How does the conveyancing process work when buying private property in Singapore?

What conveyancing means

Conveyancing is the legal work involved in moving ownership of a property from the seller to the buyer. In Singapore it is carried out by advocates and solicitors; there is no separate profession of licensed conveyancers.

Singapore uses the Torrens system of registration, so a transfer of land generally takes effect when it is registered with the Singapore Land Authority (SLA). That is why the searches and documents prepared along the way matter so much.

Before you make an offer

It is sensible to work out whether you can buy the property and how you will pay for it before you sign anything. Points to check include:

• Your citizenship or residency status, and whether that limits the type of property you can buy. Landed homes, for example, are restricted for foreigners.
• Whether you already own residential property, which affects Additional Buyer's Stamp Duty.
• How much bank financing you can obtain. An in-principle approval from your bank is a useful starting point, though it is not the same as a final loan.
• How much of your CPF Ordinary Account savings can be used, as withdrawal limits apply.
• The cash you will need for the option fee, deposit, stamp duty and legal costs.

The Option to Purchase

For a resale private property, the seller usually grants the buyer an Option to Purchase (OTP) in return for an option fee. The OTP gives you the exclusive right to buy at the agreed price within a fixed option period. The fee is commonly 1% of the price for private property, and the option period is often around two weeks, though both are matters for agreement.

If you decide not to go ahead, you can usually let the option lapse, but you will generally lose the option fee. The OTP itself sets out the price, the exercise deadline, the completion date and whether the property comes with vacant possession or with a tenant, so it is worth giving it to a lawyer early.

Exercising the option

To proceed, you exercise the option in the way the OTP requires, usually by signing the acceptance and paying a further deposit. For private property this is commonly a further 4%, bringing the total paid to about 5% of the price. The deposit is often held by the seller's lawyers as stakeholders rather than handed straight to the seller.

Once validly exercised, the OTP generally becomes the binding contract between the parties, usually alongside the Law Society's Conditions of Sale unless the parties agree otherwise. From this point, neither side can simply change their mind without legal and financial consequences.

After exercise, the buyer's lawyer will usually lodge a caveat with the SLA. A caveat records your interest in the property on the register and can stop certain other dealings from being registered while it stands.

Between exercise and completion

This is when most of the legal work happens. Your lawyer will typically:

• Search the title for the registered owner, mortgages, caveats and other interests affecting the property.
• Raise legal requisitions with the relevant authorities, for example to check for outstanding property tax or road and planning proposals.
• Arrange stamping and payment of Buyer's Stamp Duty, and Additional Buyer's Stamp Duty where it applies, within the deadline.
• Prepare the CPF application if you are using CPF savings.
• Work with your bank on the mortgage documents and the release of the loan.
• Ask how you and any co-buyers want to hold the property, as joint tenants or tenants in common.

Completion

On the completion date, the balance of the price (the remaining 95% where a 5% deposit has been paid) is paid from your loan, CPF and cash. The seller's existing mortgage is redeemed so that you receive the property free of it, the transfer is lodged for registration, and the keys are handed over where vacant possession was agreed.

There is no single standard timeline. Law firm guides at the time of writing describe many transactions as completing roughly two to three months after the option is exercised, but the date that matters is the one in your contract.

A lawyer can review your situation and explain your options.