If a property agent has been engaged ask for a Comparative Market Analysis (CMA). The CMA will show the sale prices of similar properties in the area within a certain time frame.

If an agent is representing the property the seller isn't required to be at any viewing. 

Accepting an Offer

Make sure that there are no unacceptable conditions attached to an offer. Make sure the agent is aware of the eligibility of the buyer and clear on the completion period.

It is advisable to appoint a solicitor to check that all the transfer and sales documents are in order and protect the seller's interests. The solicitor also usually holds the buyer's deposit for the seller while negotiations are going on.

Buyers who are interested in the property will draw up an Option to Purchase, and present it to the seller's solicitor, with a deposit of one percent of the purchase price. The buyer then has 14 days to decide whether or not to proceed with the purchase and to organise finance. There will not be a caveat on it at this stage but the seller can't sell to anyone else.

As soon as the finance is arranged the buyer will then exercise the Option to Purchase and put down a deposit of ten percent. Their solicitor will draw up a Sales and Purchase Agreement and send it to the seller's solicitor for agreement.

Once the Option to Purchase has been signed it is unconditional on both sides. If the seller wishes to pull out they have to return the ten percent deposit inclusive of interest. The buyer risks losing their deposit if they pull out.

The vendor has the right to seek recourse through the courts if the buyer pulls out, in the same way that the vendor cannot pull out or they may also risk being sued. This means a seller cannot decide to pull out and sell to someone else.

The deposit on exercise of the Option or signing of the Agreement/Contract will normally be held by the vendor's lawyers. This is because the sale will normally be subject to:

• the discharge of encumbrances like mortgage and CPF charge
• the title being in order
• satisfactory replies to legal requisitions to the various Government departments

In certain circumstances, the Singapore Academy of Law will hold a portion of the purchase monies as stakeholders until the expiry of the defects liability period provided in the Agreement/Contract.

Buyer and vendor should arrange a date for inspection of the property before completion of the sale and confirm which items are included in the sale price.

Once the details of the Sales and Purchase Agreement have been agreed by both the seller and the buyer the documents will be signed by both and a date for Completion set.

Completion

The seller must hand over the property upon legal completion as agreed in the contract. Some private properties will be sold with existing tenants in place but most will be handed over vacant.

Taxes

Sellers do not pay stamp duty or capital gains tax.

Currently Goods and Services Tax (GST) is not levied on private real estate transactions. However, as some residential properties (such as a shophouse with a flat above) may involve a commercial component. Seek advice from a lawyer on this.

• See the Inland Revenue Authority of Singapore (IRAS) website for details of taxes payable.: Click here

CPF Considerations when selling a property

If CPF savings have been used to buy a property, the money plus accrued interest must be returned to the CPF account when it is sold.

It will not be necessary to refund to the CPF account upon the sale of a property if the vendor is leaving Singapore or West Malaysia permanently.

Should the vendor want to reinvest in property the CPF savings can be re-used and the accrued interest refunded to your CPF account.

• For more information and enquiries, contact the CPF
  Tel: 1800 227 1188
  Fax: to 6229 3355
  e-mail

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