Podcast
Questions and Answers
What amount is the vendor required to produce if the sale proceeds are $1 million and the amount owing to the bank is $606,000, with $600,000 for the home loan and $6,000 for penalty charges?
What amount is the vendor required to produce if the sale proceeds are $1 million and the amount owing to the bank is $606,000, with $600,000 for the home loan and $6,000 for penalty charges?
Which document is NOT required by the CPF Board before legal completion?
Which document is NOT required by the CPF Board before legal completion?
Upon legal completion, which amount is distributed first if the CPF Board has the first charge?
Upon legal completion, which amount is distributed first if the CPF Board has the first charge?
If the bank has the first charge and the sale proceeds are $1 million, how much is left after repaying the bank's home loan amount?
If the bank has the first charge and the sale proceeds are $1 million, how much is left after repaying the bank's home loan amount?
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In case the vendor cannot produce the shortfall after the sale, what option do they have regarding the charge order?
In case the vendor cannot produce the shortfall after the sale, what option do they have regarding the charge order?
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What is a possible financial obligation the vendor must consider beyond repaying the bank?
What is a possible financial obligation the vendor must consider beyond repaying the bank?
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What action does the bank take concerning penalty charges when the vendor sells the property?
What action does the bank take concerning penalty charges when the vendor sells the property?
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What is the consequence for the purchaser if they decide not to proceed with the purchase after signing the sale and purchase agreement?
What is the consequence for the purchaser if they decide not to proceed with the purchase after signing the sale and purchase agreement?
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Which of the following is NOT a requirement that should be included in the sale and purchase agreement from the vendor's perspective?
Which of the following is NOT a requirement that should be included in the sale and purchase agreement from the vendor's perspective?
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What must be stated regarding the handling of the deposit in the sale and purchase agreement?
What must be stated regarding the handling of the deposit in the sale and purchase agreement?
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What is the primary obligation of the vendor upon completion as per condition 5.1?
What is the primary obligation of the vendor upon completion as per condition 5.1?
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What is the significance of condition 5.1 concerning unforeseen property damage?
What is the significance of condition 5.1 concerning unforeseen property damage?
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What does condition 10.1 entail regarding the property?
What does condition 10.1 entail regarding the property?
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What is an essential factor a vendor should consider to bind a purchaser to the property transaction?
What is an essential factor a vendor should consider to bind a purchaser to the property transaction?
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In terms of property descriptions in the sale and purchase agreement, which statement is true?
In terms of property descriptions in the sale and purchase agreement, which statement is true?
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Which currency must be specified in the sale price of the property?
Which currency must be specified in the sale price of the property?
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What is required if a cheque used for the acceptance of an option bounces?
What is required if a cheque used for the acceptance of an option bounces?
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Why are legal requisitions important before the completion of a property transaction?
Why are legal requisitions important before the completion of a property transaction?
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What is the typical redemption notice period for a seller's mortgage?
What is the typical redemption notice period for a seller's mortgage?
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When must a caveat be lodged by the purchaser's solicitor?
When must a caveat be lodged by the purchaser's solicitor?
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Who must be paid from the balance sale price upon completion of a property sale?
Who must be paid from the balance sale price upon completion of a property sale?
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What is the first step in ensuring everything is in order before proceeding with the sale?
What is the first step in ensuring everything is in order before proceeding with the sale?
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What must be done with the title deed if the sale is aborted?
What must be done with the title deed if the sale is aborted?
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Which document must be prepared after receiving drafts from the purchaser solicitors?
Which document must be prepared after receiving drafts from the purchaser solicitors?
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What should happen during the execution of the vendor's documents?
What should happen during the execution of the vendor's documents?
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What must the management corporation be informed about after the completion of property transfer?
What must the management corporation be informed about after the completion of property transfer?
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What is required from the purchaser solicitors before legal completion?
What is required from the purchaser solicitors before legal completion?
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What action must be taken with the cashier's orders for sale proceeds after completion?
What action must be taken with the cashier's orders for sale proceeds after completion?
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What document must be e-filed to notify the inland revenue of the change of ownership?
What document must be e-filed to notify the inland revenue of the change of ownership?
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What should be included in the preparation of documents for completion?
What should be included in the preparation of documents for completion?
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What is the purpose of obtaining the draft Digital Total Discharge of ModGage TDM?
What is the purpose of obtaining the draft Digital Total Discharge of ModGage TDM?
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What is the primary advantage of having the deposit held as stakeholders?
What is the primary advantage of having the deposit held as stakeholders?
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Which party typically prefers to receive the deposit directly?
Which party typically prefers to receive the deposit directly?
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What action must be confirmed with clients before proceeding with a property purchase?
What action must be confirmed with clients before proceeding with a property purchase?
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What is the first payment required upon the issuance of an option to purchase?
What is the first payment required upon the issuance of an option to purchase?
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What should purchasers' solicitors review regarding properties sold subject to tenancy?
What should purchasers' solicitors review regarding properties sold subject to tenancy?
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What condition might lead a purchaser to consider non-stakeholding of their deposit?
What condition might lead a purchaser to consider non-stakeholding of their deposit?
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What generally happens to the purchase if there is a vendor's default?
What generally happens to the purchase if there is a vendor's default?
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What does the possibility of having the deposit non-stakeheld imply for the purchaser?
What does the possibility of having the deposit non-stakeheld imply for the purchaser?
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What percentage of the purchase price is typically paid upon the exercise of the option?
What percentage of the purchase price is typically paid upon the exercise of the option?
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What should solicitors be particularly cautious about when handling a purchase subject to an existing tenancy?
What should solicitors be particularly cautious about when handling a purchase subject to an existing tenancy?
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Study Notes
Private Residential Property Sale Process
- This lecture discusses the sale of a private residential property within a condominium, with a separate legal title.
- The property is owned by a single registered proprietor (vendor) and leased to a tenant, mortgaged to a bank, and charged to the CBF board (or CVF board).
Factors for Determining Sale Price
- The vendor must consider several factors when determining the sale price of the property.
- These include outstanding mortgage loan amounts, including potential penalties for early repayment (lock-in period).
- Accrued interest on CPF account withdrawals used for the purchase.
- Seller's stamp duty obligations if the sale occurs within a certain period from the purchase date.
- Legal fees and commissions for solicitors and real estate agents.
Insufficient Sale Proceeds
- If total sale proceeds are insufficient to repay the bank loan and refund CPF monies, it depends on whether the bank or CPF board has first charge on the property.
- A 2002 rule by the CPF board concerning home financing using CPF funds.
Additional Considerations for Sale
- The bank can only claim for the loan and interest but not penalties.
- The CPF board requires a valuation report confirming the sale price meets or exceeds the valuation.
- Vendor confirmation that the purchaser is not a relative.
- The vendor might need to pay additional funds for seller stamp duty or agents fees after the sale price has been finalized.
- The vendor may incur additional legal fees if they reverse the charge of the bank or CPF board on the property.
Types of Contracts
- Option to Purchase: Purchaser pays an initial fee and has a set period to decide to buy the property.
- Sale and Purchase Agreement: A legally binding agreement to purchase the property.
- A deposit is paid when the sale and purchase agreement is signed.
Important Clause in Sale and Purchase Agreements
- Non-merger clause: This clause ensures that even after the sale and purchase agreement completion, previous agreement terms are still valid. This is useful for correcting errors in the previous agreement between the buyer and seller.
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Description
This quiz covers the intricacies of selling a private residential property, particularly in a condominium context. It discusses factors affecting sale price, such as mortgages, outstanding loans, legal fees, and regulatory obligations. Test your understanding of the process and its financial implications.