HDB home owners - Agents partner with Rogue Lawyers to jack up rates
April 2011
Amidst many complaints against property agents, the Singapore government has set up the Council of Estate agencies to regulate the property agency business as well as to issue each property agent with a license number, and measures such as NO dual representation do not go far enough.
If you have discovered that you have paid more than a certain rate for your legal conveyancing, you should raise a suspicion and make a NOTE (though not necessarily a complaint) to Council of Estate Agencies (CEA).
There is also a rule in which agents cannot refer home owners to money lenders. Shouldn’t CEA ban agents from striking deals with bankers and lawyers and pocketing illegal kick backs?
Agents are still happily making referrals to lawyers and banks. This is a serious problem and we should highlight here so that in case you are a victim, you could raise this issue with Council of Estate Agencies.
Agents like to strike deals with lawyers to give them kick back. So where is the extra fees coming from? The lawyer (those bad ones) will go about charging the home buyer more in order to pay out the commission. Not only that, agents also work with companies that have pre-arranged ELEVATED legal fees with some law firms. This extra cost is passed on the home buyer. These illegal companies then pass on this extra commission gained as a result of illegal legal fee kick back to the agents. This is illegal under current law as lawyers cannot give out commission from their law fee.
Property agents also push you towards unattractive home loan rates just so as to benefit from the legal fees kick back.
It is always useful to note down the time, date of communication with the property agent. And try to communicate more with Emails and get them to confirm their facts via email. Do not rely too much on verbal conversation.
Attached here is a property agent complaint form which we downloaded from the CEA website. (Please note, you should always check the CEA website to ensure that the form is up to date, we only provide a convenience and are not liable to any losses whatsoever from using the form)A property agent complaint form is available at property buyer. You can contact them at loans (at) propertybuyer.com.sg
CEA Property Agent Complaint Form is available upon request.
Reasonable conveyancing rates guide
For HDB buyers - Buying a HDB in the resale market
$500 mortgage stamp fee is around $1900 to $2300. In fact, $2300 is already at the higher range, you should already start to open your eyes and raise a complaint or lodge a check with CEA if it is at above $2000.
Conveyancing rates for HDB home loan refinance
The estimated legal fees inclusive of Mortgage stamp fee is from $1900 to $2300.
For Private Property Loan- Buying a New Condo under construction
Total (Inclusive of Mortgage Stamp fee) is $2500 (for near to TOP) to $3500 (for those many years later)
Some law firms claim that it will cost them more resources to keep things on file and track condos which are still under construction. And indeed if the completion is far away, the law firm’s responsibility is dragged out longer. If they did not execute according to the letter of instructions from banks, they may become black listed by the banks and be kicked out of the bank’s panel. The cost is also more.
Legal conveyancing for buying Private residential – completed condominium
Total (Include of mortgage stamp fee) is $2500 to $3210.
The price varies a bit, depending on the law firm and the banks. Some banks are deemed more troublesome at the back end, therefore some law firms charge more. But there is a limit to it, so the above prices can be used as a guide.
Conveyance fees for Private Residential Refinance
The legal conveyance fees (including mortgage stamp fee) ranges from $2500 to $2800.
Why do legal conveyance rates differ?
Basically it is up to the law firms when to charge you higher. Perhaps sometimes, we feel it depends on their mood, other times, it depends on whether they are in cahoots with the Dishonest property agents.
Law firms can charge you extra under these situations: -
Last minute appointments such as 1 day before the exercising of option date, law firms may charge more.
Exercise dates falling into public holidays (maybe)
Faster that the normal legal completion date.
Liaising with CPF on expediting payment.
Multiple parties involved in the property.
Involving bridging loans or construction loan.
In illegal partnership with property agents.
Not corrupt, but legal conveyancing is not their core business and hence they charge a higher price.
Some property, usually those above 3m may face higher legal conveyancing fees, due to more potential complexity. (But not always the case)
Involving probate cases and estate issues.
What can you do if you get charged higher fees than normal?
If you have discovered that you get charged a higher fee than what we have described, it is possible that you have been cheated by the property agents, if you have not been cheated by the agents (in that they did not receive a commission), it is possible that you have over-paid.
Although the law society fee recommendation stipulates a higher fee, the free market has stabilized on the above fees which we have highlighted and hardly anyone uses the recommended fee.
In case you have paid higher than the highest range there, you can take down your property agent's license number and raise a complaint in case the bank and/or the law firm was referred to you by the property agent.
CEA Property Agent Complaint Form
These guideline fees are what we understand to be correct market rates as at April 2011
In case you do not know if you are cheated, you can tell us your story, we will be able to guesstimate whether you have been cheated.
write to loans at propertybuyer.com.sg perhaps we can go through your case to let us know if you have been cheated.
SMS Property Buyer mortgage consultants at: +65 9782 8606
Showing posts with label mortgage loans. Show all posts
Showing posts with label mortgage loans. Show all posts
Tuesday, April 5, 2011
Tuesday, February 16, 2010
Invest in Singapore Property: The Shore residences, Greenwood Terrace
Singapore Property buyer Investors Can buy Freehold land and sell as Leasehold
Contributed By www.PropertyBUYER.com.sg
Our blog is happy to receive articles and materials and publish them for you. In return, we will acknowledge your article with a working link back to your site.
In the last issue http://www.propertybuyer.com.sg/articles/singapore-property-investor-buyer/singapore-property-developers-buys-free-hold-land-and-sells-as-103-years-lease-hold/,
we investigate the possible implications of Singapore Property developers buying freehold land, developing it and then selling it as 103 years leasehold strata titled Condominium.
The Recent Launches such as (but not limited to) Far East's "The Shore residences" in the east coast as well as "Greenwood Terrace" in the prestigious greenwood vicinity of District 10 are such examples of the Singapore property developer buying Freehold land and launching as 103 years leasehold strata titled land.
Why do Singapore Property Buyers and Investors need to know?
Singapore property buyers and Investors need to know this because the future value of their condominium and cluster landed properties with Strata titles will be affected some 20 to 30 years down the road when the development becomes run-down.
What about Singapore property owners with Freehold or 999 Leasehold land titles?
For current Singapore property owners who owned landed properties with freehold or 999 leaasehold land titles, this means a potential future bonanza. Please read on, we have got the reply from Singapore land authority.
Reply from Singapore Land Authority (SLA) On Freehold land being sold as Leasehold strata titled developments.
"www.PropertyBUYER.com.sg:
We are doing a research for the benefit of our readers. Our website is at www.PropertyBUYER.com.sg and our readers have been urging us to enquire about how Far East and numerous others have been able to acquire FREE HOLD land from the government (could be SLA) and then develop and sell the properties as a 99 years property. Could you please help us understand under what circumstances are Developers allowed to buy Free Hold land and re-sell as Lease hold land? We appreciate if you could point us to any such literature, web link, sites which explains these in greater details.
Singapore Land Authority:
Developers can buy freehold land through the private market. You should approach the developers for details on your queries as these are all private transactions.
"www.PropertyBUYER.com.sg:
Thank you for your reply. We understand that developers can buy from the private market. But having said that, our readers would like to understand under what statute does it allow the developer to buy Free Hold land and then sell it as a 99 years lease? Hope you can point us in the right direction.
Singapore Land Authority:
We refer to your enquiry dated 11 Jan 2010.
Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered proprietor/developer retaining a reversionary interest.
The duration of this smaller interest is not governed by any statutory provision. Hence it is acceptable for a developer to retain the reversionary Freehold title in a development and merely sell the strata lots in the development with a 103-year lease or any determinate number of years out of the Freehold title.
"
Good News for Singapore Property Owners with Freehold land
Singapore land authority has clarified that "Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered propietor/develop retaining a reversionary interest."
This means that you can possibly sell your landed property on a 99 years lease or any numbers of years lease as you deem fit if you sort out the legal paperwork.
This would mean that you will be able to pass on wealth to your descendants while selling properties while retaining the reversionary rights to freehold land.
Maybe you are stting on 3 or 4 Semi-detaches or Bungalows, you can't really lease it out to get a good cashflow and yet you don't want to sell it as you may not be able to buy another property in a similar good location and you need to grow your business.
What could you do?
Perhaps you can sell one or two of your Semi-detaches as leasehold while you maximise and free up capital and at the same time share in the upside the land can possibly provide.
Sad day for Singapore Property buyers
For Singapore property buyers, it means that more and more property developers will likely get in on the strategy to retain the freehold title while selling developments as Strata title leasehold. Freehold land may gradually disappear into the hands of the well funded and rich property developers.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators or call us so as to do your sums right.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contributed By www.PropertyBUYER.com.sg
Our blog is happy to receive articles and materials and publish them for you. In return, we will acknowledge your article with a working link back to your site.
In the last issue http://www.propertybuyer.com.sg/articles/singapore-property-investor-buyer/singapore-property-developers-buys-free-hold-land-and-sells-as-103-years-lease-hold/,
we investigate the possible implications of Singapore Property developers buying freehold land, developing it and then selling it as 103 years leasehold strata titled Condominium.
The Recent Launches such as (but not limited to) Far East's "The Shore residences" in the east coast as well as "Greenwood Terrace" in the prestigious greenwood vicinity of District 10 are such examples of the Singapore property developer buying Freehold land and launching as 103 years leasehold strata titled land.
Why do Singapore Property Buyers and Investors need to know?
Singapore property buyers and Investors need to know this because the future value of their condominium and cluster landed properties with Strata titles will be affected some 20 to 30 years down the road when the development becomes run-down.
What about Singapore property owners with Freehold or 999 Leasehold land titles?
For current Singapore property owners who owned landed properties with freehold or 999 leaasehold land titles, this means a potential future bonanza. Please read on, we have got the reply from Singapore land authority.
Reply from Singapore Land Authority (SLA) On Freehold land being sold as Leasehold strata titled developments.
"www.PropertyBUYER.com.sg:
We are doing a research for the benefit of our readers. Our website is at www.PropertyBUYER.com.sg and our readers have been urging us to enquire about how Far East and numerous others have been able to acquire FREE HOLD land from the government (could be SLA) and then develop and sell the properties as a 99 years property. Could you please help us understand under what circumstances are Developers allowed to buy Free Hold land and re-sell as Lease hold land? We appreciate if you could point us to any such literature, web link, sites which explains these in greater details.
Singapore Land Authority:
Developers can buy freehold land through the private market. You should approach the developers for details on your queries as these are all private transactions.
"www.PropertyBUYER.com.sg:
Thank you for your reply. We understand that developers can buy from the private market. But having said that, our readers would like to understand under what statute does it allow the developer to buy Free Hold land and then sell it as a 99 years lease? Hope you can point us in the right direction.
Singapore Land Authority:
We refer to your enquiry dated 11 Jan 2010.
Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered proprietor/developer retaining a reversionary interest.
The duration of this smaller interest is not governed by any statutory provision. Hence it is acceptable for a developer to retain the reversionary Freehold title in a development and merely sell the strata lots in the development with a 103-year lease or any determinate number of years out of the Freehold title.
"
Good News for Singapore Property Owners with Freehold land
Singapore land authority has clarified that "Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered propietor/develop retaining a reversionary interest."
This means that you can possibly sell your landed property on a 99 years lease or any numbers of years lease as you deem fit if you sort out the legal paperwork.
This would mean that you will be able to pass on wealth to your descendants while selling properties while retaining the reversionary rights to freehold land.
Maybe you are stting on 3 or 4 Semi-detaches or Bungalows, you can't really lease it out to get a good cashflow and yet you don't want to sell it as you may not be able to buy another property in a similar good location and you need to grow your business.
What could you do?
Perhaps you can sell one or two of your Semi-detaches as leasehold while you maximise and free up capital and at the same time share in the upside the land can possibly provide.
Sad day for Singapore Property buyers
For Singapore property buyers, it means that more and more property developers will likely get in on the strategy to retain the freehold title while selling developments as Strata title leasehold. Freehold land may gradually disappear into the hands of the well funded and rich property developers.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators or call us so as to do your sums right.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
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