A Lawyer's Role In Property Transactions
What is my lawyer's responsibility when I purchase a property?
The duties of your lawyer are the following:
* BEFORE YOU PAY THE OPTION MONEY AND SIGN THE OPTION TO PURCHASE
- Title Search : to verify and confirm the property's ownership before advising you whether or not to pay or sign the option to purchase
- Bankruptcy or winding-up & judicial management search : to check that the seller is not in the bankruptcy list or winding up judicial management list
- Option or Sale Contract Check : to make sure that the terms of the contract are fair and agreeable to you
* AFTER YOU SIGN THE OPTION TO PURCHASE
- Caveat Lodge : to make sure that another person cannot make any deals with your property.
- Official enquiry on the Title with the seller's lawyer : a detailed check is made on the Title of your property to ensure that it is in order.
- Send official enquiries to various government departments : to find out whether there is any legal obstacle on the property.
- Transfer documentation : prepare the transfer in your favour, send them to the seller's lawyer for approval, and then engross the document.
- Preparing or vetting the mortgage loan and/or CPF Board documentation : contact your banker & the CPF Board for the necessary documents .
- Notify the Management Corporation : (if a strata titled property is purchased) the MC will be notified, and particulars of the maintenance and service charges obtained
- Completion Account : inform you that you have to get ready the necessary payments.
- Completion : after making a final search to confirm that that the Title is free from any encumbrances, your lawyer will arrange and meet all parties involved to exchange the documents, payments and keys.
Can I change my lawyer before the transaction is completed?
Yes, the outgoing lawyer has to hand over to the newly appointed lawyer all the relevant papers. However, you will have to pay the outgoing lawyer for any work already done. If not, the outgoing lawyer may exercise his right of possession and thus delay the handing over process.
Can I engage the same lawyer as the seller?
Yes. There is no law in Singapore that prohibits a lawyer from acting for both
the vendor (except if he is a developer) and purchaser concurrently. However, it
is not advisable to use the same lawyer in the transaction as there may be the
problem of conflict of interest.
Can I ask for a discount on my legal costs?
No. giving discounts may be seen as a gimmick used by the lawyer to attract
business unfairly.
What is "exercising" the Option to Purchase?
Yes. Foreigners (except Permanent Residents) and non-Singapore companies cannot
be granted Singapore dollar loans to purchase residential properties. Each
Permanent Resident is only allowed one Singapore dollar loan to purchase a
residential property for owner-occupation. Permanent Residents are also able to
borrow loans up to 80% of the purchase price of the property.
If I have developed a town house development, will I be able to hold on to one or more units after completion?
No. Even though you are the developer of the project, you are a foreigner and
will still need to apply to the government for approval to purchase a landed
residential property.
While awaiting for my Permanent Resident pass, I am buying a house with my sister who is a Singaporean. Will we are able to obtain Singapore dollar loan from banks?
Each bank has its own loan criteria. Generally, banks are able to grant you a
loan for Singapore citizens, if your immediate family members meet their
required age and income.
If I am a Permanent Resident getting a home loan, how can I obtain a home loan?
To obtain a Singapore dollar loan, you have to provide:
- a written undertaking that you do not have outstanding housing loans from any other financial institutions in Singapore
- you are buying the property for owner-occupation
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Residential Sale : Role Of Lawyer