` - Do I need to engage in the services of lawyer when buying a property?
- I am a foreigner, can I purchase any property that I like?
- What is Power of Attorney?
- What is option money?
- Do I have to pay option money when I buy an HDB property?
- Is a valuation needed?
- Can I use my CPF when I purchase a property?
- What is "completion date"?
- Do I need to engage in the services of lawyer when buying a property?
In general, it is advisable to engage in the services of a lawyer when buying properties. They will be able to perform title searches, bankruptcy searches, help you review contracts and agreements that must be signed as well as make you aware of any special considerations and potential problems that may arise.
Lawyers are also able to help you check the land area of the house or the floor area of a flat and any future road widening projects or drainage projects. Back to top
- I am a foreigner, can I purchase any property that I like?
Under the Residential Property Act, foreigners can only purchase units in condominiums or apartments in a block that is not less than 6 storeys high. Otherwise, a special approval is required from the Controller of Residential Property.
Only Singapore citizens or approved persons can purchase landed residential properties. Back to top
- What is Power of Attorney?
A Power of Attorney gives the attorney power to enter into any agreements, sign any document relating to the transfer of property (except Application Forms and Statutory Declaration forms), collect any documents and to re-enter the property, if necessary, to inspect the condition of the property. Back to top
- What is option money?
Option money is money deposited to secure the purchase of the property. It is paid when you are given an Option to Purchase. Option money applies only to private property and usually amounts to 1% of the sale price.
Your option money will contribute towards the deposit for the property if you exercise the option. If you do not exercise the option, the option money will be forfeited. Back to top
- Do I have to pay option money when I buy an HDB property?
For HDB properties, you do not have to pay any option money. However, upon signing the sale and purchase agreement, you would need to make a deposit of about $5,000. Back to top
- Is a valuation needed?
A valuation is needed if a loan is to be taken from a bank or from HDB. The bank or HDB usually determines the loan amount based on the valuation and the purchase price of the property. Back to top
- Can I use my CPF when I purchase a property?
Yes, however the CPF board only allows the use of CPF Funds for the purchase of freehold or leasehold property with at least 60 remaining years. Your lawyer will lodge a CPF application on your behalf. Back to top
- What is "completion date"?
Completion date is the date on the contract that acknowledges your legal right of ownership of the property. The keys to the property and the Deed of Conveyance are handed over to the purchaser by the vendor. The Deed/ Transfer document is also lodged to the Land Registry at this point of time. Back to top
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