[BUYING AND SELLING REAL ESTATE IN SINGAPORE]
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and registered with the Registry of Deed to secure priority based on the date of registration. Tracing of title is important with unregistered land, and usually requires careful checking of at least 15 years prior to its registration to ensure a good root of title. Registered land relies on only one document of title, on which every transaction affecting the property is endorsed. Registration with SLA is required to effect the transfer of the interest in the land. Upon such registration, SLA will issue a certificate of title to the registered proprietor. As most land in Singapore has now been converted to registered land, the change in proprietorship of the property will be effected by the execution of the prescribed form. Upon completion of the sale, this form is lodged and registered with SLA together with the pre- existing version of the certificate of title. Following the registration of the form, SLA will update the land registry to reflect the new proprietor(s) of the property and issue a new version of the certificate of title to the new proprietor(s), and to reflect the mortgage or charge, if any, over the property. TAXES Stamp duty is payable on the acquisition or disposal of a property situated in Singapore, or both. The amount of duty payable is computed based on the purchase price or market value of the property, whichever is higher. Such dutiable acquisitions or disposals include those by way of gift or by way of a trust (where there is a change in the beneficial ownership of the property), but do not include acquisition of properties by way of inheritance under the terms of a will or by effect of law. Stamp duty is payable within 14 days of the date of the instrument effecting the acquisition or disposal of the property if the instrument is executed in Singapore. For instruments
executed outside of Singapore, stamp duty is payable within 30 days. A penalty of up to four (4) times the amount of unpaid duty may be imposed for any late or non-payment. For Purchasers A purchaser is liable for Buyer’s Stamp Duty (“BSD”) and may also be liable for Additional Bu yer’s Stamp Duty (“ABSD”). Prior to 20 February 2018, the BSD rate was up to 3%. With effect from 20 February 2018, BSD rates differ for residential and non-residential properties, with the BSD rate for the former going up to 4%, depending on the purchase price of the property. Whether ABSD is payable depends on whether the purchaser is an individual or entity, the residency status of the purchaser and the number of residential properties owned (in whole or in part) by the purchaser prior to the acquisition in question. Prior to 6 July 2018, the ABSD rate was up to 15%. With effect from 6 July 2018, the ABSD rate has increased to up to 25%. Where there are multiple purchasers, the ABSD payable will be computed based on the purchaser with the profile who attracts the higher rate. It should be noted that there are also remissions available such as remissions to married couples of certain profiles and remissions under Free Trade Agreements. Purchasers should also note that where a mortgage is obtained to finance the purchase of the property, the mortgage is also subject to a stamp duty of 0.4% of the loan amount, or if an equitable mortgage, then 0.2% of the loan amount, both capped at a maximum stamp duty of S$500.
ILN Real Estate Group – Buying and Selling Real Estate Series
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