Legal Aspects of a Luxury Condo Purchase in Singapore

Posted by Kaleb Tillman on February 15th, 2019

Buying a luxury condominium in the city of Singapore entails a number of legal issues, and if you are making plans to invest in a condominium in the city, it is important for you to be aware of these issues and make the necessary preparations. Discussed below are some of the important activities that you must undertake in order to ensure that you do not have to face any legal hurdles with your condos purchase in Singapore.

Housing and Development Board Approval: It is mandatory for all purchases to be approved by the Housing & Development Board or HDB of Singapore. When you book condos in Singapore, you are required to pay a minimum 5% of the total price upfront, after which, the purchase is sent to the HDB for approval. This takes about 3-4 weeks. After conducting the necessary inquiries, HDB approves the purchase, and you are free to continue. In case the HDB disapproves of the sale, the developer would have to refund the entire money that has been paid in terms of advance.

Hiring a Law Firm: When you are dealing with a developer to purchase of a condominium in Singapore, it is important that you avail the services of a lawyer, who can help you with the legal aspects of the condominium purchase in case you are making the purchase of the condominium in properties like the North Park Residence with the help of a bank loan, banks will suggest a few lawyers from their own panel. You, however, have the liberty to opt for your own lawyer to represent you.

Contact with the Law Firm of the Developer: Once you have hired your lawyer, you need to have your lawyer initiate contact with the law firm employed by the developer. Once the interaction has been initiated, the proceedings can begin. The two law firms, or the lawyers, will ensure that a declaration is put in place for the purchase of the condominium. You must discuss every clause of the settlement declaration with your lawyer in order to ensure that you have been provided with everything that the developer had promised.

The Final Payment: Once the agreement has been drawn, you would have to settle the final payment to the developer. In case you are obtaining a housing loan from bank in Singapore, the bank will help you to make the payment. In order for the bank to clear the payment, you would have to obtain the necessary documents from the developer's office. Once the final payment has been cleared, the sale-and-purchase agreement would be signed, and you would be made the owner of the condominium.

Apart from the above-mentioned actions, you would also have to ensure that proper documents have been submitted in order to be entitled to the tax benefits that are offered to property owners of condominiums in complexes like the Panorama condo. Once all of these actions have been taken, you can consider yourself to be the proud owner of luxury condos for purchase singapore