Condo Near (SG)

A Comprehensive Guide to Transferring Property Ownership in Singapore

Andrew

  • July 8, 2023

Owning a property in Singapore is a significant milestone for many, but it also entails a plethora of legal rules and regulations that need to be carefully navigated to ensure a seamless transfer of ownership. Whether it’s a family succession, buying a new home or a marriage dissolution, transferring property ownership is no small feat. Understanding the ins and outs of the process is essential, as there may be dire consequences for failing to adhere to the rules, such as hefty fines, taxes and other legal repercussions.

In this comprehensive guide, we will break down the process of transferring property ownership in Singapore to equip you with the knowledge needed to efficiently navigate the complex landscape of property transactions. From understanding the different types of properties, the role of government authorities, to the costs involved and the typical timeframe, we will demystify the experience and help you make informed decisions that safeguard your interests. So, let’s dive in and explore the world of property ownership transfer in the Lion City!

How to Transferring Property Ownership in Singapore

Transferring property ownership in Singapore is a common course of action, whether that involves gifting a property during the benefactor’s lifetime or bequeathing it through a will. This guide will provide a step-by-step explanation of how to transfer property ownership in Singapore, covering both private property and Housing Development Board (HDB) flats. Step 1: Determine the Type of Transfer There are two main types of property ownership transfers in Singapore: 1. Transfer during the benefactor’s lifetime, known as a or “gift” 2. Transfer by means of a will after the benefactor passes away Consider the circumstances and determine which type of transfer best suits your needs. Step 2: Consult a Conveyancing Lawyer Consult a conveyancing lawyer to guide you through the transfer process and address any legal issues that may arise from transferring property ownership in Singapore. Step 3: Assess the Property Determine if the property is a private property or an HDB flat; the process differs for each type. Additionally, if the property was bought using funds from a Central Provident Fund (CPF) account and/or a mortgage loan, consult the CPF Board and/or the bank regarding what is required for the transfer. Step 4: Transferring Private Property A. Prepare a Deed of Gift To transfer private property as a gift during the benefactor’s lifetime, you will need to execute a Deed of Gift . This legal document will establish the transfer of ownership from the donor (the person gifting the property) to the recipient (the person receiving the gift). The Deed of Gift will include details such as the description of the property being gifted, the date of transfer, and any conditions or limitations placed on the gift. It is important to consult with a lawyer or other legal professional to ensure the Deed of Gift is properly executed and recorded to avoid any issues with ownership or legal disputes in the future.

Discover 2024​’s new condo Launches in Singapore

Two ways to give property as a gift in Singapore

In Singapore, one of the wealthiest countries in the world, there are several situations in which a person might choose to give away real estate as a gift. Examples include transferring property to a spouse, other family members, or even bestowing a marriage gift to one’s child. There are mainly two methods of giving property in Singapore: by way of an inter vivos gift or a gift through a will.

An inter vivos gift is a transfer of property during the donor’s lifetime. It is legal in Singapore to give away real estate without receiving monetary compensation, by effecting a Deed of Gift between the transferor and transferee. However, for Housing and Development Board (HDB) flats, the situation is more complex. Ownership of such flats can be transferred only to immediate family members who meet certain eligibility conditions. Since 2016, the rules have tightened further, and HDB flat owners can only transfer ownership to family members under six special circumstances, such as divorce or financial hardship.

Giving property through a will means that the property is transferred to the beneficiaries after the owner passes away. This is a common practice in Singapore, but several issues and risks should be considered by the property owner. For instance, if a property is under a mortgage or a Central Provident Fund (CPF) charge, it would be prudent to consult with the bank and CPF Board to determine the feasibility of gifting the property. Furthermore, the owner should be certain that they genuinely intend to give the property as a  gift and that there are no other hidden agendas or obligations attached to the transaction. Legal advice may also be sought to ensure that all necessary legal requirements are fulfilled and the necessary paperwork is properly executed.

It is also important to consider the potential tax implications of gifting property in Singapore. Under the Inland Revenue Authority of Singapore (IRAS) regulations, gifts of property may be subject to gift tax if the value of the gift exceeds a certain threshold. The property owner should research and understand the tax implications of gifting the property before proceeding.

Lastly, the property owner should also consider the future implications of gifting the property, such as the impact on their personal finances and estate planning. They may want to seek out advice from a financial planner or estate planning professional to ensure that the decision to gift the property is in line with their long-term financial and estate goals.

In summary, gifting property in Singapore can be a common practice, but property owners should carefully consider the various issues and risks involved before proceeding. Seeking professional advice and conducting thorough research can help ensure a smooth and successful gifting process.

Legal issues in giving away property in Singapore

In Singapore, it is legal to give away property without receiving any monetary compensation for it. This can occur during the benefactor’s lifetime or after their passing through a will. Transferring ownership of private properties can be done through a Deed of Gift between the transferor and transferee; however, the situation can be more complicated when it involves Housing Development Board (HDB) flats. HDB flat owners can only transfer their ownership to immediate family members who meet specific eligibility conditions and requirements.

The transfer process may also involve navigating legal issues, such as those related to the property being under a mortgage or a CPF charge. Properties purchased with the help of CPF (Central Provident Fund) funds and/or a mortgage loan will require the owners to consult with their bank and the CPF Board to determine the necessary steps in transferring ownership. 

​In certain cases, the CPF Board or banks may not approve the request unless the mortgage has been fully redeemed, and seeking the advice of an experienced conveyancing lawyer can prove beneficial. Additionally, gifting property does not exempt the involved parties from paying stamp duties. Overall, when considering transferring property ownership in Singapore, it is essential to be aware of the legal complexities surrounding the process and seek professional advice if required. 

Transferring property during the benefactor’s lifetime

Transferring property ownership during a benefactor’s lifetime can be a meaningful gift for a loved one in Singapore. It’s important to understand the legal process and requirements involved before embarking on the journey. In Singapore, there are two primary scenarios when it comes to gifting property: transferring a private property or an HDB flat (public housing).

When transferring private property, the process is relatively straightforward as long as certain procedures are followed. The benefactor must execute a Deed of Gift, a legal document that transfers the property from the benefactor to the recipient without any financial compensation. It’s also necessary to consult with relevant parties like the CPF Board and the bank if the property was purchased using CPF funds or a mortgage loan. The beneficiary should also consider speaking with a conveyancing lawyer to ensure all legalities are properly taken care of.

On the other hand, transferring an HDB flat can be more challenging due to stricter regulations. While it is possible to gift an HDB flat, the recipient must be an immediate family member who meets specific eligibility conditions and requirements set by Singapore’s housing authority. Some of these conditions include financial hardship and divorce. It is crucial to note that since 2016, the rules governing the transfer of HDB flats have become more restrictive. Consulting with professionals like housing agents or lawyers can be extremely helpful in navigating through the complexities of gifting an HDB flat in Singapore.

Specific conditions for transferring ownership of HDB flats

When it comes to transferring ownership of HDB flats in Singapore, certain specific conditions need to be met. These conditions have been put in place to ensure that eligibility requirements are met, and the transfer process is smooth and fair for all parties involved. In this blog post, we’ll outline some of the key conditions that are essential to be aware of when transferring the ownership of an HDB flat.

Firstly, the proposed new owner must be eligible according to the HDB’s criteria. They should be a Singaporean citizen or permanent resident and must not currently be an existing owner of another flat. Moreover, they must be an immediate family member of the current owner, such as a parent, spouse, or child. It is also crucial to take note that a maximum of four flat owners is allowed per HDB flat.

Additionally, financial considerations must be taken into account. The proposed owner should be able to finance the necessary amount for the transfer, which includes covering the outstanding mortgage loan and CPF monies refund to the leaving owners. This financing can be done through their CPF Ordinary Account (OA), cash savings, or by applying for a home loan, either from HDB or a bank. If opting for a home loan, the proposed new owner should check their loan eligibility before proceeding with the transfer.

It is important for both parties, the existing owners and the proposed owners, to settle any outstanding payments or debts such as resale levies or upgrading costs before the transfer can take place. This ensures a smooth transition of ownership and avoids any complications or disputes in the future. Additionally, it is advisable for the proposed owners to conduct a thorough inspection of the property and understand all the terms and conditions of the transfer before signing any agreements. It is also important to consult with legal experts to ensure that all necessary documents are in order and that the transfer process complies with all relevant regulations and laws. Ultimately, taking the time to properly prepare for a property transfer can help both parties avoid any issues and ensure a successful transfer of ownership.

Considerations when giving away private property with CPF funds and/or bank loans

When planning to give away private property in Singapore, it is important to consider the financial aspects of the transfer, especially if the property was purchased with CPF funds and/or bank loans. There are several factors to take into account when attempting to transfer a property under such circumstances.

Firstly, check with the bank and the CPF Board to understand the requirements for transferring a property. In certain cases, the bank and/or the CPF Board may not approve the request to transfer the property unless the mortgage is redeemed. Therefore, consulting a conveyancing lawyer may be helpful in understanding the available options in such scenarios.

Also, be aware that stamp duties still have to be paid when giving away property in Singapore. It is essential to ensure timely payment of these duties to avoid incurring penalties.

Moreover, when gifting a property that was purchased with CPF funds, the current owner must refund the CPF monies (including accrued interest) to their CPF account, as mandated by the CPF Board.

Lastly, if the property is subject to a mortgage, it is important to assess the proposed owner’s ability to take over the loan or to obtain a new mortgage. The proposed owner(s) can choose to obtain a loan from HDB (if eligible) or from a financial institution to take over the property ownership.

In conclusion, giving away private property in Singapore that was purchased using CPF funds and/or bank loans requires careful consideration of various financial aspects. It is recommended to consult with relevant authorities and professionals to ensure a smooth and legally sound process. Additionally, it is important to weigh the potential financial gains or losses that may result from such a decision. Some factors to consider include the current market conditions, the outstanding loan balance, and any taxes or fees that may be incurred during the sale. Ultimately, it is crucial to fully understand all financial implications before making a decision to give away private property in Singapore.

Related Posts

transfer of property in singapore

Should you invest in a Singapore condo?

  • October 2, 2023

transfer of property in singapore

Which Condo Is Good For Investment

  • September 10, 2023

transfer of property in singapore

How Much Do You Need to Earn to Buy an Executive Condo in Singapore?

  • August 25, 2023

transfer of property in singapore

  • Advanced search
  • Digital Transformation
  • Energy Transition
  • Supply Chains
  • Sustainability and ESG
  • Workforce Redesign
  • Consumer Goods & Retail
  • Energy, Mining & Infrastructure
  • Financial Institutions
  • Healthcare & Life Sciences
  • Industrials, Manufacturing & Transportation
  • Technology, Media & Telecommunications
  • Video Chats
  • Antitrust & Competition
  • Banking & Finance
  • Capital Markets
  • Data & Technology
  • Dispute Resolution
  • Employment & Compensation
  • Environment & Climate Change
  • Inclusion, Diversity & Equity
  • Intellectual Property
  • International Commercial & Trade
  • Investigations, Compliance & Ethics
  • Mergers & Acquisitions
  • Private Equity
  • Real Estate
  • Restructuring & Insolvency
  • International

Asia Pacific

  • South Korea (Korea, Republic of)
  • Philippines
  • Czech Republic
  • Netherlands
  • Russian Federation
  • Saudi Arabia
  • South Africa
  • Switzerland
  • Türkiye
  • United Arab Emirates
  • United Kingdom

North America

  • United States

Latin America

  • Hit ENTER to search in content
  • Singapore: New Additional Buyer's Stamp Duty rules for transfers of residential property into trusts

Singapore: New Additional Buyer's Stamp Duty rules for transfers of residential property into trusts

Share by email.

  • Google plus

Get QR Code

With effect from 9 May 2022, Additional Buyer's Stamp Duty (ABSD) of 35% will apply on any transfer of residential property into a living trust. Previously, ABSD did not apply where the trust had no identifiable beneficial owner at the time of the transfer. 

Key takeaways

  • ABSD will be imposed at a rate of 35% on any transfer of residential property into a trust where the transfer takes place on or after 9 May 2022. This is referred to as ABSD (Trust).
  • The trustee may obtain a remission of part or all of the amount of ABSD (Trust) paid, if all remission conditions are met.
  • One key condition for remission of ABSD (Trust) is that beneficial ownership of the transferred residential property must be vested in the beneficial owner(s) at the time of the transfer. An application for remission must be submitted within six months from the date of execution of the transfer instrument.
  • Buyers looking to purchase residential property for family members using a trust structure should carefully draft the terms of the trust to ensure it meets the remission conditions, if they intend to seek a refund of the ABSD (Trust) paid.

In more detail

Introduction of ABSD (Trust)

Prior to 9 May 2022, ABSD was applicable on the transfer of residential property into a living trust, at a rate depending on the profile of the beneficial owner of the transferred property. ABSD did not apply where there was no identifiable beneficial owner at the time of the transfer.

The government has announced that ABSD (Trust) of 35% will apply on any transfer of residential property into a trust, regardless of whether there is any identifiable beneficial owner, where the transfer occurs on or after 9 May 2022.

ABSD (Trust) is payable upfront upon the transfer of the residential property to the trustee. The trustee may then apply to IRAS for a remission of the amount of ABSD (Trust) paid, provided that the remission conditions are met.

The ABSD (Trust) rules do not apply to the transfer of residential property to a trustee acting in its capacity as (i) trustee for a collective investment scheme; (ii) trustee-manager for a business trust; or (iii) trustee for a housing developer. Such transfers are subject to ABSD separately.

What are the conditions for seeking remission of ABSD (Trust)?

A remission of ABSD (Trust) may be granted if all the following conditions are met:

  • The residential property is held on trust for identifiable individual beneficiaries only;
  • The ABSD (Trust) must have already been paid to IRAS; and
  • The application for remission is made within six months from the date of execution of the instrument for transfer of the residential property.

An "identifiable individual beneficiary" is an individual:

  • who is identified in the declaration of trust as a beneficiary of the residential property (whether solely or together with another), and
  • who, because of the trust, has beneficial ownership of the residential property (whether solely or together with another) which is not revocable, variable, or subject to any condition subsequent.

This means that if beneficial ownership of the residential property has not vested in the beneficiary at the time of the transfer of the residential property (e.g., where the beneficiary is a child whose interest will only vest when he or she reaches a certain age), remission will not be available. Where the beneficiary's interest in the residential property is revocable or conditional (e.g., the beneficiary's interest will only vest if he or she graduates from university), remission will also not be available.

Where all of the remission conditions are satisfied, the amount remitted will be computed based on the difference between the ABSD (Trust) rate of 35% and the ABSD rate corresponding to the profile of the beneficial owner with the highest applicable ABSD rate.

Other related changes

On a related note, the government has also introduced the Stamp Duties (Amendment) Bill 2022 (Bill), which seeks to introduce the Additional Conveyance Duties for Trust, or ACD (Trust). ACD (Trust) will apply to qualifying transfers of equity interests in property holding entities into a trust, regardless of whether there is any identifiable beneficial owner at the time of the transfer, where the transfer occurs on or after 10 May 2022.

The Bill will also provide for stamp duty to apply where a beneficiary of a trust renounces his or her interest in residential property held under the trust, where the trust is declared over the residential property on or after 10 May 2022. ABSD and seller's stamp duty may also apply on the transfer of such renounced interest back to the settlor.

ABSD (Trust) addresses the differential ABSD treatment that previously existed between the transfer of residential property into a trust that had no identifiable beneficial owner and a trust with identifiable beneficial owners. The introduction of ABSD (Trust) and ACD (Trust) is consistent with the government's policy intent of promoting a stable and sustainable housing market through the ABSD and ACD regime.

ABSD (Trust) will increase the cost of purchasing residential property to be held under discretionary trusts, given that no remission will be granted unless beneficial ownership of the residential property is vested in the beneficial owner(s) at the time the residential property is transferred. Buyers looking to purchase residential property for family members using a trust structure should carefully draft the terms of the trust to ensure it meets the remission conditions, if they intend to seek a refund of the ABSD (Trust) paid.

ABSD (Trust) also increases the upfront cost of transferring residential property to a trust with identifiable beneficial owner(s). Such transfers are now subject to the ABSD (Trust) rate of 35%, with a refund to be granted subsequently where applicable, whereas previously ABSD would have been payable at the ABSD rate corresponding to the profile of the beneficial owner(s). Prospective buyers should factor in this upfront cash-flow impact when considering a purchase of residential property on trust.

© 2022 Baker & McKenzie.Wong & Leow. All rights reserved. Baker & McKenzie.Wong & Leow is incorporated with limited liability and is a member firm of Baker & McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "principal" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership : This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion : All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites.  Attorney Advertising : This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction : Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.

Delete Comment ?

Are you sure want to delete comment ?

Scan this QR Code to share this content

HighQ

Yuen Law logo

  • Legal Services
  • Support Team
  • The Law & You
  • Spiritual Well

Yuen Law LLC Logo

  • Real Estate & Conveyancing , The Law & You
  • 5 March 2021
  • By Lim Fung Peen

Conveyancing Process Singapore: A comprehensive guide for the home seller & buyer

For the average Singaporeans, the buying and selling of real estate in Singapore is very likely to be one of the most financially significant transactions in their lives. With the myriad of rules and regulations governing the sales of the real estate and conveyancing processes, the buyer or /seller should consider seeking legal advice from a qualified conveyancing lawyer advocate and solicitor of the Courts in Singapore.

What is Conveyancing?

Conveyancing is a legal term of art, meaning the transfer of legal title of property from one person to another, including the granting of encumbrances (a claim on the property by another party) such as mortgages.

However, the term is nowadays used to refer to the branch of law specializing in the preparation of documents for the transfer of property. The title of a property refers to the bundle of rights in a property in which a party may hold an interest. For houses, titles are split into 2 types:

  • Freehold – The owner will enjoy the ownership of the real estate in perpetuity; and
  • Leasehold – The ownership of the real estate will revert back to the government after a set period of time. Leases in Singapore can last between 6 months to 99 years. (Leases of 999 years exist too, but are considered equivalent to freehold for all effects and purposes)

In Singapore, titles to a piece of land are registered in a central registry (this is known as the Torrens system, and also practiced in Australia and New Zealand). The Land Titles Register and the Register of Deeds of the Singapore Land Authority handle registered land and common law land respectively. The majority of land in Singapore is registered land.

Under the law, registration in the land title registration is necessary to effect a transfer in the ownership or interest of the land, and a registered title is indefeasible (unless obtained by fraud). Hence, when purchasing real estate, it is essential to have one’s agents conduct due diligence search in these two registries to check if the seller has a valid title to the land before entering a conveyancing transaction.

Who Can Buy Real Estate?

Under the Residential Property Act , a “foreign person” who wishes to purchase a landed residential property is required to seek the approval of the Minister of Law. A foreign person refers to an individual who is not a citizen/PR of Singapore, or a foreign company/converted foreign company. A foreign company refers to a company that is not incorporated in Singapore or has foreign members or directors (even if it’s incorporated in Singapore).

This restriction applies even if the property is received as a gift or inherited from a deceased’s estate. A foreign person who receives property in such a manner is legally required to sell it within a set period of time. However, these restrictions do not apply to foreigners who intend to purchase units in a flat or condominium of 6 or more stories high, as they do not count as landed residential property.

For HDB flats, HDB has a diverse range of regulations governing the eligibility to purchase , depending on the scheme one chooses to apply under, and whether one is applying for a new flat built to order or buying off the resale market. Depending on the scheme one is applying under, one must meet certain criteria with regards to his/her citizenship status, age, or marital status to purchase a flat.

One of the most important regulations one should take note of is the Ethnic Integration Policy and SPR Quota. To prevent the formation of ethnic/PR enclaves, the HDB tightly controls the racial/PR percentages within every HDB block. Hence, should one’s ethnic group be overrepresented within the block, one may not be allowed to purchase that property. Generally, transactions that take place between individuals of the same ethnic group/citizenship status should be unaffected. Buyers and sellers are advised to check the eligibility of their transactions before proceeding.

WHAT IS THE CONVEYANCING PROCESS LIKE IN SINGAPORE?

Conveyancing Process Flowchart

Option to Purchase

An Option to Purchase (OTP) is a valid and binding legal contract in written form, entered into between a buyer and seller of a residential property. The OTP gives the buyers the exclusive rights to purchase at a fixed purchase price, within a fixed period of time (usually 2-3 weeks). Usually, the sellers of a property may not back out of an OTP agreement and refuse to sell once the OTP is signed, while the buyers may do so. In exchange, the prospective buyers are required to put down a 1% deposit, known as the option fee, which they will forfeit to the sellers if they choose to withdraw from the deal. Hence, both parties are advised to consider carefully before coming to an OTP.

In addition, buyers are strongly advised to carefully do their due diligence to inspect the property they wish to purchase before entering into an Option To Purchase agreement. The legal principle of “caveat emptor” (Latin for “buyers beware”) applies in such situations, as the responsibility is placed on the buyer(s) to make sure that the property is free of defects before purchasing it. Sellers and their agents have no legal obligation to ensure the property is in good condition, although they may not defraud or mislead buyers.

Exercising the Option

If the buyers decide to proceed with the transaction, they may choose to exercise the option to purchase and come to a sales and purchase agreement with the sellers. The conditions of this agreement are generally governed by the Law Society’s Condition of Sales 2012, which is an update to the 1999 Condition of Sales (note that the 2012 Condition does no supersede the 1999 Condition). However, parties may mutually agree to contract out of any, or all of the

Conditions as they may see fit. Usually, an additional deposit of 4% of the agreed purchase price will be paid to a neutral party, such as the Singapore Academy of Law. The stamp duties payable by both parties should be paid within 14 days of signing the sales and purchase agreement.

With the acceptance of Option To Purchase, the buyer’s lawyers may examine the certificate of title, which verifies the ownership of the property by the seller. At the same time, they should make legal requisitions to check using the title search if the property will be affected by any governmental developmental plans. If so, this may invalidate the entire transaction.

The seller will hand over the keys of the property to the buyer, in exchange for the payment of the remaining 95% of the agreed price. The 4% deposit will also be released by the intermediary to the sellers. The property should be delivered in the same condition (notwithstanding fair wear and tear) as it was on the date of the option or contract, whichever is earlier unless otherwise agreed between both parties.

The seller’s lawyers will also hand over the transfer documents, with the details of the change in ownership of the property, to the buyer’s lawyers. This will allow the buyer’s lawyers to apply for a Certificate of Title with the SLA.

The above rules apply only for private completed residential properties. Do note that when purchasing HDB flats, it is compulsory to use the standard OTP contracts provided. Any other agreements or arrangements made will be deemed invalid under the Housing and Development Act.

For assistance regarding property purchases or Conveyancing processes in Singapore matters, do contact us to make an appointment with our conveyancing lawyer.

More Conveyancing FAQs

1) can the buyer back out after signing otp.

A OTP is a valid and binding agreement. If the buyer chooses not to exercise within the option period, he may have to forfeit the option fees unless stated otherwise in the OTP.

After the option period has expired the seller is entitled to keep the options fees, and to sell the property to another buyer.

If a seller backs out after having signed the OTP, the seller has to refund the option fee. Additionally, the buyer may bring about a claim against the seller for specific performance to compel the seller to carry through his obligations under the OTP.

2) Do you need a lawyer to act for you in your conveyancing transaction?

As property purchase is a huge investment, engaging a conveyancing lawyer will help mitigate risk in a conveyancing transaction. The conveyancing lawyer will conduct due diligence checks on the counter party and the property.

The conveyancing lawyer will help to ensure that various payments are made to government agencies on time, and will help to liaise with various parties and government agencies, including the bank you took the loan from, Central Provident Fund, Singapore Land Authority, Housing Development Board and the Inland Revenue Authority of Singapore.

3) What is the difference between a conveyancer and a property solicitor?

In Singapore, conveyancers are qualified lawyers. This is unlike other jurisdictions where a conveyancer need not be a qualified lawyer.

4) How long does it take for conveyancing?

Presuming that the buyer is taking a mortgage loan, or the seller has an outstanding mortgage with the bank that needs to be redeemed before the sale can take place, the entire conveyancing transaction will take about 12 weeks on average.

Where there is no mortgage loan involved, the process can be slightly shorter, subject to mutual agreement by the buyer and seller.

Related Conveyancing Process Articles

  • How to Fund Your Property Purchase
  • Measures to Safeguard Conveyancing Money
  • Real Estate Agent Requirements in Singapore
  • Stamp Duties for Sale and Purchase of Property

Lim Fung Peen

Lim Fung Peen

Judgment finds that cryptocurrency debts can be used to determine whether a company is insolvent, joint bank accounts and wills, prenuptial agreement in singapore: is it valid, marriage separation in singapore – what is a deed of separation, a guide to child custody, care and control and access issues in a divorce.

contact Singapore law firm Yuen Law LLC

Subscribe to Yuen Law's newsletter!

Don’t miss our future updates and news. No spam, we promise.

Yuen Law logo

Forward Thinking, Future Planning

Firm brochure, careers    |    privacy policy.

  • +65 6536 6037
  • [email protected]
  • www.yuenlaw.com.sg
  • 50 South Bridge Road #02-00 / #03-00 / #04-00 Singapore 058682

© Yuen Law LLC 2021

Message us on WhatsApp

This site uses cookies to offer you a better browsing experience. By continuing to use this site, you are consenting to the use of cookies on your device as described in our privacy policy

Singapore Law Help

Singapore Law Help

What is the effect of a gift of property?

  • Transaction is Voidable
  • Subsequent Sale

Transaction is Voidable #

For gift of immovable property within relevant period from the date of the relevant bankruptcy application in which the grantor is adjudged bankrupt, the gift is voidable at the option of the Official Assignor (OA) who may apply to the Court for the relevant orders under the Insolvency, Restructuring and Dissolution Act 2018 subject to the relevant provisions of the Act. The gift may be set aside and form part of the estate of the bankrupt grantor, and the grantee will lose his rights to the property.

In view of the implications of a gift transaction, a Bank is unlikely to grant financing with the property as a security until more than 5 years has elapsed from the date of the Gift

CPF Charge #

Where the property is subject to CPF Charge  and part of the interest in the property is to be transferred by way of gift, the CPF Board would, before consenting to the transfer, require, among other things, a statutory declaration from the donor of the gift to state that he was solvent at the time of making the gift and he has not become insolvent as a result of the transaction.

Because of the serious consequences, before any gift of real properties, it is important that you discuss your intended gift with your Lawyer, so that you are fully aware of the implications resulting from such gift.

Subsequent Sale #

An owner of a property which is subject to transaction at an undervalue (including a gift) as referred to in section 98(3) of the Bankruptcy Act would find it difficult to sell the property within 3/5 years (as the case may be) from the date of that transaction.

For a sale and purchase transaction governed by Condition 10.2 of the Law Society Conditions of Sale 2012, a buyer may rescind the purchase on that ground, which is to protect the buyer who may not have knew of the gift element prior to entering into the purchase. If there is a gift element or property subject to a transaction at a substantial undervaluation, the buyer would find it difficult to procure bank loan to finance the purchase price, and further, within a 5 years period from the date of that transaction, it remains voidable at the option of the Official Assignee as aforesaid.

Caution: This article does not provide legal opinion nor is it comprehensive nor free from error, and reader should read with caution and not rely on the same. You should consult your lawyer if you have any specific legal issue.

Share This Article :

  • Sustainability
  • Latest News
  • News Reports
  • Documentaries & Shows
  • TV Schedule
  • CNA938 Live
  • Radio Schedule
  • Singapore Parliament
  • Mental Health
  • Interactives
  • Entertainment
  • Style & Beauty
  • Experiences
  • Remarkable Living
  • Send us a news tip
  • Events & Partnerships
  • Business Blueprint
  • Health Matters
  • The Asian Traveller

Trending Topics

Follow our news, recent searches, singapore's property tax revenue expected to increase by s$600m due to higher home valuations, advertisement.

File photo of private residences and HDB blocks seen in the distance, in Singapore (Photo: CNA/Jeremy Long)

This audio is AI-generated.

transfer of property in singapore

Chew Hui Min

SINGAPORE: Singapore's residential property tax revenue for 2024 is expected to be around S$600 million (US$446 million) higher than what was collected in 2023, said Second Minister for Finance Chee Hong Tat on Tuesday (Feb 6).

Around two-thirds of the increase is contributed by non-owner occupied properties, he added.

Mr Chee was responding to parliamentary questions by Leader of the Opposition and Workers' Party chief Pritam Singh, who asked how much additional property taxes the government expects to collect in 2024, following the announcement in November last year that such taxes for most homes would go up again .

In a follow-up question, Mr Singh also asked Mr Chee to clarify the difference between the additional S$600 million expected and an estimate given at Budget 2022, when Finance Minister Lawrence Wong said Singapore’s property tax revenue was projected to go up by about S$380 million after a two-step hike to the tax rate.

Mr Chee, who is also Transport Minister, said the higher than expected tax collection for 2024 was largely due to higher annual values (AV), that arose as a result of higher market rentals for residential properties.

Property tax is calculated based on AV, which is the estimated annual rent of the property.

Mr Chee explained that the Inland Revenue Authority of Singapore (IRAS) takes reference from rental transactions for similar properties in the year, and also takes into account a property's location, age, land and floor area, improvement works done as well as features like swimming pools.

For 2024, most owner-occupied residential properties saw their AV increase by more than 20 per cent, he said.

transfer of property in singapore

Property tax to go up for most homes again in 2024; government will give one-off rebate of up to 100%

Mr Chee pointed out that taxes on owner-occupied properties are lower and there are rebates to cushion the impact for such owners.

In November, the Ministry of Finance (MOF) and IRAS said the government will give a one-off rebate of up to 100 per cent on owner-occupied properties.

This ranges from 100 per cent for one and two-room Housing Board flats, to 15 per cent (capped at S$1,000) for private property owners.

"With the rebate, owner-occupiers of HDB one- and two-room flats continue to pay no property tax," said Mr Chee.

"For owner-occupiers of other HDB flat types, the average (property tax) increase is less than S$3 per month.

"For half of private property owner-occupiers, their increase in (property tax) is less than S$15 per month."

Other MPs also asked about future property rebates and voiced concerns from their retired residents living in private properties, about the "hefty" increase in taxes for them.

Mr Chee said that the government was prepared to consider if future rebates are needed when it reviews these issues.

"We are open to exploring whether there are other ways to help seniors and retirees who are staying in private properties who may need a bit more time to pay for their property taxes by installment," he added.

transfer of property in singapore

Related Topics

Also worth reading, this browser is no longer supported.

We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be.

To continue, upgrade to a supported browser or, for the finest experience, download the mobile app.

Upgraded but still having issues? Contact us

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

IMAGES

  1. Transfer of Property in Singapore

    transfer of property in singapore

  2. 9 Market Insights to Property Investment in Singapore

    transfer of property in singapore

  3. 9 Market Insights to Property Investment in Singapore

    transfer of property in singapore

  4. Transfer of property through will. Bank Auctions, Property Auctions

    transfer of property in singapore

  5. How To Transfer House Ownership After Death

    transfer of property in singapore

  6. Property Conveyancing in Singapore: Full Step-By-Step Guide

    transfer of property in singapore

VIDEO

  1. Moving to Singapore Tips 101 #singapore

  2. TRANSFER OF PROPERTY ACT SECTION 5,6,7@VithivilakagaThigazh18

  3. Transfer of Property in Goods

  4. The transfer of property act 1882, 1 to 37

COMMENTS

  1. Transfer of Property in Singapore

    1) Transfer of property by way of a gift during the donor's lifetime (known as an inter vivos gift). It is legal to give away real estate in Singapore without receiving monetary compensation. You can give away property by effecting a Deed of Gift between the transferor and transferee.

  2. A Comprehensive Guide to Transferring Property Ownership in Singapore

    Step 1: Determine the Type of Transfer. There are two main types of property ownership transfers in Singapore: 1. Transfer during the benefactor's lifetime, known as a or "gift". 2. Transfer by means of a will after the benefactor passes away.

  3. IRAS

    Things buyers should check or do before and after purchasing private residential property. On this page: 1. Before the Transfer of Property. 2. After the Transfer of Property. 1. Before the Transfer of Property. Your lawyer usually performs the following tasks as part of conveyancing or the legal process of transferring ownership of property.

  4. IRAS

    *ABSD is applicable on transfer of interest in a residential property on or after 13 Oct 2023 which is distributed in specie to a shareholder of a company in connection with a liquidation of the company. ... You are required to pay BSD for documents executed for the transfer or sale and purchase of property located in Singapore. BSD will be ...

  5. The Conveyancing Process in Singapore

    The Conveyancing Process in Singapore. Last updated on January 17, 2024. Conveyancing refers to the legal process of transferring title in a property from one person to another. For most people, the purchase of a property is likely to be the most expensive purchase they will make in their entire life, and it is therefore important to get it right.

  6. Two Types of Transfer of Property Ownership as a Gift in Singapore

    Execute a Deed of Gift with the individual you want to give your property to. Stamp the Deed of Gift and pay the duty based on the market value of said property. Get the transfer document prepared (you may need a lawyer) and file it with the Singapore Land Authority (SLA) along with the appropriate title document.

  7. Conveyancing Lawyers for Singapore Property Transactions

    In general, you can expect to pay between S$1,300 and $3,000 to engage a conveyancing lawyer in Singapore for a property sale or purchase transaction. However, do note that the fees will vary depending on whether the property is an HDB property or a private property and the complexity of the transaction, among other factors.

  8. HDB Ownership Transfer: Eligibility and Application Guide

    If they own a private property, they must ensure that 1) the existing property has already met its minimum occupancy period (MOP), 2) at least one of the proposed homeowners is a Singapore Citizen and 3) all proposed homeowners and listed occupiers must continue to live in the HDB flat upon ownership transfer. Debarment.

  9. Singapore: New Additional Buyer's Stamp Duty rules for transfers of

    Singapore: New Additional Buyer's Stamp Duty rules for transfers of residential property into trusts. With effect from 9 May 2022, Additional Buyer's Stamp Duty (ABSD) of 35% will apply on any transfer of residential property into a living trust. Previously, ABSD did not apply where the trust had no identifiable beneficial owner at the time of ...

  10. Property Conveyancing Process Guide for Home Seller & Buyer

    Completion. The seller will hand over the keys of the property to the buyer, in exchange for the payment of the remaining 95% of the agreed price. The 4% deposit will also be released by the intermediary to the sellers. The property should be delivered in the same condition (notwithstanding fair wear and tear) as it was on the date of the ...

  11. HDB

    A change in flat ownership (not through a sale) is a conveyancing procedure, similar to that of purchasing an HDB flat. All current and proposed owners must be aware and give consent to the change in flat ownership. This legal process involves the preparation of financial and legal documents. The process typically takes about 4 months, after ...

  12. IRAS

    Stamp Duty is a tax on dutiable documents relating to any immovable property in Singapore and any stock or shares. On this page: Buyer's Stamp Duty; Additional Buyer's Stamp Duty; ... From 9 May 2022 onwards, any transfer of residential property into a living trust will be subject to an ABSD rate that is the same as entities.

  13. Selling a Property in Singapore

    Notify IRAS within one month of the sale or transfer if a property is sold or transferred. If using a lawyer, remind the lawyer to submit the Notice of Transfer via e-Notice of Transfer to IRAS. However, if the property is a HDB flat, the IRAS does not need to be told of the transfer as HDB will notify IRAS of any resale of flats. Stamp duty

  14. Transferring the Ownership of the Private Property

    1. The amount of CPF monies your spouse used to purchase the private property which was not refunded at the time of the transfer of your spouse's share of the private property to you, including accrued interest; 2. The amount you withdrew from your CPF Accounts for the private property, including accrued interest; and. 3.

  15. Decoupling Property in Singapore: Should You Do It in 2023?

    Decoupling for Private Properties in Singapore. For private properties, the process is more straightforward. The contract should specify three things: the property, the price and the parties involved (i.e. you and your spouse). You'll need to seek a lawyer's help to draft the contract and must fulfil section 6 (d) of the Civil Law Act.

  16. Transfer a fully paid property share as a free...

    A transfer of ownership of a property will incur the prevailing stamp duties rates. First $180k, 1%. Next $180k, 2%. Subsequent, 3%, up to S$1m. Amount above $1m, 4%. I am experienced and well-versed in both private and HDB resale transactions. I will be able to assist you on your property plans. Should you need require further assistance in ...

  17. Joint Tenancy vs Tenancy-in-Common and How to Change

    In contrast to a joint tenancy, tenants-in-common own the same property in definite and separate shares. Your manner of holding does not have to be 50-50, and tenants-in-common can have unequal shares. For instance, as a property owner, you can choose to own 75% of the property, while your co-owner owns the remaining 25%.

  18. IRAS

    2. Transfer documents for properties. There are three types of duties payable on the sale, purchase, acquisition or disposal of properties in Singapore: Buyer's Stamp Duty (BSD) Additional Buyer's Stamp Duty (ABSD) Seller's Stamp Duty (SSD) BSD is payable on the purchase or acquisition of properties. Prior to 20 Feb 2018, the top marginal BSD ...

  19. What is the effect of a gift of property?

    Transaction is Voidable. For gift of immovable property within relevant period from the date of the relevant bankruptcy application in which the grantor is adjudged bankrupt, the gift is voidable at the option of the Official Assignor (OA) who may apply to the Court for the relevant orders under the Insolvency, Restructuring and Dissolution Act ...

  20. PDF Filing of e-Notice of Transfer (Update Property Ownership)

    This is a user guide for updating property ownership on IRAS digital services. It explains how to file an e-Notice of Transfer, check the status of the notice, and view the updated ownership details. It also provides screenshots and FAQs for reference.

  21. Singapore's property tax revenue expected to increase by S$600m ...

    SINGAPORE: Singapore's residential property tax revenue for 2024 is expected to be around S$600 million (US$446 million) higher than what was collected in 2023, said Second Minister for Finance ...

  22. How Can I Buy My Co-Owner's Share of the Property?

    Generally, there are two methods of carrying out de-coupling: ownership in the property may be transferred by way of gift or it may be transferred through a sale of the part share in the property. 1. Transfer by way of gift. Transferring the property by way of gift refers to a transfer in which no consideration is paid to the exiting co-owner ...

  23. IRAS

    Seller's Stamp Duty (SSD) for Residential PropertyIf you sell or dispose of your residential property within a certain holding period, you may have to pay Seller's Stamp Duty (SSD). Find out how SSD is computed, the applicable rates and exemptions, and how to file and pay SSD. You may also want to compare the SSD rates with the new Additional Buyer's Stamp Duty (ABSD) rates that will take ...

  24. Singapore to Let DBS Sell Properties in First of Record Laundering Haul

    Singapore authorities said they may lift orders barring the sale of some properties seized in a S$3 billion ($2.2 billion) money laundering probe, paving the way for the first transactions from ...

  25. IRAS

    Basics of Stamp Duty for Property. Who Should Pay Stamp Duty. e-Stamping and Where to e-Stamp Documents. Learning the Basics for Properties. Fixed and Nominal Duties. How do I Retrieve My Stamp Certificate. Verifying the Authenticity of Stamp Certificate. Stamp Duty for Variable Capital Companies.