Singapore Real Estate Salesperson (RES) Notes

(MOL) Singapore Land Authority (SLA)

• Landed areas have 58 sites without plot ratio
• Consist of: land, air space, real property, subterranean, incorporeal hereditaments, corporeal hereditaments
• 2 storey height: 12m, 3 storey height: 15.5m
• Good Class Bungalow, 1400m², 39 areas, 35% plot size and 18.5m width
• Bungalow, 400m², 40% plot size and 10m width
• Semi-Detach, 200m² and 8m width
• Terrace House, 80m² and 6m width
• Strata housing, townhouse, cluster housing. 40% plot size
• Condominium, 4000m² and 40% plot size
• High-rise apartment, 1000m² and more than 5 storey
• Low-rise apartment, 1000m² and less than 6 storey
• Service apartment
• Sentosa Cove, 18,000 sf
• Shoebox apartment, 70m²
• Shop house is identified as multiple units
• Retail unit, 50m². Single loaded, 2.0m-2.4m. Double loaded 2.4m-3.0m
  
• Conservation areas: Little India, Boat Quay, Chinatown & Kampong Glam
• Residential conservation areas: Blair Plain, Emerald Hill & Cairnhill
• Small Office Home Office (SOHO) require home office permit, one-time $20
• Clinics, 3000m², 20% GFA
• Industrial canteen, 700m², 5% GFA
• Childcare in Place of worship, 500m², 10% GFA
• Gross Floor Area (GFA) = plot ratio x site area
• Plot ratio. 1.4: 5 sty, 1.6: 12 sty, 2.1: 24 sty, 2.8: 36 sty, >2.8: >36 sty
• Loft = void area on ceiling
• Redevelopment: 100%, reconstruction: >50%, alteration & addition: <50%
• Government Land Sales Programme
• Land Dealings (Approval) Unit, In-Principle Approval
• Uses Differential premium
• Able to issue Temporary Occupation License (TOL), bare, revocable, estoppel, coupled with grant & contractual
• Information in Singapore Land Registry
  
• State Land Act, chief valuer, commissioner of land
• State Land Encroachment Act
• Land Title Act
• Land Title System have mirror, curtain and insurance principle
• Registration of Deed Act, defeasible if there is caution or encumbrances e.g. caveat and have 5 years expiry
• Deed system e.g. Will
• Tenure: mode, estate: period
• Leasehold, Life Estate, Freehold (Estate in Fee Simple or Estate in Perpetuity, Statutory Land Grant)
• Accessory Lot (e.g. TS13-A12345K)
• Land Acquisition Board, market value base on date of acquisition
• Land Title (Strate) Act
• Collective sales (en-bloc), max. 1 year to complete through tender or auction
• <10 years old 90% share value, >10 years old 80% of share value
• Sales committee: 3-14 people, 30% of SV present, 20% to vote
• 5 days cooling offer period
• If fail, wait 2 years. 1st attempt within 2 years 50% of SV, 2nd attempt 80% of SV
• Appeal to Strata Title Board

(MOT) Land Transport Authority (LTA)

• Road Line Plan (reserve)

Ministry of Home Affair (MHA)

• Immigration Act
• Agent suppose to check passes, passport and validate
• Anti-harbouring, max. fine 6k, jail 24 months

(MHA) Singapore Civil Defense Force (SCDF)

• Fire and safety standards

(MOF) Inland Revenue Authority of Singapore (IRAS)

• Property Tax Act
• Property tax to be prepaid by 31st January
• Owner-occupied rate. 8k: 0%, 47k: 4%, every 15k +2% till 130k
• Non-owner occupied rate. 30k: 10%, every 5k +2% till 90k
• None residential property tax: 10% tax rate x annual value
• Land/development tax: 5 % tax rate x market value
• Notification: sales 1 month, succession 1 year, others 15 days
  
• Stamp Duty Act
• Stamp duty is to stamp for documents only
• 14 days to stamp in SG, 30 days if not in SG
• Buyer stamp duty. <180k: 1%, <360k 2% -1.8k, >360k, 3% - 5.4k
• Additional buyer stamp duty (ABSD). SC: 0%, 7%, 10%+. SPR: 5%, 10%+. Others: 15%+
• Remission: sell current property within 6 months or if you are from Switzerland, USA, Lichtenstein, Ireland, Norway
• Seller stamp duty: 16%, 12%, 8%, 4%
• Industrial seller stamp duty: 15%, 10%, 5%
• Tenancy agreement stamp duty: 4 years average total rent x 0.4%
• Mortgage application: 0.4% x amount or 500 whichever lower
• Late stamp duty charge. <3 months: $10, >3 months: $35 or 4x whichever higher

(MOM) Central Provident Fund (CPF) Board

• CPF Life
• Housing Loans
• CPF cannot be used when <30 years of lease / <80 years of balance lease
• 2016: 161k full retirement sum, 80.5k basic retirement sum
• Weight income: (age A + income A + age B x income B) / total income

(MND) Building and Construction Authority (BCA)

• Building Maintenance and Strata Management Act
• Management Corporation Strata Title (MCST), pass resolution & by-laws
• Subsidiary Proprietors (SP)
• Share Value (SV), every 50m² +1 sv, starts from 5 sv min.
• Strata Title Board: resolve SP dispute
• Building structural safety standard
• Advertising. 1m²: $20, <5m²: $90, <10m²: $140, >10m²: $20/m²

(MND) Urban Redevelopment Authority (URA)

• Housing and Developing Act
• Sales of Commercial Properties Act
• Residential Property Act
• Qualifying Certificate, 5 years to Certificate of Statutory Completion (CSC), 2 years to sell the units, 8% tax increment yearly
• Planning Act
• Concept plan, 10 year revision, 40-50 years plan
• Master plan, 5 years revision, 10-15 years plan
• Development charge = development ceiling - development baseline
• Development charge table of rates, revise every March and September
• Cadastral map to show Lot based system, 30 Town-subdivision, 34 Mukim
  
• Property Price Index (PPI)
• Core Central Region (CCR), Rest of Central Region (RCR) & Outside Core Region (OCR)
• Street block plan (e.g. setback)
• Housing Developers (Control and Licensing) Act
• >4 Units, same as commercial development
• Sale-license, 1-4m paid up, require building plan approval
• Uncompleted sale: booking fee 5% > exercise 15% > progressive 10,10,5,5,5,5,25% > 2% title transfer > 8% CSC > 5% after 1 year defect
• No-sale license, only can sell after TOP
• C2C selling: seller decides price > 1% OTP > exercise 4% or 9% > buyer stamp duty > requisitions & caveat
• Project account under Singapore Academy of Law, can only withdaw for construction usage
• Buyer fail to exercise: refund 75% of booking fee
• Remorse buyer: refund 20% deposit, EC refund 5% of deposit
• Shortfall compensation by developer: 3% allowance
• Late completion by developer: 10% p.a. on instalment paid
• Buyer late payment: 2% p.a. + prime rate
• Advertising require: track record, consent to change layout, name, license no., tenure, encumbrances, vacant possession, legal completion, lot base no.

(MND) Housing Development Board (HDB)

• To provide affordable, qualify home that is vibrant and community focused
• Block ethnic. Malay: 25%, Chinese: 87%, Indian: 15%, Non-SC: 8%
• Neighbour ethnic. Malay: 22%, Chinese: 84%, Indian: 12%, Non-SC:58%
• Private owner direct purchase need to wait 30 months, buy from resale market need to dispose private property within 6 months
• Minimum Occupation Period (MOP) is 5 years
• SPR and divorce couple need to wait for 3 years to buy from direct market
• Town Council Act, conservancy
• Regions: Northern, North-Eastern, Eastern, Western, Central
• Can only lease after MOP
• Minimum 1 SC to be around when leasing whole unit
• Tenant to fulfill quota as resale ethnic
• 7 days to inform HDB of new tenant
• Lease buyback scheme: <12k income, <4-room unit with min. 20 year leave, no other property
• Right sizing policy (silver housing): seller receive 25k or 50% whichever higher
• Enhanced contra facility: reduce transfer procedures between HDB
  
• Resale Price Index (RPI)
• Resale procedure: seller & buyer check eligibility > complete seller/buyer checklist > 7 days colling period / viewing > decide resale price / OTP max 1k > submit valuation request / loan valuer to inspect within 4 days > 21 calendar days to exercise 4k & submission > 1st appointment, terminate GIRO, pay S&C > final inspection, fire insurance, 2nd appointment
• Only 2-room & above can resale, no need income ceiling, min. 1 SC or 2 PRs
• Studio Apartment, cannot lease, <6k income
• 2-room, max. rental 1 room with 6 people, <6k income if 99 years lease / <12k income if 15-45 years lease
• 3-room / 4-room / 5-room / Executive Apartment, max. rental 2 rooms with 9 people, <12k income
• Executive Condominium, rental no restriction, <14k income, privatise after 10 years
• Public Scheme / Fiance-Fiancee Scheme / Orphan Scheme, 2 SCs min. 21 years old
• Single SC / Non-SC Spouse / Joint Single, min. 35 years old, only 2 rooms non-mature estate, need to top up 15k premium
• Conversion Scheme, combine 2 3-room or smaller unit
• Priority sequence: multi-generation > married with child > third-child > divorce/widowed parents > tenants > senior
  
• Grant only issue 1 per lifetime
• Special housing grant (direct purchase), <8.5k = 40k
• Family grant (resale), <12k = 30k
• Additional housing grant (all), <5k = 40k
• Proximity grant (resale), <2km = 20k
• Non-SC = -10k for all grants
• Single SC = grants / 2
• Levy is chargeable for the 3rd direct purchase HDB. 2-room: 15k, 3-room: 30k, 4-room: 40k, 5-room 45k, EA: 50k, EC (after 9 Dec 13): 55k
  
• Loan-to-value (LTV) limit
• Valuation-Limit (LV)
• Mortgage Servicing Ratio (MSR), HDB
• Total Debt Servicing Ratio (TDSR), private banks, 30% hair cut for self-employed
• Housing withdrawal limit from CPF: 120%
• HDB loan (only twice in a lifetime), <12k income, exhaust all CPF, up to 90% loan, 2.6% p.a, 25 years, 30% MSR
• Private loan, 5% cash, 15% CPF, 80% loan, Singapore InterBank Offer Rate (SIBOR), 60% TDSR, 30 years
• 1st loan, 30 years / <65 years old. Loan: 80% Cash 5%
• 1st loan, >30 years / >65 years old. Loan: 60% Cash 10%
• 2nd loan, 30 years / <65 years old. Loan: 50% Cash 25%
• 2nd loan, >30 years / >65 years old. Loan: 30% Cash 25%
• 3rd+ loan, 30 years / <65 years old. Loan: 40% Cash 25%
• 3rd+ loan, >30 years / >65 years old. Loan: 20% Cash 25%
  
• Lease with more than 3 years must be in written agreement, >7 years can be registered, HDB cannot lease or more than 3 years
• Fixed term, tenancy at will, periodic lease (notice to quit anytime)
• Tenant at sufferance > notice of distress > seizure > sheriff
• Premises, habendum, reddendum
• Landlord implied covenants: quiet enjoyment, fit for human habitation, liable to all taxes, external & structural repairs, not to derogate
• Tenant implied covenants: rent, not fo sublet, landlord enter for repair, no alteration, permitted purpose only, fair wear and tear
• Clauses: sub-letting, non-disturbance, minor repair, diplomatic, en bloc, option to renew, forfeiture, escalation, deposit
• Novation: change of tenant
• Assignment: change of landlord
• GST in rental: (gross rental - annual value) x 7%
• Income tax (non-SC): 15% prevailing or 20% director fee
• Rental expenses can use a gross 15% to offset, agent 1st year commission is not deductible

(MTI) Jurong Town Corporation (JTC)

• End-user lessess, 50% tenant for <5 years and 30% tenant >5 years
• Third-party facility provider
• JTC Tenant cannot sub-let
• Pay full upfront land premium when making purchase
• Right of First Refusal (ROFR)
• Sales-and-leaseback scheme
• Third Party Build-and-Leave scheme
• Religious activity can only use premises up to 2 days per week

(MOL) Property Law

• Common law, statutory law, equity
• Legal interest, equitable interest, revisionary interest
• Rights: possess, exclude, transfer, rent, collateral
• Proprietary rights: binding / personal rights: license
• Fixtures, fittings, chattels, trade chattels : measure by degree of annexation, purpose of annexation
• Easement is for dominant tenement, restrictive convenient is for servient tenement and last for 20 years; renewable every 10 years
• Easement creation: statutory law, right of water/electricity/light/way/support, express/implied, reservation, necessity, prescription
• Easement removal: statutory, express release, implied, unification, court order
• Oaths and Declaration Act, statutory declaration by the commissioner of oath
  
• Bankruptcy Act, 15k min, <15k Debt Repayment Scheme (DRS), discharge 5 years, -2 years if paid, +2 for re lodge / repeat
• Moneylenders Act
• Mortgagor (borrower), mortgagee (have to rights to sell / redeem)
• (Lasting) Power of Attorney
• Turst, trustee, trustor / settlor (Syriah law only allow 1/3 of asset to be willed)
• Intervivo trust: during the person is alive, testamentary trust: dead/testate (grant of probate by executor), public trust: intestate or bankrupt (letter of administration by administrator)
• Resulting trust: non legal holding, constructive trust: fraud, unregistered trust: temporary holding
• Real Estate Investment Trusts (REITs) is not heterogeneity
• Gift is voluntary, irrevocable and without consideration
• Joint tenancy / tenancy-in-common (alienation, partitioning, court order): unity of possession, interest, title, time

(MOL) Contract Law

• Subject to Contract will only bind in final agreement
• Offer > acceptance > consideration > intention
• Agreement must have property address, party name, price
• Can be terminated by revocation, lapsed, counter offer, death, rejection
• Stakeholder clause: conveyancing (CVY) account under Singapore Academy of Law
• Requisitions with satisfactory replies from IRAS, PUB, BCA, URA, SMRT, LTA
• The Law Society of Singapore's Condition of Sale 2012
• Late completion interest: 8% p.a for both buyer and seller. Max. allowance is 21 days
• Vitiating (void) factors: incapacity, mistake, illegality
• Voidable: duress, undue influence, misrepresentation (innocent / contributory negligence, negligent, fraudulent / professional negligence)
• Completed: performing, agreement, frustration, non-performance, seller bankrupt, Act of God, impossibility
• Remedies: liquidated / unliquidated damages, specific performance, injunction
• Caveat emptor, latent and patent defects
• Torts of vicarious liability, negligence, defective of dangerous premises (disclaimer), waste (permissive, voluntary, equitable, ameliorating)
• Privity of contract / estate
• Conditions is major, warranty is minor
• Expressed / implied terms is official, representation is non-official

(MND) Council for Estate Agencies (CEA)

• Agency agreement (exclusive, non-exclusive, sole agency) is bilateral and can be form by agreement, ratification, estoppel
• A deal is only done by the agent if he has effectively instrumented it
• Actual authority, apparent authority, breach of warranty
• CEA has 16 members inclusive of 1 president
• Yearly renewal is $230 + $53.50
• Yearly require 6 hours of Continuing Professional Development (CPD), 3 hours have to be core subject
• Entry is 4 'o's, WPML level 5, discharge bankrupt
• Negotiation > mediation > arbitration / tribunal > litigation, CASE / SISV / SMC
• 25k fine, 12 months jail: dual representation, money lending referral
• 10k fine, 6 months jail: collect cash for HDB, use CEA symbol, fail to display agent card
• Have to purchase personal indemnity insurance
• Terrorism (Suppression of Financing) Act, report to Suspicious Transactions Report Office (STRO) from Commercial Affairs Department (CAD)
• Consumer Protection (Fair Trading) Act, 20 practises, max. fine 30k but exclude properties and employment contract
• Code of Ethic and Professional Client Care
• Owe fiduciary duties
• Higher case standard for handicapped and illiterate
• Disciplinary committees: 3 - 20 people

(MICA) Marketing

• Price, product, place, promotion, people
• Demand is elastic, supply is non-elastic
• Effective  / speculative
• Macro factors: political, social, economic, technology
• Micro factors: condition, location, shape, size, frontage
• Obsolescence: Economic, functional, physical
• Cyclical: upswing, boom, downswing, depression
• Branding, market position, market research
• Market segmentation, differentiated marketing, undifferentiated / concentrated marketing
• Due diligence to be done by agent: ownership, bankruptcy, tenancy
• Rank of most common transaction type: private treaty, tender, auction
• Advertising: name, mobile no., reg. no. agency name, agency no.
• Personal Data Protection Act (PDPA) by personal data protection commission (PDPC)
• Do-not- call register and 10pm - 9am is restricted from calling
• Spam Control Act to governed consent, purpose and reasonableness