Professional Documents
Culture Documents
Scenario
Client: I am buying a property.
Please act for me.
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.
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.
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.
Here’s a simplified table showing the “priority” of payments, ie. how the sales proceeds would be applied
*
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
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.
• 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
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)
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
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
- 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
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.
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).
R.29 Registration of Deeds Rules contains exact same provision as R.9 LT Rules
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
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.
• 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
• 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
FAQ on Restrictions on Foreign Ownership of Land under the Residential Property Act (The Act)
What are the properties a foreign person can acquire without having to apply for approval under the
Residential Property Act?
• 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 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.
• 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
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
b) Corporate Client
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.
• 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))
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
• In every transfer of land, P must specify citizenship status/place of registration/place of incorporation of body
corporate
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
b) Loan Application
• 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
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)
• 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
- 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
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.
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 $12.9 million owed by Alps.
He then sought to claim this amount from the law firm.
In rejecting his claim, JC Rajah found that lawyer Tan Yah Piang had indeed given proper advice to Mr Lie, who, in
any event, would have signed the mortgage documents, he said.
JC Rajah said Mr Tan struck him as 'a cautious and experienced solicitor'.
He also accepted Mr Tan's evidence that it was not his practice to keep attendance notes in routine matters.
'While it is good practice to maintain such contemporaneous notes, the absence of such notes, in the event of a
dispute, does not inexorably mean a solicitor is to be disbelieved,' said the judge.
On the other hand, he found Mr Lie's evidence to be a 'mixture of dissemblance and feigned naivety'.
In rejecting his version of what happened at the meeting, the judge said Mr Lie's evidence was tarnished by
'evasiveness, elasticity and exaggeration'.
JC Rajah said the law firm had been exonerated in this case simply by dint of Mr Lie's lack of credibility.
The proceedings could have been thwarted if reliable written records of what had transpired had been
maintained, he added.
'Would it be too much to expect members of the legal profession to take this case as a cue to exercise foresight in
future by maintaining satisfactory written records of dealings with and for their clients?' he asked
• Financing arrangement:
- Must comply with MAS Regulations (15/5/96)
- S$ 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)
Type of Property
Making the Downpayment
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.
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.
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).
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 -
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.
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.
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
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
- Advise your client that if CPF monies are used to pay for the property, charges are placed on the 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:
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????)
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.
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.
• 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.
• 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.
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
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.
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.
• 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
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
• BUT if do return interest to client, remind him to declare it for Income Tax purposes
Option or Agreement
sale and purchase transaction may be carried out either way
• 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.
• 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
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:
(*) Thus, good practice to make inventory of items promised to C so as to avoid misunderstanding.
• 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
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)
Contributions
(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
• 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
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.
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 “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.
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).
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.
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.
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.
or
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.
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.
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?
PREPARATION OF CONTRACT
COMPLETED PROPERTY
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
7.3 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
C. LEGAL REQUISITION
- what is satisfactory to the Vendor may not be satisfactory to the Purchaser