Lesson 4 Flashcards
What are the two main types of property ownership?
Joint Tenancy and Tenancy in Common.
What is a key feature of joint tenancy regarding ownership shares?
There are no specific shares of ownership in joint tenancy.
What is the “right of survivorship” in joint tenancy?
The right of survivorship means that upon the death of one joint tenant, their share automatically passes to the surviving joint tenants.
What are the four unities in joint tenancy?
The four unities are time, title, interest, and possession.
Why is joint tenancy popular among married couples?
Because of the right of survivorship, which simplifies the transfer of ownership upon death.
When does the last surviving owner’s will take effect in joint tenancy?
After the death of the last surviving joint tenant.
What happens to the right of survivorship in cases of murder between joint owners?
The right of survivorship does not apply.
What event can sever a joint tenancy?
Bankruptcy can sever a joint tenancy, turning it into a tenancy in common.
How are ownership shares characterized in tenancy in common?
Owners hold undivided shares in the property.
What are “words of severance” in the context of tenancy in common?
They indicate the intention to create distinct shares in the property.
What does “unity of possession” mean in tenancy in common?
All tenants in common have equal rights to possess and use the entire property.
What makes tenancy in common appealing for investment purposes?
It allows flexibility in ownership shares, which can be tailored to different investment stakes.
Can tenants in common bequeath their share through a will?
Yes, each owner can bequeath their share to a beneficiary through a will.
Is there a right of survivorship in tenancy in common?
No, there is no right of survivorship in tenancy in common.
What is the Unity of Possession in joint tenancy?
Each joint tenant is fully entitled to possession of the entire property, meaning no one can claim a specific part as their own.
What is the Unity of Interest in joint tenancy?
Joint tenants are entitled to one and the same interest in the property, meaning they cannot transfer their interests without the agreement of all joint tenants.
What does Unity of Title mean in joint tenancy?
Joint tenants must obtain their interests from the same legal document or transfer, ensuring a shared basis of ownership.
What does Unity of Time refer to in joint tenancy?
Joint tenants must acquire their interests at the same time, meaning their rights to the property begin simultaneously.
What is the requirement for owners to convert from Tenancy in Common to Joint Tenancy?
Owners must hold equal shares of the property (e.g., 50% - 50%).
What form must be filled out to declare holding as Joint Tenants?
Fill out Form 15 - Instrument of Declaration to Hold as Joint Tenants.
Where do you register the conversion to Joint Tenancy?
Register the conversion with the Singapore Land Authority.
Can a joint owner unilaterally sever a joint tenancy?
Yes, any joint owner can unilaterally sever a joint tenancy and convert it to Tenancy in Common without the consent of other joint owners.
What form is required to sever a joint tenancy?
Fill out Form 17 - Instrument of Declaration by a Joint Tenant to Sever a Joint Tenancy.
How should Form 17 be served to other joint owners?
Serve a copy of Form 17 personally or by registered mail to other joint owners.
Where is the severance of joint tenancy registered?
Register the severance with the Singapore Land Authority.
How must declarations for conversion be made?
All declarations must be made in the presence of a Commissioner for Oaths.
What can a co-owner do if they disagree with the conversion to Tenancy in Common?
They can bring the matter to court if any co-owners disagree with the conversion.
What are the three main types of entities that can hold property?
Individuals, Businesses, and Institutions.
What is the age of majority for an individual to legally hold property?
The age of majority is 21 years old.
What is the minimum age at which an individual can enter into a tenancy agreement?
Individuals aged 18 years old can enter into a tenancy agreement for no more than 3 years.
What are the types of businesses that can hold property?
Types include sole proprietorships, partnerships, and private limited companies.
How can partnerships hold property?
Partnerships can hold property as tenants in common or through trustees.
What types of institutions can hold property?
Societies, clubs, and associations with more than 10 persons can hold property.
How many trustees are typically required for these institutions?
Institutions typically require 2 to 4 trustees to hold property.
What is a key exception to the restriction on trustees?
The restriction of 4 trustees does not apply to trusts for charitable, religious, or public purposes, according to S36 of the Trustee Act.
What does the Residential Property Act govern in Singapore?
The Residential Property Act regulates the purchase of residential properties by entities, particularly with respect to foreign ownership.
Can entities with foreign shareholders purchase restricted property in Singapore?
No, they cannot purchase restricted property without meeting specific conditions.
What are 2 conditions that entities with foreign shareholders must meet to purchase restricted property?
They must obtain approval from the Singapore Land Authority (SLA) and Land Dealings Approval Unit (LDAU).
What is a Power of Attorney (POA)?
A Power of Attorney is an instrument created by a person (the donor) who appoints another person (the donee) to act on their behalf.
Who is the creator of the Power of Attorney called?
The creator of the POA is called the Donor.
What is the minimum age requirement for the donor of a POA?
The donor must be 21 years or older.
Who is the person appointed to act on behalf of the donor?
The person appointed is called the Donee.
What authority does the donee have under a Power of Attorney?
The donee has the authority to act on behalf of the donor in all circumstances unless the POA document specifies restrictions.
What are some examples of actions that a donee may perform under a Power of Attorney?
Examples include: a) Accessing a bank safe deposit box b) Buying and selling property c) Filing tax returns
When is a Power of Attorney usually valid?
A POA is usually valid until it is revoked by the donor, upon the donor’s death, incapacity of the donor, or upon an event specified in the POA document.
Can a Power of Attorney be revoked?
Yes, a Power of Attorney can be revoked by the donor at any time as long as they are capable of making that decision.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney is a legal document that allows a donor to appoint one or more persons (donees) to make decisions and act on their behalf if the donor loses mental capacity.
What are the 3 eligibility requirements for a donor to create an LPA?
The donor must be: i) 21 years or older, ii) Have mental capacity, and iii) Not be an undischarged bankrupt.
What types of matters can donees make decisions on behalf of the donor?
Donees can make decisions on personal welfare and property & affairs matters.
What does “property & affairs matters” include? Give at least 3 examples.
It includes: i) Buying, selling, renting, and mortgaging property, ii) Opening and operating bank accounts, iii) Receiving income and financial entitlements, iv) Handling tax matters, v) Paying rent and household expenses, vi) Investing savings, and vii) Purchasing needed vehicles or equipment.
What restrictions are placed on the donee in an LPA?
A donee cannot: i) Create a will on behalf of the donor, ii) Make gifts on behalf of the donor, iii) Make decisions if the donor regains mental capacity (but the LPA remains valid).
Can a donor appoint more than one donee in an LPA?
Yes, a donor can appoint multiple donees and specify how they should make decisions (jointly or jointly and severally).
What does it mean for donees to act “jointly”?
If donees act jointly, they must make decisions together and cannot act separately.
What does it mean for donees to act “jointly and severally”?
Donees can either make decisions together or separately, and both types are valid.
What happens if the donor appoints more than one donee but does not specify how they should act?
The law assumes they are to act jointly.
What happens to the LPA upon the death of the donor?
The LPA is cancelled upon the death of the donor.
What is the primary purpose of a Will?
A Will provides for the administration and distribution of the donor’s estate (all that they own) among their beneficiaries after their death.
What is a gift inter vivos?
A gift inter vivos is when a property owner transfers their property to another person during their lifetime without receiving any monetary consideration.
What is a key characteristic of a gift inter vivos?
The gift is irrevocable, meaning it cannot be taken back once made.
Who is the person that makes the gift in a gift inter vivos?
The person who makes the gift is called the donor.
Who is the person that receives the gift inter vivos?
The person who receives the gift is called the donee.
Is stamp duty applicable to gifts inter vivos?
Yes, stamp duty is payable on the transfer of property in the form of a gift.
What additional approvals are required for inter vivos gift properties?
Inter vivos gift properties are subject to mortgagee and CPF (Central Provident Fund) board’s approval.
What is the first step in the simple procedure for making a gift inter vivos?
Prepare a Deed of Gift.
What is the second step after preparing a Deed of Gift?
Pay Stamp Duty based on the market valuation of the property.
What is the final step after preparing a Deed of Gift?
Complete the Transfer Instrument and submit it to the Singapore Land Authority (SLA).
What happens when a donee receives a gift from a property owner who goes bankrupt within 5 years?
The gift shall be void unless it was transferred with consent from the Court.
What happens to gifts deemed as a “transaction at undervalue” if the donor becomes bankrupt?
These gifts may be set aside and become part of the estate of the creditor, causing the donee to lose rights to the property.
What must the donee prove to retain rights to the gifted property?
The donee must prove that at the time of the gift, the donor was in good financial condition.
What does the Insolvency, Restructuring and Dissolution Act 2018 address?
It deals with insolvency of companies, bankrupts, and related persons.
What principles from the repealed Bankruptcy Act apply under the Insolvency, Restructuring and Dissolution Act regarding transfers of property?
Similar principles apply to transfers of property made within 3 years before the donor becomes bankrupt. These transfers may be voidable if they appear to be made to hide assets from creditors.
What types of transactions are subject to review under the Insolvency, Restructuring and Dissolution Act?
Gifts or transactions at undervalue are subject to review by the Court.
Who decides the final outcome concerning property transfers under the Insolvency, Restructuring and Dissolution Act?
The Court decides on the final outcome of such property transfers.
What are the rules for selling an HDB flat by a bankrupt Singapore citizen?
No approval is required to sell an HDB flat.
What are the rules for selling private property by a bankrupt Singapore citizen?
Official Assignee approval is required to sell private property.
What are the rules for selling and buying HDB / private property by a bankrupt non-Singapore citizen?
Official Assignee approval is required.
What happens when a person dies with a will in Singapore?
When a person dies with a will (testate), the court issues a Grant of Probate and appoints the executor(s) named in the will to transfer the deceased’s property to successors according to the will.
What happens when a person dies without a will in Singapore?
When a person dies without a will (intestate), the court issues a Letter of Administration and appoints an administrator to distribute the property according to the Intestate Succession Act.
What is the role of the Probate and Administration Act?
The Probate and Administration Act is the law that sets out the rules for handling a deceased person’s estate. It explains how administrators and executors are appointed. It also outlines how the estate should be distributed to the beneficiaries, whether the person had a will or not.
How many administrators or executors can be appointed according to the Probate and Administration Act?
A maximum of 4 administrators or executors can be appointed.
What is the minimum age requirement for an administrator or executor?
The administrator or executor must be at least 21 years old.
What happens to bankrupt assets upon the death of an individual?
Creditors get priority over bankrupt assets in the distribution of the estate.
What is the minimum age for a testator to create a will in Singapore?
The testator must be at least 21 years old.
What are the requirements for a will to be valid?
The will must be created in writing, signed by the testator, and witnessed by 2 or more witnesses.
Under what conditions could a will be considered void?
A will is void if: i) A beneficiary who is a witness of the will, ii) A beneficiary is the spouse of a witness, or iii) The will is revoked by marriage.
What happens to CPF money without proper nomination upon death?
It will be distributed according to the Intestate Succession Act.
What happens to the estate if the deceased is survived by a spouse and no children or parents?
The spouse gets everything.
How is the estate divided if there is a spouse and children (or their descendants)?
The spouse gets half, and the children share the other half in equal portions.
What is the distribution of the estate if there are only children (or their descendants) and no spouse?
The children get everything in equal portions. Grandchildren can claim their deceased parent’s share in equal portions.
How is the estate distributed if there is a spouse and parents but no children?
The spouse gets half, and the parents get half in equal portions.
What happens to the estate if there are only parents and no spouse or children?
The parents get everything in equal portions.
How is the estate distributed if there are brothers and sisters (or children of deceased siblings) but no spouse, children, or parents?
Brothers and sisters get equal portions. Their children can claim their share in equal portions if they are deceased.
How is the estate divided if grandparents are the nearest relatives, with no spouse, children, or parents?
Grandparents take the estate in equal portions.
How is the estate distributed if there are only uncles and aunts, with no spouse, children, parents, or siblings?
Uncles and aunts take the estate in equal portions.
