- The lawyer handles the legal transfer; the property agent handles the commercial deal.
- For a buyer, the aim is to receive the property with the title agreed; for a seller, to clear the mortgage and CPF and account for the proceeds.
- Banks require a lawyer from their approved panel to act on the mortgage.
- Appointing a lawyer before the option is exercised gives the most room to fix problems.
The lawyer's role in general
Conveyancing is the legal process of transferring ownership of property. In Singapore it is done by qualified advocates and solicitors. The lawyer's work typically involves liaising with the other side's lawyers, your bank, CPF Board, the Singapore Land Authority (SLA), IRAS and, for condominiums, the managing agent.
A property agent and a conveyancing lawyer do different jobs. The agent markets the property and helps negotiate the price; the lawyer deals with the contract, title, money and registration. The lawyer is also not your banker: the bank decides whether, and how much, to lend.
Acting for a buyer
For a buyer, a conveyancing lawyer will usually:
- Review the Option to Purchase before it is exercised.
- Search the title for the registered owner, mortgages, CPF charges, caveats and other interests.
- Raise legal requisitions, including checks for outstanding property tax.
- Lodge a caveat to protect your interest once the option is exercised.
- Calculate and arrange payment of Buyer's Stamp Duty and any Additional Buyer's Stamp Duty.
- Handle the CPF application and the CPF charge where CPF savings are used.
- Prepare the completion account and coordinate your cash, CPF and loan so the money is ready on time.
- Complete the purchase and register the transfer and mortgage with the SLA.
Acting for a seller
For a seller, the lawyer reviews or prepares the option, checks the title, obtains the bank's redemption figures, arranges the refund of CPF money used for the property, prepares the transfer and works out the net proceeds after the loan, CPF refund and expenses.
Handling the money
Deposits and completion money do not usually pass directly between buyer and seller. The deposit is often held by the seller's lawyers as stakeholders, meaning they cannot release it to the seller until agreed conditions are met. Money may also be held in a law firm's conveyancing account, through the Singapore Academy of Law's Conveyancing Money Service, or in an escrow account held by both firms.
Why the bank's panel matters
If you are taking a bank loan, the bank will need a law firm to act for it on the mortgage, and banks only instruct firms on their approved panel. This applies to HDB flats as well as private property: HDB's own legal department acts only for buyers taking an HDB loan.
In practice, a firm on your bank's panel can often act for you and for the bank in the same transaction, which avoids having to coordinate with a separate firm for the bank. If you prefer a firm that is not on the bank's panel, that firm will need to work with the bank's solicitors on the mortgage.
The same applies to refinancing: the new bank will want a panel firm to discharge the old mortgage and register the new one.
When to appoint a lawyer
For a buyer, the useful time is before you exercise the option, so the terms, your financing and the way you will hold the property can be checked while you are still free to walk away. For a seller, it helps to speak to a lawyer before granting the option, especially if there is a tenant, a mortgage or an unusual term.
Expect your lawyer to ask for identification, the OTP, loan and CPF information and, in some cases, details of your source of funds. Some of this is needed for the transaction itself and some for anti-money-laundering checks.
A lawyer can review your situation and explain your options.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
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