under section 15 (6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less —
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the higher of the following amount:
(A) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A of the Act in connection with such purchase), together with any
interest that would have accrued thereto if the withdrawal had not been made; or
(B) the aggregate of —
(I) the sums, or any deficiency thereof, which he is required to set aside under section 15 (6) of the Act, including
any interest that would have accrued thereto; and
(II) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(6) Notwithstanding paragraph (4) and subject to paragraph (11), where the member making the sale, transfer,
assignment or disposal —
(a) was adjudicated a bankrupt before attaining the age of 55 years;
(b) has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer,
assignment or disposal; and
(c) is not required to set aside any sum under section 15 (6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A of the Act in connection with such purchase), together with any
interest that would have accrued thereto if the withdrawal had not been made.
(7) Notwithstanding paragraph (4) and subject to paragraph (12), where the member making the sale, transfer,
assignment or disposal —
(a) was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b) remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c) is required to set aside a minimum sum under section 15 (6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the aggregate of —
(A) the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any
interest that would have accrued thereto; and
(B) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(8) Notwithstanding paragraph (4) and subject to paragraph (12), where the member making the sale, transfer,
assignment or disposal —
(a) was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b) remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c) is not required to set aside a minimum sum under section 15(6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(9) Notwithstanding paragraph (2), where the member making the sale, transfer, assignment or disposal —
(a) is required to do so pursuant to an order of court; and
(b) is below the age of 55 years at the time of the sale, transfer, assignment or disposal,
he shall repay to his account in the Fund, in such manner as the Board may determine, any of the following
amounts as may be required by the Board:
(i) the net proceeds of the sale, transfer, assignment or disposal;
(ii) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A of the Act in connection with such purchase), together with any
interest that would have accrued thereto if the withdrawal had not been made;
(iii) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A in connection with such purchase); or
(iv) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(10) Notwithstanding paragraphs (4) to (8) and subject to paragraphs (11) and (12), where the member making the
sale, transfer, assignment or disposal —
(a) is required to do so pursuant to an order of court;
(b) has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(c) is required to set aside a minimum sum under section 15 (6) of the Act,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any
interest that would have accrued thereto.
(11) Notwithstanding paragraphs (4), (5), (6) and (10), where the member making the sale, transfer, assignment or
disposal —
(a) is required to do so pursuant to an order of court;
(b) was adjudicated a bankrupt before attaining the age of 55 years; and
(c) has attained the age of 55 years at the time of sale and remains a bankrupt at the time of the sale, transfer,
assignment or disposal,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the higher of the following amounts:
(A) all moneys withdrawn by the member in connection with the purchase of the property (including any
outstanding loan granted to him under section 14A of the Act in connection with such purchase), together with any
interest that would have accrued thereto if the withdrawal had not been made; or
(B) the aggregate of —
(I) the sums, or any deficiency thereof, which he is required to set aside under section 15 (6) of the Act, including
any interest that would have accrued thereto; and
(II) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(12) Notwithstanding paragraphs (4), (7), (8) and (10), where the member making the sale, transfer, assignment or
disposal —
(a) is required to do so pursuant to an order of court;
(b) was adjudicated a bankrupt after attaining the age of 55 years; and
(c) remains a bankrupt at the time of the sale, transfer, assignment or disposal,
he shall repay to his account in the Fund, in such manner as the Board may determine, either of the following
amounts, whichever is the less:
(i) the net proceeds of the sale, transfer, assignment or disposal; or
(ii) the aggregate of —
(A) the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any
interest that would have accrued thereto; and
(B) any outstanding loan granted to the member under section 14A of the Act and withdrawn by the member in
connection with the purchase of the property, together with any interest that would have accrued thereto if the
withdrawal had not been made.
(13) In this regulation, "net proceeds", in relation to any property which is sold, transferred, assigned or disposed
of, means any positive difference between —
(a) the consideration for the sale, transfer, assignment or disposal of the property, or, if the Board so elects, the
value of the property at the time of the sale, transfer, assignment or disposal as assessed by the Board; and
(b) the aggregate of the following amounts paid in the following order:
(i) any outstanding housing loan; and
(ii) any amount which, by virtue of any written law, is to be paid to any other person in priority to the Fund.
(14) Nothing in this regulation shall apply to —
(a) the sale, transfer, assignment or disposal of any property which has not been privatised, where the application
for the consent of the Housing and Development Board under section 50 of the Housing and Development Act
(Cap. 129) in respect of such sale, transfer, assignment or disposal was made before 21st December 2001; or
(b) the sale, transfer, assignment or disposal of any property which has been privatised, where the application to the
Board for cancellation of its charge over the property was made before 21st December 2001.
(15) Regulation 11 in force immediately before 21st December 2001 shall continue to apply in respect of any sale,
transfer, assignment or disposal referred to in paragraph (14).
(16) For the purposes of paragraph (14), a property is privatised if it is comprised in a building erected on land the
estate or interest in which has been transferred to all registered proprietors comprised in that building in accordance
with section 126 of the Land Titles (Strata) Act (Cap.158) read with sections 126A and 126B of that Act.
Withdrawal of moneys in Fund permitted for purchase of only one property
15. Unless otherwise approved by the Board, no member of the Fund shall be entitled to make an application for
the withdrawal of moneys under these Regulations in respect of more than one property.
Application for withdrawal of moneys in Fund
16. —(1) An application by a member for the withdrawal of moneys under these Regulations shall be made in
writing to the Board in such manner as the Board may direct.
(2) Any member making the application shall furnish to the Board all such information, evidence and documents as
the Board may require.

Residential Properties Scheme


CENTRAL PROVIDENT FUND (RESIDENTIAL PROPERTIES SCHEME) REGULATIONS

Definitions
2. In these Regulations —
"approved annuity" means an annuity for life, purchased from an insurer, which is approved by the Board;
"approved bank" means any bank approved by the Board;
"bank" has the same meaning as in the Banking Act (Cap. 19);
"Housing and Development Board" means the Housing and Development Board established under the Housing
and Development Act (Cap. 129);
“housing loan” means a loan—
(a) obtained by a member to finance or re-finance the purchase of a residential property; or
(b) to make full or periodic payments towards the repayment of a mortgage on any residential property inherited
by a member if the mortgage was obtained solely for the purchase of that residential property;
"insurer" means any person registered under the Insurance Act (Cap. 142) to carry on insurance business in
Singapore;
"mortgage" includes any charge on any residential property for securing the repayment of any money lent to any
person;
"residential property" means any house or flat which is permitted to be used pursuant to any written law as a
dwelling-house and any such house or flat which is in the course of being constructed;
"Town Council" means a Town Council established under the Town Councils Act (Cap. 329A).
Application of Regulations
3. These Regulations shall not apply to any house or flat in respect of which contributions standing to the credit
of a member may be withdrawn by him under any of the following Regulations:
(a) the Central Provident Fund (Approved Housing Schemes) Regulations (Rg 12);
(b) the Central Provident Fund (Approved Middle-Income Housing Scheme) Regulations (Rg 4);
(c) the Central Provident Fund (Ministry of Defence Housing Scheme) Regulations (Rg 13); or
(d) the Central Provident Fund (Approved HDB-HUDC Housing Scheme) Regulations (Rg 14).
Restriction on withdrawal
4. —(1) A member shall not be entitled to withdraw any money under these Regulations for the payment of the
purchase price or part thereof of a residential property or the repayment of any housing loan or part thereof
unless he has acquired or will acquire with respect to the residential property —
(a) an estate in fee simple or perpetuity; or
(b) a leasehold estate having an unexpired term of at least 60 years at the date of his application for the
withdrawal of money under these Regulations.
(2) Notwithstanding paragraph (1) (b), the Board may, in its discretion and subject to such terms and conditions
as it may impose, authorise the withdrawal of money under these Regulations for the payment of the purchase
price or part thereof of a residential property or the repayment of any housing loan or part thereof where the
member has acquired or will acquire, with respect to the residential property, a leasehold estate having an
unexpired term of less than 60 years at the date of his application for the withdrawal of money under these
Regulations provided that the unexpired term is not less than 30 years.
Cash grants
5. —(1) Where a cash grant made under an approved scheme administered by the Ministry of National
Development has been paid into the Fund for any person under section 14 of the Act and the person has
purchased or applied to purchase a residential property, the Board may, subject to these Regulations, and to such
terms and conditions as it may impose, permit that person to withdraw the cash grant for all or any of the
purposes specified in these Regulations.
(2) All moneys withdrawn under paragraph (1) together with any interest which would have accrued thereto if the
withdrawal had not been made —
(a) shall be payable to the Board if the person has committed a breach of any of the terms and conditions of the
cash grant and the Minister for National Development, or any officer duly authorised by him, does not waive the
breach in writing; and
(b) notwithstanding regulation 26 (3), shall remain payable to the Board on the death of the member or when the
member is entitled to withdraw the sum standing to his credit under section 15 of the Act.
Loan by Government to member
5A. —(1) Where the Board has, on or after 1st March 1999, credited into the ordinary account of any member
moneys lent by the Government to the member under any approved loan scheme under section 14A of the Act,
the Board may —
(a) on the application of the member; or
(b) if it considers necessary,
and subject to such terms and conditions as it may impose, permit the member to withdraw such moneys —
(i) under regulation 7 for payment of the monthly instalments of principal and interest towards a housing loan; or
(ii) under regulation 22 for payment of the monthly instalments of principal and interest towards a loan obtained
by the member for payment for his share in any common property transferred by the Housing and Development
Board pursuant to an application under section 126 of the Land Titles (Strata) Act (Cap. 158).
(2) The total amount which a member may withdraw under paragraph (1) to pay such monthly instalments shall
be determined by the Board.
Use of money in special account for payment of housing loan and share in common property transferred
by Housing and Development Board
5B. —(1) Where a member, as owner of a residential property, is liable to pay the monthly instalments of
principal and interest towards a housing loan or towards a loan obtained by him for payment of his share in any
common property transferred by the Housing and Development Board pursuant to an application under section
126 of the Land Titles (Strata) Act (Cap. 158) —
(a) if the liability to pay arises on or after 1st February 1999, the Board, with the approval of the Minister, may

(i) on the application of the member or if it considers necessary; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of the amount standing to the credit of the member in his special account to be
withdrawn by him under regulation 7 or 22, as the case may be, for the payment of such monthly instalments;
and
(b) if the liability to pay arises on or after 1st July 2006, the Board may —
(i) on the application of the member; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of any amount standing to the credit of the member in his special account which had
been transferred from his medisave account under section 13 (6) of the Act to be withdrawn by him under
regulation 7 or 22, as the case may be, for the payment of such monthly instalments.
(2) The total amounts which a member may withdraw under paragraph (1) (a) and (b) to pay such monthly
instalments shall be determined by the Board.
Use of money in special account for payment of improvement contribution in respect of upgrading works
5C. —(1) Where a member, as owner of a residential property, is liable to pay the monthly improvement
contributions due to the Housing and Development Board in respect of upgrading works carried out on the
residential property under Part IVA of the Housing and Development Act (Cap.129), or the monthly improvement
contributions due to a Town Council in respect of lift upgrading works carried out in relation to the residential
property under Part IVA of the Town Councils Act (Cap. 329A) —
(a) if the liability to pay arises on or after 1st March 1999, the Board, with the approval of the Minister, may —
(i) on the application of the member or if it considers necessary; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of the amount standing to the credit of the member in his special account to be
withdrawn by him for the payment of such monthly improvement contributions; and
(b) if the liability to pay arises on or after 1st July 2006, the Board may —
(i) on the application of the member; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of any amount standing to the credit of the member in his special account which had
been transferred from his medisave account under section 13 (6) of the Act to be withdrawn by him for the
payment of such monthly improvement contributions.
(2) All moneys withdrawn from the Fund under paragraph (1) shall be paid by the Board —
(a) in the case of monthly improvement contributions in respect of upgrading works carried out on the residential
property under Part IVA of the Housing and Development Act, to the Housing and Development Board; and
(b) in the case of monthly improvement contributions in respect of lift upgrading works carried out in relation to
the residential property under Part IVA of the Town Councils Act (Cap. 329A), to the relevant Town Council,
or to such other person as the Board considers fit to receive the moneys.
(3) The total amounts which a member may withdraw under paragraph (1) (a) and (b) to pay such monthly
improvement contributions shall be determined by the Board.
Prior agreement to purchase
6. —(1) Where a member has entered into an agreement to purchase a residential property or has obtained a
housing loan or both whether before or after 1st June 1981, the Board may, on application being made by him
and subject to such terms and conditions as the Board may impose, authorise the whole or part of the amount
standing to his credit in the Fund to be withdrawn by him and used for the payment of the purchase price or part
thereof of the residential property or the repayment of the housing loan or both, as the case may be.
(2) A member who has obtained a housing loan shall not be entitled to make any withdrawals under these
Regulations for the repayment of the loan unless the loan is for a fixed term or is granted on an overdraft basis
and the repayment of the loan is secured by a mortgage on the residential property.
(3) Notwithstanding paragraph (2), the Board may, in its discretion and subject to such terms and conditions as it
may impose, authorise a member who has obtained a housing loan to make withdrawals under these Regulations
for the repayment of the loan if the Board is satisfied that the loan is for a fixed term or is granted on an overdraft
basis and the repayment of the loan is secured by a mortgage on another residential property of which the
member is the owner or a joint-owner.
Withdrawal for instalment payments
7. Where a member has, whether before or after 1st June 1981 obtained a housing loan the repayment of which is
secured by a mortgage on that property or another residential property of which he is the owner or a joint-owner
and is required to pay instalments of principal and interests towards the loan either monthly or at other intervals,
the Board may, on application being made by the member and subject to such terms and conditions as the Board
may impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn by him
and used for the payment of those instalments.
Board may allow member to withdraw money in certain circumstances
8. Notwithstanding regulations 5A, 6 and 7, the Board may, in its discretion and subject to such terms and
conditions as it may impose, allow a member to withdraw money under any of those regulations even if the
housing loan obtained by the member is not secured by a mortgage on the residential property or on another
residential property of which he is the owner or a joint-owner.
Total amount to be withdrawn under regulations 5A, 6 and 7
9. —(1) The total amount which a member may withdraw to repay one or more housing loans under regulations
5A, 6 and 7 shall be determined by the Board but in no case shall such amount exceed 100% of the value of the
residential property as assessed by the Board at the date of —
(a) the signing of the agreement for the sale and purchase of the residential property; or
(b) the inheritance of the residential property,
as the case may be.
(2) Where a housing loan obtained by a member is granted on an overdraft basis, the total amount of money that
the member may withdraw under regulations 5A, 6 and 7 shall be such an amount as may be determined by the
Board, but in no case shall the amount withdrawn exceed 100% of the value of the residential property assessed
by the Board at the date of —
(a) the signing of the agreement for the sale and purchase of the residential property; or
(b) the inheritance of the residential property,
as the case may be.
Withdrawal for payment of land and dwelling-house constructed thereon
10. —(1) Where a member has taken any loan to —
(a) finance or re-finance the purchase of any land (with or without any building thereon) and the costs of
construction of any dwelling-house thereon;
(b) finance the full or periodic re-payments of any mortgage on any land inherited by him; or
(c) finance the construction of any dwelling-house on any land inherited by him,
the Board may, on application of the member, authorise the whole or part of the amount standing to his credit in
the Fund to be withdrawn for the payment of any loan including any fee or other incidental expenses which may
have been incurred in connection with the purchase of the land or construction of the dwelling-house.
(2) Where a member has at any time purchased any land (with or without any building thereon) or inherited any
land (with or without any building thereon) and constructs, on or after 1st October 1993, a dwelling-house
thereon with his own moneys, the Board may, on application being made by him, authorise the whole or part of
the amount standing to his credit in the Fund to be withdrawn to reimburse him for the purchase price of the land
and the costs of construction of the dwelling-house thereon, including any fee and other incidental expenses
which may have been incurred for the purchase of the land and the construction of the dwelling-house.
(3) Any application under paragraph (2) shall be made within 6 months, or such other period as the Board may
allow, from the date of issue of the temporary occupation permit in respect of the dwelling-house and may be
approved by the Board subject to such terms and conditions as the Board may impose.
(4) The total amount of money which a member may withdraw under paragraph (1) or (2) shall not exceed 100%
of the value of the residential property, as assessed by the Board, on the date of application by the member under
paragraph (1) or (2).
Total amount to be withdrawn in other circumstances
11. —(1) The total amount of money which a member may withdraw under these Regulations for any one or all
the purposes specified in paragraph (2) shall not exceed 100% of the value of the residential property as assessed
by the Board at the date of —
(a) the signing of the agreement for the sale and purchase of the residential property; or
(b) the inheritance of the residential property,
as the case may be.
(2) The purposes referred to in paragraph (1) are —
(a) to make full or partial payment towards the purchase of a residential property;
(b) to make periodic payments towards the repayment of a housing loan or to make full or partial repayment of a
housing loan; or
(c) to finance the construction of a dwelling-house on any land purchased by or inherited by the member.
Board may allow withdrawal of further amount
12. —(1) In addition to the total amount which a member may withdraw under regulations 9, 10 and 11, the
Board may, on application being made by a member, allow him to withdraw from the amount standing to his
credit in the Fund, such further amount as the Board may, in accordance with the direction of the Minister,
approve.
(2) Any withdrawal under paragraph (1) shall be subject to such terms and conditions as the Board may impose.
Property subject to mortgage
13. —(1) Where the residential property is subject to one or more subsisting mortgages, the Board may, as a
condition for the withdrawal of money under these Regulations, require the member to satisfy the Board that the
mortgagees have consented —
(a) to the postponement of their mortgages according priority to the Board in respect of all withdrawals
authorised by the Board in such manner and on such terms as may be agreed upon between the Board and the
mortgagees; and
(b) to obtain the prior written approval of the Board before they sell, sub-mortgage, transfer their mortgage or
apply to the Court for an order to foreclose the residential property.
(2) Where a residential property is purchased or inherited or owned by 2 or more persons, the Board may, on or
after 21st January 1984, as a condition for the withdrawal of money by any one of them under these Regulations,
require all the co-purchasers or co-owners to give their written consent to extend any charge under section 21
(1A) of the Act to all their respective estates or interests in the residential property.
Disbursements in relation to purchase of property
14. Where an application for the withdrawal of money under these Regulations has been approved by the Board
and the member is required to pay any costs, fees, stamp duties or other incidental expenses incurred for the
purchase of a residential property or for obtaining any housing loan or the creation or discharge of a mortgage on
the property or in connection with the withdrawal of money under these Regulations, the Board may, on the
application of the member and on such terms and conditions as it may impose, authorise the whole or part of the
amount standing to his credit in the Fund to be withdrawn and used for all or any of the aforesaid purposes.
Joint purchases
15. —(1) A member who has purchased or inherited a residential property jointly with one or more persons shall
not be entitled to make an application for the withdrawal of money under these Regulations unless the
relationship between the co-purchasers or co-owners of the property falls within any of the following categories:
(a) husband and wife;
(b) parent and child;
(c) brother and brother, sister and sister or brother and sister;
(d) grandparent, parent and child;
(e) grandparent and grandchild.
(2) Notwithstanding paragraph (1), the Board may, in its discretion, permit any withdrawal of money under these
Regulations by a member who has purchased or inherited a residential property jointly with one or more persons,
although the relationship between the co-purchasers or co-owners is not within any of the categories specified in
paragraph (1).
(3) Where 2 or more co-purchasers or co-owners of a residential property each make an application for the
withdrawal of money under regulation 6 or 7 or both, the total amount of money which may be withdrawn by
them under either or both of those regulations shall not exceed the limit prescribed by regulation 9 or 11, as the
case may be.
Valuation
16. —(1) For the purpose of assessing the value of any residential property under these Regulations, the Board
may appoint a Government valuer or a licensed valuer and the expenses of any such valuation shall be borne by
the member concerned.
(2) Where a member is required to pay the expenses of any valuation under paragraph (1), the Board may, on
application being made by the member, authorise the whole or part of the amount standing to his credit in the
Fund to be withdrawn and used for the payment of such expenses.
17. Deleted by S 182/2005, wef 01/04/2005.
Withdrawal for more than one property
18. —(1) Subject to paragraph (2), a member shall be entitled to apply for the withdrawal of moneys under
these Regulations in respect of more than one residential property.
(2) Where —
(a) a member has already made an application for the withdrawal of moneys standing to his credit in the Fund
under —
(i) these Regulations;
(ii) the Central Provident Fund (Approved Middle-Income Housing Scheme) Regulations (Rg 4);
(iii) the Central Provident Fund (Approved Housing Schemes) Regulations (Rg 12);
(iv) the Central Provident Fund (Ministry of Defence Housing Scheme) Regulations (Rg 13); or
(v) the Central Provident Fund (Approved HDB-HUDC Housing Scheme) Regulations (Rg 14),
in respect of any house, flat or other property;
(b) the Board has authorised the withdrawal of moneys pursuant to that application; and
(c) the member makes any other application for the withdrawal of moneys standing to his credit in the Fund
under these Regulations in respect of any other residential property which is purchased on or after 1st July 2006,
the Board may impose additional terms and conditions for the withdrawal of moneys pursuant to that other
application.
19. Deleted by S 182/2005, wef 01/04/2005.
Direct payment by Board to vendor, etc.
20. All moneys withdrawn from the Fund under regulation 5, 5A, 6, 7, 10, 12, 14 or 27 shall be paid by the Board
to the vendor, mortgagee, chargee or such person as the Board thinks fit to receive such moneys.
Withdrawal for payment of improvement contribution in respect of upgrading works
21. —(1) Where a member is liable as the owner of a residential property to pay improvement contribution to the
Housing and Development Board in respect of upgrading works carried out on the residential property under Part
IVA of the Housing and Development Act (Cap. 129), or to pay improvement contribution to a Town Council in
respect of lift upgrading works carried out in relation to the residential property under Part IVA of the Town
Councils Act (Cap. 329A), the Board may, on the application of the member and subject to such terms as the
Board may impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn
by him for —
(a) the payment of such improvement contribution; and
(b) the payment of costs, fees or other incidental expenses arising from such upgrading works.
(2) All moneys withdrawn from the Fund under this regulation shall be paid by the Board to the Housing and
Development Board or a Town Council or such other persons as the Board thinks fit to receive the moneys.
(3) The total amount that may be withdrawn by a member under this regulation for the payment of improvement
contribution in respect of a residential property shall not exceed the amount of improvement contribution
determined by the Board for the residential property.
(4) In this regulation, any reference to an owner of residential property liable to pay any improvement
contribution shall be read as a reference to an owner of such property as defined —
(a) in section 65D of the Housing and Development Act where the improvement contribution is due under the
Housing and Development Act; or
(b) in section 24D of the Town Councils Act where the improvement contribution is due under the Town
Councils Act,
and includes a reference to any co-owner of such property.
Withdrawal for payment of share in common property transferred by Housing and Development Board
22. —(1) Where the member is liable as the owner of a residential property to pay for a share in any common
property transferred by the Housing and Development Board pursuant to an application under section 126 of the
Land Titles (Strata) Act (Cap. 158), the Board may, on the application of the member and subject to such terms
and conditions as the Board may impose, authorise the whole or part of the amount standing to his credit in the
Fund to be withdrawn by him for —
(a) full or partial payment for his share in the common property;
(b) periodic payments towards the repayment of a loan or for full or partial repayment of a loan; and
(c) payment of costs, fees or other incidental expenses arising from the transfer of the common property, the
obtaining of the loan or the withdrawal of moneys under this regulation.
(2) All moneys withdrawn from the Fund under this regulation shall be paid by the Board to the Housing and
Development Board or such other persons as the Board thinks fit to receive such moneys.
(3) The total amount that may be withdrawn by a member under this regulation shall not exceed the amount
determined by the Board.
(4) In this regulation —
"common property" has the same meaning as in section 3 of the Land Titles (Strata) Act (Cap. 158);
"loan" means a loan obtained by a member, the repayment of which is secured by a mortgage on any residential
property of which he is the owner or joint-owner, to pay in whole or in part for that member’s share in the
common property;
"relevant property" means the residential property, including the common property, which will be comprised in a
subsidiary strata title issued to the owner pursuant to the application under section 126 of the Land Titles (Strata)
Act.
(5) Notwithstanding the definition of “loan” in paragraph (4), the Board may, in its discretion and subject to such
terms and conditions as it may impose, allow a member to withdraw money under this regulation even if the loan
obtained by the member is not secured by a mortgage on any residential property of which he is the owner or
joint-owner.
(6) Where a member has withdrawn moneys under this regulation, regulations 23 to 26 shall apply as if the
words “residential property” therein refers to “relevant property”.
Withdrawal of money by undischarged bankrupt
22A. —(1) Notwithstanding the provisions of these Regulations, an undischarged bankrupt shall not be entitled
to —
(a) make an application to the Board to withdraw money under these Regulations; or
(b) withdraw money under these Regulations except in accordance with paragraph (2).
(2) Where a member is adjudicated a bankrupt after he has obtained authorisation from the Board to withdraw
money under these Regulations, the Board may, notwithstanding his bankruptcy, permit him to make or continue
to make (as the case may be) the authorised withdrawals subject to his compliance with these Regulations, the
Act and any other condition which the Board thinks fit to impose.
No transfer, etc., so long as money withdrawn remains payable
23. So long as any money withdrawn by a member remains payable to the Fund under regulation 26, the member
shall not sell, transfer, assign or otherwise dispose of the residential property or any of his interest therein without
the prior written permission of the Board.
Sale with Board’s permission
24. —(1) The Board may, subject to such terms and conditions as it may impose, permit a member who has
withdrawn money under these Regulations in respect of a residential property (including any moneys lent to him
under section 14A of the Act in respect of the residential property and withdrawn by him which have not been
repaid) to sell, transfer, assign or otherwise dispose of the residential property or any of his estate or interest
therein to any person —
(a) if the Board is satisfied that adequate arrangements have been made to secure the repayment into the
member’s account in the Fund of —
(i) all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of
the residential property and withdrawn by him which have not been repaid) and the interest that would have
accrued thereto if the withdrawal had not been made; or
(ii) the net proceeds of the sale, transfer, assignment or disposal, as the case may be,
whichever is the less; or
(b) where the member —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
if the member repays into his account in the Fund all moneys withdrawn by him (including any moneys lent to
him under section 14A of the Act in respect of the residential property and withdrawn by him which have not
been repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part
thereof as may be determined by the Board.
(2) Where a member who has withdrawn money under these Regulations in respect of a residential property —
(a) sells, transfers, assigns or otherwise disposes of the property or his estate or interest therein with the
permission of the Board under paragraph (1) (a); and
(b) either —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him
under section 14A of the Act in respect of the residential property and withdrawn by him which have not been
repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof
as may be determined by the Board.
Member may not mortgage without permission of Board
25. —(1) As long as any money withdrawn remains payable to the Fund under regulation 26, the member shall
not mortgage or in any way encumber the residential property in respect of which the withdrawal had been made
without the prior written permission of the Board.
(2) In granting any permission under paragraph (1), the Board may —
(a) require the member to make adequate arrangements to secure the repayment into the member’s account in the
Fund of all moneys withdrawn by him and of such interest as would have accrued thereto if the withdrawal had
not been made; or
(b) impose such other terms and conditions as the Board may think fit.
Return to Board of moneys withdrawn
26. —(1) Subject to paragraphs (2), (3) and (4), all moneys withdrawn by a member under these Regulations in
respect of a residential property (including any moneys lent to him under section 14A of the Act in respect of the
residential property and withdrawn by him which have not been repaid) together with any interest which would
have accrued thereto if the withdrawal had not been made shall become due and payable to the Board on the
occurrence of any of the following events:
(a) if the residential property or any interest therein is sold, transferred, assigned or otherwise disposed of by the
member without the consent of the Board;
(b) if the residential property or any interest therein is sold, transferred, assigned or otherwise disposed of by any
mortgagee or by any other person with or without the consent of the Board;
(c) if any mortgage or encumbrance is created over the residential property without the consent of the Board;
(d) Deleted by S 563/99, wef 15/12/1999.
(e) if the member has committed a breach of any of the terms and conditions imposed by the Board in connection
with the withdrawal of moneys under these Regulations;
(f) if the residential property or any estate or interest therein is acquired under the Land Acquisition Act (Cap.
152) or any other written law.
(2) Upon the happening of any of the events mentioned in paragraph (1) (b) or (f), the member shall repay to the
Board the amount agreed between the Board, the member and the mortgagee in respect of such sale or
disposition of the residential property by the mortgagee or by any other person, or the amount of any
compensation received by the member under the Land Acquisition Act (Cap. 152) or under any other written law,
as the case may be.
(3) Subject to paragraph (4), all moneys withdrawn by a member under these Regulations in respect of a
residential property (other than any moneys lent to him under section 14A of the Act in respect of the residential
property and withdrawn by him which have not been repaid), together with any interest that would have accrued
thereto if the withdrawal had not been made, shall cease to be payable to the Board —
(a) on the death of the member; or
(b) when the member is entitled to withdraw the amount standing to his credit in the Fund under section 15 (2),
(3) or (4) of the Act and has complied with the requirements for such withdrawal.
(4) Subject to paragraph (2), where —
(a) any event mentioned in paragraph (1) occurs; and
(b) the member —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him
under section 14A of the Act in respect of the residential property and withdrawn by him which have not been
repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof
as may be determined by the Board.
Fees and charges
27. —(1) A member who has made an application for the withdrawal of money under these Regulations shall be
liable to pay any fees or charges in connection with the processing of the application which shall be of such
amount as may be determined by the Board.
(2) The Board may, on application being made by the member, authorise the whole or part of the amount
standing to his credit in the Fund to be withdrawn and used for the payment of such fees or charges.
Manner of application for withdrawal
28. —(1) An application by a member for the withdrawal of money under these Regulations shall be made in
writing to the Board in such manner as the Board may direct.
(2) Any member making such application shall furnish to the Board such information, documents and guarantees
as the Board may require.

Non-residential Properties Scheme


CENTRAL PROVIDENT FUND (NON RESIDENTIAL PROPERTIES SCHEME) REGULATIONS

Definitions
2. —(1) In these Regulations, unless the context otherwise requires —
"approved annuity" means an annuity for life, purchased from an insurer, which is approved by the Board;
"approved bank" means any bank approved by the Board;
"bank" has the same meaning as in the Banking Act (Cap. 19);
"insurer" means any person registered under the Insurance Act (Cap. 142) to carry on insurance business in
Singapore;
"loan" means a loan—
(a) obtained by a member to finance or re-finance in whole or in part the purchase of a property; or
(b) to make full or periodic payment towards the repayment of a mortgage on any property inherited by a
member if the mortgage was obtained solely for the purchase of that property,
including the payment of any costs, fees, stamp duties or other incidental expenses incurred in connection with
paragraph (a) or (b).
"mortgage" includes any charge on any property for securing the repayment of any money lent to a person;
"property" means any building or part of a building or any flat which is permitted pursuant to any written law to
be used for any commercial or industrial purpose or any such building or flat which is in the course of erection
but does not include any temporary building;
"temporary building" means a building which is permitted by the Building Authority under the Building Control
Act (Cap. 29) to be erected or to remain for a specified period at the expiration of which the building shall be
demolished and includes a building erected, in the opinion of the Board, with materials either wholly or in part
which are in the absence of special care, liable to rapid deterioration or are otherwise unsuitable for the erection
of a permanent building.(2) A reference in these Regulations to the purchase of a property includes a purchase
made under an agreement for the sale and purchase of the property where title to the property will be conveyed,
transferred or assigned to the purchaser on payment of the full purchase price.
Scheme applicable only if application made before 1st July 2006
2A. —(1) Subject to paragraph (2), unless a member has, before 1st July 2006, made an application for the
withdrawal of money under these Regulations in respect of a property, no money standing to the credit of that
member in the Fund shall be withdrawn under these Regulations in respect of that property.
(2) Where —
(a) a member who is a joint-owner of a property makes an application, on or after 1st July 2006, for the
withdrawal of money under these Regulations in respect of that property;
(b) any other joint-owner of that property has, before 1st July 2006, made an application for the withdrawal of
money under these Regulations in respect of that property; and
(c) the Board has authorised the whole or part of the amount standing to the credit of that other joint-owner in the
Fund to be withdrawn under these Regulations in respect of that property,
the Board may, subject to such terms and conditions as it may impose, authorise the whole or part of the amount
standing to the credit of that member in the Fund to be withdrawn under these Regulations in respect of that
property.
Scheme applicable to property of certain tenures only
3. No money standing to the credit of a member in the Fund shall be withdrawn under these Regulations for the
payment of the purchase price or part thereof of a property or for the repayment of any loan in full or in part
unless he has acquired or will acquire with respect to the property —
(a) an estate in fee simple or perpetuity; or
(b) a leasehold estate having an unexpired term of at least 60 years at the date of his application for the
withdrawal of money under these Regulations.
Application to withdraw moneys for purchase of property
4. —(1) A member who has purchased a property or has obtained a loan , whether before or after 1st May 1986,
may submit an application to the Board to withdraw the whole or part of the amount standing to his credit in the
Fund to be used for the payment of the purchase price or part thereof or for the repayment of any loan in full or
in part, or for both.
(2) An application under paragraph (1) may be approved by the Board subject to such terms and conditions as the
Board may impose.
(3) A member who has obtained a loan shall not be entitled to make any withdrawals under these Regulations for
the repayment of the loan unless the loan is a term loan or is granted on an overdraft basis and the repayment of
the loan is secured by a mortgage on the property or on another property of which he is the owner or a joint-
owner.
Application to withdraw moneys for payment of mortgaged property
5. Where a member has, whether before or after 1st May 1986, obtained a loan the repayment of which is secured
by a mortgage on that property or another property of which he is the owner or a joint-owner and is required to
pay instalments of principal and interest towards the loan either at monthly intervals or otherwise, the Board may,
on application being made by the member and subject to such terms and conditions as the Board may impose,
authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn by him and used for
the payment of those instalments.
Loan by Government to member
5A. —(1) Where the Board has, on or after 1st March 1999, credited into the ordinary account of any member
moneys lent by the Government to the member under any approved loan scheme under section 14A of the Act,
the Board may —
(a) on the application of the member; or
(b) if it considers necessary,
and subject to such terms and conditions as it may impose, permit the member to withdraw such moneys for
payment of the monthly instalments of principal and interest towards a loan.
(2) The total amount which a member may withdraw under paragraph (1) to pay such monthly instalments shall
be determined by the Board.
Use of money in special account for payment of loan
5B. —(1) Where a member, as owner of a property, is liable to pay the monthly instalments of principal and
interest towards a loan —
(a) if the liability to pay arises on or after 1st February 1999, the Board, with the approval of the Minister, may

(i) on the application of the member or if it considers necessary; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of the amount standing to the credit of the member in his special account to be
withdrawn by him for the payment of such monthly instalments; and
(b) if the liability to pay arises on or after 1st July 2006, the Board may —
(i) on the application of the member; and
(ii) subject to such terms and conditions as it may impose,
authorise the whole or part of any amount standing to the credit of the member in his special account which had
been transferred from his medisave account under section 13 (6) of the Act to be withdrawn by him for the
payment of such monthly instalments.
(2) The total amounts which a member may withdraw under paragraph (1) (a) and (b) to pay such monthly
instalments shall be determined by the Board.
Power of Board to allow withdrawal for repayment of unsecured loan
6. Notwithstanding regulations 4, 5, 5A and 5B, the Board may, in its discretion and subject to such terms and
conditions as it may impose, allow a member to withdraw money under any of those regulations even if the loan
obtained by the member is not secured by a mortgage on the property or any other property.
Maximum withdrawal limit under regulations 3, 4, 5A and 5B
7. The total amount which may be withdrawn by a member to pay one or more loans under regulations 3, 4, 5A
and 5B shall be determined by the Board but in no case shall such amount exceed 70% of the value of the
property as assessed by the Board at the date of —
(a) the signing of the agreement for the sale and purchase of the property; or
(b) the inheritance of the property,
as the case may be.
Maximum withdrawal limit under these Regulations
8. —(1) The total amount which may be withdrawn by a member under these Regulations for any one or both
of the purposes specified in paragraph (2) shall not exceed 70% of the value of the property as assessed by the
Board at the date of —
(a) the signing of the agreement for the sale and purchase of the property; or
(b) the inheritance of the property,
as the case may be.
(2) The purposes referred to in paragraph (1) are —
(a) to make full or partial payment towards the purchase of a property; or
(b) to make periodic payments towards the repayment of a loan or to make full or partial repayment of a loan.
Mortgaged property
9. —(1) Where the property is subject to one or more subsisting mortgages, the Board may, as a condition for the
withdrawal of money under these Regulations, require the member to satisfy the Board that the mortgagees have
agreed —
(a) that their rights under the mortgages shall rank pari passu with the rights of the Board in respect of all
withdrawals authorised by the Board in such manner and on such terms as may be agreed upon between the
Board and the mortgagees; and
(b) to obtain the prior written approval of the Board before they sell, sub-mortgage, transfer their mortgage or
apply to the Court for an order to foreclose the property.
(2) Where a property is purchased or owned by 2 or more persons, the Board may, as a condition for withdrawal
of money by any one of them under these Regulations, require all the co-purchasers or co-owners of the property
to give their written consent to extend any charge under section 21 (1A) of the Act to all their respective estates
or interests in the property.
Withdrawal of moneys for payment of costs, etc
10. Where an application for the withdrawal of money under these Regulations has been approved by the Board
and the member is required to pay any costs, fees and expenses set out in section 21 (1) (d) of the Act, the Board
may, on the application of the member and subject to such terms and conditions as the Board may see fit to
impose, authorise the whole or part of the amount standing to his credit in the Fund to be withdrawn and used for
all or any of the aforesaid purposes.
Withdrawal of money by undischarged bankrupt
10A. —(1) Notwithstanding the provisions of these Regulations, an undischarged bankrupt shall not be entitled
to —
(a) make an application to the Board to withdraw money under these Regulations; or
(b) withdraw money under these Regulations except in accordance with paragraph (2).
(2) Where a member is adjudicated a bankrupt after he has obtained authorisation from the Board to withdraw
money under these Regulations, the Board may, notwithstanding his bankruptcy, permit him to make or continue
to make (as the case may be) the authorised withdrawals subject to his compliance with these Regulations, the
Act and any other condition which the Board thinks fit to impose.
Maximum withdrawal limit for co-purchasers or co-owners
11. —(1) Where 2 or more co-purchasers or co-owners of a property each make an application for the withdrawal
of money under regulation 4 or 5 or both, the total amount of money which may be withdrawn by them under
either or both of those regulations shall not exceed the limit prescribed by regulation 7 or 8, as the case may be.
(2) Subject to paragraph (1), where a member has purchased or inherited a property jointly with one or more
persons and the relationship between the co-owners of the property does not fall within any of the following
categories:
(a) husband and wife;
(b) parent and child;
(c) brother and brother, sister and sister or brother and sister;
(d) grandparent, parent and child;
(e) grandparent and grandchild,
the member shall be entitled to withdraw such amount of money as may be determined by the Board.
Government valuer to assess property
12. —(1) For the purpose of assessing the value of any property under these Regulations, the Board may appoint
a Government valuer or a licensed valuer and the expenses of any such valuation shall be borne by the member
concerned.
(2) Where a member is required to pay the expenses of any valuation under paragraph (1), the Board may, on the
application of the member, authorise the whole or part of the amount standing to his credit in the Fund to be
withdrawn and used for the payment of such expenses.
13. Deleted by S 183/2005, wef 01/04/2005.
Payment by Board to vendor, etc
14. All moneys withdrawn from the Fund under regulation 4, 5, 5A, 5B or 10 shall be paid by the Board to the
vendor, mortgagee, chargee or such person as the Board thinks fit to receive such moneys.
No disposal of property without Board’s permission
15. So long as any money withdrawn by a member remains payable to the Fund under regulation 18, the member
shall not sell, transfer, assign or otherwise dispose of the property or any of his estate or interest therein without
the prior written permission of the Board.
Conditions for disposal of property
16. —(1) The Board may, in its discretion and subject to such terms and conditions as it may impose, permit a
member who has withdrawn moneys under these Regulations in respect of a property (including any moneys lent
to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid)
to sell, transfer, assign or otherwise dispose of the property or any of his estate or interest therein to any person

(a) if the Board is satisfied that adequate arrangements have been made to secure the repayment into the
member’s account in the Fund of —
(i) all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of
the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto
if the withdrawal had not been made; or
(ii) the net proceeds of the sale, transfer, assignment or disposal, as the case may be,
whichever is the less; or
(b) where the member —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
if the member repays into his account in the Fund all moneys withdrawn by him (including any moneys lent to
him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid)
and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may
be determined by the Board.
(2) Where a member who has withdrawn money under these Regulations in respect of a property —
(a) sells, transfers, assigns or otherwise disposes of the property or his estate or interest therein with the
permission of the Board under paragraph (1) (a); and
(b) either —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him
under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and
the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be
determined by the Board.
Prohibition on mortgage
17. —(1) As long as any money withdrawn under these Regulations remains payable to the Fund under
regulation 18, the member shall not mortgage or in any way encumber the property in respect of which the
withdrawal has been made without the prior written permission of the Board.
(2) In granting any permission under paragraph (1), the Board may —
(a) require the member to make adequate arrangements to secure the repayment into the member’s account in the
Fund of all moneys withdrawn by him and of such interest that would have accrued thereto if the withdrawal had
not been made; or
(b) impose such other terms and conditions as the Board may think fit.
Repayment of moneys withdrawn
18. —(1) Subject to paragraphs (2), (3) and (4), all moneys withdrawn by a member under these Regulations in
respect of a property (including any moneys lent to him under section 14A of the Act in respect of the property
and withdrawn by him which have not been repaid) together with any interest that would have accrued thereto if
the withdrawal had not been made shall become due and payable to the Board on the occurrence of any of the
following events:
(a) if the property or any estate or interest therein is sold, transferred, assigned or otherwise disposed of by him
or a co-owner or co-purchaser without the consent of the Board;
(b) if the property or any estate or interest therein is sold, transferred, assigned or otherwise disposed of by any
mortgagee or by any other person with or without the consent of the Board;
(c) if any mortgage or encumbrance is created over the property without the consent of the Board;
(d) Deleted by S 562/99 wef 15/12/1999.
(e) if the member has committed a breach of any of the terms and conditions imposed by the Board in connection
with the withdrawal of moneys under these Regulations;
(f) if the property or any estate or interest therein is acquired under the Land Acquisition Act (Cap. 152) or any
other written law.
(2) Upon the happening of any of the events mentioned in paragraph (1) (b) or (f), the member shall repay to the
Board the amount agreed between the Board, the member and the mortgagee in respect of such sale or
disposition of the property by the mortgagee or by any other person, or the amount of any compensation received
by the member under the Land Acquisition Act (Cap. 152) or under any other written law, as the case may be.
(3) Subject to paragraph (4), all moneys withdrawn by a member under these Regulations in respect of a
property (other than any moneys lent to him under section 14A of the Act in respect of the property and
withdrawn by him which have not been repaid), together with any interest that would have accrued thereto if the
withdrawal had not been made, shall cease to be payable to the Board —
(a) on the death of the member; or
(b) when the member is entitled to withdraw the amount standing to his credit in the Fund under section 15 (2),
(3) or (4) of the Act and has complied with the requirements for such withdrawal.
(4) Subject to paragraph (2), where —
(a) any event mentioned in paragraph (1) occurs; and
(b) the member —
(i) withdraws the sum standing to his credit in the Fund under section 15 (2) (d), (e) or (f) of the Act; or
(ii) withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement
account, or surrenders his approved annuity from an insurer, under section 15 (7A) (a), (b) or (ba) of the Act,
he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him
under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and
the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be
determined by the Board.
Member liable for costs, fees, etc., of application
19. A member who has made an application for the withdrawal of money under these Regulations shall be liable
to pay any costs, fees or other expenses in connection with the processing of the application which shall be of
such amount as may be determined by the Board.
Application in manner and with information required by Board
20. —(1) An application by a member for the withdrawal of money under these Regulations shall be made in
writing to the Board in such manner as the Board may direct.
(2) Any member making the application referred to in paragraph (1) shall furnish to the Board such information,
documents and guarantees as the Board may require.

What are the criteria required to be able to use CPF savings to buy a home?
a) For HDB flat
If you are the registered owner or co-owner of an HDB flat, you can withdraw all of your CPF savings in the
Ordinary Account and the monthly CPF contributions that are paid into your Ordinary Account for the purchase of
the HDB flat and/or payment towards your HDB housing loan / bank loan subject to the prescribed limit.
b) For Private Property
As long as you are not an undischarged bankrupt, you can withdraw all your CPF savings in the Ordinary Account
and the monthly CPF contributions that are paid into your Ordinary Account for the purchase of the property
and/or payment towards your housing loan subject to the prescribed limit.
What can CPF savings be used for:
a) When buying an HDB flat
b) When buying a private property
a) When buying an HDB flat
You can use your CPF savings in your Ordinary Account:
i) To make lump sum payment to the Housing & Development Board directly for the purchase of a HDB flat;
or
ii)To redeem the whole or part of the housing loan and/or to pay the monthly installments for the housing loan
which is taken for the purchase of the HDB flat; or
iii)To pay legal fees, stamp duty, transfer fees and other related costs incurred in connection with the purchase
and/or mortgage/redemption of the flat.
o
b) When buying a private property
You can use your CPF savings in your Ordinary Account:
i) To make direct payment to a property developer or a seller for the purchase of a property;
ii) To repay a housing loan taken for the purchase of the property. However, please take note of the
following:
The mortgagee's restriction on the use of your CPF savings towards servicing your housing loan.
The reduction of the contribution to the Ordinary Account as you get older.
The reduction of the contribution to the Ordinary Account owing to increase in Medisave ceiling.
An amount should also be set aside in your Ordinary Account to buffer against unexpected events
such as job retrenchment, or temporary work stoppage for childcare reasons.
Installment payments for other properties, if any.
iii) To repay a housing loan taken for the purchase of land and/or for construction of a house on that
land; and
iv) To pay the legal costs, stamp duty and survey fees incurred in connection with the purchase,
refinancing and/or construction of the house.
You may wish to advise your client on recent CPF changes which affect the amount of CPF he
can use for his home loan

Recent CPF Changes: How They Affect Your Home Loan:


Lower Housing Withdrawal Limit
You can use your Ordinary Account savings to pay your housing loan, for up to 100% of the Valuation Limit
(VL). The VL is the lower of the purchase price or the value of the property at the time of purchase.
If the housing loan is still outstanding when the VL is reached, you may use more of your CPF savings - up
to 144% of the VL, subject to sufficient Available Housing Withdrawal Limit. This will be gradually reduced
to 120% on 1 January 2008.

The change in housing withdrawal limit is to encourage CPF members to be more prudent when buying a
property, and helps to set aside more CPF for old age needs.
Date of Property Purchase CPF Withdrawal Limit

1 Jan 2004 - 31 Dec 2004 144%

1 Jan 2005 - 31 Dec 2005 138%

1 Jan 2006 - 31 Dec 2006 132%

1 Jan 2007 - 31 Dec 2007 126%

1 Jan 2008 onwards 120%


Effect of
Change: Do your sums, or ask your bank/financier to show you whether you might be affected before you
commit to a housing loan. This is especially if you’re thinking of taking a large loan with a long repayment
period (because the loan interest will increase the amount that you need to repay).

- Advise your client that if CPF monies are used to pay for the property, charges are placed on the property

When will CPF charges take effect:


a) For HDB flat
The CPF charges will take effect upon the release of CPF savings. The ranking of charge is shown in below:

1st Charge Bank's or HDB’s Outstanding Loan


2nd Charge CPF principal sum up to 100% of VL plus CPF used to pay the legal and stamp fees in the
purchase, and cost of upgrading under the HDB Main Upgrading Programme.

3rd Charge Equal ranking


-CPF principal sum beyond 100% of VL plus CPF accrued interest
-Repayment of outstanding balance of the housing loan interests
4th Charge Equal ranking
-CPF legal costs and expenses
-Bank's legal costs and expenses
b) Private Property

The CPF charges will take effect on the property before the CPF savings can be released. For properties bought
after 1 September 2003, the ranking of charge for private residential properties is shown in Table below:

1st charge Outstanding housing loan from your financier


2nd charge CPF principal sum up to 100% Valuation Limit plus CPF withdrawals
used for the legal and stamp fees in the purchase

3rd charge Equal ranking (pari passu)


-CPF principal sum beyond the 100% Valuation Limit plus
accrued interest
-Repayment of outstanding balance of the housing loan
interests

4th charge Equal ranking (pari passu)


-CPF legal costs and expenses
-Financier's legal costs and expenses

 CPF rule: Property to have at least 60 years left or be freehold ppty.

Should bear in mind if acting for P that next P may not be able to get CPF financing if C buys ppty with,
say, 65-66 years left and intends to sell after 5-6 years.
- Loan – If yes, which bank? Or loan from HDB?
o MAS directive: Max bank loan is 80% of valuation or price (whichever is lower)
- SINCE July 19, the maximum loan you can borrow from the bank has been raised from 80 per cent to 90
per cent of the valuation of the property. (only for second property????)

Q3: What are the documents required?


Latest copy of your computerised payslip
Latest income tax assessment
CPF Statement of Account
Latest Approved Residential Properties Scheme (RPS) or Approved Housing Scheme Statement (if
refinancing or selling existing property)
Option to Purchase
Sale & Purchase of existing property (if you are selling existing property)
Last six months’ home loan statement (if refinancing)

Q4: How much can I borrow from the bank?


Generally, the bank can grant up to 80% or 90% of purchase price or valuation of the property, whichever is
lower.

Q5: What is the maximum loan tenor?


The maximum loan tenor is up to 35 years for private properties and 30 years for HDB or 65 years of age,
whichever is earlier

Mortgage and Financing Policies

Raise LTV limit for housing loans from 80% to 90%


The first of these measures is the raising of the Loan-to-Value (LTV) limit for housing loans. MAS introduced
the 80% LTV limit for bank-originated housing loans in 1996, together with the Government’s package of
measures to cool the private property market. The 80% LTV limit was intended not only to counter the market
overheating at the time, but to ensure sound bank lending practices across property market cycles. The 20%
payment by borrowers provided a buffer for banks in the event of a property downturn. This was particularly
important as bank loans at the time ranked second behind borrowers’ own CPF claims on mortgaged properties.

In 2002, the priority of claims over properties was changed so that banks now held the first charge for the
property ahead of CPF. It has been three years since, and the market has had sufficient time to adjust to this
change. Currently, over two-thirds of banks’ outstanding housing loans are secured by first claims over
properties. MAS is now ready to increase the housing financing limit to 90% of the property value. The
remaining 10% which the purchaser has to pay will continue to deter over-borrowing by purchasers and
minimize potential losses by banks arising from borrower default. However, to mitigate the increased risk that
banks will take, MAS will require banks to hold more capital against housing loans which exceed 80% of the
property value. MAS will also expect banks to apply rigorous internal credit evaluation criteria before extending
high LTV loans.

In some countries, mortgage insurance is available to insure lenders against the risks of high LTV loans. MAS is
prepared in-principle to consider mortgage insurance as an alternative to the capital charge to mitigate the risks
of high LTV loans. However, mortgage insurance is not yet available in Singapore. MAS will be studying its
viability here and how best to regulate mortgage insurers.

HDB will similarly raise the loan limit for its flat buyers from 80% to 90%. The actual loans to be granted will be
subject to the banks’ and HDB’s credit assessment and mortgage financing policies.

Limit minimum cash downpayment required for residential properties at 5%

Another revision to the housing loan rules in 2002 was the reduction of the cash payment for private residential
properties to 10% of its value, down from 20% previously. The Government will now lower the cash payment for
private residential properties from 10% to 5%. This means that a purchaser who is granted a 90% loan for his
housing unit can pay his remaining 10% through a combination of at least 5% of the property value in cash, and
the remaining with CPF.

For HDB flats financed with bank loans, the payment to be paid in cash is currently 4% and is slated to increase
gradually to 10% in 2008. In line with the reduction in the cash payment for private residential properties
to 5%, the Government will adjust the cash requirement for HDB flats financed with bank loans to 5%,
instead of to 10% as initially planned.

The raising of the LTV limit will take immediate effect and apply to all properties purchased from today. The 5%
cash requirement for private properties will take immediate effect, while that for HDB flats will apply to flats
purchased from 1 Jan 2006.

These changes will give consumers a wider choice of financing options when purchasing a property. However, I
urge property buyers to continue to exercise prudence in their home purchase and financing decisions, and ensure
that they can comfortably afford the expenses.
Downpayment
You are required by law to pay 20% of the purchase price for your
downpayment.

• For a private residential property, this downpayment can be made up by


minimum 10% cash and 10% CPF.
• If you are buying a HDB flat and getting a home loan from banks, the
downpayment comprises of 4% cash and 16% CPF. Do note however that the
cash component is raised by 2% each year from 2003 to 10% in 2008. By then
the required cash downpayment will be aligned with that of private property
purchase; that is 10%, based on the purchase price or market value of the flat,
whichever is higher.

• If you have a property to sell, you can take a bridging loan from the bank to
help pay the downpayment. When the property is sold, the proceeds received
will then be used to repay the bridging loan.

Payment Procedures
These vary depending on whether the property is completed or under
construction.

Completed Property

• You sign an Option to Purchase issued by the seller and place a booking fee,
usually 1% of the purchase price.
• The Option will state a period (usually 2 weeks) during which the seller
cannot withdraw the offer.
• You must exercise the Option before the period expires. You then pay 10% of
the purchase price, less the 1% booking fee.
• The rest of the purchase price is payable on completion of the sale, usually 10
to 12 weeks from the date of exercising the Option.

Property Under Construction

• You pay a booking fee between 5% and 10%, and get an Option to Purchase
from the developer.
• You have to exercise the Option before it expires (usually up to 8 weeks), and
pay 20% of the purchase price less the booking fee.

• Progressive payments are made at different stages of construction, as detailed


by the developer.
HDB Concessionary Loan for a Flat:
HDB offers a concessionary interest rate mortgage loan to eligible flat buyers.

The amount of loan granted will depend on the applicant's age, monthly household income, loan ceiling and
CPF balance in the Ordinary Account.

The concessionary interest rate is pegged at 0.1% point above the CPF Ordinary Account interest rate. The
concessionary interest rate is revised quarterly, in January, April, July and October each year, in line with the
revision in the CPF interest rate.
Bank Loan at Market Rates for a HDB Flat:

From 1 January 2003, HDB no longer provided market rate loans. This was to allow HDB to focus on its
core responsibility of providing quality and affordable public housing.

Flats buyers who are not eligible for HDB's concessionary rate loans can obtain market rate loans from
banks that are licensed to provide housing loans. They can choose from the competitive housing loan
packages offered by banks.

Those with existing HDB market rate mortgages can continue with their existing mortgages. However, if
they wish to refinance their loans with the banks, they may do so after getting HDB's consent.
Bank Loan at Market Rates for a Private Property:

If you are buying a private property, then you’ll probably be looking at the loan packages offered by banks.

Private property prices in Singapore are relatively high, when compared with public housing prices.
Depending on the terms of your mortgage, you’ll probably be using a good part of your CPF Ordinary
Account savings, as well as cash if your CPF isn’t enough for the monthly instalment.

• If staff housing loan from employer, usually must be for live-in property because employer would want to be
sure that employee not taking loan for speculative property investments
- Hence no need for 80% financing rule

• Type of loan(s)
• Mortgage/securities to be furnished by P

o Does client need a bridging loan?


 If yes, are there any conditions precedent?
 When is release required?
• Note that if the bridging loan is required for the exercise of the option you
have to get everything ready for the bank to release at that point.
 More in lecture on mortgages and CPF.

Some other questions to ask your client

Price and schedule of payment

The sale and purchase transaction may be carried out by way of an Option to Purchase or an Agreement for sale and
purchase. Which is more advantageous to the purchaser?

• Mode of payment:
- 10% - 90%
- 1% - 1% - 98%
- 1% - 9% - 90%

• Parties free to negotiate which payment mode they wish to follow and even to deviate from common modes
stipulated above
- Leave commercial factors aside, for client to decide himself
- State facts and let client make ultimate decision
- But write on record and file

- Price vs Valuation
o Important for loan and CPF purposes
 If price paid higher than valuation may have problem getting financing

• Does the price agreed upon include any furniture and fittings?
• Stamp Duty and Income Tax considerations

Stamp Duty
• Escrow matters
• Stamp duty for property under development for contracts made 15/5/96 onwards

Stamp Duty
Stamp duty is a tax on documents. All buyers of private residential properties and HDB flats must pay stamp duty
which is calculated as follows :
1% on the first $180,000
2% on the next $180,000
3% for the remaining property value

Another way to calculate stamp duty (if your purchase price exceeds $360,000) would be 3% of purchase price
less $5,400.

Stamp duty is payable upon issuance of TOP for a property under construction or 14 days after signing the Sale
and Purchase Agreement for a completed property. Do note that banks require customers to place the stamp duty
with the bank's solicitors as stakeholders pending TOP or put the same on fixed deposit. This is to ensure that
funds will be earmarked for use upon TOP.

s22(1) Stamp Duties Act:


Contracts, etc., to be chargeable as conveyances on sale
22. —(1) Every contract or agreement for the sale of —
(a) any equitable estate or interest in any property; or
(b) any estate or interest in any property except property situated outside Singapore or goods, wares or
merchandise, or stock or marketable securities, or any ship or vessel, or part interest, share or property of or in
any ship or vessel,
shall be charged with the same ad valorem duty, payable by the purchaser, as if it were an actual conveyance
on sale of the estate, interest or property contracted or agreed to be sold.
(2) Where such ad valorem duty has been paid in accordance with subsection (1) and, before having obtained a
conveyance or transfer of the property, the purchaser assigns his equitable estate or interest in that property or
enters into any contract or agreement for the sale of that property, the assignment, contract or agreement shall be
charged with ad valorem duty in respect of the consideration moving from the sub-purchaser of that estate,
interest or property as if it were an actual conveyance on sale to the sub-purchaser.
[26/96]
(3) Where any purchaser or sub-purchaser has paid ad valorem duty upon any assignment, contract or agreement
in accordance with subsection (1) or (2), the conveyance or transfer made to the purchaser or sub-purchaser, as
the case may be, shall be chargeable with a duty of $10.
[26/96]
(4) Where a person, having contracted jointly or otherwise for the purchase of any property but not having
obtained a conveyance thereof, directs the vendor of the property in writing to convey or transfer the property or
any share therein —
(a) to another person; or
(b) where the person contracted for the purchase of the property jointly with another, to the joint purchasers in
shares other than as specified in the contract for the purchase of the property,
the direction shall, for the purpose of this Act, be treated as a contract or an agreement for the sale of that
property or share therein for a consideration equal to the value of that property or share therein and shall be
chargeable with duty as if it were an actual conveyance on sale of that property or share therein.
[26/96]
(5) Where more than one contract or agreement for sale is executed by a purchaser in respect of the same sale of
the same property, only one such contract or agreement for sale of the property shall be chargeable with ad
valorem duty under this section and any other contract or agreement for the same sale of the same property shall
be chargeable with a duty of $10.
[26/96]
(6) Subject to subsection (7), the ad valorem duty paid under this section upon any contract or agreement for the
sale of property shall, on application, be refunded by the Commissioner where the contract or agreement is later
rescinded or annulled on the ground that —
(a) the vendor is unable to prove his title to the property;
(b) a purchaser, being a foreign person, is unable to obtain approval under the Residential Property Act (Cap.
274) to acquire or purchase the property;
(c) the property is acquired or is proposed for acquisition by any public authority pursuant to the provisions of
any written law authorising or empowering the public authority to acquire land compulsorily;
(d) the purchase of the property is conditional upon permission by the competent authority to develop or
subdivide the property and such permission is refused;
(e) either vendor or purchaser fails to obtain the approval of any public authority to sell or purchase, as the case
may be, the property;
(f) the Commissioner of Building Control made an order under section 24 of the Building Control Act (Cap. 29)
in respect of the property; or
(g) a Strata Titles Board refused an application for the sale of the property under section 84A, 84D or 84E of the
Land Titles (Strata) Act (Cap. 158).
[26/96; 33/99]
(7) The refund under subsection (6) shall be made if and only if —
(a) the application for refund is made by the person by whom the instrument was solely or first executed within

(i) 6 months after the date of the stamp, or in the case of an executed instrument, after the date of the instrument;
(ii) if the instrument is not dated, 6 months after the execution thereof;
(iii) in the case of a contract or an agreement that is rescinded or annulled on the ground referred to in subsection
(6) (g), 2 months after the refusal of a Strata Titles Board; or
(iv) such further time as the Commissioner may deem reasonable when, in unavoidable circumstances, the
instrument cannot be produced within that period; and
(b) in the case of an executed instrument, the instrument is given up to be cancelled.
[26/96; 33/99]
(8) Subject to the provisions of this Act, this section shall apply to instruments made on or after 15th May 1996.
[26/96]
(9) In this section —
"Commissioner of Building Control" has the same meaning as in the Building Control Act (Cap. 29);
"competent authority" has the same meaning as in the Planning Act (Cap. 232);
"public authority" means the Housing and Development Board constituted by the Housing and Development Act
(Cap. 129) or the Jurong Town Corporation constituted under the Jurong Town Corporation Act (Cap. 150);
"Strata Titles Board" means a Strata Titles Board constituted under Part VI of the Land Titles (Strata) Act (Cap.
158).

s62:
Penalty for evasion of duty
62. Any person who with intent to evade the payment of duty —
(a) executes any instrument in which all the facts and circumstances are not fully and truly set forth as required
by section 5;
(b) being employed or concerned in or about the preparation of any instrument, neglects or omits to set forth
fully or truly in the instrument all those facts and circumstances;
(c) draws, makes, executes or signs, or otherwise than as a witness, any instrument chargeable with duty without
the instrument being duly stamped; or
(d) fails to comply with section 32A (2),
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment
for a term not exceeding 3 years or to both.
Penalty for executing instruments not duly stamped, etc.
63. Any person who —
(a) having drawn, made, executed or signed, otherwise than as a witness, any instrument that is chargeable with
duty without the instrument being duly stamped and fails, without lawful excuse, to procure the due stamping of
the instrument within the time within which the instrument may be stamped without penalty under this Act;
(b) not being a person authorised under section 9 (1) or an employee of such person, makes an endorsement on
any instrument in the manner described in section 9 (1) (c); or
(c) being a person authorised under section 9 (1) —
(i) fails to deliver to the Commissioner accounts as required by section 9 (1) (a);
(ii) delivers to the Commissioner accounts which are false in any material particular; or
(iii) contravenes or fails to comply with any condition in section 9 (1) not waived by the Commissioner,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.
Power to declare agents
70. —(1) The Commissioner may, by notice in writing, declare any person to be the agent of any other person for
the purposes of this Act, and may require the agent so declared to pay any duty due under this Act from any
moneys (including sale proceeds, rents, bank balances, pensions, salary, wages or any other remuneration) which,
at the date of receipt of the notice or at any time during a period of 90 days thereafter, may be held by him for or
due by him to the other person.
[26/96]
(2) In default of payment by an agent declared under subsection (1), the duty may be sued for by way of a
specially endorsed writ of summons in the name of the Commissioner who shall be entitled to all costs allowed
by law against the person thereto.
[26/96]
(3) For the purposes of this section, the Commissioner may require any person to give him information as to any
moneys, funds or other assets which may be held by him for, or of any moneys due by him to, any other person.
[26/96]
(4) Where any person declared by the Commissioner to be the agent of any other person under subsection (1) is
aggrieved by such declaration, he may, by notice in writing to the Commissioner within 14 days after the date of
the declaration, or within such further time as the Commissioner in his discretion may allow, object to the
declaration.
[26/96]
(5) The Commissioner shall examine the objection and may cancel, vary or reconfirm the declaration.
[26/96]
(6) Any person making any payment to the Commissioner under this section shall be deemed to have been acting
under the authority of the person by whom any duty is payable and is indemnified in respect of such payment.
[26/96]
(7) For the purposes of payment of any duty due from any moneys referred to in subsection (1) in a joint account
in any bank or from the proceeds of sale of any immovable property owned by 2 or more persons as joint owners,
the following provisions shall apply:
(a) the person declared by the Commissioner under subsection (1) to be the agent of any person who is an owner
of such moneys shall —
(i) within 14 days of the receipt of the notice under subsection (1), send a notice by registered post addressed to
every owner of such moneys at the address last known to the agent informing the owner of such declaration; and
(ii) retain such amount of the moneys as is presumed under paragraph (b) to be owned by the person from whom
the duty is due and, subject to paragraph (e), within 42 days of the receipt of the notice under subsection (1) pay
over the duty due from such amount to the Commissioner;
(b) it shall be presumed, until the contrary is proved, that the holders of a joint account at any bank shall have
equal share of the moneys in the account as to the date of receipt of the notice under subsection (1) and that the
owners of any immovable property shall share the proceeds of sale of the property equally;
(c) any owner of such moneys who objects to the share presumed under paragraph (b) shall give notice of his
objection in writing to the person declared to be the agent under subsection (1) within 28 days of the receipt of
the notice of the agent under paragraph (a) (i), or within such further period as the Commissioner in his
discretion may allow, and furnish proof as to his share of the moneys;
(d) where an objection under paragraph (c) has been received, the person so declared to be the agent shall —
(i) retain the amount of such moneys referred to in paragraph (a) (ii) until such time as the Commissioner by
notice under paragraph (e) informs him of his decision on the objection; and
(ii) inform the Commissioner of the objection within 7 days of the receipt of the objection; and
(e) the Commissioner shall consider the objection and by notice in writing inform the person declared to be the
agent of his decision and the agent shall pay over any duty due from the share of the moneys decided by the
Commissioner as the amount, not exceeding the amount presumed under paragraph (b) to be the share of the
person by whom the duty is payable, held by him for or due by him to the person.
[26/96]
(8) In this section —
"duty" includes any penalty or any other money which a person is liable to pay to the Commissioner under this
Act;
"joint account" means any account in the names of 2 or more persons but excludes any partnership account, trust
account and any account where a minor is one of the account holders.

Art 3 of First Schedule:

Article Description of Instrument


No. relating to immovable property
and stock or shares Proper Stamp Duty
3 CONVEYANCE, ASSIGNMENT or
TRANSFER:
(a) on sale of any immovable property or any
interest thereof
Amount or value of consideration
(i) for every $100 or any part thereof of the $1
first $180,000
(ii) for every $100 or any part thereof of the $2
next $180,000
(iii) thereafter for every $100 or any part $3
thereof
(b) (Deleted by S 192/2003)
(c) on sale of any stock or shares or any
interest thereof, computed on the amount or
value of consideration —
for every $100 or any part thereof $0.20
(d) of any property or any interest thereof by See MORTGAGE
way of security
(e) of any property or any interest thereof by See SETTLEMENT
way of settlement
(f) of any property or any interest thereof for $10 or the same duty as
the purpose of effectuating the appointment of paragraph (a) or (c), as the
a new trustee or the retirement of a trustee case may be, whichever is the
although no new trustee is appointed lesser
(g) of any property as above where the
transaction is between trustees and where —
(i) the beneficial interest in the property passes The same duty as in paragraph
(a) or (c), as the case may be
(ii) the beneficial interest in the property does $10 or the same duty as in
not pass paragraph (a) or (c), as the
case may be, whichever is the
lesser
(h) of any property or any interest thereof The same duty as in paragraph
which is distributed in specie to a shareholder (a) or (c), as the case may be
of a company in connection with a liquidation
of the company
(i) of any property or any interest thereof not $10
otherwise specially charged with duty
For the purposes of this Article, “property”
means any immovable property and stock or
shares

If V disposes of property within:


- 1 year from date of acquisition, full stamp duty on purchase price
- 2 years from date of acquisition, stamp duty on 2/3 of purchase price
- 5 years from date of acquisition, stamp duty on 1/3 of purchase price
- BUT from 1997, s22A Stamp Duties Act has been suspended (not repealed)
- Practice Directions & Rulings 1989, pp. 107-108 (Item 20)

• Contract for sale and purchase of immovable property must be stamped by P within 14 days after its being
concluded after which penalty would be levied by Stamp Office
- 1% on first $180,000
- 2% on next $180,000
- 3% thereafter
- For properties whose purchase price is above $360,000, the following formula can be applied – 3% of
purchase price less $5400.

- Change as to when stamp duty to be paid by B effective 30/6/98, whereby any B of property must look at
subject matter of sale (as a result of “Off Budget Measures” announced by the Minister of Finance in
Parliament on 29 June 1998)
- If TOP issued at time contract concluded: (completed property) (Pg 72-73 Manual)
- pay stamp duty 14 days from date of transfer/completion of property (sale and sub-sale cases)

- If TOP not yet issued at time contract concluded: (property under construction, buying from developers)
(Pg 70-71 Manual)
- pay stamp duty within 14 days from date of issuance of TOP
- pay stamp duty within 14 days from date of contract to sell to sub-P (2 nd contract) (for sub-sale cases
whereby B sells off property before completion)

• P must obtain from V letter addressed to Commissioner of Stamp Duties confirming relevant contract for sale
and purchase was made between V and P as original purchaser of property
- Duly sworn Statutory Declaration by V in form prescribed required in cases where P/his solicitors required to
withhold tax on payments made to V (Pg 74-75 Manual)

The seller’s stamp duty was abolished with effect from 28 February 2003.
- Seller’s stamp duty was abolished – see IRAS circular attached

Income Tax
Capital gains tax

s2(1) Income Tax Act:


"earned income" means the statutory income of an individual or a Hindu joint family, reduced by any deduction
made under section 37 (3) (a) or 37E or claimed under section 37D (excluding any donation referred to in section
37D (8) (c)) or 37F from —
(a) gains or profits from any trade, business, profession, vocation or employment on which tax is payable
under section 10 (1), where the Comptroller is satisfied that such gains or profits are immediately derived from
the carrying on or exercise by such individual or Hindu joint family, as the case may be, of such trade, business,
profession, vocation or employment; and
(b) any pension on which tax is payable under section 10 (1) (e) given to the individual in respect of the past
services of such individual or any deceased individual;

s10(1):
Charge of income tax
10. —(1) Income tax shall, subject to the provisions of this Act, be payable at the rate or rates specified
hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or
received in Singapore from outside Singapore in respect of —
(a) gains or profits from any trade, business, profession or vocation, for whatever period of time such
trade, business, profession or vocation may have been carried on or exercised;
(b) gains or profits from any employment;
(c) (Deleted by Act 29/65);
(d) dividends, interest or discounts;
(e) any pension, charge or annuity;
(f) rents, royalties, premiums and any other profits arising from property; and
(g) any gains or profits of an income nature not falling within any of the preceding paragraphs.

s45D:
Application of section 45 to gains from real property transaction
45D. —(1) Where any person whose income arising from the disposal of any real property is chargeable to tax
under section 10 (1) (a) is a non-resident person, any designated person shall, before paying to the non-resident
person any money which is the whole or part of the consideration for the disposal of the real property,
notwithstanding any other written law, immediately deduct therefrom tax at the rate of 15% on every dollar
of such payment.
[37/2002]
(2) Any designated person who has deducted any money under subsection (1) shall immediately give notice of
the deduction of tax in writing to the Comptroller and shall, notwithstanding any other written law, pay the
amount so deducted to the Comptroller by the 15th day of the month following the month in which the deduction
was made and every such amount shall be a debt due from him to the Government and shall be recoverable in the
manner provided under section 89.
[37/2002;21/2003]
(3) Section 45 (2) to (8) shall apply, with the necessary modifications, to any designated person as those
provisions apply to any person referred to therein.
[37/2002]
(4) For the purpose of payment of any tax due from any income which is chargeable to tax under section 10 (1)
(a) in respect of any disposal of any real property which is owned by 2 or more persons as joint owners, the
designated person deducting the tax shall retain such amount as is presumed under subsection (5) to be owned by
any non-resident person and pay over the tax due from such amount to the Comptroller.
[37/2002]
(5) It shall be presumed, until the contrary is proved, that the persons who own any real property as joint owners
shall share the proceeds of disposal of the real property in equal shares.
[37/2002]
(6) In this section —
"designated person" , in relation to any disposal of any real property —
(a) in the case where an advocate and solicitor acts for the buyer of the real property in such disposal, means that
advocate and solicitor; and
(b) in any other case, means the buyer of the real property;
"land" includes land of any tenure wherever situated in Singapore, whether or not held apart from the surface,
and buildings or parts thereof (whether completed or otherwise and whether divided horizontally, vertically or in
any other manner) and tenements and hereditaments, corporeal and incorporeal, and any estate or interest therein;
"non-resident person" means a person who is not known to be resident in Singapore to the designated person;
"real property" , in relation to a disposal of which the income is chargeable to tax under section 10 (1) (a), means
any land and any interest, option or other right in or over any land.
Withholding of tax in respect of interest paid to non-resident persons
45. —(1) Where a person is liable to pay to another person not known to him to be resident in Singapore any
interest which is chargeable to tax under this Act, the person paying the interest shall —
(a) deduct therefrom tax at the rate of 20% or the rate specified in section 43 (3) or (3A), as the case may be, on
every dollar of the interest; and
(b) immediately give notice of the deduction of tax in writing and pay to the Comptroller the amount so
deducted,
and every such amount deducted shall be a debt due from him to the Government and shall be recoverable in the
manner provided by section 89.
[37/75;31/86;1/90;20/91;28/92;26/93;28/96;24/2001;37/2002]
(1A) Notwithstanding subsection (1), tax shall be deducted at the rate of 22% on every payment (other than
payment subject to tax at the rate specified in section 43 (3) or (3A)) made on or after 1st January 2004 which
would be assessable on the person receiving the payment for the year of assessment 2004.
(2) The Comptroller may —
(a) if he thinks fit, allow any bank or financial institution to give notice of the deduction of tax and make
payment of the amount so deducted within such other period and subject to such conditions as the Comptroller
may determine;
(b) by notice in writing require any person who pays such interest to deduct and account for tax at a higher or
lower rate than 20% or the rate specified in section 43 (3), as the case may be, on every dollar of such interest or
permit such interest to be paid without deduction of tax.
[1/90;20/91;28/92;26/93;28/96;24/2001;37/2002]
(3) Where a person fails to make a deduction of tax which he is required to make under subsection (1) any
amount which he fails to deduct shall be a debt due from him to the Government and shall be recoverable as
such.
(4) If the amount of tax which is required to be deducted under subsection (1) is not paid to the Comptroller —
(a) by the 15th day of the month following the month in which the interest from which the tax is to be deducted is
paid, a sum equal to 5% of such amount of tax shall be payable; and
(b) within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount of tax
shall be payable for each completed month that the tax remains unpaid, but the total additional penalty under this
paragraph shall not exceed 15% of the amount of tax outstanding.
[26/93;21/2003]
(5) Without prejudice to any other provision of this Act, if any person after deducting the tax required to be
deducted under subsection (1) fails to give notice of such deduction to the Comptroller by the time specified in
subsection (4) (a), he shall be guilty of an offence and shall on conviction pay a penalty equal to 3 times the
amount of tax so deducted and shall also be liable to a fine not exceeding $10,000 or to imprisonment for a term
not exceeding 3 years or to both.
[26/93;21/2003]
(6) Where an individual has been convicted for 3 or more offences under this section the imprisonment he shall
be liable to shall be not less than 6 months.
(7) The Comptroller may —
(a) compound an offence under subsection (5) and may before judgment stay or compound any proceedings
thereunder; and
(b) for any good cause remit the whole or any part of the penalty payable under subsection (4).
(8) For the purposes of this section —
(a) the manager or principal officer of a company shall be answerable for doing all such acts, matters and things
as are required to be done by the company under this section; and
(b) interest shall be deemed to have been paid by a person to another person although it is not actually paid over
to the other person but is reinvested, accumulated, capitalised, carried to any reserve or credited to any account
however designated, or otherwise dealt with on behalf of the other person.
(9) This section shall not apply to any interest derived from any qualifying debt securities issued during the
period from 27th February 1999 to 31st December 2008, subject to such conditions as the Minister may impose.
[32/99;21/2003]
(10) In this section, “qualifying debt securities” has the same meaning as in section 13 (16).

- Where acquiring real property fr non resident property trader, reqd to withhold from moneys payable to the
non-resident, tax at rate of 15 percent on every dollar and pay same to comptroller rof income tax within 10
dys fr date of such withholding, s45D LTA

- The buyer of a real property or his solicitor is obliged under Section 45D of the Income Tax Act to withhold
tax at the rate of 15% on the payment made to the seller of the property who is a non-resident property trader.
 Onus on P’s lawyers (not P himself unless unrepresented) to withhold relevant amount of sales proceeds and
send it to Comptroller by the 15th day of the month following the month in which the deduction was made
(section 45D(2) read with Section 45D(6))
 Else P’s lawyers would be personally liable, subject to fine
 Payment of amount withheld to Comptroller must be accompanied by duly completed prescribed form IR37A
(Pg 76-81 Manual)
 With effect from 1 November 2003, sellers of a real property are not required to make a statutory declaration
pertaining to his tax residence and property trading status. Similarly, a mortgagee is also not required to seek
confirmation from IRAS on his withholding tax obligation for cases of mortgagee’s sale.
 This change will apply to all real property transactions (including HDB resale flats) where the option to
purchase is exercised on or after, or the sale and purchase agreement is signed on or after 1 November 2003.
 For cases where the buyer or his solicitor has reasons to believe that the seller of real property may be a non-
resident property trader (for example, sellers who are non Singaporeans, non Singaporean PRs or foreign
registered companies), he or his solicitor may ask for a letter of confirmation (not under oath), in lieu of a
statutory declaration, from the seller stating that he or his company has not been treated as a property trader for
tax purposes. Buyer or his solicitor is not required to forward the letter of confirmation to the Comptroller of
Income Tax.

Stakeholder Clause

• V’s solicitor holds sum of money (representing purchase price and deposit) as stakeholder pending completion
• Protection for P in the event that V/his solicitor goes bankrupt, can ascertain with ease who money actually
belongs to
• Easier for P to retrieve deposit should deal fall through

(1999) 3 SLR 519


- Alleged that lawyer never advised client that there was no stakeholding clause in contract
- Held:
Solicitor should have clarified on risk involved in releasing money to V

* Qn: Can V’s solicitors retain interest earned on stakeholder-money?


 Yes, if expressly retain deposit as stakeholders
 Contractual capacity only, not acting as trustee/fiduciary so no need to account for interest

Potters (a firm) v Loppert (1973) 2 WLR 469


- Prospective P gave usual 10% deposit to V’s estate agents as stakeholders
- Sale aborted and deposit refunded without interest earned
- Prospective P claimed that agents were liable to account to her for interest
- Held:
- Agents not liable to account to prospective P for interest on deposit
- Only basis on which stakeholder could be held liable to account for interest was that he held deposit as
trustee/in some other fiduciary capacity
- Capacity in which estate agent held deposit in pre-contract as well as post-contract period was
contractual/quasi-contractual
- Only obligation was to pay over, on demand, fixed sum equal to deposit amount
- Must depend on intention of parties, to be derived from all the circumstances, including any written
documents, in which capacity 3rd party receives money
- In absence of express agreement to contrary, under no obligation to account for any profit derived
from deposit while held by him

• BUT if do return interest to client, remind him to declare it for Income Tax purposes

Practice Directions & Rulings 1989 p. 116 (Item 35(3))

Inventory List (If Applicable)

• Land in CLPA includes fixtures to the land


• Whether purchase price includes furniture and/or fittings
• Put it in inventory list or otherwise state that the property is to be sold empty

Option or Agreement
 sale and purchase transaction may be carried out either way

Time frame of transaction

• Completion period
- Usually 3 months (10-12 weeks)
- Time given for V to pay off loan since he would have usually have to give bank 3 months notice of
intention to repay loan
- Else V would have to pay for 3 months interest in lieu of notice

• Relevant considerations:
- Time required for replies to legal requisitions to be received
- Time required for loan and/or CPF documentation to be completed
- Whether court orders/consent of beneficiaries are required
- Whether approval of JTC, HDB or other competent authority is required.

Vacant possession or subject to tenancy or subject to vacant possession

• When contract silent, general law of implication that property is to be sold with vacant possession
• if is subject to tenancy, important to obtain a copy of the tenancy agreement and explain terms therein to
purchaser
 In avoidance of doubt, prudent to state that vacant possession is to be given, if that is in fact parties’
intention

Cook v. Taylor [1942] Ch 349


PF (V) and DF (P) entered into agreement for sale of freehold house; agreement did not mention VP but particulars
delivered from V to P contained statement “VP on completion”. Before completion, house requisitioned by
government and V brought action for SP.

Held
• SP not granted.
• If land to be sold with VP, good title not shown if its subject to any Tcy for years or less which won’t expire
before the date of completion.
• Particulars used in connection with KT incorporated by LS’s conditions of sale, making KT one to sell with
VP.
• Also, according to the general law, there is an implication that ppty is sold with VP. This is a matter of
common sense, otherwise P who knows nothing about ppty could find himself buying ppty subject to Tcy of
which he knows nothing.
• V couldn’t give VP from the time notice of requisition given.

 2 aspects of VP:

(1) No Tcy/ Lease


(2) No furniture/ effects/ fixtures

Norwich Union v. Preston [1957] 1 WLR 813


• Order made to remove things. Without VP, mtgee cannot hope to deal with premises effectively.
• Pple in Cumberland Consolidated Holdings Ltd. v. Ireland applied – subject to the de minimis rule, V who
leaves own ppty on premises can’t be said to give VP because he’s claiming right to use premises for his own
purposes, namely as a place of deposit for own goods, inconsistent with P’s right to undisturbed enjoyment.

(*) Thus, good practice to make inventory of items promised to C so as to avoid misunderstanding.

* Qn: Must assign existing tenancy to new B?


 Would have bearing on rental deposit
 Even if assign it to new B, S/landlord is not absolved from liability to pay back rental deposit because lease is
not covenant that runs with land and does not bind new B
 So S/landlord could still be made to pay back deposit
 Solution:
 Tri-partite novation agreement
 Contract between landlord and tenant rescinded in consideration of new contract between tenant and new
landlord
 Problem is that difficult to get tenant to sign it since he might want to preserve whatever rights he has against
original landlord

• If purchase is subject to tenancy, important to obtain copy of tenancy agreement and explain terms therein to P
o If property is tenanted, is there a termination clause in the tenancy agreement?
o Does the tenant pay on time?
o Rental/ Deposit/Tenure/Option to Renew

- Client is entitled to expect the exercise of a reasonable professional judgment

County Personnel (Employment Agency) v Alan R Pulver & Co (a firm) (1987) 1 WLR 916
- Solicitors did not ascertain rent payable under headlease and did not advise clients to do so/to have property
valued before entering underlease
- Clients ended up making losses, having to surrender underlease, pay increased rent for a period and lose out on
a prospective sale
- Sued solicitors for negligence
- Held:
- Client was entitled to expect his solicitor to exercise reasonable professional judgement, hence
solicitor ought to have been put on inquiry when faced with unusual clause in the lease and was required
in the proper discharge of his duty of care to alert client to effect of such a clause and risks inherent in
entering into such a lease

- Special Levy
 Capital expenditure (not recurrent in nature)

• If condominium/HUDC, special levy imposed


- Phase III/IV to be privatised
- $25,000 levy for upgrading (e.g. overhaul of lifts, pool etc.) and to pay for strata titles
- Might have to pay even more upon completion

* Qn: Who is liable for levy contributions?


When does a contribution become due and payable?
s.42(8) and (8A), LT(S)A – if expenditure is capital and not recurrent, then its not apportionable.

Contributions

s42 Land Titles (Strata) Act:


(1) MC may levy contributions determined by it in accordance with s48(1)(m), (n) and contributions
referred to in s48(1)(r) by serving on subsidiary proprietors notice in writing of contributions
payable by them in respect of their respective lots

(8A) Person who has ceased to be subsidiary proprietor of the lot shall only be liable to pay contribution
which was unpaid at time he ceased to be a subsidiary proprietor and interest accruing on unpaid
contributions until such time it is paid

(10) (a) Any contribution levied shall become due and


payable to MC without any deduction whatsoever in accordance with MC’s decision to make
levy

• Only liable to pay for contributions up to date where cease to be registered proprietor
Lim Kay Lip v Lee Chee Peng (Management Corp Strata Title Plan No. 301, third party) (1994) 2 SLR 716
- 18/2: Dft granted Pf option to purchase property
- Sale and purchase agreement was subject to The Sg Law Society’s Conditions of Sale 1981
- 19/2: AGM of MC passed resolution for levy on each unit to be paid towards repair, renovation works,
upgrading works, retiling works
- 23/3: MC issued certificate under s54(1)(c) LT (Strata) Act certifying that 10% due
on 1/4
- 1/4: 10% of MC charges to be paid, duly paid by Dft
- 22/4: MC issued further s54(1)(c) LT (Strata) Act certificate claiming 2 further sums
as unpaid contributions
- 4/5: 2 further sums claimed as unpaid contributions
- 17/5: Yet 2 further sums claimed as unpaid contributions
- 19/5: Purchase completed
- 1/7 onwards: Balance of MC charges by 12 monthly instalments
- Pf commenced proceedings to compel Dft to pay outstanding sum on ground that unpaid contributions were
‘outgoings’ under condition 6 of The Sg Law Society’s Conditions of Sale 1981, which stipulated that
outgoings would be discharged by V down to but excluding date fixed for completion, as from which day all
outgoings shall be discharged by and rents and profits or possessions should belong to P
- Dft argued that only sum due and payable at date of completion were sums which had already been paid by Dft
and that other certificates were invalid, accordingly, MC being joined in as 3rd party to proceedings
- Issues:
- When were contributions due?
- By whom such contributions were payable?
- What was liability of P of strata lot in relation to contributions which were for works due after completion
date i.e. when he became subsidiary proprietor?

Held:
- Contribution levied becomes due and payable in accordance with MC decision and not upon passing of
resolution to that effect by MC
- If part of contribution was resolved to be payable on future date, no liability to pay arises on passing of
relevant resolution
- Sound principle and good practice that whenever possible and practicable, only subsidiary proprietor who
had benefited/would benefit from value received from contributions to pay for such contributions
- Burden should be accompanied commensurately by benefit, hence burden of paying for contributions should
fall on party benefiting by value of new improvements so funded
- What was not due and payable on date of subsidiary proprietor ceasing to be one could not be ‘unpaid’, a word
which connoted failure/default to discharge an existing legal liability

- When certificate applied for under s54(1)(c) LT (Strata) Act, MC should certify amount of both recurrent
expenditure in maintenance of sub-divided building under s48(1)(m) payable into management fund, less
recurrent and major contributions determined by MC in GM under s48(1)(n) payable into sinking fund
- Should also state when contributions payable and whether there was any amount unpaid of any of these 2
groups of contributions and if so, amount thereof and date on which any of such contribution was levied

- ‘Outgoings’ has a very wide import, but does not include payments of capital nature but generally
included payments of recurrent nature

- Hence Dft had to pay only contributions due and payable at date of completion

 LT (Strata) Act makes capital levy payable on due date and not date of Resolution
 But not within Condition 6 of Law Society’s Conditions of Sale

Others

• Provision for adverse situations e.g. road widening


• Agency clauses: give authority to deduct agency fee from price, done at completion
Other fees and costs a conveyancing lawyer should tell his client about (aside from the cost of buying a property
itself)

Legal fees:
This is also known as “conveyancing fees”.

If you are buying a private property, you’d need to engage a lawyer to advise you on the process, and later to
handle the necessary legal work to transfer ownership of the property. Legal fees could range between 1%
and 1.5% of the property purchase price.

Some banks may offer a legal fee subsidy as part of their loan package. You can use your CPF savings to pay
the difference in legal fees after taking into account the bank's subsidy.

HDB provides legal services when you:


• Buy an HDB flat
• Sell your HDB flat
• Refinance your HDB loan
whether you are taking a loan from HDB or from the banks. For HDB flat financed with bank loan, you can
either choose HDB or your own private lawyer to provide the legal service. CPF savings cannot be used to
pay the legal fees if you are selling your property.

Estimate of the legal fees for HDB transaction


HDB provides legal services when you:
Buy an HDB flat
Sell your HDB flat
Refinance your HDB loan
whether you are taking a loan from HDB or from the banks.
The legal fees that you will have to pay if you appoint HDB to act for you will be based on the Housing and
Development (Conveyancing Fees) Rules 2002.
The Law Society of Singapore’s Recommended Fee Guidelines for Conveyancing Transactions
CPF Conveyancing Panel for Residential Properties Scheme

Legal Fees
You need to appoint a lawyer to act for your purchase, the mortgage and the CPF Board if you are using your
CPF funds. Legal fees vary depending on whether the property is completed or under construction, as well as
the price of the property, the loan amount and the amount of CPF used. The fees range between 0.5% to 1%
of the purchase price, payable on completion of the purchase and mortgage

Stamp duty/fee:
Stamp duty is a government tax payable under Section 22(1) Stamp Duties Act. It is payable by a buyer who
buys a property in Singapore.

The stamp duty payable is calculated on a scale:


• 1% on the first $180,000
• 2% on the next $180,000 and
• 3% thereafter.
CPF savings may be used to pay the stamp duty.
Valuation fee:
When you apply for a housing loan from a bank, it usually requires a valuation report of your property.
Valuations are done by professional property valuers, and valuation fees may vary. Some banks may absorb
the fee for their customers.

The “value” of your property is one of the factors used by banks to determine the housing loan amount.
Factors taken into consideration in assessing the property include location, size, condition of building,
availability of facilities, etc.
Mortgage insurance:
Types of Insurance and Appropriate Commencement Date

• Property insurance
- Risk passes when contract formed/concluded though P would only be beneficial owner and not legal
owner yet

s3(13) CLPA:
On sale of property, a stipulation shall be implied that P shall be entitled to benefit of any insurance
against fire which may then be subsisting thereon in V’s favour
 Implied term that P entitled to V’s insurance

 cf:
Condition 23 of Conditions of Sale 1999: (Fire and other Insurance)
23.1 P is entitled to benefit of any subsisting insurance if-
(a) he obtains consent of relevant insurers; and
(b) he pays due proportion of premium from date of contract
23.2 V is under no obligation to P to keep insurance policy in force
23.3 s3(13) of CLPA not applicable to the sale
• Property insurance would commence on date contract is completed
- Amount would be pegged to re-installment costs i.e. insurers would only pay costs of rebuilding if there
is a fire but NOT value of property (plus its location)

HDB flat buyers who are using their CPF savings to pay their monthly housing instalments have to be
insured under the CPF’s Home Protection Scheme. The insurance scheme protects CPF members and their
families against losing their homes should members become physically/mentally disabled or pass away
before their housing loans are paid up.

• Insurance of common property of condominium


- MC would be in-charge for completed condominiums
- For developments under construction without TOP, main contractor for developer would do it

While mortgage insurance is generally not compulsory for private property owners, they should seriously
consider buying a policy, especially if they are taking up large housing loans with long repayment periods.
Note that CPF savings can only be used to pay the premiums for the Home Protection Scheme.
Fire insurance
It is mandatory for HDB homeowners with a mortgage loan taken after 1 September 1994 to purchase a fire
insurance policy with its appointed insurer.

The policy covers against the cost of reinstating the damaged internal areas of the flat as built by HDB when
damage is caused by fire, lightning, explosion, bursting and overflowing of water pipes, etc.

Banks typically require fire insurance policy to be taken on the property mortgaged. Some banks may pay
the first year’s premium (or more) for fire insurance as part of their housing loan package.

See above.
Maintenance/conservancy charges and utilities:
HDB homeowners pay monthly service and conservancy charges to their town councils for the maintenance
of their housing estates. Charges vary according to the town councils and the flat types, and currently range
between $15 and $85. Owners of larger flat types pay higher charges.
Owners of private properties like condominiums and apartments typically pay monthly maintenance fees
ranging from $100 to $1,000, depending on the number of units in the estate and how lavish the facilities are
(eg. swimming pools, tennis courts, saunas, and gardens).

Utility charges (power, water, gas) depend on usage.


Property tax:
The property tax payable annually is computed based on a percentage of the annual value of the property.
The annual value is the estimated annual rent that your property can fetch, regardless of whether you are able
to rent it out or not.

If you own and occupy the property, the tax rate is 4% of the annual assessed value. If your property is
rented out, the tax is currently 10% of the annual assessed value of the property.

Property tax
Property tax is levied regardless of whether the property is owner-occupied, vacant or let out. Owners must pay
tax on *immovable properties half a year in advance in the months of January and July each year.

*Immovable properties include HDB flat, houses, offices, factories, shops and land.

The property tax payable per year is computed based on a percentage (tax rate) of the *annual value of the
property. The property tax rate is 4% for owner -occupied residential properties and 12% for others.

*The annual value is the estimated annual rent that your property can fetch, regardless of whether you're able to
rent it out or not. The annual value of the land is determined at 5% of the market price of the land.

When a building is demolished, the land would have to be assessed as if it were vacant land with no buildings
erected.

For HDB flat owners, the tax payable is as follows

Flat Type Tax Rates (S$)


Three-room 146
Four-room 165
Five-room 258
Executive 276

Objection to annual value


You will receive a valuation notice when the Inland Revenue Authority of Singapore (IRAS) determines or
adjusts the annual value of your property. If you do not agree with the proposed annual value, you may lodge an
objection within 21 days from the date of the valuation notice.

Concession for owner-occupied residential properties


The 4% owner-occupier's concessionary tax rate is applicable to only one property at any one time.

The concession also applies to jointly or separately-owned properties, as in the case of married couples.

If you live in an HDB flat, you need not apply for the concession as it will be granted automatically.

If you own and occupy both an HDB flat and a private residential property, the concession will be granted to the
HDB flat.

Property tax rebates


If your residential property has an annual value of less than S$10,000, a property tax rebate will automatically be
given to you from 1 April 1994.

The annual property tax rebate is between S$25 and S$150, depending on the value of the property. The rebate
will be shown on your property tax bill.

Refund of tax on an unoccupied building


Property tax is imposed irrespective of whether a property is vacant or occupied. The owner of a property, left
vacant for 30 days or a calendar month, may claim for a tax refund if

• the building cannot be let out at a reasonable rent despite efforts to do so

or

• the building is undergoing repairs to render it fit for occupation.

The claim for the vacancy refund starts from 1 November of the previous year to 31 October of the current year.
To claim for refund, the owner must submit the claim form no later than 15 November each year. For example,
the vacancy claim for the period 1 November 1997 to 31 October 1998 is to be submitted no later than 15
November 1998.

Owner's obligation to notify IRAS


You should notify IRAS in writing within 15 days of any of the following taking place:

• your property which has been vacant is occupied


• you stop living in your property
• the rent (including furniture rental and service charges) of your property is increased
• your property is extended, improved, rebuilt or demolished
• when any application is made to the relevant authorities for permission to develop or subdivide your
property

Payment of property tax


A bill will be sent to you in January informing you of the property tax payable for the year. You may either pay
the whole year's tax in January or pay half-yearly, that is in January and July for each year's tax.

The tax must be paid within 30 days from the date of the bill. Payment can be made via:

• Telephone banking
• ATM
• Cheque
• Cash at Revenue House or at any post office

Payment can also be arranged through GIRO via 12 interest-free installments in January and July. A minimum of
three installments will be given if you join GIRO between August and November.

Request for GIRO/Objection form/Claim Forms


Call the Fax Express Service at (65) 1800 3568677 for the form to be faxed to you (see the Form Code numbers
below) or the Taxpayer Services help lineS at (65) 1800 3568600 for the form to be posted to you.

You may also obtain the form from the Taxpayer Services Centre or download the GIRO forms, claim forms for
owner-occupier's concessionary tax and refund for an unoccupied building, from the IRAS Homepage.

- Don’t forget to tell client has he also has to pay you your legal costs and disbursements!
Lec 3 - Preparing Contracts
Looking at the case you are handling, where are we in the timeline?
Parties negotiate terms --- Option is granted --- Option is exercised --- Completion Stakes place

At this juncture:
1. Clients have instructed you
2. They have handed you the Option

What’s next?
As purchasers’ solicitors, you have to
• Peruse the option
• Advise clients of the terms of sale
• Propose suitable amendments
• Liaise with Vendors’ solicitors

Questions to consider
• Are the terms consistent with clients’ instructions?
• What are the salient terms that should be highlighted to clients?
• Which terms should be amended?
• How should the amendments be drafted?

Bear in mind clients’ instructions


 One client is a foreigner
 1% option fee has not been paid yet
 Property is subject to tenancy
 Clients want existing furniture and fittings in property currently hired to tenant
 Check sg law society’s conditions of sale – print!
 See option to purchase in tutorial notes – make necessary amendements based on attendance notes. Esp see
para 11 – warranty that purchaser is approved purchaser must be changed – subject to LTA approval.

PREPARATION OF CONTRACT
COMPLETED PROPERTY

A. SUBJECT TO THE LAW SOCIETY OF SINGAPORE’S CONDITIONS OF SALE, 1999


1. Incorporation of Conditions
2. Conditions 6, 7, 8

6 outgoings, rents and profits until completion


6.1 vendor must discharge outgoings down to and including date fixed for completion
6.2 subj to 6.3, after date fixed for cxompletion, purchaser – a) must dischare all outgoings and b) will be entitled
to all rents and orofits or possession
6.3 purchaser not entitled to be let into actual possession or receipt of rents and profits until date od actual
completion
6.4 where nec, ougvoigns, rents and profits are to be apportioned bet parties

7 Tax
7.1 proeprty tax
7.1.1 vendor must pay for all property tax including surcharge down to and including day fixed for completion
whether tax is levied or increased before on or after completion
7.1.2 vendor must indemnify purvchaser for any sum paid by purchaser which is vendopr’s liab under cond 7.1
7.1.3 provn not to merge in conveyance of property

7.2 income tax


7.2.1 vendor a) not resident in sg and b) whose gain or profit fr sale of property liable to be taxed under s10.1.a
or 10F of income tax act must allow purchaser or P’s solicitor to deduct fr purchase price the tax charged and pay
such tax to comptroller of income tax
7.2.2 if a) vendor x notify purchaser or purchaser’s sol of vendor’s tax liab under 7.2.1 and b) comptroller makes
claim on purchaser or his sol, V must indemnify purchaser or his sol against all loss and damage suffered by
either of them
7.2.3 provn not to merge in conveyance of property

7.3 GST
7.3.1 purchaser whether of freehold or leasehold property shall all GT if any which may be payable in respect of
sale price of property under GST act on completion or ealier as required by comptroller
7.3.2 provn not to merge in conveyance of property

8. late completion interest (see completion chapter)

B. TERMS REGARDING TITLE


- properly deduced
- free from encumbrances

C. LEGAL REQUISITION
- what is satisfactory to the Vendor may not be satisfactory to the Purchaser

D. EDWARD WONG FINANCE [1984] 2 WLR 1


- if the vendor’s solicitors should abscond with the completion money, can the purchaser claim
nonetheless that his payment to the vendor’s solicitors is deemed to be payment to the vendor?
- it would appear s. 64 and 65A of the CLPA support this argument
- nonetheless it would be prudent to have a clause providing that the vendor’s solicitors are duly
authorized to receive all monies on behalf of the vendor
- Practice Directions & Rulings 1989 Ed. P. 113 – 114 (Item 32)
Receipt in deed or endorsed, authority for payment to solicitor.
64. Where a solicitor produces a deed, having in the body thereof or endorsed thereon a receipt for
consideration money or other consideration, the deed being executed, or the endorsed receipt being signed, by
the person entitled to give a receipt for that consideration, the deed shall be sufficient authority to the person
liable to pay or give the same for his paying or giving the same to the solicitor, without the solicitor producing
any separate or other direction or authority in that behalf from the person who executed or signed the deed.
Consideration expressed in instrument authority for payment to solicitor.
65A. Where a solicitor produces an instrument as defined in the Land Titles Act in which consideration is
expressed and which has been executed by the person in whose favour the consideration is payable or has been
paid or partly payable and partly paid, that instrument shall be sufficient authority to the person liable to pay
or give the same for his paying or giving the same to the solicitor, without the solicitor producing any separate
or other direction or authority in that behalf from the person who executed or signed the instrument.