Buying a property is likely the largest financial commitment most people will make, which is why the process involves numerous legal procedures to ensure both the buyer and seller are well-protected throughout. In Singapore, homebuyers need to engage a conveyancing lawyer to handle the legal procedures for private property transactions.
Conveyancing refers to the legal transfer of a property from one owner to another. When buying or selling property in Singapore, there is a lot of legal and administrative work that must be completed before the transaction is finalized. Although the process of buying and selling a house may seem straightforward, many details can go wrong with just a moment of carelessness.
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Singapore Conveyancing Fees
Legal fees, also known as conveyancing fees, typically range from S$2,500 to S$5,000:
Legal Fees for HDB Flat Financing
| Buying a Resale HDB Flat | Buying a BTO Flat | Refinancing |
| S$1,800 – S$2,500 | S$2,000 – S$2,700 | S$1,600 – S$2,200 |
Legal Fees for Private Property Financing
| Up to S$2 million | S$2 – S$3 million | S$3 – S$5 million | Above S$5 million | |
| Property Under Construction | S$2,500 – S$3,000 | S$2,500 – S$3,200 | S$3,500 – S$4,500 | From S$4,000 |
| Resale Property | S$2,400 – S$2,800 | S$2,500 – S$3,000 | S$3,000 – S$4,500 | From S$4,000 |
| Resale Property (Landed) | S$2,500 – S$3,000 | S$2,800 – S$3,300 | S$3,000 – S$4,500 | From S$4,000 |
| Refinancing | S$2,000 – S$2,800 | S$2,200 – S$3,000 | S$2,500 – S$3,500 | From S$3,500 |
| Executive Condominium (EC) | S$2,500 – S$3,000 | – | – | – |
Singapore’s conveyancing fees can be broken down into the following categories:
| Type of Conveyancing Fee in Singapore | Payable To |
| Professional Fees | Lawyer |
| Searches on solvency or bankruptcy of seller and buyer | Ministry of Law |
| Road line plan searches | Singapore Land Authority (SLA) Integrated Land Information Service (INLIS) |
| Management Corporation Strata Title (MCST) certification | Singapore Land Authority (SLA) |
| Mortgage stamp duty | Inland Revenue Authority of Singapore (IRAS) |
| CPF legal fees and expenses | CPF Board |
| Title searches | Singapore Land Authority (SLA) |
| Legal requisitions | Seven government agencies |
| Lodging of caveat by buyer and bank for transfer and mortgage | Singapore Land Authority (SLA) |
| Transfer registration fee | Singapore Land Authority (SLA) |
| Mortgage registration fee | Singapore Land Authority (SLA) |
| Bank charges for issuing cashier’s orders | Bank |
The fees above apply to private property transactions. For transactions involving HDB flats or Executive Condominiums (ECs), the Housing & Development Board (HDB) acts as the buyer’s legal representative and defines the housing costs and fees. For calculation rules, please refer to the HDB website.
A buyer or seller can appoint someone to act on their behalf in a conveyancing transaction through a Power of Attorney (POA). A conveyancing transaction refers to the transfer of property ownership from one party to another, which includes granting a mortgage (i.e., another party’s claim on the property), such as a home loan.
If you intend to use a POA for a conveyancing transaction, note that a POA is typically valid for two to six years, during which the appointee can sign on behalf of the principal in property transactions.
Option to Purchase (OTP) and Appointing a Conveyancing Lawyer
Assuming the buyer has found a condominium unit they wish to purchase, has obtained an Approval-in-Principle for a home loan from the bank, and their offer has been accepted by the seller. At this point, the buyer needs to:
- Enter into a valid and legally binding contract in writing with the seller. This contract is called the Option to Purchase (OTP) and gives the buyer the exclusive right to purchase the property at the agreed price.
- Pay an Option Fee of 1% of the agreed purchase price directly to the seller in exchange for the OTP.
Issuing an OTP also means the seller cannot engage in transactions with other potential buyers during its 14-day validity period.
Upon receiving the OTP, the buyer should first consider appointing a conveyancing lawyer to ensure timely access to professional legal services. When receiving a quote from a law firm, ensure it covers every aspect of the complete conveyancing transaction, including mortgage stamping fees, CPF fees, Law Society fees, Goods and Services Tax (GST), and many other items.
One of the primary tasks of a conveyancing lawyer is to review the OTP, which must be exercised within 14 days of its issuance. Concurrently, the lawyer may assist the buyer in obtaining home loan approval. The lawyer should also provide a clear timeline with deadlines for all stages before the service is completed.
Lodging a Caveat
When the buyer is ready to exercise the OTP, their lawyer will lodge a caveat against the property’s title. This serves to notify the public and/or any other interested third parties that the buyer has a valid claim or legal interest in the property. In other words, the caveat prevents the property from being sold multiple times.
After exercising the OTP, a down payment of at least 4% of the purchase price must be paid to the seller. This payment is made to the buyer’s lawyer via a conveyancing account (i.e., a holding account) and will be released to the seller along with other transaction-related funds upon completion. The conveyancing account can be:
- A dedicated conveyancing account opened by the law firm for receiving such payments;
- The Singapore Academy of Law (SAL)’s Conveyancing Money Service;
- An escrow account jointly held by the lawyers of both the buyer and seller.
The conveyancing account is set up to ensure that no one can abscond with the funds during the transaction, from the transfer until the transaction is complete.
After exercising the OTP, the buyer’s lawyer will proceed to file legal requisitions with seven government agencies, including the Public Utilities Board (PUB), Land Transport Authority (LTA), National Environment Agency (NEA), and Inland Revenue Authority of Singapore (IRAS). This is to confirm that the seller has a “good root of title,” meaning there are no unresolved issues like outstanding property taxes, which could harm or negatively affect the buyer upon transfer of title.
The legal requisitions to be filed with the seven government agencies are as follows:
| Government Agency | Purpose of Requisition |
| Public Utilities Board (PUB) Water Reclamation Network Department | Sewerage and drainage systems |
| Land Transport Authority (LTA) Survey and Lands Department | MRT works |
| Road works | |
| Land Transport Authority (LTA) | Road line plans |
| Building and Construction Authority (BCA) | Alterations or additions to the building |
| National Environment Agency (NEA) Environmental Health Department | Outstanding issues like mosquito breeding, drain blockages, etc. |
| National Environment Agency (NEA) Central Building Planning Unit | If the property is affected by current drainage schemes |
| Inland Revenue Authority of Singapore (IRAS) | Unpaid property taxes |
| Urban Redevelopment Authority (URA) | To determine Master Plan zoning, any decisions on proposed developments, etc. |
The sale can only be completed when all requisitions receive satisfactory replies. If the results are unsatisfactory, the seller can be requested to rectify the issues to facilitate the sale. If the encumbrance cannot be removed, the buyer can cancel the sale, in which case the buyer’s loss is limited to the 1% option fee paid for the OTP.
Pre-Completion of Property Transaction
After exercising the OTP, the buyer and seller will agree on a completion date for the sale, typically within 10 to 12 weeks. During this period, the buyer’s bank appraiser will also conduct a formal valuation of the property.
If the seller is still paying off a mortgage on the property, the lawyers for both parties need to work together to discharge the property from the seller’s mortgage encumbrance and facilitate the transfer of the property’s title from the financial institution to the buyer.
On the buyer’s part, they need to be prepared to submit any necessary documents to their conveyancing lawyer, who will liaise with the CPF Board and/or financial institutions to confirm that the required loan amount and CPF funds are ready for withdrawal to successfully complete the sale within the agreed timeframe.
Completing these steps in a timely manner is crucial, as delaying the completion date can lead to unexpected consequences, such as additional bank administrative fees and interest charges of 6% per annum on the sale price payable to the seller. Conversely, this also applies to the seller; if the delay is caused by the seller, they must pay the buyer interest at 6% per annum on the sale price.
The 10 to 14-week interval between exercising the OTP and completing the sale also allows the seller to move out of the property (if they haven’t already) and ensure that old furniture is disposed of, or agreed-upon repairs are completed. This, of course, depends on the terms of sale agreed upon by both parties, which would apply if the property is being purchased in an “as is” condition or with “vacant possession.”
As the completion date nears, if the property is still occupied, the seller will grant the buyer vacant possession. In this situation, the buyer can inspect the property for any defects. If any are found, they can be submitted to the seller for rectification before the sale is completed. It is important to note that resale properties do not have a defect liability period.
If the inspection is satisfactory, the lawyers for both parties will complete the transaction, which includes the handover of keys and the exchange of cashier’s orders.
Completion of Conveyancing and Key Collection
Upon completion, the buyer will receive the keys to their new home, the property’s title deed, and the transfer form for the new ownership. The buyer’s lawyer should have already followed up on transferring the remaining 95% of the payment to the seller, which includes the rest of the down payment. At this point, the conveyancing is legally complete.
The buyer’s lawyer will then notify IRAS (and any other relevant authorities) that the buyer is the new owner of the property. This means that maintenance fees, property taxes, and other charges associated with the property will take effect from the date of completion.
Summary of Steps to Purchase Your Ideal Home in Singapore
Here is a brief review of the conveyancing steps.
| Steps to Purchase Your Ideal Property in Singapore | What Does It Involve? |
| Find your dream home | Browse information on this website and shortlist properties you like |
| Seller accepts your offer | Agree on a sale price with the seller |
| Appoint a conveyancing lawyer | Engage a conveyancing lawyer to help with the title transfer process |
| Review OTP and conduct background checks | Have the conveyancing lawyer review the OTP and conduct a series of background checks on the seller to ensure there are no issues with the property or the seller |
| Exercise the OTP | From the date the OTP is issued, the buyer has 14 days to exercise it. Once exercised, it confirms the buyer’s intention to purchase the property at the agreed price |
| Lawyer checks the validity of the title deed | Legal requisitions will be filed with seven government agencies. The conveyancing lawyer will also lodge a caveat on the property and help the buyer liaise with the bank and CPF Board for financing |
| Final inspection | The buyer conducts a final inspection of the property to ensure everything is in place at the time of purchase |
| Completion of purchase | “Officially” complete the purchase of your dream home |
| Notify the Inland Revenue Authority of Singapore (IRAS) | The conveyancing lawyer will notify IRAS of the new property ownership under the buyer’s name |
As a Seller, How is the Conveyancing Process Different?
If you are selling a property, your conveyancing lawyer will check for any outstanding mortgages and, if there are any, confirm whether there are penalties for early redemption of the mortgage. The lawyer should also check if CPF funds were used and the amount, including accrued interest, that needs to be returned to your CPF account.
Afterward, the seller’s lawyer must notify the bank to redeem the property (i.e., fully discharge the mortgage) and inform the CPF Board to discharge the CPF charge. The lawyer will prepare documents proving that all miscellaneous fees have been paid, including property tax, MCST fees, and dues, among others.
Additionally, the seller’s lawyer will draft an inventory list of furniture, fixtures, and fittings to be included in the sale to avoid misunderstandings and potential disputes. The lawyer will also inform the seller of the sale proceeds and answer any questions that may arise during the process.
Seller’s Proceeds from a Private Property Sale are as follows:
- Selling price of the property
- Minus outstanding mortgage plus any outstanding installments and interest
- Minus CPF funds used plus accrued interest
- Minus real estate agent’s commission
- Minus property tax up to the completion date
- Minus Seller’s Stamp Duty (SSD) (if applicable)
- Minus legal fees for representing the seller in the conveyancing
- Minus maintenance and service fees payable to property management up to the completion date (if applicable)
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