Singapore Property Ownership

There are two systems of land registration in Singapore. Land in Singapore is held under the
The registration of property transactions is handled by the Land Registry. The Registry registers all legal transactions affecting land, e.g. landed property (bungalows, terrace houses and semi-detached houses), flats (whether private or HDB) and commercial and industrial properties. The land register for each parcel of land has a description of the land, the nature of the estate, i.e. freehold or leasehold, the proprietor of the estate, particulars of other interests affecting the land, for example, mortgages, charges and restrictive covenants. There are 2 such land registers, which co-exist: The Register of Deeds for Common Law lands under the Registration of Deeds Act; and The Land Titles Register for titles land under the Land Titles Act. Interest in land under the Common Law system is passed by the act of the parties, that is, when a deed is signed, sealed and delivered. Therefore the Registration of Deeds is not mandatory. However it is advisable to register deeds for 2 main reasons: to secure priority and admissibility in court.

Singapore Transaction Information

Open listings for agents are: Available.

Exclusive listings for agents are: Available. Multiple listing services are used and available to the public.

Singapore Trade Associations

Institute of Estate Agents

address: 568 Ganges Avenue #02-100 Singapore 160568 phone/fax: +65 63231770 / +65 63231779 website: www.iea.org.sg . Founded in 1998, the Institute of Estate Agents (IEA) aims to represent all estate agents in Singapore. The objectives of IEA are to promote and protect the interests of estate agents as well as to protect the interests of the public who engage the services of estate agents.

Singapore Land Rights

The tenures are freehold (fee simple), estate in perpetuity (statutory land grants), leasehold title (30, 60, 99 or 999 years) and temporary occupation permits. Owners generally hold land and buildings. Residential property is subject to restrictions of foreign ownership under the Residential Property Act of 1973. Landed property, apartment units in buildings under six stories, apartment units in buildings which do not have condominium status, and land zoned for residential purposes are all examples of properties subject to ownership restrictions. Application to the Minister of Law through the Land Dwellings Unit for approval to purchase such properties.

When considering the purchase of property two searches must be utilized to ensure good title. Bankruptcy search on the status of the present owner and can be obtained from the High Court, which is usually done by a lawyer. Title deed search to ascertain the status of the property you are about to own, whether it is freehold or leasehold. Naturally, a freehold property would give your property better value for money. A title deed search will also disclose whether the property is free from any adverse interests such as charges or encumbrances or whether the property is affected by any easements or restrictive covenants.

Singapore Forms of Ownership

Property may be owned in joint-tenancy where all the owners have an equal interest in the property regardless of the amount of money each co-owner has contributed towards the purchase price of the property. Property can also be owned as tenancy-in-common in which each co-owner holds a separate and definite share is the property. However, all the co-owners are entitled to the enjoyment of the property regardless of his share in the property. Only in a joint-tenancy is there a right of survivorship. This means that upon the death of any co-owner under a joint-tenancy, his interest or share in the property will be automatically passed to the remaining co-owner(s). This is so regardless of whether the deceased joint-tenant has left behind a will. There is no right of survivorship in a tenancy-in-common. In other words, unlike a joint-tenancy, the deceased's interest does not pass automatically to the remaining co-owners. Upon the death of a tenant-in-common, the deceased's interest can be distributed in accordance with his will (if any) or under the provisions of the Intestate Succession Act.

Singapore Real Estate Info Summary

Title & Contracts in Singapore

Adverse possession is not recognized in Singapore under the Limitation Act no matter the length or type of occupation.

Conveyance of Common Law land registered under the Registration of Deeds Act is complicated and labor intensive. In order to be sure that the owner has a good title to the land, an investigation has to be made into the chain of title, i.e. all the deeds affecting the land for the past 15 years have to be inspected. This is the minimum statutory requirement, provided a "good root of title" can be found from which to commence the investigation. In order to simplify the titling process, the Land Titles Act was introduced in 1960. Under the Land Titles System, a Land Titles Register is maintained and Registration of Instruments is mandatory under the Land Titles Act as title does not pass without registration. To be registered, all documents must be lodged in the prescribed form. In order to bring land under the new Land Titles System, the Land Registry has been converting Titles from the Common Law to the New Land Titles System. This Titles Conversion project was completed on 31st December 2002. Once a piece of land has been converted from the Common Law system to the new Land Titles system, a title will be issued for the land. This is only one of the instances where title is issued. The Land Registry is also responsible for issuing Certificates of Title for land sold by the State and new landed developments, as well as Subsidiary Strata Certificates of Title for new condominiums, flats, flatted factories and office buildings.

Oral agreements are not binding in the sale and exchange of real property in Singapore. It is a requirement in law for contracts for the sale of a property to be evidenced in writing and signed by the seller or his authorized representative.

Property Taxes:

Property Taxes are calculated based upon annual value which is the estimated annual rent that your property can fetch regardless if the property is let out even if it may be vacant or owner-occupied. If your property is a piece of land, the annual value is 5% of the market price of the land.

Property tax is levied on immovable properties and is computed as a percentage of the annual value of the property. Since 2003, owner occupied properties are taxed at the concessionary rate of 4% of the annual value after submitting the appropriate forms. Non-owner occupied properties are taxed at 12% of the annual value. Foreign owners are subject to a 10% surcharge of the annual value of a residential property.

Land Use & Control

Land use controls are maintained and defined by the Ministry of National Development. The Singapore green plan 2012 will have significant impact upon future development locations and restrictions.

Singapore Mortgages & Financing

Legal Mortgages can only be created by way of deed in English language. The mortgage will be a conveyance for freehold estates or assignment of leasehold estates, by mortgagor of his interest in land to mortgagee with provision for redemption upon complete payment of the debt. When mortgagor only has an equitable interest in land an equitable mortgage is recognized. The mortgage provides for certain rights to be conveyed to the mortgagee including foreclosure, sale, insurance, appointment of receiver and granting of leases over mortgaged property. Registration is required under the Registration of Deeds Act and Land Titles Act. Priority under these acts is determined by the registration date. Mortgages are subject to a stamp duty which is S$4 for every S$1000 of the loan, with the total taxed amount not to exceed S$500. Equitable mortgage taxes are assessed at S$2 for every S$1000 with total taxes also not to exceed S$500.

Most financial institutions in Singapore offer mortgage loans based on three main criteria: value of property, age and creditworthiness of the borrower. The value of the property will be appraised by a licensed value appointed by the financial institution. The age of the borrower will determine the maximum loan period, and the creditworthiness will determine the financial amount allowed. The loan period is usually a maximum of 30 years, and the interest rate charged is higher for a longer loan period. Mostly, the monthly interest payable is based on the outstanding loan amount either on monthly rest or annual rest.