b00b13s Flashcards
What are the 3 type of completion accounts and what do each of them consist of
Vendors completion account to purchaser
Less: deposit, vendors share of maintenance from -, security deposits, purchasers share of rental
Add: purchaser’s share of property tax
Total payable by purchaser on completion
Solicitors completion acc to the purchaser
Same as (a)
add: purchaser sols legal costs
Less: cpf, bank
Net amount payable by purchase in cash on completion
Solicitors completion account to the vendor
Same as (a)
Less: redemption monies to CPF and Bank, vendors sols legal costs
Add: stakeholder amount
Net sale proceeds received by vendor on completion
what are the 2 types of mortgage what do they mean
Closed mortgage: limited
Open mortgage: secures all outstandings with the bank, other loans such as loans, owing unlimited amount(open means they settle all your loans not say no limit
What is a power of mortgage sale clause
Must have power of sale clause in the mortgage, meaning if they sell at an amount higher than the property, and they sell at an excess, then it will be given back to the mortgagor, if it sold below then they will have to go to the mortgagor to receive the remaining amount
Does the tenant have the right to renew the tenancy and what does he need to take note of
Tenant has the option to renew clause
Before the end of the lease tenant must let the landlord know whether they want to renew the lease. If the lease is more than 7 years you must register with SLA
What is a diplomatic clause
Allows for termination before the expiration date
In order to prevent the tenant using this as an excuse, it will be drafted such that it can only take place after certain time
Tenant is required to serve a notice prior to the termination
What is the procedure to transfer stuff to new landlord
When there is a new landlord, security deposits is transferred by obtaining the tenant’s written consent
Alternative method is for the tenant, the existing and the new landlord to sign a novation agreement (resign the original lease)
what are the tenants duties?
Pay the rental
Pay the charges for the supply of water, electricity, gas etc
Not to assign or sublet the unit
Keep the interior of the premises in good order
To use the unit for residential purposes
what are the landlords duties?
Pay taxes
Insure the property
Grant exclusive possession to the tenant
Keep the exterior of the premises in good order
Give the tenant quiet enjoyment
Non-derogation from grant (if landlord is aware for the purpose, he should not do anything to jeopardise the purpose)
Give premises that are fit of the habitation
Does not have the duty to repairs but has to keep common area in a reasonable state
when is maintenance fees payable?
Start payment on either the date developer actually delivers vacant possession, which is when keys are received, or 15 days after the developers gives notice of vacant possession.
Who and when is the MCST made up of
Made up by owners of the property which is formed to manage the common property formed 1 year after legal completion of the property.
what is encumbrances
Usually refer to a mortgage on the land(interest) or other claim on property or assets(liabilities/restrictions).
When sale is complete, vendor must discharge the mortgage.(remove encumbrance)
When all encumbrances are removed, purchaser can obtain full legal ownership.
what does subject to contract mean?
it means that the parties are still in the process of negotiating and finalizing the terms of a contract. It indicates that the discussions and proposals are not intended to create a legally binding agreement until a formal contract is executed.
process for uncompleted property
process uncompleted property - option to purchase - signed and dated by the D - pay 5% of the PP (booking fee) within 2 weeks from the date of the option - D sols are to send the s&p a in triplicate to p or p sols - once receive the s&p a, 2 weeks from the date of receipt of the s&p, is when exercise the option, clients must sign the s&p in triplicate - to exercise the option - P must sign all spa(3), pay 15% of PP - if grant extension of time - 8 weeks from the date of the option (3 weeks for documents, 8 weeks for money)
when are maintenance fees paid
- when notice of vacant possession is given or 15 days after that
