Property Hunter Magazine Issue 63- February 2015 | Page 39

To many, 2015 is a year to wait and
see. To the disciples of “Buffetology”,
they need no reminder that when
everyone is cautious, it’s the best time
to seize the many opportunities ahead.
Happy hunting, Property Hunters!

2.

The availability of land title or strata title.

3.

The availability of land title or strata title.

4.

The type of title (leasehold/freehold)

5.

Is the land free from encumbrances? (such as
caveats or prohibitory orders)

6.

Is the land charged to any individual/company/
financial institution?

7.

Is there a need to obtain the state authority’s
consent?

8.

Verification of the owner’s background (It is always
essential to know the background of the owner/
vendor)

Tip: Conduct searches (such as land search, bankruptcy
search for individuals and winding-up search for
companies) and let your lawyer interpret the results for you.
This early-stage preparation will help you set out your
expectations on cost, time and potential complications,
which is crucial for informed decision making.
Using a common lawyer is not encouraged as a lawyer
acting for both the vendor and the purchaser could
very well find himself (or herself) caught in a conflict
of interest, and would have trouble maintaining
impartiality. As such, you would be at a disadvantage
should your lawyer be biased in favor of the vendor.

3.

Whether the deposit paid will be held by the
vendor’s lawyer as a neutral party and to be
released to the vendor only after the whole
transaction is completed?

4.

When may you take possession of the premises?

5.

Whether any stamp duty or tax is payable by you
on the purchase for your financial planning?

Your lawyer can also help you scrutinize the contract
that your seller or agent has proposed, to see if
the terms and conditions stated inside are fair and
reasonable, or suited to your needs.
Tip: Consult your lawyer and inform him of your
expectations towards your new property
Trap: Do not think that if the transaction is simple, you do
not need a lawyer!

STAGE 3: EXECUTION OF SALE &
PURCHASE AGREEMENT (SPA)
If all goes well during the negotiation stage and both
parties have come to an agreement, the lawyers will
then prepare the relevant documents to be signed.
The common issues to note at this stage are:
1.

Whether the deposit paid will be held by the
vendor’s lawyers as a neutral party and to
be released to the seller only after the whole
transaction is completed (or upon fulfillment of
certain conditions)

2.

When can you take possession of the premises?

STAGE 2: PRE-CONTRACT
NEGOTIATIONS
Before you sign your SPA, it is always essential to first
consult your lawyer. Your lawyer will be familiar with the
common practice, and will be able to advise you on what
should be clarified with the vendor. These include:
1.

Who will be liable for any defect of the house?

2.

When are the payment dates?

Tip:
1. If you are not comfortable with the agreement, do not
sign the documents.
2. Always ask questions, no matter how silly they
might seem. You have paid for your lawyer’s services
after all.

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