- Legal costs payable for buying or selling a property are made up of :-
(a) stamp and registration fees
(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
- Additional Stamp fees are also payable by the Singapore buyer depending on whether it is his 2nd or subsequent properties. Also a foreign buyer also has to pay additional stamp fees. Depending on the year in which the seller bought the property, he may also be required to pay seller’s stamp fees
- 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(iii) for work on the discharge of CPF charge (if CPF savings had been withdrawn)(b) Professional fees charged by the Bank’s solicitors (if there is a mortgage on the property)(c) Professional fees charged by the CPF Board’s solicitors (if CPF savings had been withdrawn)
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 email@example.com.