COSTS & EXPENSES (Blogger Table)

Deductions from Sales Proceeds 

I have tried to think of as many deductions as possible to my sales proceeds. The list is not exhaustive as this is my first time selling a private property, never mind selling through an en bloc sale and I don't know what to expect.

Owners should do due diligence on the possible deductions from their Sales Proceeds and request an Itemized Bill from the Lawyer and Managing Agent. Every dollar should be accounted for.

Remember, even if $100 goes astray, chances are it will be the same for all 560 owners. 100*560 = $56,000 going somewhere else.... small change to you, but big bucks to someone else.





Tampines Court Round III

(My reading of the CSA only, I have no legal or financial training, I am just a blogger and so there may be errors. Please seek professional advice before making any decision)

(a) Legal Fees

1. Professional Fees: around 0.28% of Sales Proceeds / unit 
2. Discharging of mortgage/CPF - individually charged. $ unknown
3. STB Application Fee: $35,000/560 = $63/unit
4. Disbursements: printing & photocopying @ $0.15/page, transport, telephone, faxes, legal research on property ownership, stamp fees etc.. the list is long and I don't know what the ballpark figure is. 
5. GST @7%
6. Extras: include work outside their scope of work, eg 'where a settlement agreement has to be negotiated and signed'. What is that exactly? High court expenses, SSD matters etc. Lawyers in general will bill you for every tiny little thing, it is in the nature of their profession. 

Who pays what and when:- 

1 & 2) To be paid by all owners on successful legal completion of the sale from their sales proceeds after Bank and CPF discharges. 

3 & 4) To be paid for by the consenting majority first after reaching the 80%.The Minority pay after sale completion from their sales proceeds.

Those owners who do not sign the CSA need not be bothered with fees or charges in the event of an unsuccessful Enbloc attempt. They are only liable for Costs & Expenses after the legal completion of sale.

(b) Marketing Agent Fees

• Professional Fees: 1% of Gross Sales Proceeds, To be paid by all owners on successful legal completion of sale from their sales proceeds after Bank and CPF discharges.

(c) Valuation Report and d) Method of Distribution Report are done by an independent firm of property consultants. The cost was between $20,000 to $30,000 in 2008. I have no updated estimate. I believe the marketing agent pays. 

(e) Differential Premiums: DP for Increase in Intensity & Lease Top-up LUP): 

The Purchaser only

f) RPA: Residential Property Act 31(2). also called the Qualifying certificate.

The Purchaser only
The housing developer shall, before he purchases or acquires an estate or interest in any residential property, apply to the Controller for approval to purchase or acquire the residential property.

g) Buyers Stamp Duty

The Purchaser only
All properties have to have their Sale & Purchase agreement stamped within 2 weeks of the document being signed. The STB sent out a circular to all lawyers highlighting the need to pay the stamp duty BEFORE an application be made or heard before the Board. The circular can be found here:- Strata Titles Board, Registrar's Circular 1/2009.

h) Sellers Stamp Duty (see here)

 All owners who are eligible to pay SSD have to pay within 14 days of the S&P being signed.  They can write to the IRAS to see if an arrangement can be worked out, usually it can be deferred to until after the STB Sale Order.

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• Law Society Singapore: Legal Costs