REP 4 - Property Sale Process

A bank can only claim the loan amount and interest from the sale proceeds, not penalty charges.

CPF Board needs valuation, bank's redemption statements, and confirmation of no relative vendor/buyer relationship before completing the sale.

If the sale amount is less than the bank's loan amount and vendor's CPF, there's a shortfall the vendor must pay.

If CPF has first claim, the sale proceeds go to the CPF account first, then the bank if there's a shortfall for the bank.

The difference between the mortgage amount + vendor's CPF amount and the sale proceeds.

The vendor can ask to change the CPF board's priority to second so the bank's claim is first if they can't pay the shortfall.

The vendor is responsible for costs that aren't the principal loan amount. e.g., stamp duty, solicitor fees.

A legally binding contract between a vendor (seller) and a purchaser (buyer) outlining the terms of a property sale.

The vendor must deliver the property in the same condition as on the contract date, excluding "fair wear and tear" (unless agreed otherwise).

Payment made by the purchaser to the vendor upon signing the sale and purchase agreement.

Failure to fulfill the contractual obligations of the sale and purchase agreement, leading to penalties/compensation.

Detailing the property sold, including the full address. Lot area is optional.

The agreed-upon amount for the property, expressed in Singapore dollars.

Specifies whether the deposit is given directly to the vendor or held by solicitors as stakeholders.

Warranty by the vendor that no unauthorized alterations or additions were made to the property.

Normal deterioration or damage a property undergoes due to use and time, and does not require repairs.

A legal document releasing the mortgage on a property.

Document releasing a charge on property related to Central Provident Fund.

Legal document proving ownership of property.

Process legally changing the owner of a property.

Official statement confirming release of loan or charge.

Detailed financial record of the property transaction.

Formal payment instrument for money to be paid from the bank.

Legal documentation informing entities of ownership change.

Legal representatives of the lending institutions

Legal representatives of the buyer

A contract that gives a buyer the right to buy a property at a predetermined price within a set timeframe.

A clause in a contract that requires deposit money to be held by a neutral third party (like a lawyer) until completion of the sale.

It protects the buyer's deposit in case the seller defaults on the sale.

The seller loses access to the deposit money until the sale is completed.

The property is already leased to a tenant, and the new owner must abide by the existing lease agreement.

The rent amount, security deposit, renewal options, assignment restrictions, and any tenant's right to buy the property.

A payment made by the buyer when entering into an option to purchase agreement.

The schedule for payments, usually involving a small initial payment, followed by larger payments when exercising the option and upon completion.

Information about the seller, such as their name and NRIC, which is verified against the property title.

Confirm property address against title search, verify price with client's instructions, check vendor details against title search and client's NRICs, and confirm the buyer's identity.

Legal requisitions should be conducted no more than 6 months before completion. This allows time for the seller to respond to any queries and for the buyer to finalize their financing.

The balance sale price is not paid directly to the vendor. It is divided among the vendor's mortgagee (bank), charge (CPF board), agent (for commission), and solicitor (for fees).

A letter of authority allows a Category C payee (e.g., a vendor's solicitor) to receive a portion of the sale proceeds directly. The buyer's solicitor must verify this mode of payment.

Category C payees are those who receive a portion of the sale proceeds directly through a letter of authority. Examples include the vendor's solicitor and other parties involved.

If the government acquires the property, the buyer can rescind the contract. This means they can cancel the purchase and get their deposit back.