Pre-sale checks

You may be liable for Seller’s Stamp Duty based on the date of acquisition of your property and the holding period

• Seller’s Stamp Duty (SSD) is payable on all residential properties and lands bought on or after 20 February 2010 and sold within the holding period

• SSD is computed by applying the SSD rate on the selling price or market value of the property, whichever is higher, as at the date of sale or disposal
• Where parts of the property was acquired at different times, the holding period for each part will be computed from the respective acquisition dates
• Where the sale or disposal comprises only a partial interest in the property, SSD will be based on the selling price or market value of the partial interest, whichever is higher

Notes:

1.     Where land is sold with existing building, the liability for SSD will be based on the zoning of the land in the Master Plan.

2.     For non-residential property that is re-zoned or the permitted use is changed to residential, the date of acquisition of the property will be the date of rezoning or the change of use.

3.     SSD payable to be rounded down to the nearest dollar.

Procedure of selling your property

• Set your asking price. Consider engaging a real estate salesperson (property agent) who can assist you in pricing and handling the paperwork

• Check that the salesperson is registered with the Council for Estate Agencies (CEA)
• According to market practice, the buyer does not need to pay commission to his salesperson. Buyer’s salesperson will share the commission paid by the seller to his salesperson.

• Market your property. Your salesperson will assist you in this

• List your property for sale

• Screen the prospective buyers

• Check if your property fits their criteria, such as budget, number of bedrooms, size and location

• Conduct viewing

• Negotiate with buyers who will try to bargain

• Grant Option to Purchase (OTP) to buyer in exchange for 1% Option fee

• The standard Option fee is 1% of the negotiated selling price
• The standard OTP is valid for 14 days
• The property is reserved exclusively for the buyer during this period

• Receive signed OTP and 4% Exercise fee from buyer

• 1% Option fee from the buyer is forfeited if the OTP is not exercised within the valid period. You may keep the fee.
• The standard Exercise fee is 4% of the negotiated selling price

• Upon the buyer’s exercise of the Option, the buyer and seller enter into a Sale and Purchase agreement(S&P)

• The S&P is usually based on The Law Society of Singapore’s Conditions of Sale 2012
• Buyer will receive duplicate of signed S&P within 14 days of the exercise of the option
• Buyer’s lawyer will perform duties, such as lodging a caveat and conducting legal requisitions on the property

• Pay Seller’s Stamp Duty (SSD) within 14 days of the exercise of the option
• Completion

• The scheduled completion date is stated in the S&P
• If the sale is not completed by the scheduled date, the Buyer may be liable for Late Completion Interest to the Seller and vice versa, under the Conditions of Sale 2012

Source: URA, SLA, IRAS, CEA, The Law Society of Singapore, The Edge Property