Conveyancing is the legal process of transferring title in a property from one person to another, including the granting of encumbrances such as mortgages or lien.
A short summary of the conveyancing process, payments and timeline can be seen as follows for each specific purchase/sale;
- Purchasing / Selling of Completed Property
| No. | Stage | Payments | Timeline |
| 1 | Option to Purchase | An option fee must be paid by the buyer, usually 1% of the purchase price which is forfeit-able should option to purchase is not exercised by the buyer on the date the OTP is supposed to be exercised. | Date of execution of the OTP by Seller |
| 2 | Exercising of the Option | Upon exercising, a further 4% of the purchase price is paid as deposit. The deposit will be held by stakeholders which may require the lawyers or the Singapore Academy of Law to act as stakeholder. | 2 to 3 weeks after the date of execution of the OTP by Seller |
| 3 | Completion | Upon completion, the remaining 95% of the purchase price is to be paid by the buyer and stake-holding monies held as deposit will be released to the seller. If the property is mortgaged to a financial institution, the Mortgage has to be discharged by paying off the outstanding loan from the sale proceeds. A Transfer is also executed in favour of the buyer. | 8 to 10 weeks after the date of execution of the OTP by Seller |
- Purchasing of Uncompleted Property (Under Development from Developer)
| No. | Stage | Payments | Timeline |
| 1 | Option to Purchase | Upon exercising the Option to Purchase, a Booking Fee must be paid as deposit. This is usually between 5% and 10% of the purchase price. The remaining deposit of 15 % of the purchase price (if booking fee is 5%) is to be paid subsequently.
The buyer and developer’s solicitor will then engage their own respective Lawyers in the conveyancing. |
Date of execution of the OTP by Buyer. |
| 2 | Sale & Purchase Agreement | Upon appointment of the respective lawyers, the Sale & Purchase Agreement (S & P) in triplicate will be sent to the buyer’s Lawyer. | 3 weeks after the Date of execution of the OTP by Buyer. |
| 3 | Sale & Purchase Agreement | Buyer to execute the S & P (in triplicate) at the Buyer’s Lawyer’s office before returning the same to the Seller’s Lawyers. | Within 3 weeks from delivery of S & P |
| 4 | Stamp Duty | Buyer to pay Stamp Duties | Buyer’s Stamp Duty / Additional Buyer’s Stamp Duty:
If property is valued below S$1 million = (3% of purchase price – $5,400) + ABSD (if applicable)* If property is valued above S$1 million = (4% of purchase price – $15,400) + ABSD (if applicable)* *BSD rates after the 2018 Budget as of 20 February 2018 |
| 5 | Balance of Deposit | The remaining 15% (if booking fee is 5%) of the purchase price is paid to complete the payment of the 20% (of the purchase price) as Down-payment. | Within 8 weeks after the Date of execution of the OTP by Buyer. |
| 6 | Progress Payments | The remainder of the purchase price (80%) is to be paid in instalments as accordance to the payment schedule in the S & P Agreement to specified construction milestones.
Progress payments will take place over stages as the development is built. |
Over a period of time as per payment schedule in the S & P Agreement to specified construction milestones. |
| 7 | Completion | Final instalment is to be paid only when the building is awarded its Certificate of Statutory Completion or when separate title is issued for the property, whichever is the later. | When Certificate of Statutory Completion or when separate title is issued for the property |
| 0 | Non-Exercise of Option | If the OTP is not exercised before its expiry, the developer may forfeit 25% of the booking fee and refund 75% of the booking fee. | – |
- Mortgages
- Mortgage Redemption
Our firm provides the following services;
- Purchasing & Selling of Property (Conveyancing)
- Drafting and Advising on Options to Purchase/Agreements
- Lease Agreements
- Sale and Purchase Agreements
- Mortgage of Property
* Kindly note that the above information does not constitute legal advice, it is information for your reference which you rely at your own risk. Kindly seek legal advice from a qualified lawyer before commencing any legal action.