Legal Costs for buying and selling of property in
Singapore
- Legal costs payable for buying or selling a property are made up of :-
(a) stamp and registration fees
(b) disbursements
(c) solicitors' professional fees
- Stamp fees form the biggest component of legal costs in the purchase
of a property. Stamp fees are payable (by the buyer) on the sale and purchase
agreement and the mortgage. A simple way of calculating the stamp fees on a sale and
purchase agreement is to multiply the purchase price by 3% and deduct $5,400.00 from the
result. Mortgage stamp fees are subject to a maximum of $500.00. In most
mortgages, the maximum stamp fees are payable.
- Registration fees are payable to the Singapore Land Registry in order to register the
transaction. Registration is a must to formalise the change in interest in the
property.
- Disbursements are expenses incurred in making searches (on the property, the parties
and title) and payments made on behalf of the client by the solicitors.
- There are up to 5 sets of solicitors' costs payable by a Buyer of a
property. They are :
(a) Professional fees charged by the Buyers solicitors
(i) for work on the purchase
(ii) for work on the mortgage documentation (if the Buyer takes a loan from a Bank)
(iii) for work on the CPF withdrawal (if
the Buyer withdraws funds from his CPF account)
(b) Professional fees charged by the Bank's solicitors (if the
Buyer takes a loan)
(c) Professional fees charged by the CPF Board's solicitors (if
the Buyer withdraws CPF savings)
- Similarly, there are up to 5 sets of solicitors' costs payable by a Seller of
a property. They are :
(a) Professional fees charged by the Seller's solicitors
(i) for work on the sale
(ii) for work on the redemption of mortgage (if there is a mortgage on the property)
(iii) for work on the discharge of CPF charge (if CPF savings had been withdrawn)
(b) Professional fees charged by the Bank's solicitors (if
there is a mortgage on the property)
(c) Professional fees charged by the CPF Board's solicitors (if
CPF savings had been withdrawn)
- The Law Society has provided certain guidelines for professional fees to be charged
in conveyancing transactions. For a sale, the recommended professional fees [i.e.
6(a(i) above] to be charged by the Seller's solicitors is 0.15% of the sale price
subject to a minimum of $900.00. The total recommended fees for items 6(a)(ii),
6(a)(iii), 6(b) and 6(c) will between $500.00 to $1,200.00.
- For a purchase, the Law Society's recommended professional fees to be
charged by the Buyer's solicitors' [i.e. 5(a)(i), 5(a)(ii) and 5(b) above] varies from
0.3% to 0.6% of the purchase price depending on the nature of the transaction. The
Law Society's recommended fees for CPF withdrawal [i.e 5(a)(iii) and 5(c)] would be
from $1,350.00 to $2,250.00 depending on the amount applied for and approved.
- We shall be pleased to give you a comprehensive quotation (absolutely no obligations)
on the legal costs involved (including loan and CPF transactions if applicable) in your
proposed property deal. Please fax to us a copy of the draft option (please indicate
your contact number) at 63233262. Or contact our Mr Yik or Mr Teo at 63230068.
You can also send us an email at enq@law-services.com.sg.
- Click here for Some things
you should know before paying or receiving the option fee.
Main Page, Back
|