A Conveyancing Lawyer’s Complete Guide for Property Buyers and Sellers in Singapore

For most Singaporeans, buying or selling property is one of the most significant financial decisions they will make. In law, this is known as conveyancing, and comes with legal requirements along each step of the way.

Property transactions frequently involve multiple stakeholders, contractual milestones, and coordination with government agencies.

A conveyancing lawyer manages the legal portion of the transaction to ensure a smooth completion. This typically includes conducting title and due diligence searches, reviewing encumbrances affecting the property, arranging payment of stamp duties, coordinating completion monies and apportionments, and lodging the necessary instruments with the relevant authorities.

Engaging a qualified conveyancing lawyer in Singapore is not simply a procedural requirement, but an important safeguard for a transaction that often involves substantial capital commitments. Proper legal oversight helps mitigate execution risk and reduces the prospect of delays, cost consequences, or disputes affecting completion. 

This guide explains what conveyancing involves, how the process works in Singapore, and the key considerations for property buyers and sellers in Singapore.

What is Conveyancing?

Conveyancing is the legal process of transferring property ownership from a  seller to a buyer. It encompasses the preparation and execution of the instruments necessary to give effect to a property transaction, and where applicable, the creation and registration of encumbrances such as mortgages. The conveyancing process ensures that the property title is free of issues, all financial obligations are discharged (where necessary), and that the transaction is duly registered with the relevant authorities. 

Singapore operates under the Torrens system of land registration. Under this system, a transfer of title or interest in land generally takes effect upon registration. Registered title is generally indefeasible except in limited circumstances, including fraud. Accordingly, pre-transaction due diligence, including searches of the Land Titles Register, forms an essential part of the conveyancing process.

A conveyancing lawyer advises on and manages the legal completion of the transaction. This typically includes conducting the requisite searches, preparing and reviewing transfer documentation, advising on applicable duties and fees, and effecting registration with the Singapore Land Authority.

These functions apply across a range of transactions, including purchases and sales of HDB flats, private residential and commercial properties, as well as mortgage refinancing arrangements.

The Conveyancing Process in Singapore

1. Due Diligence and Title Searches

Before a transaction proceeds, the conveyancing lawyer will conduct searches to verify ownership and identify matters affecting the property, including encumbrances, caveats, mortgages, the remaining lease term, and any government acquisition or development plans. The outcome of these searches may affect whether and on what terms the transaction should proceed.

For example, a search may reveal an existing caveat lodged against the property, outstanding matters affecting completion, or that the property is affected by future government acquisition or surrounding development plans. Such findings may influence the property’s suitability, value, or intended use and may require the parties to address the issue, renegotiate the transaction, or reconsider proceeding. 

Where issues are identified, the conveyancing lawyer will advise on the legal and practical implications and take steps available to resolve them before the option is exercised.

2. Option to Purchase

An Option to Purchase (OTP) grants a prospective purchaser the exclusive right to purchase a property at an agreed price within a specified option period, typically between 14 and 21 days.  

Upon the grant of the OTP, the purchaser ordinarily pays an option fee, which is typically 1% of the purchase price in private property transactions.

Following the exercise of the OTP, and where appropriate in the circumstances, the purchaser’s conveyancing lawyers may lodge a caveat against the property with the Singapore Land Authority. Under the Land Titles Act 1993, a person claiming an interest in land may lodge a caveat to protect that interest. A caveat serves as notice of the purchaser’s interest in the property and may restrict the registration of certain subsequent dealings affecting the property while that interest remains protected.

If the purchaser does not exercise the OTP within the prescribed option period, the OTP will lapse and the option fee is generally forfeited, unless otherwise agreed between the parties.

3. Exercising the Option

If the buyer elects to proceed, the option exercised within the option period by signing the acceptance copy and paying the additional deposit, typically 4% of the purchase price, to the seller’s solicitors as stakeholders. Deposit arrangements for HDB resale transactions differ and are governed by HDB’s prevailing requirements. 

Once exercised, the OTP becomes the binding contract between the parties. There is generally no separate Sale and Purchase Agreement, and the exercised OTP governs the transaction.

Unless otherwise agreed, the transaction will also be subject to the Law Society’s Conditions of Sale 2012. These standard conditions supplement the terms of the OTP and regulate matters not expressly addressed, including completion timelines, pre-completion obligations, interest payable in the event of delay, and the consequences of non-completion. Parties may agree to vary or exclude specific provisions where appropriate. 

A failure to complete may expose the defaulting party to legal remedies, including specific performance and damages.

4. Stamp Duty

Buyer’s Stamp Duty (BSD) is payable on all property acquisitions. Additional Buyer’s Stamp Duty (ABSD) may also apply depending on factors such as the buyer’s residency status and existing property ownership. The buyer must pay the applicable stamp duties within 14 days after signing the transaction documents if executed in Singapore, or within 30 days after receipt in Singapore if the documents are executed overseas.

Seller’s Stamp Duty (SSD) may apply where the seller disposes of the property within the applicable holding period. Where payable, SSD is subject to the same payment timelines and must be paid within 14 days after signing the sale documents if executed in Singapore, or within 30 days after receipt in Singapore if executed overseas.

As stamp duty rates, holding periods, and regulatory requirements may change over time, parties should confirm the applicable position at the time of the transaction.

5. Completion

On completion, the seller delivers vacant possession of the property, unless otherwise agreed, and transfers title in exchange for payment of the balance purchase price, typically the remaining 95% of the purchase price after taking into account the option and exercise deposits. Any completion monies held by stakeholders are released in accordance with the completion arrangements. The property is generally to be delivered in substantially the same condition as at the date of the OTP, subject to fair wear and tear.

The parties’ conveyancing lawyers will exchange the completion documents and take the necessary steps to register the transfer with the Singapore Land Authority so that the legal title passes to the buyer.

Where financing is involved, completion is subject to the timely fulfilment of conditions imposed by lenders and other relevant parties. Where completion cannot take place on the agreed date, contractual consequences may arise, including the payment of interest or the need for an extension of time. The conveyancing lawyer will coordinate completion requirements and advise on the implications of any delay.

Where the property is sold subject to an existing tenancy, vacant possession is not delivered and additional completion arrangements apply. These may include the assignment or novation of tenancy-related rights and obligations, transfer or accounting for the security deposit, delivery of tenancy documentation, and notification  to the tenant of the change in landlord following completion. The conveyancing lawyers will coordinate these arrangements to facilitate an orderly transfer of ownership and continuity of the tenancy.

Conveyancing Lawyer Fees in Singapore

Conveyancing fees vary depending on the type of property, the nature, and complexity of the transaction. As a general guide, total conveyancing costs for a straightforward residential transaction, including professional fees and ordinary disbursements, typically range from S$1,500 to S$3,500.

Transactions requiring additional work will generally fall within the mid to higher end this range. Examples include:

• Purchases of properties under construction, or transactions where sale proceeds are insufficient to discharge the existing mortgage;
  
  
• Transactions involving multiple parties, overseas buyers or sellers, corporate entities, trusts, or minors;
  
  
• Properties affected by encumbrances, caveats, or title-related issues;
  
  
• Sales subject to existing tenancies or transactions involving court orders;
  
  
• Inter-family transfers and arrangements, including those arising from probate or divorce; and
  
  
•  Transactions involving bridging facilities, CPF funds, or mortgage documentation.

Conveyancing costs ordinarily comprise professional fees together with disbursements payable to third parties, including registration and lodgement fees, title and property searches, and other administrative charges. Stamp duties are separate statutory payments and are generally excluded.

Before commencement of work, the conveyancing lawyer will provide a fee estimate setting out the anticipated costs of the transactions. For a tailored quotation based on your specific requirements, please contact us.