The buying process is not so hard to understand but it requires time and commitment.
Step 1: Agreement on the terms and conditions
Once you have found the right property, the seller and buyer agree on a price, all other conditions of the sale and purchase as well as deadlines for completion (usually one to two months, it depends on the situation). For example: the seller may wish to close the sale before or after the end of the year. Experts always recommend to hire services of a lawyer. There are several attorneys in Singapore who have experience in property transactions.
Step 2: Pre-agreement – Private Purchase Contract
You may go directly to completion but many buyers and sellers prefer to set up a private contract of sale (a preliminary contract of sale). Usually a simple agreement in which the seller confirms wish to sell the property and the buyer to buy at the price established by both. Contain all relevant details such as the description of the property, the purchase price and date of completion.
At that point, you must pay a deposit of 10% at least the agreed purchase price but can be up to 25% depending on the period of termination set.
The contract will include a clause in earnest. If the seller decides to give the buyer is entitled to two times your deposit as compensation. Otherwise, the deposit is lost completely. The buyer and seller can of course choose other arrangement if they prefer.
Before entering the contract, you shall ensure that the following is done:
- Checking the Status of construction
- Check the title and find out if the mortgage is sold without debt.
Step 3: Final Contract – deed of sale
On the termination date the salary of the purchase price (selling price less the deposit) and other costs must be paid by the buyer. The seller and the buyer subsequently sign the contract writing equivalent to the writings of the property sale.
The buyer confirms to the notary public with this scripture that accepts the transfer, and a copy will be given to the tax office and registration of properties.
The notary public is an official authority from Singapore forced to witness the act of sale, but can get independent legal help from an expert with his own.
Costs associated with buying a property in Singapore
- Lawyers’ fees – generally fixed rate. The cost can vary the amount of work required of the lawyer.
- Notary fees and land registration costs – depends on the complexity of the operation.
- Agent fees -% of the final price depending on the type of property and its price.
Other procedures required for buying a home
Persons residing in Singapore will need to show their ID. (For all those who are in the Deed of Sale). To all those not resident in Singapore who appear in the Deed of Sale, they may need to obtain a Certificate of No residence, where a tax number is determined, the which will also be required later when pay taxes. Now non-residents must apply directly and in person at police stations or find consulates or embassies.
As a final note, it is recommended that you open a bank account when you start buying a property in Singapore, since not only you need it, but also it will help deal with direct payment of supplies such as electricity and water.
It is also advisable to have a will. This will be only related to your assets in Singapore and does not concern any assets you may have in other country. This will simplify the process of succession in the unfortunate event of death of the owner and significantly reduces the duration and cost of the process.