Frequently Asked Questions
The following are some of the most frequently asked questions about purchasing real estate in Singapore.
Are there any restrictions for foreigners wanting to buy properties in Singapore?
If property purchase approval is required, how long does it take?
What is my lawyers responsibility when I purchase a property?
Who is classified as a 'foreign person'?
A 'foreign person" is defined in the Residential Property Act as i) any person not a citizen of Singapore ii) any Permanent Resident or iii) any foreign company.
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Are there any restrictions for foreigners wanting to buy properties in Singapore?
Yes. Unless there is a written approval from the Controller of Residential Property Land Dealings, a foreigner can only buy the following property types:

i) Any flat in a development bearing the title 'Condominium';
ii) Any flat in a building that has at least 6 levels, including the ground level and any level below the ground
iii) Any non-residential, commercial or industrial property.

A foreigner must apply to the authority if he/she wants to purchase the following properties:

i) Any landed residential properties including detached houses, semi-detached houses and terrace house;
ii) Any flat in a building of less than six levels;
iii) Any vacant land zoned for residential use.
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If property purchase approval is required, how long does it take?
The entire process normally takes about three months.
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Can I ask my Singaporean friend to purchase a landed residential property in Singapore on my behalf, and make him a trustee for my benefit?
No. Such an arrangement is illegal.
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I have been granted approval to purchase landed properties, can I later transfer this approval to another foreigner?
No. It cannot be transferred.
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What factors would the Singapore government consider when evaluating my application?
The government will consider the following main factors:

i) your ability to make an economic contribution to Singapore;
ii) your qualifications;
iii) whether you are a Permanent Resident of Singapore.
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Can I appeal if my application is rejected?
Yes. You may appeal to the Ministry of Law within three months from the date of notice of rejection. However, only one appeal is permitted.
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If I have developed a town house project, can I retain one or more units after completion?
No. Even though you are the developer of the project, you are a foreigner and will still need to apply to the government for approval to purchase a landed residential property.
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Are there any restrictions on mortgages for foreigners?
Yes. Foreigners (except Permanent Residents) and non-Singapore companies cannot be granted Singapore dollar mortgages to purchase residential properties in Singapore. Each Permanent Resident is only allowed one Singapore dollar mortgage to purchase a residential property for owner-occupation. Permanent Residents are also able to borrow loans up to 80% of the purchase price of the property.
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What conditions must I fulfill if I am a Permanent Resident getting a mortgage?
To obtain a Singapore dollar mortgage, you must provide:

i) a written undertaking that you do not have outstanding housing loans from any other financial institutions in Singapore;
ii) you are buying the property for owner-occupation.
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What is my lawyers responsibility when I purchase a property?
The lawyers' duties include:
BEFORE YOU PAY THE OPTION MONEY AND SIGN THE OPTION TO PURCHASE

i) Title Search: to verify and confirm the property's ownership before advising you whether or not to pay or sign the option to purchase;

ii) Bankruptcy or winding-up and judicial management search: to check that the seller is not in the bankruptcy list or winding up judicial management list;

iii) Option or Sale Contract Check: to make sure that the terms of the contract are fair and agreeable to you.

AFTER YOU SIGN THE OPTION TO PURCHASE

i) Caveat Lodge: to make sure that another person cannot make any deals with your property;

ii) Official enquiry on the Title with the seller's lawyer: a detailed check is made on the Title of your property to ensure that it is in order;

iii) Send official enquiries to various government departments: to find out whether there is any legal obstacle on the property;

iv) Transfer documentation: prepare the transfer in your favour, send them to the seller's lawyer for approval, and then engross the document;

v) Preparing or vetting the mortgage loan and/or CPF Board documentation: contact your banker & the CPF Board for the necessary documents;

vi) Notify the Management Corporation: (if a strata titled property is purchased) the MC will be notified, and particulars of the maintenance and service charges obtained;

vii) Completion Account: inform you that you have to get ready the necessary payments;

viii) Completion: after making a final search to confirm that that the Title is free from any encumbrances, your lawyer will arrange and meet all parties involved to exchange the documents, payments and keys.

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Contact us
For more information, email us at email@healyconsultants.com or contact us at our Singapore office at (+65) 67350120.

 

 

 


 

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