Process of purchasing and selling
Thinking of purchasing properties in Singapore? You did not hear wrong. Singapore permits people from all around the world to buy its properties for commercial as well as residential uses. Foreign businesses or foreigners can buy selected properties. On the other hand, you should consider certain things (just like buying any other things) and have knowledge about any limitations before you sign the contract.
Prior to buying properties in Singapore you need to be aware that buying properties or apartments directly from HDB require the following:
- It is necessary for the lessees to complete the required and agreed occupation time prior to buying the properties.
- After the property is brought, it is necessary for the lessees to stay in that HDB flat on a continuous basis.
Think that the apartments have been purchased by using CPF Housing Grant from the open market.
If you have brought the property without the grant from CPF then it is not necessary for you to fulfill the occupation period. On the other hand, you will be required to fulfill the lease agreement by staying in the HDB flat until the commitment has been completed or maybe after you have brought it.
This whole procedure consists of 10-14 weeks and you should make arrangements for all the necessary documents and papers to avoid any further postponements.
Check out the guide below for purchase or sale of property:
1. Agent: Employ an expert agent so that the investment you make is a good one and not a bad choice. The agent will assist you in finding the property which will meet your requirements. He/she would also undertake all the legal work. He/she will also give you advice on legal representation or finance.
2. Price: Ask for the price which suits you. Even when you are in the preliminary stages, note all small details about the property and talk about them to make the purchase or sale of property go smoothly.
3. Alternative to purchase: When you are buying HDB properties, be aware that the HDB alternative has been replaced by the Sale and Purchase Agreement form. This will act as a contract and you can use it for property transactions or resale of the apartment. Supplemental agreement or any type of agreement like this is not permitted. Such a standard option started from 15th April 2003. The seller’s agent will obtain the alternative to purchase for private properties. You will be asked to pay a non-refundable option fee (1% of the cost) and last for two week.
4. Lawyer: In this stage you will be required to hire a lawyer to assist you in checking the legal status of the seller along with the property and terms of sale.
5. Choosing payment option: As a buyer you can select the terms and rates for financing. You can withdraw CPF savings by having a validation report made by an authorized and licensed evaluator and by filling an application form.
6. HDB first appointment or exercising option: The purchaser and the seller of HDB properties are required to attend the Sales Declaration & Registration appointment. This would mean that the transaction has been made regarding the final price. After four weeks of the appointment, HDB will verify the validity and the eligibility of the deal. After that the 1st appointment is made and the complete procedure takes about four weeks. Payment of 5% of the price will have to be made and stamped within two weeks of the contract (in case of private properties).
7. Official assessment and completion: The lawyer you hired would carry out scrutiny of the title deeds and send requisitions to relevant departments of the government. Similarly, the lawyer of the seller would also make the completion statement and have it stamped.
8. Settling payment and handover or the HDB 2nd Appointment: The deal will be completed in the 2nd HDB appointment in case of HDB properties. This procedure will take about a month after the 1st appointment. At this stage, mortgage and insurance details are prepared and all the legal fees are paid. At this stage, the purchaser can move in to the property purchased.
The remaining amount will have to be paid in case of private properties. It usually takes 8-12 weeks and the lawyer of the seller will inform the buyer when he can move in to the property.
It can take some time to buy and sell properties in Singapore so plan in advance so that you can prevent any mistakes which can delay the process.