REP 7 - Completion Process PDF

00:01 Welcome. This lecture will be about the completion process. What is legal completion? Basically, it\'s completing the business. As in the case of Kilner and France, it is an expression which usually refers to the complete conveyance and the final settlement of business. Simply put, you can th...

00:01 Welcome. This lecture will be about the completion process. What is legal completion? Basically, it\'s completing the business. As in the case of Kilner and France, it is an expression which usually refers to the complete conveyance and the final settlement of business. Simply put, you can think of legal completion this way. You give me the keys, you give me the title deeds. I give you the money. 00:32 Now, who attends legal completion? In the case scenario that we have, when the property is subject to CPF charge and mortgage, purchasers using CPF monies and loan, we actually have six different parties completing the sale. We have 1. the vendor solicitors, 2. the vendors discharging 01:03 4\. Purchaser Solicitors 5. Purchaser Charging CPF Chargis Solicitors 6. Purchaser Modgages Solicitors Now, technically there are actually six people attending completion, but in reality, in today, Solicitors could actually act for more parties than one. So you may only have two parties attending because 01:30 the vendor solicitors could act for the discharging CPF board. He could also act for the discharging mortgagees. Likewise, the purchaser can act for the charging CPF board as well as the purchaser\'s mortgagees. So you can have only two people attending. Now, for the purpose of this lecture, we will go with all six distinct parties. So where and when do we complete? Now, there\'s an unwritten rule. 01:59 If the property is subject only to a CPF charge, we complete at the Vendors Discharging CPF Board Solicitors Office. Now, if the property is subject to a mortgage without a CPF charge, we complete at the Vendors Discharging Modgages Solicitors Office. Lastly, if the property is not subject to any CPF charge or any mortgage, we complete at the Vendors Solicitors Office. 02:29 And if the title is not issued yet, as in the developer\'s case, we complete at the developer solicitor\'s office. What time do we go? Well, that\'s up to the parties to agree and consent to. But in most normal cases, it completes in the late afternoon between three and six p.m. So we now go to preparations for legal completion. Remember our six parties. Now there\'s six people involved. 02:57 all of whom need to do something before completion. Let\'s start off first with our vendor. Now he obviously needs to sign documents. He\'s got the transfer to sign, he\'s got Inland Revenue Declaration forms to sign, letters of confirmation, statutory declarations, et cetera. So he has to sign them way before legal completion to ensure everything is in order. He has to provide evidence of payment of property tax. 03:26 and maintenance. Now this is to prove to the other side, the purchaser, that all is in order and hand over any keys or original tenancy agreement with the stamp duty certificate if the property is subject to tenancy, as is our case. Next, let\'s take a look at what the vendors discharging CPF board solicitors need to do. Well, they\'ve got to obtain the signed application to notify total discharge of charge. 03:56 issue invoice for legal fees to collect and prepare the letter to the vendor solicitors. This discharge document will be utilized to discharge the charge on the property. Next, let\'s look at what the vendors discharging ModGagee solicitors do. Well, they\'ve got to obtain a discharge document as well. It\'s called the total discharge of ModGage. Now, they would also need to issue invoice for legal fees as well. 04:25 They have to obtain an updated redemption statement on the morning of completion to ensure the final amount due to the bank and also to prepare a letter to the vendor solicitors. Next, let\'s take a look at what the vendor solicitors need to do. Now, they need to arrange for the release of the stakeholder monies. Remember, it\'s still sitting in the conveyancing account. So they have to go into the system, fill up the forms, get the OK and collect it from the bank. 04:53 Next, they have to prepare a letter to the management corporation, the tenant and to the notice of transfer to Inland Revenue to notify the change of ownership. They have to issue checks to pay legal fees of all the discharging solicitors and also for the registration fees of these discharging documents. And later they have to prepare a letter to the purchaser solicitors and of all the discharging solicitors. 05:22 Now let\'s look at what the purchaser needs to do. Well, they have to sign the documents and that\'s probably the mortgage document that they have to sign and have to either purchase cashers\' orders and hand them to the purchaser or pay the cash difference into the purchaser solicitor\'s conveyancing account. That\'s all he needs to do. Let\'s look at what the purchasers charging CPF board\'s solicitors need to do. Well, they got to get the CPF board to sign on the application 05:52 notify charge. They have to arrange for the release of the purchaser\'s CPF monies and purchase the cashier\'s orders from the conveyancing account. They have to conduct updated searches to ensure the title is in order and that the purchaser and the vendors are not bankrupt. Later, they have to prepare letters to the purchaser\'s solicitors. Now let\'s look at what the purchaser\'s charging 06:20 Well, we need to ensure the purchaser and the mortgagee signs the mortgage documents, arrange for the release of the mortgage loan, collect the cashier\'s orders from the mortgagee\'s office, conduct updated searches on the legal completion, bankruptcy title and prepare letters to the purchaser\'s solicitors. Lastly, what do the purchaser\'s solicitors have to do? Well, they have to arrange for the release of cashier\'s orders from the conveyancing account. 06:49 or if the purchaser is purchasing his own purchase order to collect it from him. Now you also have to prepare checks to pay registration fees on the transfer and mortgage and also the stamp fee on the mortgage. Prepare letters to the vendor solicitors, purchasers, CPF solicitors, and the mortgagee solicitors. Also, you need to prepare checks to pay legal fees of both CPF board and the bank\'s lawyers. 07:18 then conduct updated searches on legal completion to ensure title is in order and that no one is bankrupt. So what happens at legal completion? Now remember the six parties involved, so who\'s the first person to move? Well, that\'s usually the purchaser solicitors. He will turn around to his charging CPF board solicitor and ask for the cashier\'s order. Remember the cashier\'s order from \$200,000? 07:46 in favor of the CPF board? Well, he takes it from the CPF board solicitors. The purchaser then turns over to the bank\'s lawyers and gets a \$650,000 mortgage loan, which came in two separate cashier\'s orders. With that in hand and together with the purchaser\'s cashier\'s orders, they all hand it over to the vendor solicitor, who then hands it to the vendor. So now what does the vendor do with all those cashier\'s orders? 08:15 Very simple. He takes the one that is due to the CPF board and hands it over to the CPF board\'s lawyers, the discharging CPF lawyers, that is, they in exchange hand over the discharge documents. Then he takes the other cashers orders, hands it to the bank\'s discharging solicitors and then hand over the discharging mortgage documents together with all other documents. Now the vendor solicitor then return it. 08:44 to the Purchaser Solicitors. Now the Purchaser Solicitors will sift through the items and hand over all the original documents to the CPF Board Solicitors for them to register. So the CPF Board Solicitors will be the one that will be leaving completion with these documents. The Title Deed, the Application to Discharge the CPF Charge, the Total Discharge of ModGage, the Transfer, the Fresh Application to Notify CPF Charge, and the ModGage. 09:14 Thereafter, everyone leaves. All right, so everyone\'s collected their documents. Everyone has gone back to their offices. There is work to be done. It\'s not over yet. So we\'ll come over now to the vendor. What does he need to do? Well, he\'s got to go collect his monies. Now, he\'ll be the first person at the vendor solicitor\'s office bright and early the next day. He will collect, remember, his cashers order, forty eight thousand dollars plus. 09:43 and the \$27,500. Yes, he\'s going to walk home with those. And that\'s all he\'s going to get. Now, of course, you\'ll get a pile of documents as well, which is all well and good, and those are the documents that was exchanged at completion for his record. Next, what does the vendor solicitor have to do? Well, as all the launchmen of documents are electronic in nature today, they have to encrypt all the discharging documents and ensure they grant access. 10:13 for the CPF board\'s charging solicitor to lodge the documents. Next, they will e-file the notice of transfer to the inland revenue to notify the change of ownership. They will send letters to the tenant to inform them of the change of owner and advise them to pay the next rental to the new owner, and then they have to inform the final registration of discharge documents to the vendor, the CPF chargee and Modgagee after they receive it. 10:42 from the purchases. Next, let\'s look at the vendors discharging CPF board solicitors. Well, they\'ve got a cashier\'s order in their hand to refund the CPF board. They have to deliver it to the CPF board within the next day after completion. What about the vendors discharging ModGagee solicitors? Well, this one\'s a little bit more pressing, because most ModGagee banks require the cashier\'s orders to be delivered to them. 11:12 before 10 a.m. the next day after completion. Next, they\'ll have to obtain confirmation or registration or discharge documents and inform the Mode KG later on. The next party we have is the purchaser. Now, what does he get from all this? Well, he\'s got to go down to his purchaser solicitor\'s office and collect his tenancy agreement. Now, he\'s now the new landlord and he needs this agreement for future use. 11:40 He would need to collect spam keys if there\'s any, and just like the vendor, copies of all documents that was exchanged on completion for his record. 11:52 Next, let\'s take a look at what the purchasers charging CPF solicitors need to do. Well, first, they\'ve got to stamp the mortgage. They have to register all the discharging documents together with the transfer, the fresh application to notify CPF charge and the mortgage at the Singapore Land Authority. Now, after registration, they have to deliver the title deed to the purchasers mortgagee solicitor for delivery to the mortgagee for safekeeping. 12:22 Let\'s take a look now at the purchases charging ModGagee solicitors. Now they have to encrypt the ModGagee and grant access to the CPF board solicitors to register, obtain confirmation of all this registration, and send a completion report to the ModGagee. Now upon receiving the title deed, deliver it to them for safekeeping, and thereafter obtain the legal subsidy and deliver it to the purchaser solicitors. 12:51 Now we have the last person, which is the purchaser solicitors. Now, what do they need to do? Likewise, they have to encrypt the transfer, grant access to the CPF board solicitors to register, hand over the tenancy spare keys, copies of documents to the purchaser, advise the purchaser to apply to the Inland Revenue for owner occupier tax status when he\'s able to move in to stay, counter signs a letter to the management corporation. 13:20 and sends it to them to inform them of the change of ownership and sends copies of the documents all to the purchaser for his information. He\'ll also inform the CPF board\'s charging solicitors when to start the monthly installment payment to the ModGateG. B24 REP - Lecture 7 Completion process - **[What happens on Completion?]** Completion will usually take place at Vendor's solicitors office (who are usually also the solicitors acting for CPF Board and the outgoing mortgagee and the exchange of title deeds and cashier's orders will take place. - What is legal completion? - Who attends legal completion? (**[6 parties]**) - Where to complete? (**[Unwritten rule]**) - Preparations for legal completion - Vendor - Vendor has to - Pay Property Tax and Maintenance fees - Vendor discharging CPFB charge\'s solicitor\'s have to: - Vendor's Discharging Mortgagee's solicitors have to: - Vendor's solicitors have to: - Purchaser - Purchaser has to: - Purchaser's Charging CPFB's Solicitors have to: - Purchaser's Mortgagee's Solicitors have to: - Purchaser's Solicitors have to: - Follow-up on Completion - Purchaser - Purchaser's Solicitors have to: - Purchaser\'s Solicitors have to: - Purchaser has to: - Purchaser's Charging CPF Chargee's Solicitors - Purchaser's Mortgagee's Solicitors have to: - Purchaser\'s Solicitors - Vendor - Vendor has to - Vendor\'s solicitors: - Vendor's Discharging CPF Board's Solicitors - Vendor's Discharging Mortgagee's Solicitors