property

Decoupling is a part purchase where there are multiple owners to a property and one of the owners buy over the share of the other owner(s) Decoupling is where there is a husband-wife relationship between the two owners of the property, hence "de-couple-ing" Decoupling is essentially a specific form of part purchase Things to note: STAMP DUTY in Decoupling Stamp duty : Payable in a part purchase (decoupling). The stamp duty (including Buyer's Stamp duty, Additional Buyer Stamp Duty (ABSD) and Seller's stamp duty) is determined by 1) Valuation price 2) Share in the property transferred Stamp duty is also payable even for transfers by way of gift PROCEDURES : Encumbrances CPF Monies If CPF monies were used in the purchase, it needs to be refunded to the CPF account of the seller/transferor Existing mortgage As banks usually require notice of 3 months for redemption, interest in lieu of notice usually needs to be paid To decide completion date carefully as there may be pre-payment penalties involved What is needed? Drafting of Sale and Purchase Agreement (S&P), requires: NRICs/Passports of all parties Address of the property Valuation report Completion: If bank loan and/or CPF funds are required to buy over the share: 8 to 12 weeks If no bank loan and no CPF funds are required to buy over the share : 2 weeks (the purchaser must have the funds to pay for 95% of the share) Other things to take note Deposits : Usually 5% of the purchase price & May be paid directly to the seller without going through the lawyers When can Seller purchase another property (for purposes of avoiding ABSD)? Date of the S&P is the date that the seller is [...]