questions with bae Flashcards
What are the rights of the purchaser after paying the option money
P has beneficial interest in the property
Only P will be able to purchase the property during the 2 weeks after the option money has been paid
When is a contract formed
When the contract has been exercised
4% of the PP has been paid
Acceptance copy has been signed
Vendors rights
Stakeholder duties (conveyancing account)
Prepare and execution of total discharge of mortgage, total discharge of CPF, total discharge of charge
Forwarding of title deeds from the bank or cpf
Preparation of the completion account
Diff between legal and beneficial ownership
Legal: contract is binding against the whole world
Enforceable against everyone
Beneficial: contract is binding against the whole world except bone fide purchaser for value without notice
What happens when the cheque of the balance bounces?
- If not cleared on the first presentment, the vendor shall be at liberty to treat the agreement as repudiated by the purchaser
And to rescind the contract
what is LawSOC2020
- known as the general conditions in the contract. The sale is subject to it as long as both are not inconsistent with each other.
- However, vendor and purchaser may agree on certain terms that deviate from the law SOC (‘special conditions’)
what are 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.
what is CSC
issued by the commissioner to certify that the building works for the project are completed
what is TOP
issued by the commissioner of building control to certify that the building can be safely occupied. The D will have to hand over the keys to the P upon receiving the TOP
what is indefeasibility title
- No third party can challenge your title to the land
- Other party cannot claim your land as you have definitive proof
- For eg in the case of forgery or fraud the proprietor title is protected and can be challenged
- In some exceptions registered interests or encumbrances on the title may include restrictive covenants or caveats which prohibits the registration of a subsequent dealing
- The subsisting / rights of way: if the property is a condo, the owner holds property subject to the rights of way for utilities which may be embedded in the walls of the property
- Can be defeated if the proprietors title has been obtained through defrauding someone
what are the rights of foreign persons in owning property
In order for a company to buy property, they must be considered a Singaporean entity, how to decide if it is a Singapore entity or not?
- under RPA, the majority of the directors and shareholders are singapore citizens
- must make sure that the constitution states whether or not it gives the company the power to buy land or powers to borrow from the bank
- RPA s. 10, all singapore companies must obtain a clearance certificate from the controller of residential property to ensure majority of shareholders and directors are singapore citizens
What if the company does not have enough cash to procure the property?
- The company can approach banks or financial institutions to secure a loan for the land purchase.
- Before applying for bank loans, Constitution needs to state whether or not company has powers to mortgage their land, and whether or not they can borrow money from the bank.
