[BUYING AND SELLING REAL ESTATE IN SINGAPORE]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER SINGAPOREAN LAW
INTRODUCTION There are two systems of land registration in Singapore: registration under the Registration of Deeds Act, known as “unregistered land”, and registration under the Land Titles Act, known as “registered land”. Currently, most land in Singapore has been converted and brought under the latter registration system. As such, most of this article will be concerned only with land registered under the Land Titles Act. The entity overseeing the land registration in Singapore is the Singapore Land Authority (“SLA”). Other relevant legislation governing real estate law in Singapore include the Land Titles (Strata) Act, the State Lands Act, the Land Acquisition Act, the Planning Act, the Residential Property Act, and the Housing and Development Act. ESTATES & INTERESTS IN LAND Land may be held in different ways such as: i) estates in fee simple (or freehold); ii) estates in perpetuity; and iii) leases (typically, 99-year leasehold); Both estates in fee simple and in perpetuity are where a person holds the land indefinitely. However, the latter is subject to covenants and conditions such as the payment of quit rent. Leases are for definite terms and are also subject to covenants and conditions. Leases are distinguishable from tenancy agreements in that the latter are not considered disposals of land which require the approval of the President. While smaller estates or interests can be carved out of larger estates (e.g., the owner of an estate in fee simple may grant a lease of 99 years to a lessee, or the owner of a 99-year
lease may grant a lease of 30 years to a sub- lessee), the creation of some estates or interests may require the prior written approval from the relevant authority. All land may be reclaimed by the State under
the Land Acquisition Act. REAL ESTATE OWNERSHIP Manner of Holding
Property in Singapore may be held in sole or joint ownership. Joint ownership can come in the form of joint tenants or tenants-in-common. In joint tenancy, the joint owners own the whole interest in the property and there is no separation in shares. Conversely, tenants-in- common own the same property in distinct and separate shares. The right of survivorship applies only to joint tenancy, meaning the survivor will eventually own 100% of the property. It is possible to convert one manner of joint holding to the other. This is usually done by way of registering with SLA a declaration which has been signed before a Commissioner of Oaths. Public Housing Public housing in Singapore is subsidised and comes under the purview of the Housing and Development Board (“HDB”) and are more commonly known as “HDB flats”. Currently, more than 80% of Singapore’s population live in HDB flats. The eligibility criteria for HDB flats are generally assessed based on Singapore citizenship, income, age, family nucleus and non-ownership of other residential property. A person who owns a private property (whether in whole or in part) is precluded from purchasing a HDB flat unless he sells the private property.
ILN Real Estate Group – Buying and Selling Real Estate Series
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