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
|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)
|1||Option to Purchase||Upon exercising the Option to Purchase, a Booking Fee must be paid as deposit. This is 5% of the purchase price. The remaining deposit of 15 % of the purchase price 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 Duty||Buyer Stamp Duty = (3% – $5,400) of purchase price + ABSD (if applicable)|
|5||Balance of Deposit||The remaining 15% 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|
- 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.