RES notes – Correct as of 28 Oct 2017 – Good luck! – Shan Tsing 1.1 Real Estate Market Real Estate REIT Heterogeneous Diversification Immobile Low starting cost Indestructible liquidity Indivisible Professional management Inelastic in supply Transparency and flexibility Types of Properties Good class bungalows 1400sqm / 18.5m / 35% max

coverage Detached / bungalows >800sqm 400sqm / 10m / 40% max coverage Detached / bungalows <800sqm 400sqm / 10m / 45% max coverage /

3 storeys Semi-detached 200sqm / 8m Terrace I 150sqm / 6m Terrace II 80sqm / 6m Corner Terrance II 80sqm / 8m Town houses Terraces without amenities Cluster houses Terraces with amenities Condominiums 4000sqm or 0.4ha / 40% max

coverage Apartments 1000sqm Note: For Mixed Landed Housing area, Terrace type II (occupying a land area of 80 sqm) is, however subject to evaluation as these houses with 1.0m front setback could affect the streetscape REAL ESTATE CYCLE PEAK/BOOM - DECLINE - BOTTOM/RECESSION - RECOVERY CCR - Core Central Region RCR - Rest of Central Region OCR - Outside Central Region 28 postal districts (CCR = D9,D10,D11 and Sentosa Cove) 80 postal sectors (First 2 digits of postal code)

1.3 Basic Law Concepts Legal interest - Enforceable against the whole world Equitable interest - Enforceable against the whole world except bona fide purchaser for value without notice Interests in land are: Irrevocable binding on third parties assignable 1.4 Land Includes earth parcel, structure affixed, vegetation, subterranean space below, air space above for the necessary enjoyment of the owner Fixture vs Fittings Degree of annexation - Firmly attached to the land Purpose of annexation - Attachment for temporary and personal enjoyment Trade Fixtures - For business purposes and must be removed Survey Districts: 30 Town Subdivisions 34 Mukims 1.5 Estates in Land Estate Fee Simple (Fee simple absolute) Subject to restriction in usage and statutory charges Estate in perpetuity (Statutory Land Grant) Subject to restriction, statutory charges and implied terms under State Lands Act

1.6 State Lands Act Development Charge - Pay to URA Difference between value of proposed development and approved development e.g. rezoning to higher value, increase in plot ratio Differential Premium - Pay to SLA Difference between existing value and increased value of the site e.g. Change of use, extension of lease, increase in plot ratio DP is computed based on the DC Table of Rates Exemption from Development Charge if Differential Premium is Paid 1.7 Rights in Another's Land Encumbrances Outstanding mortgage, unpaid property taxes, easement, restrictive covenant Licence Bare licence - Invite into condominium Licence couple with a grant - Repairman Contractual licence - Rent spare seminar room TOL - Temporary occupation licence e.g. worksite office, showrooms - Issued by SLA Maximum licence period is 3 years Easement - Dominant tenement(happy) > Servient tenement(not happy) Right of way - positive easement Right of light - negative easement / restrictive covenant Creation of easement Parliament - Passage of pipes and cables Express or implied reservation Necessity Prescription - Historical usage Termination of easement Statue - Extinguished after more than 12 years of non-usage Express or implied release Unification of ownership

Covenants - Arise from a contract Privity of contract - parties binding Privity of estate - land binding Positive covenant - maintain fence Restrictive covenant - no building above 2 storeys State covenants - registered against land titles Restrictive covenants lapse after 20 years unless extended 10 years at a time 1.8 Registration of Titles Land lot - Certificate of Title (CT) Private strata lot - Subsidiary Strata Certificate of Title (SSCT) HDB/DBSS strata lot - Lease Title/ Subsidiary Certificate of Title (SCT) A strata title has undivided share in land but a divided share in air space A promise in the deed is called covenant A clean title is free from encumbrances RODA - Registration of Deeds Act - 15 year search for clean title Torrens System - Registers Description, tenure, mortgage, covenants Caveats A legal notification to protect unregistrable interest lasts for 5 years Caution Automatically lapse after 10 years from the date of converting the land from common law deed system to Torrens system 2.1 Law of Contract Creation of contract Offer Acceptance (unconditionally) Consideration Intention to create legal relations Invitation to treat - Invitation to make an offer (Advertising billboards, notices of tender)

Terms of contract Breach of Conditions - result in termination and compensation Breach of Warranties - result in only compensation Elements of Misrepresentation False statement of past or existing fact Omitted disclosure Caveat emptor - buyers beware Inducement - Induce the representee to enter into the contract Fraudulent misrepresentation - Intention to mislead Negligent misrepresentation - Representation made without reasonable grounds Innocent misrepresentation - Representation made WITH reasonable grounds Discharge of Contract By performance - Fully performed contractual obligations By agreement - Mutually agreed to release By breaches - Must be breach of conditions and not warranties By frustration Breach of Contract Damages Specific performance Injunction - Court order OTP - Option to purchase - A type of offer to contract HDB OTP - 21 days Option fee: Min $1 Max $1000 To exercise: Min $4000 Max $4999 Private OTP 14 days Option fee: 1% To exercise: 4% Developer OTP 21 days Option fee: 5% - 10% To exercise: 10% - 15%

Changes to OTP (requires Controller's approval for OTP from developer) Deletion of names as long as one of the joint option holders remain Addition of names of immediate family members Substitute a name with immediate family member as long as one of the join option holders remain and/or nominee allows OTP holder to nominate another party to take over and exercise OTP and/or nominee is prohibited in the Option signed under: Housing and Developer Act Sale of Commercial Property Act Housing and Development Board 2.2 Law of Agency Doner appoints and authorises Donee as "Power of Attorney" Creation of Agency By agreement - expressly created or implied by action/behaviour By estoppel - Principal leads 3rd party to believe - Agent has apparent/ostensible authority By ratification - Agent has no authority(expired) but Principal accepts afterwards 2.3 Landlord and Tenant Law Privity of Contract - Between parties Privity of Estate - Interest in land - binding on third parties Types of Lease Fixed-Term Lease Period Tenancies Tenancies at Will - Landlord allows stay without payment of rent Tenancies at Sufferance - Occupier is trespasser, landlord may evict - claim double rent Tenancies by estoppel - Landlord did not sign tenancy agreement

Common terms and conditions Premises/Leases Names of Parties, Legal description of property Habendum Term of the Tenancy and date of Commencement Reddendum Rent, mode of payment, deposit, service charges, rent review Covenants Rights and Obligations of Parties Common Clauses Diplomatic clause - Terminate tenancy when transferred overseas Minor repair clause - wear and tear of the property and items Option to renew clause - Extend lease with a 2-month prior notice Major construction clause - Terminate tenancy when there is unexpected construction nearby En-Bloc clause - Terminate tenancy when house is sold as part of en-bloc sale Discharge of Lease Effluxion of Time Notice to quit Surrender (mutual agreement) Merger (Tenant buys over property) Frustration Exercise of an express power (Diplomatic clause) Forfeiture - Failure to pay rent Landlord's implied covenants Quiet enjoyment Non-derogation from grant Fitness for habitation Pay statutory charges Tenant's implied covenants Pay rent To repair Permit to view premises Not to commit waste: (VAEP) Voluntary - Intentional damage Ameliorating - Improvements without permission Equitable - Destruction Permissive - Fail to maintain

Remedies for breaches Distress - Rent owed up to 12 months - apply to court for writ of distress - seize and sell immovable properties to recover unpaid rent Forfeiture - Re-enter premises and (total of 60 days)evict tenant by the application of a writ of possession Equitable set-off 2.4 Negligence - Law of Tort There must be Duty of Care - Proximity Test (neighbour principle) There must be Breach of Duty - Reasonable Man Test There must be Resulting Damage from the breach - But For Test There must not be Remoteness of Damage - Reasonable Foreseeability Test Breach of duty of care Rescission of contract Forfeiture of commission payable Damages claim Report to authority for disciplinary action Volenti non-fit Injuria - Someone willingly places themselves in a position where harm might result, they are not able to bring a claim against the other party in tort. 2.6 Mortgage The property conveyed acts as a collateral or security for the mortgagor and offers protection to the mortgagee (Bank) should the mortgagor default payment Legal mortgage - created when legal interest is available Equitable mortgage - create with equitable interest (mortgagee will lodge caveat to protect its interest) Rights of Mortgagor (Owner) Registered owner Right to possession Right to lease Equity of redemption - Recover title Discharge from the mortgage - Paid up debt

Rights of Mortgagee (when mortgagor default payment) Enforce debt Entry into possession Right to Foreclosure - Take over as legal owner Right to sell - Auction off the property Appointment of Receiver Charge - Bank gets priority over CPF in the event of a default in the payment of mortgage SIBOR - Singapore InterBank Offered Rate - Currently hovering around 1.9% 2.7 Gift Doner transfers property to Donee during his/her lifetime Stamp Duty is payable Gift is voidable if it was transferred within 5 years prior to the date of bankruptcy Note: A person can be made a bankrupt if he is unable to pay debts of at least $15k 2.8 Trust Trustor/Settlor - Original owner Trustee - Holds legal interest to land - requires approval from beneficiary to transact Beneficiary - holds equitable interest Resulting trust - Register under another person's name Argued in court to benefit the payer Constructive trust -Stolen money to buy in thief's name Argued in court to benefit the payer Unregistered trust - Transitional period before completion of sale

2.9 Succession Estate Duty in Singapore has been abolished WEF 15 Feb 2008 Civil Law Testate succession - 2 witnesses - Executor - Grant of Probate Intestate succession - Administrator - Letters of Administration Syariah Law Testate succession - 2 male witnesses - Can only dispose 1/3 of estate to non-beneficiaries Intestate succession - Certification of Inheritance(Sijil Warisan) - Distributed to beneficiaries according to Faraid 2.11 Co-ownership of land Joint tenancy - right of survivorship (PITT) Possession - equal possession of land Interest - equal in tenure Title - All parties registered in title deed Time - acquire interests at the same time Termination of joint tenancy Alienation - transfers his share Partitioning - convert to tenancy in common Partitioning via court order - divorce cases Unilateral declaration - sever joint tenancy in writing Tenancy in common - words of severance Unity of Possession only Each tenant has undivided share in the land

2.12 Restrictions to hold land Under age of 21 considered as infant - entitled to hold land but deemed as a settled estate and must be managed by trustees Between age 18-21 can hold lease of land for 3 years or less Foreigners need approval to acquire: Vacant residential land Terrace house Semi-detached house Bungalow/detached house Strata landed house which is not within an approved condominium development Shophouse (for residential use) Association premises Place of worship Worker’s dormitory/service apartments/boarding house Foreigners can acquire: Landed properties in Sentosa Cove (requires approval from LDAU) Landed properties in condominium titled developments Flat unit A leasehold estate in landed residential property not exceeding 7 years Shophouse for commercial use Industrial and commercial properties Hotel EC, HDB, HDB shophouse Partnership and Societies cannot buy properties and register in its name 2.13 Planning and Development of Land GFA = GPR x Site Area Residential & Commercial Commercial max 40% B1/B2 Ancillary max 40% B1-White/B2-White B1/B2 max 40% Business Park-White White max 15% Hotel Hotel rooms min 60% Place of Worship Praying area min 50%

3.1 Estate Agents Act (EAA) WEF 15 Sep 2010 Council for Estate Agencies - formed on 22 Oct 2010 Deals with Estate Agency Work in respect of property in and outside of Singapore REA Register with ACRA - Accounting and Corporate Regulatory Association Cannot hold money lender licence Must not be un-discharged bankrupt Must not have detained under Criminal Law Act KEO - Key Executive Officer 3 years of experience, 30 transactions Inform CEA within 31 days before and 7 days upon KEO cessation Appoint replacement within 30 days RES 21 years old Pass RES exam 6 hours of CPD every year Must not be in arrears with CPF Board for Medisave contribution REA to Inform CEA within 7 days of any changes REA Offences/Punishments REA without licence $75k, 3 years, $7,500/day REA employ un-registered RES $25k, 1 year, $2,500/day RES Offences/Punishments RES Submit false documents to CEA for registration

$50k, 3 years

RES false representation $5k RES dual representation $25k, 1 year RES referral to money lender $25k, 1 year RES without CEA registration $25k, 1 year, No commission RES without REA registration $25k, 1 year, $2,500/day RES hold transaction money $10k, 6 months, $500/day RES use Council symbols $10k, 6 months, $500/day RES did not show agent card $10k, 6 months RES should avoid conflict of money and interest by way of a disclosure all potential conflict

Transaction Types Allowed to Handle Sales and Purchase of all properties Valuable fees, Commission Lease of Private properties Valuation fees, Commission, Stamp

Duty, Rental deposit, Rental Lease of HDB Commission, Stamp Duty Complaint will be made to REA, outcome to CEA within 2 weeks REA can refer to CEA for investigation Disciplinary panel appoints Disciplinary Committee(DC) 3-20 members CEA appeal board 3-15 members Preliminary Assessment Interview Investigation Outcome RES false statement during investigation

$50k, 2 years

RES fail to turn up for hearing $50k, 2 years RES failure give notice of certain event $10k, 1 year, $1,000/day Disciplinary action MAX FINE $75k, suspend or revoke licence, pay CEA $1k Instead of making a complaint, consumer may opt for CEA's Dispute resolution Schemes Mediation (REA pays 50% mediation fee) Consumers Association of Singapore Singapore Mediation Centre Singapore Institute of Surveyors and Valuers Arbitration Singapore institute of Arbitrators Singapore Institute of Surveyors and Valuers

Prescribed Estate Agency Agreement Form 1 Seller Form 2 Buyer Form 3 Landlord Form 4 Tenant Form 5 Exclusive Seller Form 6 Exclusive Buyer Form 7 Exclusive Landlord Form 8 Exclusive Tenant No deletion of the terms Additional terms on separate pink coloured paper Sole-Agency Listing Only one RES is appointed RES not entitled to service fees if owner sells the property Minimum 6 credit hours, 3 CPD credit hours on core subjects C1,C2,C3 One core each year for 3 consecutive CPD cycles Core competencies Non-Core competencies C1: Estate Agents Act N1: Marketing C2: Law, Policies and regulations N2: Biz Management C3: Practice-related knowledge N3: Finance C4: Professional ethics N4: Information technology N5: Management and supervisory

skills N6: Interpersonal skills CPD cycle 1 OCT to 30 SEP Licence cycle 1 JAN to 31 DEC $230 registration fee + $53.50 application fee + PI After 1 July $115 registration fee + $53.50 application fee + PI

3.3 Principles of Real Estate Marketing SWOT - Strengths, Weakness, Opportunities, Threats Market Segmentation Geographic Demographic Psychographic - Personality and lifestyle Behavioural - Frequency and volume of purchase Market Targeting Market Positioning Market Mix (4Ps) Product - Exclusive vs Non-exclusive Price - Comparative Market Analysis Place - Distribution strategies/channels Promotion - Promotional activities 3.5 Methods of Sales Private Treaty Parties free to negotiate Sale process is long Auction Open and transparent Sale process is short Negative publicity Tender High price as tenderers are unaware of who else is bidding Sale process is long and costly Seller may not accept highest bid

3.6 Regulations on Advertisement Max size of flyers on notice board/bus shelters/covered link-ways of MRT - A5 No flyer on the iron gate for HDB flat Private residential property signs mounted on building/boundary walls Only 1 sign Max 2sqm per sign Removed within 14 days of sale/rent Vacant land signs Only 1 sign Max 10sqm per sign Max height 3m from ground level Removed within 14 days of sale/rent SMS or Cold-calling 10pm - 9am NOT ALLOWED Seminars Speaker must be registered RES or exempt under the act 3.9 Marketing of Industrial Property Business 1 - Industry uses where nuisance buffer is 50m or less Business 2 - Industry uses where nuisance buffer is more than 50m but still within health and safety buffers Business Parks - non-pollutive industries that engage in high technology, research and development, high value-added and knowledge intensive activities Specialised parks - Chemicals, Wafer Fabrication, Advanced Display, Biomedical, Logistics, Food and Media Flatted Factories Tenure 30 - 60 years 60% predominant component, 40% ancillary component of industrial developments Standard Factories Tenure up to 30 years 7m or 3 stories high

Stacked-up Factories Able to accommodate 45-foot container trucks Workshops Tenure 3+3 years Warehouses Allows for retail activities Annual turnover $100m, 250 workers 3.10 Special properties Conservation 3R Principle Maximum Retention, Sensitive Restoration, Careful Repair Historical districts - Boat Quay, Chinatown Square, Chinatown, Kampong Glam, Little India Residential historical districts - Blair Plain, Cairnhill, Emerald Hill Advantages of Conserved shophouses - Unique, limited, heritage charm 3.11 Consumer Protection (Fair Trading) Act (CPFTA) Sale of residential property is excluded In real estate CPFTA applies to rentals and services provided by RES Unfair Practices Deceive or misled - Use small print to conceal material facts False claim - Claiming goods or services are of a particular standard but they are not Take advantage - Exerting undue pressure to enter into transaction Consumer may file a claim in court for civil remedies Consumers should film claim within 2 years to Small Claims Tribunal for a maximum of $30k

4.1 Sale of Uncompleted Private Properties Buyer Developer Obtain AIP from Bank to see how much you can loan

Pay 5% - 10% option fee Issue OTP Apply to HDB for approval (for EC) Finalise loan application (Letter of Offer)

Engage lawyer for conveyancing work 14 days to deliver S&P to buyer or

buyer's lawyer 21 days to exercise OTP by signing S&P at law firm, pay 10% - 15% exercise fee

Forfeit 1.25% - 2.5% if buyer decides not to exercise OTP

14 days to pay stamp duties after signing S&P

Completion of Sale 8 weeks from issuing of OTP

Completion of Sale 8 weeks from issuing of OTP

Housing Developer's (Control and Licensing) Act Housing licence (sale licence (1m capital) and no-sale licence($100k capital)) issued by Controller of Housing will cease in force when the housing project is completed with: Issue of TOP/CSC by Commissioner of Building Control Issue of CT or SSCT by the Registrar of Titles Project Account is needed for developers who sell 200 units before TOP Defect Liability Period Developer shall provide 12 months defect liability period from the date of Notice of Vacant possession or TOP Should developer fail to make good, purchaser can serve 14 days notice to rectify and deduct cost from Singapore Academy of Law Stages of Payment (Total 10) Percentage of price Notice of Vacant Possession/ Temporary Occupation Permit

25% (85%)

Certificate of Statutory Completion 2% to developer, 13% remain with SAL (100%)

Notice to Complete is issued by the date specified in the S&P or 3 years after Notice of Vacant Possession, whichever is earlier Late completion by developer The developer is required to deliver vacant possession of the unit to the purchaser by the date specified in the Sale & Purchase Agreement

If developer fails to give Notice to complete as specified, developer must pay purchaser liquidated damages based on 10% per annum of total sum of all instalments paid by Purchaser Late payment of purchaser Within 14 days - Pay interest 2% above base rate More than 14 days - Serve 21 days notice - Forfeit and keep 20% of purchase price Error in floor area No more than 3% - No deduction More than 3% - Reduction of per sqm in excess of 3% of the area in the Agreement 4.2 Sale of Completed Private Properties Seller's RES owes no duty of good faith to the buyer Seller's RES do not have to disclose latent or patent defects Buyer Seller Obtain AIP from Bank to see how much you can loan

Pay 1% option fee together with Offer to Purchase

3 working days to accept the offer and issue OTP. For non-acceptance, sign rejection copy and return 1% option money

Finalise loan application (Letter of Offer)

Engage lawyer for conveyancing work Engage lawyer for conveyancing work 14 days to exercise OTP by signing S&P at law firm, pay 4% exercise fee

Forfeit option fee if buyer decides not to exercise OTP

Buyer's lawyer will conduct legal requisition to check for defects

14 days to pay stamp duties after signing S&P

Bank will send valuer to do formal valuation sometime after exercising option

Completion of Sale 10-12 weeks from exercising OTP, payment of the remaining 95%

Completion of Sale 10-12 weeks from exercising OTP, Seller hands over keys

Note: Legal requisition: IRAS, BCA, URA, LTA, NEA, PUB

Late completion of sale for both buyer and seller - 8% per annum pro-rated according to number of days delayed. The relevant sum for buyer is the purchase price less payments, if any, already made to the vendor The relevant sum for seller is the full purchase price Offer to Purchase is not legally binding if "Subject to Contract" clause is included It is only legally binding when Option to Purchase is exercised by purchaser By-laws are regulations made by Management Corporation (MC) for the purpose of controlling and managing the use or enjoyment of common property and the lot in the development. Subsidiary proprietors and occupiers of strata lots are obliged to comply with these by-laws. Management Fund - for day-to-day recurrent expenses of maintaining the development Sinking Fund - to provide for future capital needs Strata Roll - Registry of name of subsidiary proprietors in the strata titled development showing the allocation of share values 4.3 Collective Sale of Private Properties Collective Sale Committee(CSC) 3-14 members Appoint not more than 3 owners from CSC to represent the majority owners in connection with the application Required consent for to start a collective sale process: 1st attempt - 20% share value Need to wait for 2 years for subsequent en bloc attempt: 2nd attempt - 50% share value 3rd attempt - 80% share value Requisite consent level for collective sale 80% total share value >10yrs from TOP 90% total share value <10yrs from TOP

Strata Titles Board(STB) When an application for an en-bloc sale has been made to the STB: Minority suffers from financial loss can lodge objection with STB within 21 days of the date of notice STB can spend no more than 60 continuous days mediating each case If mediation by STB fails - High court has the power to approve or refuse an en-bloc sale 4.4 Sale of HDB flats Grants available for BTO and Resale (Min 12 months of employment) For employed Person - Latest 12 months’ payslips For self-employed person - Latest Notice of Assessment (NOA) from IRAS For Commission-Based Persons - Latest 12 months commission statements Types of Grant New CPF Grant, income cap <$12,000 BTO - No, DBSS - up to $50k, EC -

up to $30k Additional Housing Grant, income cap <$5,000

BTO - Up to $40k, DBSS/EC - No

Special Housing Grant, income cap <$8,500

BTO - Up to $40k, DBSS/EC - No

Proximity Grant No Types of Grant Resale CPF Grant, income cap <$12,000 Yes - up to $50k Additional Housing Grant, income cap <$5,000

Yes - Up to $40k

Special Housing Grant, income cap <$8,500

No

Proximity Grant (Same town or within 2km)

Yes - $20k

Eligibility for BTO - Buyers have to dispose their private properties at least 30 months from the date of BTO application Public rental scheme 1-room and 2-room Income ceiling $1,500

Renting from HDB under Parenthood Provisional Housing Scheme (PPHS) 3-room and 4-room Have booked an uncompleted flat under the BTO or SBF exercise Type of flat (99-years lease) No. of bedrooms / Option Fee 2-room flat - 45sqm 1 bedroom / $500 3-room flat - 65sqm 2 bedrooms / $1,000 4-room flat - 90sqm 3 bedrooms / $2,000 5-room flat - 110sqm 3 bedrooms / $2,000 3-gen flat - 115sqm 4 bedrooms / $2,000 Executive flat - 130sqm 3 bedrooms / $2,000 2-room short lease - 36sqm or 45sqm - 1 bedroom Min age 55 Lease 15 - 45 years Must cover occupants beyond 95 years old Cannot be sold in open market, HDB will pay pro-rated based on purchase price and remaining lease Fresh Start Housing Scheme for second-timer families with young children Age 35 - 55 2-room short lease Lease 45 - 65 years 20 years MOP Must cover occupants beyond 95 years old Lease Buyback Scheme Met MOP 5 years Min age 64, income ceiling $12k 4-room or smaller At least 20 years to sell to HDB Required to top up to BRS Right-sizing with Silver Housing Bonus Min age 55, income ceiling $12k Buying 3-room or smaller Top up CPF based on net sale proceeds with cash bonus Under Home Protection Scheme CPF will settle buyer's outstanding loan in the event that buyer becomes disabled or death Until age 65

HDB RESALE The Resale Price Index published quarterly by HDB shows the price movements and trend of HDB flats Basic Citizenship Requirement SC (Above age 35) SC (Above age 21 for orphans/widows) SC + SC SC + SPR SPR + SPR (Both must hold PR status for 3 years WEF 28 Aug 2013) SC + Non-Citizen Spouse (Above age 35 for spouse with less than 6months social visit pass) Conversion Scheme Adjoining 2 units of 3-room or smaller flat MOP WEF 30 Aug 2010 5 years from effective date of resale 7 years from date of selection of replacement flat bought under SERS or 5 years from purchase of replacement of flat (whichever sooner) Eligibility for Resale - Buyers have to dispose their private properties with 6 months from resale completion date (Only can take bank loan as HLE needs 30 months clearance period)

Buyer Seller Obtain HLE or AIP from Bank to see how much you can loan

RES go through resale checklist with seller

Seller must endorse checklist by midnight the following day

Pay $1 - $1,000 option fee Sellers issue HDB OTP (7 days cooling-off period after submitting seller's resale checklist to HDB)

Submit valuation request ($199.25) by the next working day as long as you are taking a loan and obtain valuation report

Obtain Letter of Offer from Bank (for bank loan)

RES go through resale checklist with buyer

Buyer must endorse resale checklist by midnight the following day

Buyer can only exercise OTP after submitting checklist to HDB

21 days to exercise OTP by signing acceptance copy

Original of OTP must be delivered back to seller with $4,000 - $4,999 exercise fee

Forfeit option fee if buyer decides not to exercise OTP

Submit $80 resale application within 7 days from each other

Submit $80 resale application within 7 days from each other

Technical inspection by HDB officer to check for illegal renovations

1st HDB appointment RES make Statutory Declaration

1st HDB appointment RES make Statutory Declaration

Buyer inspect the flat before completion

Invite buyer to inspect the resale flat

Purchase Fire insurance

Terminate Giro payments and settle S&C charges with town council

2nd HDB appointment RESALE COMPLETION 6 - 8 weeks from 1st appointment

2nd HDB appointment RESALE COMPLETION 6 - 8 weeks from 1st appointment

Note: OTP expires at 4pm on the 21st day Inventory list is part of OTP HLE valid for 6 months Resale checklist valid for 6 months Valuation report valid for 3 months NET SALE PROCEEDS = Resale price minus off: Outstanding loan Stamp duty Resale levy Refund to CPF with interest Deposit money Others - Upgrading cost SC Bankrupts must seek OA's approval for: Purchasing HDB executive flat Purchasing HDB net purchase price >$500k SPR Bankrupts must seek OA's approval for: Selling of HDB flat HDB Resale Levy WEF 3 MAR 2006 (graded according the owners' first subsidised flat) 2-room $15,000 3-room $30,000 4-room $40,000 5-room $45,000 Executive Flat $50,000 EXEMPTION: BOUGHT EC BEFORE 09 DEC 2013 Defer Payment of Resale Levy If flat owners are buying their second subsidised flat, they can opt: Pay resale levy immediately when selling subsidised flat, or Defer payment until they buy another flat from HDB (Previous resale levy policy will attract 5% interest per annum)

HDB EIP Ethnic Group Neighbourhood / Block Malay 22% / 25% Chinese 84% / 87% Indian/Others 12% / 15% Chinese/Indian family can sell to both Chinese or Indian Chinese/Indian family can buy as Chinese or Indian(Put whichever name first) SPR Quota Citizenship Neighbourhood / Block Non-Malaysian SPRs 5% / 8% 4.5 Leasing of Private Properties Minimum lease of 3 months for all private properties Max 6 occupants unless entire unit is occupied by related families with no subletting involved Tenant Landlord RES to perform 3 due diligence checks RES to perform 3 due diligence

checks Pay 1 month rental as good faith deposit together with Letter of Intent

3 working days to accept the offer and sign acceptance letter. For non-acceptance, sign rejection copy and return good faith deposit

7/14 days to sign Tenancy Agreement as agreed in Letter of Intent

7/14 days to sign Tenancy Agreement as agreed in Letter of Intent

Landlord forfeit good faith deposit if buyer decides not to sign Tenancy Agreement

Good faith deposit becomes 1st month rent

Pay 2 month security deposit for 2 years lease

Landlord prepare and deliver premise to tenant as agreed in LOI

Note: Confirm ownership using INLIS Bankruptcy check with mLaw 3 checks required by ICA & MOM: Check original pass or permit Cross check particulars on original pass or permit with passport Verify pass or permit with ICA or MOM Landlord and agent can be jailed up to 24 months and fine $6,000 for harbouring illegal immigrants 4.6 HDB subletting SUBLETTING ROOMS Maximum subletting period is 3 years per registration Types of HDB Bedrooms allowed / Max occupants 2-room Not allowed / 4 3-room 1 / 6 4-room and bigger 2 / 9 SUBLETTING WHOLE FLAT Non-Citizen Non-Malaysian HDB sublet Citizenship Neighbourhood / Block Non-Malaysian NCs 8% / 11% Note: NCs quota is updated monthly on HDB e-service Flat lessees will have to: Register the subletting with HDB within 7 days from subletting date Notify HDB of subsequent renewal and termination and changes to subtenants' particulars Provide their subtenants' particulars Minimum lease of 6 months for all HDB flats Max 3 years from SC/Malaysians Max 1.5 years for Non-SC/non-Malaysians Flat owners who wish to sublet their flat must be Singapore Citizen, SPR cannot sublet their flat Must meet MOP 5 years before subletting whole flat

HDB Home Office Scheme Flat must remain a place of residence and business must be ancillary Max 2 non-residents Approval valid for 5 years HDB shophouse can sublet 50% of existing premises to a max of 1 subtenant 4.7 Foreign Worker Housing/Dormitory Purpose-built dormitories - Tendered and Managed by BCA and JTC Converted industrial premises - Housing for on-site workers Quarters on Construction Sites on Temporary Occupation Licence(TOL) Site Workers Quarters at farms - Housing of workers for farm owners licensed by AVA Harbour Craft - Habitable vessels Dormitories strictly not allowed in Private Residential Premises 4.8 Tax Stamp duty is tax on executed/dutiable documents relating to any immovable properties in Singapore basing on the higher of consideration/purchase price or market value and dutiable documents relating to any stock or share - Lease, Sale and purchase, gift or mortgage of property Stamped within 14 days from the date of execution if signed in Singapore, 30 days signed overseas Buyer's Stamp Duty APPLIES TO RESIDENTIAL, INDUSTRIAL AND COMMERCIAL PROPERTIES Base Stamp duty (%) First $180,000 1% Next $180,000 2% Above $360,000 3% For calculation of BSD above $360k: 3% -$5,400

Additional Buyer's Stamp Duty APPLIES TO RESIDENTIAL PROPERTIES ONLY (WEF 12 Jan 2013) Citizenship 1st / 2nd / 3rd Singapore Citizen 0% / 7% / 10% Singapore PR 5% / 10% / 10% Foreigners & Entities 15% / 15% / 15% ABSB Exempted for citizens of following countries: (LINUS) Liechtenstein, Iceland, Norway, USA, Switzerland ABSD can be refunded if the first property is sold within 6 months from the date of purchase of second property SC/SPR couple buying 2nd property follows SPR rate which is 10% Seller's Stamp Duty APPLIES TO RESIDENTIAL AND INDUSTRIAL ONLY (WEF 11 Mar 2017) old SSD was introduced on 14 Jan 2011 Period Residential SSD 1 year 12% 2 years 8% 3 years 4% After 3 years No SSD payable (WEF 12 Jan 2013) Period Industrial SSD 1 year 15% 2 years 10% 3 years 5% After 3 years No SSD payable Lease Stamp Duty (Paid by tenant) Less than 4 years - 0.4% of total rent (NOT AV) More than 4 years - 0.4% of 4 x AAR Stamp duty payable will round down to the nearest dollar Mortgage Duty (Paid by purchaser) 0.4% of the loan amount granted on the mortgage (subject to a maximum duty of $500)

Property Tax for all residential properties (WEF 1 JAN 2015) Based on AV First $30,000 10% = $3,000 Next $15,000 12% = $1,800 Next $15,000 14% = $2,100 Next $15,000 16% = $2,400 Next $15,000 18% = $2,700 In excess of $90,000 20% Property Tax Concession Rate for owner occupied residences (WEF 1 JAN 2015) Based on AV First $8,000 0 Next $47,000 4% = $1,880 Next $15,000 6% = $900 Next $15,000 8% = $1,200 Next $15,000 10% = $1,500 Next $15,000 12% = $1,800 Next $15,000 14% = $2,100 In excess of $130,000 16% Note: AV or Annual Value is the estimated gross annual rent of the property by IRAS Objection against annual value of property can file to IRAS within 30 days Property Tax for Vacant Land, Commercial and Industrial 10% of AV Rental expenses can be deducted from rental income before being taxed as part of income tax Rental expenses incurred during tenancy: Interest paid on the loan Property tax incurred during rental Premiums paid on fire insurance Cost of maintaining the property (painting, MCST) RES commission Replacement of furnishings Internet and utility expenses (if paid on behalf of tenant) To simplify tax-filling and reduce burden of record keeping, WEF 01 Apr 2016 an amount of deemed rental expenses calculated based on 15% of the gross rent (excluding mortgage interest) will be pre-filled on the online tax form

Goods and Services Tax Taxable persons need to charge GST on the supply of movable furniture and fittings GST applies to the purchase and rental of commercial and industrial properties if the landlord is GST registered (Check IRAS website: GST registration search) Only exception for residential properties is when GST registered landlord rent out unsold unit in condo - Difference of monthly rental and annual value per month will be taxed 4.9 Financing CPF CPF is not allowed to be used for purchase of non-residential properties CPF can be used for downpayment, repayment of mortgage, stamping fees and legal fees CPF Withdraw Limit is 120% of VL - lower of purchase price or valuation price - for residential properties with more than 60 years lease When using CPF to buy residential property with lease between 30 to 60 years: Remaining lease + Applicant age needs to be more than 80 years Lease when applicant reach age 55 Max CPF usage = –––––––––––––––—x Purchase price Lease remaining at time of purchase CPF cannot be used to purchase residential property with less than 30 years lease OA and SA will combine into one Retirement Account at age 55 Basic Retirement Sum for age 55 in 2017 is $83,000 BANK LOAN FOR HDB (MSR 30% + TDSR 60%) MAX 25 years or up to age 65 - LTV 80% of VL Between 25 to 30 years(MAX) or beyond age 65 - LTV 60% of VL FOR PRIVATE(EC) (TDSR 60%) MAX 30 years or up to age 65 - LTV 80% of VL Between 30 to 35 years(MAX) or beyond age 65 - LTV 60% of VL

HDB LOAN FOR HDB (MSR 30%) MAX 25 YEARS or up to age 65 - Loan Ceiling 90% of VL Note: MSR applies to purchase of all HDB flats TDSR applies to all Bank Loans For TDSR calculation use 3.5% floor interest rate or market interest rate, whichever is higher Right-sizing of 2nd HDB Loan Flat buyers can keep the greater of $25k or half of cash proceeds Enhance contra facility ECF enables owner to sell flat and buy resale using the sales proceeds and CPF refunded to pay for resale Calculate Monthly Mortgage Payment: i M = P x –––––––––––––––— 1 - (1+i)^-n M = Monthly payment P = Principal i = interest per month in decimal Interest 3.75%, i = 0.0375/12 = 0.0031 n = number of periodic payments or months 30 years, n = 30 x 12 = 360

Extras: SLA - Singapore Land Authority Land Dealings (Approval) Unit (LDAU) Issues Qualifying Certificates (QC) to foreign developers for the purchase of residential land, usually state that the development of the residential land has to be completed within Project Completion Period (PCP) of 5 years. Issue Clearance Certificates to Singapore company/limited liability partnership/society to acquire and retain residential properties A lease longer than 7 years must be registered with the Registry of Deeds URA - Urban Redevelopment Authority Concept Plan - Strategic Land use plan over next 40-50 years (Every 10 years, 2011 latest) Master Plan - Statutory plan for implementation over 10-15 years (Every 5 years, 2014 latest) Sale licence (1M/5 years proven track record) or non-sale licence (100k) apply to Controller of Housing BCA - Building and Construction Authority Commissioner of Building Control (CBC) in charge of issuing Temporary Occupation Permits (TOP) and Certificate of Statutory Completion (CSCs) as well as building plan approval JTC - Jurong Town Corporation Industrial land on 30 or 60 years lease JTC land rental scheme is paid monthly in advance, annual increment capped at 5.5% of rental Individual buildings must have a distance of at least 100m away from stipulated JTC Food zone ICA - Immigration and Checkpoints Authority Home Staging - prepares and show case a property for sales by improving and creating an appeal to attract required demographic viewers.