| 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?
|
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.
|
| Back to Top |
| 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. |
| Back to Top |
| If property purchase approval is required, how long does it take? |
| The entire process normally takes about three months. |
| Back to Top |
| No. Such an arrangement is illegal. |
| Back to Top |
| No. It cannot be transferred. |
| Back to Top |
| 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. |
| Back to Top |
| 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.
|
| Back to Top |
| 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.
|
| Back to Top |
| 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.
|
| Back to Top |
| 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. |
| Back to Top |
| 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. |
| Back to Top |
| Contact us |
For more information, email us at email@healyconsultants.com or contact us at our Singapore office at (+65) 67350120.
|
ASIA PROPERTY CONSULTANTS |