RES Paper 1 Book

REAL CENTRE NETWORK PTE LTD
PAPER ONE
CU1: REAL ESTATE AGENCY INDUSTRY OVERVIEW
& BASIC LAND LAW CONCEPTS
CU2: DEALINGS WITH INTERESTS IN LAND
PREFACE
The Course books are compiled to prepare Real Centre Network (RCN) Real Estate Salesperson (RES)
Course participants for the Real Estate Salesperson (RES) exams.
The information provided is given in good faith and has been derived from various sources believed
to be reliable and accurate. While every reasonable effort has been taken to compile these notes,
errors may still arise in the course of compilation and production. If you notice any error, kindly
write to feedback at info@realcentrenetwork.com so that we can review it.
Course participants should always keep themselves updated with the latest change in policies and
regulations governing real estate.
No part of the course materials may be reproduced, stored in a retrieval system, or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without
the prior written permission from Real Centre Network Pte Ltd.
All rights reserved.
Version 10 : The contents are updated as at 18 December 2020.
Real Centre Network Pte Ltd

TABLE OF CONTENTS
OVERVIEW ......................................................................................................................................................... 1
INTRODUCTION ............................................................................................................................................... 1
OBJECTIVES........................................................................................................................................................................ 1
RES EXAMINATION FORMAT.......................................................................................................................................... 1
USING THE COURSE NOTES ............................................................................................................................................. 2
CU1: REAL ESTATE AGENCY INDUSTRY OVERVIEW & BASIC LAND LAW CONCEPTS ............. 3
UNIT 1.1: REAL ESTATE MARKET AND SUBMARKETS....................................................................... 3
LEARNING OUTCOMES: .................................................................................................................................................... 3
CHARACTERISTICS OF REAL ESTATE ............................................................................................................................. 4
INVESTMENT ..................................................................................................................................................................... 5
REAL ESTATE AS AN INVESTMENT ................................................................................................................................ 6
REAL ESTATE INVESTMENT TRUSTS (REITS) ............................................................................................................ 6
CHARACTERISTICS OF REAL ESTATE INVESTMENT TRUSTS (REITS) .................................................................... 7
COMPARISION OF REITS VS PROPERTY STOCKS ......................................................................................................... 8
REAL ESTATE MARKET ................................................................................................................................................... 9
CHARACTERISTICS OF REAL ESTATE MARKET ............................................................................................................ 9
TYPES OF PROPERTIES..................................................................................................................................................... 9
SUPPLY AND DEMAND OF PROPERTIES ..................................................................................................................... 18
REAL ESTATE CYCLE ..................................................................................................................................................... 20
BUSINESS AND REAL ESTATE CYCLES ........................................................................................................................ 21
REAL ESTATE SUBMARKETS ........................................................................................................................................ 21
SINGAPORE PROPERTY MARKET ................................................................................................................................ 21
CONVERT 6 DIGIT POSTAL CODE TO OLD DISTRICT NUMBER .............................................................................. 29
UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT INTERVENTION ................30
LEARNING OUTCOMES: ................................................................................................................................................ 30
MARKET PLAYERS ......................................................................................................................................................... 30
GOVERNMENT AGENCIES ............................................................................................................................................. 30
UNIT 1.3: BASIC LAND LAW CONCEPT: INTRODUCTION.................................................................34
LEARNING OUTCOMES: ................................................................................................................................................. 34
LAND LAW ...................................................................................................................................................................... 34
REAL PROPERTY ............................................................................................................................................................ 34
CLASSIFICATIONS OF RIGHTS....................................................................................................................................... 35
INTERESTS IN LAND ...................................................................................................................................................... 35
UNIT 1.4: LAND ..............................................................................................................................................36
LEARNING OUTCOME: ................................................................................................................................................... 36
LAND ................................................................................................................................................................................ 36
FIXTURES & FITTINGS .................................................................................................................................................. 37
LEGAL DESCRIPTION OF LAND .................................................................................................................................... 39
UNIT 1.5: ESTATES IN LAND ......................................................................................................................46
TENURE AND ESTATE IN LAND ................................................................................................................................... 46
LAND TITLES (STRATA) ACT....................................................................................................................................... 47
UNIT 1.6: STATE LANDS ACT.....................................................................................................................49

COVENANT ...................................................................................................................................................................... 49
IMPLIED COVENANTS AND CONDITIONS .................................................................................................................... 49
DIFFERENTIAL PREMIUM ............................................................................................................................................. 51
TEMPORARY OCCUPATION LICENCE (TOL) ............................................................................................................. 52
LAND ACQUISITION ACT ............................................................................................................................................... 53
UNIT 1.7: RIGHTS IN ANOTHER’S LAND ................................................................................................54
EMCUMBRANCES............................................................................................................................................................ 54
LICENCE........................................................................................................................................................................... 54
EASEMENT ...................................................................................................................................................................... 56
LEASE VS LICENCE VS EASEMENT ............................................................................................................................... 59
COVENANT ...................................................................................................................................................................... 59
UNIT 1.8: REGISTRATION OF TITLES .....................................................................................................61
LAND REGISTRATION SYSTEM..................................................................................................................................... 61
TYPES OF REGISTRATION ............................................................................................................................................. 61
CAVEATS.......................................................................................................................................................................... 65
CU2: DEALINGS WITH INTERESTS IN LAND.........................................................................................67
UNIT 2.1: LAW OF CONTRACT ..................................................................................................................67
DEFINITION OF CONTRACT .......................................................................................................................................... 68
ELEMENTS OF CONTRACT ............................................................................................................................................ 68
TERMS OF CONTRACT ................................................................................................................................................... 74
VITIATING FACTORS IN A CONTRACT ......................................................................................................................... 75
DISCHARGE OF A CONTRACT........................................................................................................................................ 78
REMEDIES OF BREACH OF CONTRACT LAW .............................................................................................................. 80
CLAUSES IN CONTRACTS............................................................................................................................................... 81
UNIT 2.2: LAW OF AGENCY ........................................................................................................................82
LEARNING OUTCOMES: ................................................................................................................................................ 82
GENERAL AGENCY PRACTICE ...................................................................................................................................... 82
CREATION OF AGENCY .................................................................................................................................................. 82
TYPES OF AGENCY ......................................................................................................................................................... 85
CONTRACT UBERRIMAE FIDEI..................................................................................................................................... 85
AGENT’S AUTHORITY .................................................................................................................................................... 85
LIMITS OF AN AGENT'S AUTHORITY ........................................................................................................................... 86
RIGHTS AND RESPONSIBILITIES OF AGENTS ............................................................................................................. 87
RIGHTS OF AN ESTATE AGENT .................................................................................................................................... 89
REMEDIES FOR BREACH ............................................................................................................................................... 90
TERMINATION OF AGENCY ........................................................................................................................................... 90
UNIT 2.3: LANDLORD AND TENANT LAW.............................................................................................92
LEASES............................................................................................................................................................................. 92
LEASE VS LICENCE ......................................................................................................................................................... 92
TYPES OF LEASE............................................................................................................................................................. 93
TERMS IN A LEASE ......................................................................................................................................................... 94
RIGHTS AND DUTIES IN TENANCY RELATIONSHIP .................................................................................................. 95
RIGHTS OF THE LANDLORD.......................................................................................................................................... 96
TERMINATION OF A LEASE ............................................................................................................................................ 97

RELIEF NON-PAYMENT OF RENT ............................................................................................................................... 98
DOCTRINE OF WASTE ................................................................................................................................................... 99
ASSIGNMENT OF THE LEASE ...................................................................................................................................... 100
NOVATION..................................................................................................................................................................... 100
SUBLETTING OF THE LEASE ....................................................................................................................................... 100
PRIVITY OF CONTRACT ............................................................................................................................................... 101
PRIVITY OF ESTATE ..................................................................................................................................................... 101
UNIT 2.4: NEGLIGENCE ............................................................................................................................. 102
LEARNING OUTCOME: ................................................................................................................................................. 102
LAW OF TORT ............................................................................................................................................................... 102
DEFINITION OF NEGLIGENCE ..................................................................................................................................... 102
REMEDIES FOR BREACH OF DUTY OF CARE ............................................................................................................ 104
NEGLIGENCE VS NEGLIGENT MISREPRESENTATION ............................................................................................. 104
UNIT 2.5: CONVEYANCE INTER VIVOS ................................................................................................ 105
UNIT 2.6: MORTGAGE ............................................................................................................................... 106
LEARNING OUTCOMES: ............................................................................................................................................... 106
MORTGAGE ................................................................................................................................................................... 106
UNIT 2.7: GIFT ............................................................................................................................................. 109
GIFTS OF PROPERTY .................................................................................................................................................... 109
UNIT 2.8: TRUST ......................................................................................................................................... 110
TRUSTS .......................................................................................................................................................................... 110
UNIT 2.9: SUCCESSION .............................................................................................................................. 112
SUCCESSION .................................................................................................................................................................. 112
SYARIAH LAW ON INHERITANCE............................................................................................................................... 114
UNIT 2.10: FUTURE INTERESTS ............................................................................................................ 115
FUTURE INTEREST....................................................................................................................................................... 115
REVERSIONARY INTEREST ......................................................................................................................................... 115
LIFE ESTATE ................................................................................................................................................................. 115
UNIT 2.11: CO-OWNERSHIP.................................................................................................................... 116
CO-OWNERSHIP OF LAND .......................................................................................................................................... 116
UNIT 2.12: RESTRICTIONS ON CAPACITY TO HOLD LAND .......................................................... 119
RESTRICTIONS TO HOLD LAND ................................................................................................................................. 119
MENTAL CAPACITY ACT (MCA) ............................................................................................................................... 121
RESIDENTIAL PROPERTY ACT ................................................................................................................................... 123
UNIT 2.13: PLANNING AND DEVELOPMENT OF LAND .................................................................. 128
LAND PLANNING IN SINGAPORE ............................................................................................................................... 128
PLANNING BOUNDARIES ............................................................................................................................................ 130
RESIDENTIAL DEVELOPMENT CONTROLS ............................................................................................................... 133
URA USE CLASSES ...................................................................................................................................................... 154
CHANGE OF USE ........................................................................................................................................................... 163

CONSERVATION PROPERTIES .................................................................................................................................... 164
DEVELOPMENT CHARGE............................................................................................................................................. 165
SOURCES OF INFORMATION................................................................................................................... 168
REFERENCES ................................................................................................................................................ 168
APPENDICES ................................................................................................................................................ 169
APPENDIX – STRATA CERTIFICATE OF TITLE ................................................................................. 170
APPENDIX - THE DIFFERENTIAL PREMIUM ..................................................................................... 176
APPENDIX – SAMPLE TENANCY AGREEMENT .................................................................................. 183

1 INTRODUCTION
OVERVIEW
INTRODUCTION
All real estate salespersons who carry out estate agency work in the sale or leasing transactions of
residential (HDB and private housing), commercial and industrial properties must be registered with
the Council for Estate Agencies (CEA). CEA is the regulatory body for the real estate agency industry
and administers the Estate Agents Act 2010 and Regulations.
Prior to applying for registration as a salesperson, one must pass the Real Estate Salesperson (RES)
Examination, which is one of the registration criteria stipulated under the Estate Agents (Licensing
and Registration) Regulations 2010. The RES Examination consists of two Papers which test on the
knowledge that is essential for practice as a real estate salesperson.
The RES Examination Syllabus is prepared in the context of local laws, rules and regulations
governing estate agency work and practices, and the buying/selling/leasing of HDB flats and private
residential, commercial and industrial properties in Singapore.
OBJECTIVES
The objectives of the RES Examination are to ensure that new entrants meet the following
requirements before they practise as real estate salespersons. The objectives are:
1. Possess the fundamental knowledge of real estate concepts, real estate market, law of contract,
law of agency, planning and development control, and principles of marketing so as to be
professionally knowledgeable when performing estate agency work.
2. Able to apply knowledge required for estate agency services, in particular knowledge on the
handling of sale and lease of residential, commercial and industrial properties and including but
not limited to title searches, immigration checks and financial calculations.
3. Understand and apply good ethics, relevant laws and regulations, and best practices in estate
agency work so as to uphold the professional standing of salespersons.
4. Be knowledgeable about prevailing market information and government policies and
regulations.
RES EXAMINATION FORMAT

The RES Examination consists of two papers, each with exam duration of 2.5 hours. Both papers are
of the same format as follows:
Format of RES Examination Paper 1 and Paper 2
Section A: 50 Multiple Choice Questions (MCQs) 1 mark each
Section B: 15 MCQs with reference to one or two Case Studies* 2 marks each
Section C: 10 Short Answer Questions (SAQs) 2 marks each
*The objective is to test candidates’ ability to interpret and analyse the questions in a practice-
oriented context.

INTRODUCTION 2
RES PAPER 1
Paper 1 comprises Competency Units (CU):
- CU1: Real Estate Agency Industry Overview & Basic Land Law Concepts
- CU2: Dealings with Interests in Land
USING THE COURSE NOTES

Each unit contains:
- Learning Outcomes: At the beginning of each section, the specific learning outcomes which you
are expected to achieved are outlined. It is useful for you to review your learning against this
checklist in preparation for the examinations.
- Course Materials: These detailed notes are supplementary to the lesson slides.

3 UNIT 1.1: REAL ESTATE MARKET AND SUBMARKETS
CU1: REAL ESTATE AGENCY INDUSTRY OVERVIEW & BASIC

LAND LAW CONCEPTS
This unit introduces the real estate market with its characteristics, its constituent elements/parts
and the players. Economic factors affecting supply, demand and property prices, the property cycles
and the effect of government policies, provide the basis for understanding how the market functions
as a whole and as submarkets, in Singapore.
Real estate salespersons who represent their clients in dealing with their property transactions must
be equipped with the basic understanding of the law concepts and principles on real estate property
in Singapore.
UNIT 1.1: REAL ESTATE MARKET AND SUBMARKETS
LEARNING OUTCOMES:
At the end of this unit, you should be able to:
✓ Identify the characteristics of real estate vs. real estate investment trusts (REITS) and
property stocks.
✓ Understand the characteristics of real estate market as a whole.
✓ Categorise properties into residential, commercial and industrial according to title (land,
lease or strata), form and planning parameters.
o Identify title/tenure of property, zoning, use and classification of property.
o Identify types of commercial properties (i.e. strata-titled shop/office units),
industrial and residential properties.
✓ Understand the micro- and macro-factors affecting supply, demand and prices of properties.
✓ Understand the functioning of each submarket (by property types, locations, and
socioeconomic characteristics, etc.).
✓ Understand the relationship between property cycle and business cycle.
✓ Source and interpret property supply, transaction statistics/data and other market
information.
✓ Convert a 6-digit postal code to its old district number.

UNIT 1.1: REAL ESTATE MARKET AND SUBMARKETS 4
CHARACTERISTICS OF REAL ESTATE

Real estate has physical and economic characteristics, which makes it different from other
commodity.
PHYSICAL CHARACTERISTICS
- Indivisible
You cannot buy or sell one square metre of a property at a time.
- Immobile
Once a property is built it is fixed to that location. You cannot move property from an area of
low demand to an area of high demand.
- Durable
Pure land is totally durable, and buildings and other capital improvements have a relatively long
life compared to other goods. Once you develop a building it remains in existence for a
significant period of time.
Over time, property deteriorate and investors must expect repair and refurbishment costs, or
depreciation occurs in the value of their asset. The first type of depreciation refers to the
deterioration of buildings over time as a result of wear and tear. The second is obsolescence
which is related to changes in market conditions, building technology and the functional
requirements of the occupiers.
- Heterogeneous
Each unit of property is unique. They vary by location, design, type, construction, size, use,
tenant and lease terms.
ECONOMIC CHARACTERISTICS
- High transaction costs
Costs involved in selling/buying a property include legal costs, agent costs, stamp duty etc. The
high cost of buying and selling property rights inhibits market participants from responding
rapidly to changing conditions.
- Illiquid
Takes time to buy and sell a property. The time that it takes to realise the cash tied up in a
property is significantly longer than the time it takes to sell equities.
- Long transaction time
Takes at least 6 to 8 weeks for property transaction to be completed.
- Supply is very inelastic (fixed) in the short run
It takes time to undertake development or redevelopment projects. In the long run, it is more
elastic but this is limited by the capacity of the construction industry and the supply of land.
- External costs and benefits associated with the use of land and property.
Adjacent land uses may complement one another, thereby adding to the value of those
properties. Alternatively, bad neighbour uses may reduce the value of some properties.

- Intervention of the government

Extensive government control exists in the property market and these influence the demand and
supply of property.
Eg: Introduction of Buyer’s Stamp Duty, lifting up restriction of foreign property ownership
- Irrational participants
Market participants do not always behave rationally or seek profit/utility maximisation. Status,
symbolism and other non-financial benefits attached to property may result in some owners
being unwilling to sell their property despite certainty of monetary gain.
- Imperfect information
Information is not readily and completely available in the property market.
- Costs in property management
There may be a need to management and administration which includes maintenance, rent
collection, rent reviews and lease negotiations for properties.
INVESTMENT
Investment: Using resources (asset) with the expectation that it produce income or appreciate in
the future.
RISK-RETURN TRADEOFF
In any investment, there is always a risk of losing money, either the initial money invested or a loss
in earnings.
Returns: Gain or loss made on investment. May be in the form of income earned and/or capital gain
or loss.
Risk: Risk in investment arises as actual returns from an investment may be more or less than
expected from the investment.
FORMS OF INVESTMENT
There are various types of investment, namely:
- Financial investments: e.g. stocks, shares, bonds, unit trusts, Investment linked insurance etc
- Tangible investments: e.g. futures, gold, antiques, art etc
- Real Estate investments: e.g. property, real estate company shares, REITs

REAL ESTATE AS AN INVESTMENT
PROS
- Capital growth/hedge against inflation: Property value will grow over time.
- Financial leverage: Due to availability of loans, a good strategy and leveraging, investors are able
own more properties.
- Estate building: Investor can build up a portfolio over time.
- Security: Property is durable. It will still be there over time.
- Tax benefits: There is no capital gains tax on property. Although rental income is subjected to
income tax, operating expenses can be deducted.
- Ownership: May be a status symbol for some.
- Personal use: Property can be for own use.
- Control: There is direct control of the property investments.
CONS:
- Liquidity: Property is illiquid. It takes time to sell a property.
- Huge capital outlay: Due to the property prices, the initial outlay may be substantial as
compared to other forms of investments.
- Financial risks: As with any investment, risk increases when there is a loan.
- Business risks: For rental properties, when there is high vacancy, the actual income may less
than expected.
- Fluctuations: Property is subject cycles.
- Depreciation: Building may deeriorate if there is no proper maintenance.
- Management fees: If property is for rental, there are costs involved for property management
and regular maintenance..
- Complexity of ownership: There may be legal contraints and subject to some governement
controls and guidelines.
REAL ESTATE INVESTMENT TRUSTS (REITS)

REITs are investment schemes where there is aggregation of funds to invest in a portfolio of real
estate assets, generating an income for the unit holders.
Real estate assets can range from commercial (offices), industrial properties, retail malls, hospitality
assets such as hotels or serviced apartments. These assets are professionally managed and income
generated are normally distributed at regular intervals the unit holders.
Investment objectives for REITs are similar stocks investments which is income distribution and long
term appreciation potential.

CHARACTERISTICS OF REAL ESTATE INVESTMENT TRUSTS (REITS)

- Diversification
REITs may own various property portfolios with different tenants. The risk of relying on a single
property or tenant is reduced due to the pool of properties owned by the REIT.
Some REITs may have diverse range of assets in various countries.
- Affordability
The is better opportunity as REITs have the advantage of having the pooled capital to acquire
various properies as compared to an individual investor. REIT allows unit holders to invest in
large assets based on what is affordable to them.
- Liquidity
Unit holders can easily convert their assets to cash as compared to investing directly in real
estate. As REITS are listed on the stock exchange, it is easy to buy and sell a REIT as compared to
a real estate asset.
- Tax Benefits
Distribution of dividends are tax-exempt for REITs investors.
- Transparency and flexibility
As REITS are traded on the stock exchange, the process of buying and selling a REIT is
transparant and flexible. Investors have access to REIT prices and can trade throughout the
trading day.
In addition, there is corporate governance and transparency as REITS have to abide to applicable
laws protecting the interests of the unit holders.

COMPARISION OF REITS VS PROPERTY STOCKS
REITs Property Stocks

Business Focus Investment in income-generating Generally property related, but may
properties diversify into other unrelated
activities or industries
Safe Custody of Properties are held on trust by an Properties are held by the company
Properties independent trustee
Dividend Policy Must pay out at least 90% of net Subject to the decision of the board
income after tax
Investment and Subject to the Property Funds None
Leverage Guidelines Appendix in the Code on Collective
Investment Schemes
Tax-Exempt Income Yes No
(dividend)
Traded Through Yes Yes
Broker
Management Fees Yes No
Clearing Fees Yes Yes
Brokerage Yes Yes
Commission
Settlement Third Business Date after Trade Date Third Business Date after Trade Date
Source: www.moneysense.gov.sg

REAL ESTATE MARKET

Real estate market:
- place where the exchange of real property goods and services take place.
Function of the real estate market:
- Allocate scarce resources, ie land and interests associated with property ownership through a
price mechanism, ie person who offers the highest price gets the rights
CHARACTERISTICS OF REAL ESTATE MARKET

The real estate market is unique in that:
- No central market: unlike stocks and shares, there is no defined market. There also exists
several sub markets for different property types and different geographical area.
- Data inefficiency: Real time information is not available. There is some time lag for publicly
available information such as URA and HDB data.
- Imperfect market: Due to the characteristics of product, property is not traded frequently and it
is not homogenous.
TYPES OF PROPERTIES
OVERVIEW OF SINGAPORE PROPERTIES CLASSIFICATION
Singapore
Properties
Non
Residential
Residential
Others, eg
Private Public Commercial Industrial hotels, place
of worship
Landed Non Landed HDB Flats

Private
Non
Landed
Landed
Bungalow /
Good Class Semi- Strata Condomini Apartment
Detached Terrace
Bungalow Detached Landed um / Flat
House
Non
Residential
Others, eg
Commercial Industrial hotels, place of
worship
Office Shop Factory Warehouse Business Park

RESIDENTIAL DEVELOPMENTS
URA’s classification of Residential Developments – 3 Ways:
i) REGISTRATION INSTRUMENT
o Landed (with land title or strata title)
o Non-landed (with strata title or strata lease)
ii) DENSITY
a. Low density housing development
b. Medium density housing development
c. High density housing development
iii) HOUSING TYPE
a. Landed Housing
Detached houses (bungalows), semi-detached houses, terrace houses, strata
detached houses (strata bungalows), strata semi-detached houses, strata terrace
houses and mixed strata landed housing.
Low density housing.
b. Flats
i. Condominium flats development on sites of 0.4 ha or larger.
ii. Non-condominium flats development on small sites below 0.4 ha.
Flats development whether condominium or not, are mainly medium and high
density housing. The low intensity and low-rise flats are low density housing.
Classification of Residential Developments
Housing Type
Landed Non Landed
Registration
Land Title Strata Title Land Title or Strata Title
Instrument
Density
Landed Housing Low rise Strata 4 storey flats with gross
- Bungalows - Strata detached plot ratio up to 1.4
- Semi-detached (bungalow)
Low Density
- Terrace - Strata semi-detached
- Strata terrace
- Mixed strata landed
Condominium flats, non-
Medium Density
condominium flats
Condominium flats
NOT APPLICABLE Non-condominium flats
High Density HDB flats & areas
designated for HDB type
housing
Source: URA

LANDED HOUSING
- Low-rise/low density residential development
- Categorised under:
i. Land title
▪ detached house (bungalow);
▪ semi-detached house;
▪ terrace house I or II.
ii. Strata title (No condominium status allowed)
▪ strata detached houses (bungalows);
▪ strata semi-detached houses;
▪ strata terrace houses;
▪ mixed strata landed housing.
Detached House (Bungalow)

- Free standing house within a plot of land, own boundary, no common wall
- May be single-story, double story or higher.
- Minimum plot size: above 400m² unless the existing lots are already subdivided with a land area
less than this
- Maximum site coverage control depends on the plot size
- Bungalows ( > 800m²): 50%
- Bungalows ( <= 800m²): 50%
- Bungalows ( <= 800m²) in 2-storey mixed landed and 2-storey semi-detached housing areas:
50%
Good Class Bungalow (GCB)

- Land cannot be developed for more intensive use (Eg condominium)
- Minimum plot size must be at least 1400 sq m
- Max 2-storey excluding basement
- Max site coverage: 40%
- 39 GCB area

Belmont Park Cornwall Gardens Leedon Park

Bin Tong Park Dalvey Estate Maryland Estate
Binjai Park Eng Neo Avenue Nassim Road
Brizay Park Ewart Park Oei Tiong Ham Park
Bukit Sedap First / Third Avenue Queen Astrid Park
Bukit Tunggal Fort Avenue Raffles Park
Caldecott Hill Estate Fourth / Sixth Avenue Rebecca Park
Camden Park Gallop Road / Woollerton Park Ridley Park
Chatsworth Park Garlick Avenue Ridout Park
Chee Hoon Avenue Holland Park Swiss Club Road
Chestnut Avenue Holland Rise Victoria Park
Cluny Hill Kilburn Estate Windsor Park
Cluny Park King Albert Park White House Park
Semi-Detached House
- A house sharing a common wall with its immediate similar
residential unit.
- Each one of the pair is considered as a separate property
from the other
- Minimum plot size is 200 sq m
Terrace House
- A unit in a row of at least 3 dwelling houses joined together by a common boundary.
- Each house has its own side walls, boundary walls and its
own roof.
- Each has its own title
- 2 types of terrace houses;
- terrace house I (Minimum plot size is 150 sq m)
- terrace house II (Minimum plot size 80 sq m)
- Width not less than 6 m for intermediate terrace
Corner Terrace House

- The end unit in a row of terrace houses. Therefore, a corner terrace house is joined to the
others by one party wall only. It normally has a larger garden area as compared to the other
terrace houses.
- Width not less than 8 m for corner terrace

SUMMARY OF LANDED HOUSING DEVELOPMENT

The minimum plot dimensions and plot sizes for all types of landed (Iand title) housing development
are as follows:
STRATA LANDED HOUSING (STRATA TITLE)

- Other low-rise/low density residential developments with strata title arrangement
- No condominium status accorded to such developments.
- Each strata unit to have a minimum building footprint with ground contact of 100 sq m.
- Upper storeys and basement of each strata unit are not to be subdivided into separate strata
units.
- Minimum plot size requirement of 1,000sqm
- Maximum site coverage allowed for strata landed housing developments located outside GCBAs
is 50%, GCBAs is 40%.
- Minimum 45% of the nett site area set aside for the
provision of Communal Open Space (COS) and communal
facilities.
- Can comprise one of the three basic types:
- Strata detached houses (bungalows)
- Strata semi-detached houses
- Strata terrace houses (to comprise at least three strata
terrace units)
Townhouse
- A residential building designed as a single dwelling unit with ground contact and forming part of
a row of not less than 3 residential units. All units have undivided share of the common
properties such as access roads, garden (if any).
- Car park attached to the lot – as an accessory lot. Must be sold with the unit.
- Townhouse is a strata-titled property.
- Classified as restricted properties

Cluster Houses
- Similar to a condominium but housing form is landed houses instead of apartments.
- Housing units are strata titled properties.
- Classified as restricted properties.
NON-LANDED PROPERTIES
- Apartments in Singapore are non-landed housing developments.
- Each unit is for residential purpose only
- Has its own separate access usually taken from a common property area
- Form the bulk of medium to high density housing in Singapore.
- Building height of flats varies from 4 storeys to 30 storeys or even higher.
High-Rise Apartment
- 6 storey and up. May come with/without facilities like gym or pool.
- With effect from 19 July 2005, foreigners are eligible to buy high and low rise apartment
regardless of its height.
Low-Rise Apartment
- Less than 6-storey. May come with/without facilities like gym or pool.
Walk-up Flat
- Apartment or flat within a building which is generally 4-storey or less. As the name suggests,
the apartments or flats on the upper floors are accessible by staircase only as no lifts are
provided.
Condominium
- A housing development with site area of 0.4 ha minimum
- Maximum site coverage allowed for condominium development is 50% (including covered car
parks)
- Comes with facilities like pool, gym, landscaping etc.
- URA announced with effect from 3 Apr 2012 that mix strata landed and apartments will no
longer be granted condominium status.
Duplex
- It is an apartment with rooms with two adjoining floors connected by an inner staircase.

COMMERCIAL/INDUSTRIAL PROPERTIES
General description of the various commercial/industrial properties are as follows:
Office:
- a building used as a place of business and for conducting administrative work; and includes
a bank but does not include a shop.
Shops:
- a building used for the carrying on of any trade or business where the primary purpose is the
sale of goods or foodstuff by retail or the provision of services; and
- includes a building used as a furniture shop, department store, pawnshop, dispensary,
medical clinic, dental clinic, beauty salon, ticket agency, travel agency, confectionery or take-
away foodshop
Retail shops:
- Departmental store, Supermarket, Provision shop, Minimart, Fashion boutiques, Florist, Gift
shop, Electrical appliances / equipment, Computers & Accessories, Chinese medical hall,
Furniture shop, Home Furnishings & Textile shop, Stationery, Aquarium, Shops selling
takeaway food and drinks/beverages with no consumption on the premises.
Light industrial building:
- an industrial building in which the processes carried on or the machinery installed are such
as can be installed in any residential area without detriment to the amenity of the area by
reason of noise, vibration, smell, fumes, smoke, soot, ash, dust or grit; and includes a
building used for any industrial use which is classified as "light industry" by the Director of
Environmental Pollution Control
General industrial building:
- an industrial building other than a light industrial building or special industrial building; and
- includes a building used for any industrial use which is classified as "general industry" by the
Director of Environmental Pollution Control.
Warehouse
- building (excluding any land occupied therewith) where storage is the principal use and
where no business is transacted other than incidentally to such storage.
Shophouse
- A hybrid building of duo-functionality: shop and house, hence, the shophouse.

COMMERCIAL DEVELOPMENT
Broadly be categorised as:
- Commercial buildings
- Mixed commercial & residential buildings
- Residential with commercial
COMMERCIAL BUILDINGS
- Include office blocks, shopping complexes, convention/ exhibition centres, commercial
schools/banks, market/food centre/restaurants, cinemas, entertainment and trade missions.
They may also include mixed commercial developments comprising a combination of
commercial activities such as a shopping podium with an office tower block.
- Can be in the form of free-standing development, a podium/ tower arrangement, a pure tower
block or party wall development. The building form depends on the location and street block
plans for the site.
- Commercial buildings may be strata subdivided.
MIXED COMMERCIAL & RESIDENTIAL DEVELOPMENT

- Area used or intended to be used mainly for mixed residential and commercial purposes
- Unlike a pure commercial development which can have up to 100% GFA used for commercial
purpose, a commercial and residential development has a maximum commercial quantum
control of 40% of the total allowable GFA.
- Most common building form for mixed commercial & residential buildings is office/ shopping
podium with apartment tower block.
- Commercial areas cannot be located above the residential areas
- Can be in the form of a pure tower block or a party wall development. The residential
component may also be physically separated from the commercial use. Determination of the
building form depends on the location of the site and street block plans for the site.
- Strata subdivision may be allowed
SHOPHOUSES & SHOP FLATS

- Developments with shops at the 1st storey with flats above. The commercial use is restricted to
the 1st storey only. Basements are not allowed for commercial use.
- Shophouses and shop flats can be in the form of free-standing development or party wall
development. The building form depends on the location of the site and street block plans for
the site.
- Strata subdivision is generally allowed for shophouse and shop flats development except for
conservation properties.

INDUSTRIAL/WAREHOUSE DEVELOPMENT
Broadly be categorised by building form as follows:
- Detached Factory/ Warehouse This category would also include flatted Factory/warehouse.
- Semi-detached Factory/Warehouse
- Terrace Factory/Warehouse
SUPPLY AND DEMAND OF PROPERTIES
MARKET /PRICE MECHANISM
SUPPLY
Supply: Amount a product is placed in the market, ie amount of property available in the market
Supply curve: Relationship between price and quantity in the market at a specified time.
Slopes upwards as quantity supplied will increase as price increases.
Supply comes from sellers and developers. At higher price, there will be more sellers in the market.
Supply Curve
B
Price
Quantity
In the short run, supply is very inelastic as it takes times for buildings to be constructed. In the long
run, the supply will be flatter.
Factors affecting supply of real estate are:
- Vacant development sites
o Government’s land sale programme
o Supply can change by increasing intensity of land, eg higher plot ratio
- Existing stock of buildings/houses
o Fixed at any point in time
- New buildings

DEMAND
Demand: Amount a product that the market is willing to purchase
Demand curve: Relationship between price and quantity purchased in the market at a specified
time. Slopes downwards as price decreases, more goods are being purchased.
Demand comes from buyers. As price decreases, there will be more buyers.
Demand Curve
C
Price
Quantity
Factors affecting demand are:

- Political
o Political stability
o Government policies such as the introduction of additional stamp duty, relaxation of
HDB policies will affect the demand.
- Social
o Population sizes, demographic shifts, lifestyle and preferences/needs and tastes
- Economic
o Economic conditions, interest rates, employment rate, GDP, inflation
INTERACTION BETWEEN SUPPLY AND DEMAND

The interaction between Demand and Supply determines
price.
Price: where demand and supply curve meets
Seller’s market: Price increase when demand increases or
supply decreases.
Buyer’s market: Price decrease when demand decreases or
supply increases.

REAL ESTATE CYCLE

- Real estate activities level fluctuate, and the change formed can be measured by the changes in
price and volume of sales over time
- The cycle, which is a wave like form is similar to the business cycle, influenced by economic
events
- Starting from a low turning point, the cycle expands as activity builds up till it reaches an upper
turning point, followed by a decline into a period of recession.
Real Estate Cycle
Expansion
Recovery
Decline
Recession
- Expansion (boom or peak) — sustained growth in demand, increasing construction, speculators

enter market, high consumption, liberal banks, and keen competition among the banks to court
big spenders
- Characterised by high transaction volume and high prices
- Decline — positive but falling demand. Speculative developers enter the market, more
properties are built and supply eventually exceeds demand. Banks start to restrict loans, interest
rates gets higher, tighter credit supply ; increasing vacancy
- Recession (bottom or trough) — falling demand, increasing vacancy, low rentals, high interest
rates, buyers difficulty in servicing loans, results in mortgagee sale, may drag for a few years.
- Recovery (Upswing) — Improvement in economy, confidence returns, interest rates lowered to
encourage buyers to enter market, resulting in increasing demand, decreasing vacancy.
Increased volume of activity and prices will move market into expansion again.
- The intensity and length of each phase depends on the overall socio-economic climate.

BUSINESS AND REAL ESTATE CYCLES

There have been many researches and papers on the relationship of business and real estate cycles.
Most studies conclude that there is some form of relationship, and real estate cycle is a composite of
the business cycle.
As real estate plays major role in the economy, a rise in real estate prices can affect businesses. The
construction industry, regulatory and monetary policies by the government have significant roles in
affecting the cycles. The theory that the major real estate cycles, accommodated by monetary
inflation, have significantly contributed to the major depressions is consistent with the historical
record.
Whereas the smaller and more frequent business cycles may be due to random shocks or non-real-
estate causes, the larger real estate cycles have exhibited similar patterns and, historically, have
occurred in regular intervals.
REAL ESTATE SUBMARKETS

Real estate in Singapore can be further classified into the following submarkets:
- Property types: Residential, Commercial, Industrial
- Location: Core Central Region, Rest of Central Region or Outside Central Region
- Socia-economic characteristics: Public or private housing
- For rent or for sale
- For investments or own occupation
SINGAPORE PROPERTY MARKET

Singapore’s property market fluctuations are characterised by:
- Government Intervention
- Can be both direct or indirect government intervention, eg. Seller stamp duties, removal
of deferred payment scheme etc
- Housing policies used frequently, eg HDB resale curb by imposing Minimum Occupation
Period
- CPF housing policies
- Economic Environment
- Movements of property prices reflect economic sentiments
- Foreign Investment Funds
- Flow of foreign funds influence demand, eg increase in foreigners investing in properties

SINGAPORE PROPERTY PRICE INDEX

The URA Property Price Index reflects the broad price trends in Singapore’s Property Market.
Price statistics are released by URA and HDB on quarterly basis.
Covers the following sub markets:

- Residential
- Office
- Retail

a) URA Private Residential Price Index

Besides an overall property price index for private residential properties, sub-indices for detached,
semi-detached, terrace houses, apartments and condominiums are also compiled. HDB flats and
other public sector buildings are excluded in the compilation of the property price index.
For each type of residential property, sub-indices by Planning Region are also compiled. Singapore is
divided into five Planning Regions, viz. Central Region, East Region, North-East Region, North Region
and West Region. Each Planning Region consists of several planning areas. As certain Planning
Regions may have very few transactions of a certain type of property, not all the five Planning
Regions will have a sub-index compiled for each type of property. For example, sub-indices for
detached houses in the North and West Regions are not compiled as most of the transactions
involving detached houses are concentrated in the Central, East and North-East Regions.

Core Central Region

The Core Central Region is made up of postal districts 9, 10, 11, Downtown Core Planning Area and
Sentosa.
Rest of Central Region
This comprises the area within the Central Region outside of postal districts 9, 10, 11, Downtown
Core Planning Area and Sentosa.
Outside Central Region
This comprises of areas in Singapore outside the Central Region:
- East Planning Region
- North East Planning Region
- North Planning Region
- West Planning Region.

b) Commercial Property Price Index
For commercial space, indices for office and shop as well as sub-indices by locality are compiled. As
most of the office and shop space are concentrated in the Central Region, sub-indices for the
outlying regions are not compiled. Within the Central Region, the locality classifications used are
Central Area and Fringe Area.

c) JTC Industrial Property Price Index

The Industrial Property Price Index is released by JTC to provide information on price and rental
movements based on property attributes and include property types single-user, multiple-user
factories, and business parks.
Industrial Property Price and Rental Indices and Sub-Indices

Market Segment Price Rental
Overall Industrial Property Price Index* Industrial Property Rental Index*
Multiple-User Factory Multiple-User Factory Price Index* Multiple-User Factory Rental Index*
Planning Region Central Region Central Region
North Region North Region
West Region West Region
Other Regions^ East Region
Northeast Region
Remaining Tenure < 30 years -
31-60 years -
> 60 years -
Land-Use Zoning Business 1 (B1) Business 1 (B1)
Business 2 (B2) Business 2 (B2)
Single-User Factory Single-User Factory Price Index Single-User Factory Rental Index
Business Park - Business Park Rental Index
*Currently released every quarter.
^Transactions for East and Northeast regions have been combined into “Other Regions” due to lower
volume of sales transactions in each region.
Source: JTC

d) HDB Resale Price Index

The HDB Resale Price Index is used to compare the overall price movements of HDB resale flats. It is
computed using resale transactions registered across towns, flat types and models.

FACTORS AFFECTING PRICE

- Location
Location, location, location.
Where the property is situated influences its price. A property located in Sentosa Cove and a
similar property in the outskirts command different price.
- Condition of property
A well kept property will command a higher price than an old dilapidated one.
- Market Trends
During the boom of property market, buyers sentiment is high and buyers are willing to pay a
higher price.
- Size, Shape and Frontage
The land size and floor area will influence price. Regular plots is preferred over odd shape plots
of land.
The frontage whether it is facing the main road or a cemetery will affect the price the property
commands.
- Height and view
Property located at higher levels will have a higher price.
Units facing, such as west facing will usually have a lower price
- Accessibility
Close proximity to public transportation, amenities such as schools, market, food outlets etc, will
command a higher price.
- Neighbourhood/environment
The neighbourhood environment has an impact on prices. The presence of undesirable activities
will affect the property value.
- Facilities
Facilities in the development, such as gym, swimming pool will cause prices to be slightly higher
than one without these facilities
- Layout and Design
The overall layout of the property has an impact on price. Property with award winning designs
may fetch a higher price.

CONVERT 6 DIGIT POSTAL CODE TO OLD DISTRICT NUMBER

Singapore was originally divided into 28 postal districts in 1950, with a number being allocated to
each district, for example, the Orchard Road area was in District 9.
On 1 September 1995, this was replaced by a six-digit system, in which every building was given its
unique postcode, the first two digits of which represented the old sector, i.e. 23.
Although the old districts are no longer used by Singapore Post, they are still widely used to refer to
locations of properties for sale or rent.
To ascertain the old postal district classification
- Log on the SingPost to find the postal code
- Take the first 2 digits of the 6-digit postal code and compare to the list below.
Postal Postal Sector General Location
District (1st 2 digits of 6-digit postal
codes)
01 01, 02, 03, 04, 05, 06 Raffles Place, Cecil, Marina, People's Park
02 07, 08 Anson, Tanjong Pagar
03 14, 15, 16 Queenstown, Tiong Bahru
04 09, 10 Telok Blangah, Harbourfront
05 11, 12, 13 Pasir Panjang, Hong Leong Garden, Clementi New
Town
06 17 High Street, Beach Road (part)
07 18, 19 Middle Road, Golden Mile
08 20, 21 Little India
09 22, 23 Orchard, Cairnhill, River Valley
10 24, 25, 26, 27 Ardmore, Bukit Timah, Holland Road, Tanglin
11 28, 29, 30 Watten Estate, Novena, Thomson
12 31, 32, 33 Balestier, Toa Payoh, Serangoon
13 34, 35, 36, 37 Macpherson, Braddell
14 38, 39, 40, 41 Geylang, Eunos
15 42, 43, 44, 45 Katong, Joo Chiat, Amber Road
16 46, 47, 48 Bedok, Upper East Coast, Eastwood, Kew Drive
17 49, 50, 81 Loyang, Changi
18 51, 52 Tampines, Pasir Ris
19 53, 54, 55, 82 Serangoon Garden, Hougang, Ponggol
20 56, 57 Bishan, Ang Mo Kio
21 58, 59 Upper Bukit Timah, Clementi Park, Ulu Pandan
22 60, 61, 62, 63, 64 Jurong
23 65, 66, 67, 68 Hillview, Dairy Farm, Bukit Panjang, Choa Chu
Kang
24 69, 70, 71 Lim Chu Kang, Tengah
25 72, 73 Kranji, Woodgrove, Woodlands
26 77, 78 Upper Thomson, Springleaf
27 75, 76 Yishun, Sembawang
28 79, 80 Seletar

UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT INTERVENTION 30
UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT

INTERVENTION
LEARNING OUTCOMES:
✓ Identify market players in the various property sectors, e.g. developers, investors and users.
✓ Interpret the effect of government control and intervention in the real estate market, e.g.
introduction of cooling measures.
✓ Understand the role and functions of various relevant government agencies, e.g. BCA, JTC,
HDB, IRAS, LTA, MAS, SLA, URA, etc. relating to property transactions.
MARKET PLAYERS
Participants in real estate markets are:
- Occupiers – People who are owners as well as tenants. Purchase/lease properties for their own
use.
- Investors – People who regard property as an investment asset.
- Producers – Include developers, construction companies etc who provide the supply of
properties through development and re-development.
- Facilitators - This includes banks, Real Estate persons, lawyers, and others that facilitate the
purchase and sale of real estate.
GOVERNMENT AGENCIES
MINISTRY OF NATIONAL DEVELOPMENT (MND)

- Key government ministry responsible for national land use planning and development.
- Guide Singapore’s land use planning, urban redevelopment and building conservation, deliver
affordable and quality public housing, develop an efficient construction industry to ensure a
safe, quality and sustainable built environment, provide and manage parks, open spaces and the
conservation of nature areas, maintain a high standard of primary food safety and animal and
plant health, as well as protect consumer interest by raising the professionalism in the real
estate agent industry.
- Statutory Boards under MND:
- Agri-Food & Veterinary Authority (AVA)
- Building and Construction Authority (BCA)
- Council for Estate Agencies (CEA)
- Housing & Development Board (HDB)
- National Parks Board (NParks)
- Urban Redevelopment Authority (URA)

31 UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT INTERVENTION
BUILDING AND CONSTRUCTION AUTHORITY (BCA)

Building and Construction Authority shapes a safe, high quality, sustainable and friendly built
environment. championing the development of an excellent built environment for Singapore. “Built
environment” refers to buildings, structures and infrastructure in our surroundings that provide the
setting for the community’s activities.
CENTRAL PROVIDENT FUND BOARD (CPF)

Central Provident Fund (CPF) is a comprehensive social security savings plan that has provided many
working Singaporeans with a sense of security and confidence in their old age. The overall scope and
benefits of the CPF encompass the following:
- Retirement
- Healthcare
- Home Ownership
- Family Protection
- Asset Enhancement
COUNCIL FOR ESTATE AGENCIES (CEA)

Council for Estate Agencies administers the enhanced regulatory framework for the real estate
agency industry.
Principal functions: license the estate agents (i.e. estate agencies) and register salespersons (i.e.
property agents), promote the integrity and competence of estate agents and salespersons and
engage in public education efforts to help consumers in property transaction.
HOUSING AND DEVELOPMENT BOARD (HDB)

Housing & Development Board provides affordable homes of quality and value. It creates vibrant
and sustainable towns, and promotes the building of active and cohesive communities. Through its
renewal and upgrading programmes, it also brings new features, facilities and improvements to its
older estates and towns to ensure their vibrancy and continued relevance.

UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT INTERVENTION 32
INLAND REVENUE AUTHORITY OF SINGAPORE (IRAS)

IRAS acts as agent of the government to assess, collect and enforce payment of taxes. In connection
with such functions, IRAS is responsible for administering the following Acts:
- Income Tax Act;
- Economic Expansion Incentives (Relief from Income Tax) Act;
- Property Tax Act;
- Goods & Services Tax Act;
- Betting & Sweepstake Duties Act;
- Private Lotteries Act;
- Stamp Duties Act;
- Casino Control Act – Part IX (Casino Tax); and
- Estate Duty Act
JTC CORPORATION (JTC)

JTC is Singapore's leading industrial infrastructure specialist spearheading the planning and
development of a dynamic industrial landscape.
LAND TRANSPORT AUTHORITY (LTA)

LTA is responsible for planning, operating, and maintaining Singapore’s land transport infrastructure
and systems.
MONETARY AUTHORITY OF SINGAPORE (MAS)

As Singapore's central bank, the Monetary Authority of Singapore (MAS) promotes sustained, non-
inflationary economic growth through appropriate monetary policy formulation and close
macroeconomic surveillance of emerging trends and potential vulnerabilities. It manages
Singapore's exchange rate, foreign reserves and liquidity in the banking sector. MAS is also an
integrated supervisor overseeing all financial institutions in Singapore -- banks, insurers, capital
market intermediaries, financial advisors, and the stock exchange. With its mandate to foster a
sound and progressive financial services sector in Singapore, MAS also helps shape Singapore's
financial industry by promoting a strong corporate governance framework and close adherence to
international accounting standards. In addition, it spearheads retail investor education. MAS ensures
that Singapore's financial industry remains vibrant, dynamic and competitive by working closely with
other government agencies and financial institutions to develop and promote Singapore as a
regional and international financial centre.

33 UNIT 1.2: REAL ESTATE MARKET PLAYERS AND GOVERNMENT INTERVENTION
NATIONAL ENVIRONMENT AGENCY (NEA)

National Environment Agency (NEA) is the leading public organization responsible for improving and
sustaining a clean and green environment in Singapore. The NEA develops and spearheads
environmental initiatives and programmes through its partnership with the People, Public and
Private sectors. It is committed to motivating every individual to take up environmental ownership
and to care for the environment as a way of life.
PERSONAL DATA PROTECTION COMMISSION (PDPC)

Personal Data Protection Commission (PDPC) is a Singapore Government statutory body established
to administer and enforce the Personal Data Protection Act 2012 (PDPA). The other roles of PDPC
include undertaking public education and engagement programmes to help organisations
understand and comply with the PDPA as well as to promote greater awareness of the importance
of personal data protection in Singapore.
SINGAPORE LAND AUTHORITY (SLA)

Singapore Land Authority (SLA) is a statutory board under the Ministry of Law.
Focus is on land resource optimization with 2 main roles: developmental and regulatory.
Developmental: Responsible for the management of State land and buildings, land sales, leases,
acquisitions and allocation, developing and marketing land-related information and maintaining the
national land information database.
Regulatory: National land registration authority responsible for the management and maintenance
of the national land survey system.
URBAN REDEVELOPMENT AUTHORITY (URA)

Urban Redevelopment Authority (URA) is Singapore's national land use planning authority. URA
prepares long term strategic plans, as well as detailed local area plans, for physical development,
and then co-ordinates and guides efforts to bring these plans to reality. Prudent land use planning
has enabled Singapore to enjoy strong economic growth and social cohesion, and ensures that
sufficient land is safeguarded to support continued economic progress and future development.
STRATA TITLES BOARD

Strata Titles Board is a body constituted under Part VI of the Building Maintenance and Strata
Management Act to hear applications:
- For orders for collective sales
- Relating to certain types of disputes or matters arising in respect of the strata units or the strata
development including the common property.

UNIT 1.3: BASIC LAND LAW CONCEPT: INTRODUCTION 34
UNIT 1.3: BASIC LAND LAW CONCEPT: INTRODUCTION
LEARNING OUTCOMES:
✓ Distinguish real property from personal property, proprietary right from personal right,
ownership (the largest form of proprietary interest) from lesser interests, and legal interest
from equitable interest.
LAND LAW
Land law deals with the rights to use, alienate or exclude others from land. (Wikipedia)
In Singapore, land law applicable are derived from:
- English common law and equity
- Local legislations
REAL PROPERTY
- Real property is a legal term describing ownership of permanent & immovable properties, which
includes land and buildings, and anything affixed to the land.
- Real property: immovable such as warehouses, factories, offices
- Personal property: movable such as goods or chattels. E.g. cars, clothing, furniture
- In law, a hereditament (from Lat. hereditare, to inherit, heres, heir) is any kind of property that
can be inherited.
- The 2 types of hereditaments are:
- Corporeal hereditaments: tangible property, ie can see and touch, like a house.
- Incorporeal hereditaments: intangible property, ie, neither seen nor handled, like an
easement (right of one individual to use another's property)

35 UNIT 1.3: BASIC LAND LAW CONCEPT: INTRODUCTION
CLASSIFICATIONS OF RIGHTS
Proprietary Right: Rights in rem, enforceable against the world at large, and instead of following
particular persons, follow particular things
Personal Right: Rights in personam, can be enforced against a limited number of specific persons,
e.g. breach of contract or negligence
Distinction: Exigibility, “against whom can the right be enforced?”
Property right: Must be definable, identifiable by third parties, capable in its nature of assumption
by third parties and have some degree of permanence or stability
E.g.: Landlord grants a lease of his house to Tenant and then sells his house. The lease continues in
existence despite the fact that there is a new Landlord. The lease is not simply a personal
relationship between the original landlord and the original tenant but is also a proprietary interest in
land. By contrast, the licence (permission to be on another’s land) is purely personal. If the licensor
sells his interest in the land, the new owner is not bound by the licence and can simply ignore it.
INTERESTS IN LAND
Property interest refers to the extent of a person's or entity's rights in property.
It deals with the percentage of ownership, time period of ownership, right of survivorship, and rights
to transfer.
LEGAL INTEREST
- A right in or over land.
- Binds the whole world and all 3rd parties.
EQUITABLE INTEREST
- Only good against certain people and is defeated by the Bona Fide Purchaser for value without
notice (Equity’s Dealing)
- Equity’s Dealing must:
- Be genuine and honest (bona fide)
- A buyer (purchaser)
- Give consideration (for value)
- Not have any notice of the equitable rights, be it actual, implied or constructive notice.
- Arises in property where it would be against conscience to allow the legal owner of property to
keep the benefit of the property for himself.
- E.g: trusts, vendor-purchaser and mortgage relationships, restrictive covenants

UNIT 1.4: LAND 36
UNIT 1.4: LAND
LEARNING OUTCOME:
✓ Infer the legal meaning of land.
✓ Understand the legal definition of fixture and the two tests of determining whether a chattel
is/has become a fixture, and ascentain whom (buyer or seller, landlord or tenant) a fixture
belongs. Understand the common usage of the term “fitting” by the industry and how it
relates to “fixture”.
✓ Identify the legal description of land lot, strata lot and accessory lot, and the documents
from which to obtain such information.
LAND
Land Titles Act define “land” as
- the surface of any defined parcel of the earth, all substances thereunder and so much of the
column of airspace above the surface whether or not held apart from the surface as is
reasonably necessary for the proprietor’s use and enjoyment, and includes any estate or interest
therein and all vegetation growing thereon and structures affixed thereto; or
- any parcel of airspace or any subterranean space whether or not held apart from the surface of
the earth and described with certainty by reference to a plan approved by the Chief Surveyor
and filed with the Authority, and includes any estate or interest therein and all vegetation
growing thereon and structures affixed thereto,
and where the context so permits, the proprietorship of land includes natural rights to air, light,
water and support and the right of access to any highway on which the land abuts.
Includes:
- Surface, i.e. the soil
- Airspace
- Interest or estate in the land
- Vegetation growing
- Structures affixed
- Natural rights to air, light and access to road

37 UNIT 1.4: LAND
FIXTURES & FITTINGS

Chattels: an item of personal property which is movable, as distinguished from real property.
FIXTURES
If a piece of equipment (chattels) which has been attached to real estate in such a way as to be part
of the premises and its removal would do harm to the building or land, then it becomes a fixture.
In essence:
- A fixture is transformed from a movable asset to an integral part of the real property
- Fixtures possess the attributes of both real and personal property.
- If a chattel becomes a fixture, the ownership will be transferred to the new owner if there is a
sale of the real property, even if it is not part of the contract.
Fixture Test
2 tests are usually performed to determine whether a chattel has indeed become a fixture.
1. Degree of annexation of the chattel on the land
The degree of annexation test says that the chattel does not become part of the land unless it is
connected to the land or building in a substantial way.
Assumptions made when determining the degree:
- An item is presumed not to be a fixture if it is resting on its own weight and the person who
asserts that it is a fixture, is obliged to prove it
- An item is presumed to be a fixture if it is attached to the land to any extent and the person
who asserts that it is not a fixture, is obliged to prove it.
2. Purpose of annexation
If the chattel has been fixed to the land with the intention (purpose of annexation) of
permanently improving the land, then it can be presumed to be a fixture.
Consider if item is for its own enjoyment (eg television) or whether it will improve the
convenience and use of the land.
Examples of fixtures: Toilet bowls, swimming pool, pond, lifts, grille gates etc

UNIT 1.4: LAND 38
FITTINGS
Considered a personal property because it is not permanently attached to the land, hence is not a
real property and will not be passed down to the successor.
Fittings or chattels personal are movable tangible articles, e.g. carpets, curtains, household goods,
etc.
When IRAS calculates the annual value of the property to determine the property tax payable, the
"rent" for fixtures is not allowed as deduction whereas the "rent" for the fittings is allowed to be
deducted.
THE RIGHT TO FIXTURES AS BETWEEN LANDLORD AND TENANT

The general rule is that a chattel always remains the tenant's and is removable by him at the end of
the tenancy, whereas a fixture is the property of the landlord and the tenant has no right of
removal.
Exceptions to the general rule exist and fixtures have become classified as:
- Landlord's fixtures: Those let as part of the premises at the start of the term, and any other put
up by the tenant of which he has no right of removal.
- Tenant's fixtures: Those which the tenant is entitled to remove, either through contract or law.
Includes:
- Trade fixtures: These are attached to the land for the purpose of carrying on a particular trade.
However, these are not removable if to do so would necessitate the destruction of the building
to which they are affixed. Eg, liquor bars, display shelves, booths, counters etc.
- Ornamental fixtures: installed for convenience or ornament, provided that they can be removed
without seriously damaging the land. Eg, stoves, shelves.
- Agricultural fixtures: installed for the purpose of farming

39 UNIT 1.4: LAND
LEGAL DESCRIPTION OF LAND

Each land parcel in Singapore is uniquely identified by a lot number.
Identifier has 2 components, namely the survey districts Mukim (MK) or Town Subdivision (TS)
number and the lot number.
For administrative purposes, Singapore is divided into 30 TS (TS1 to TS30) and 34 MK (MK1 to
MK34).
TS are located around the city area whereas MK are found in the rural districts since mukim is the
Malay word for rural area. The TS and MK boundaries may be altered by the Chief Surveyor.
SLA issues lot numbers to identify land parcels, more commonly called land lots, within a TS or MK.
Meanwhile, strata lot numbers are assigned to units in a building when a building is subdivided.
LOT BASE SYSTEM

The Lot Base System (LBS) maintains a complete inventory of all lot numbers in Singapore. It records
the history of lot creation, amalgamation and subdivision of all lots in Singapore.
When are new lot numbers allocated?
New land lot numbers are allocated when:

- part of an existing lot is alienated or acquired by the Collector of Land Revenue; or
- there is a request, with the relevant approval or authorisation to amalgamate and/or subdivide
the land; or
- new land parcels are formed arising from reclaimed land, allocation of new foreshore lot,
airspace lot or subterrenean lot.
For Strata lots, new lot numbers are allocated when there is a request, with the relevant approval,
to:
- subdivide a building; or
- amalgamate and/or subdivide an existing strata lot.
LAND LOT
SLA issues lot numbers to identify land parcels, more commonly called land lots, within a TS or MK.
Lot number alone cannot uniquely identify a lot as lots in different TS or MK may have the same lot
number.
A lot also cannot sit on more than one TS or MK.
If a lot created by an amalgamation of parent lots crosses TS or MK boundaries, SLA will redefine
such boundaries so that the new lot is wholly contained within one single TS or MK.
A lot can be subdivided into 2 or more lots, while two or more lots can be amalgamated into 1.
A land lot is the unit of land ownership. It can be owned by one owner or multiple owners as joint
tenants or tenants-in-common with undivided portions.

UNIT 1.4: LAND 40
Airspace and subterranean lots are 3-dimensional lots which are designated above and below the
ground surface respectively. Airspace lot numbers start with the 70,000 series, and subterranean lot
numbers start with the 80,000 series.
STRATA LOT
Strata lot numbers are assigned to units in a building when a building is subdivided.
They bear the prefix "U" e.g. U12345X.
A strata lot can be further subdivided into 2 or more strata lots, and 2 or more strata units can be
amalgamated into 1.
A provisional lot is a strata lot in 2 phased development where the future building shall be
subdivided when it is built. Being a strata lot, it also bears the prefix "U".
An accessory lot is a strata lot which is made appurtenant to another strata lot. It bears the prefix
"A" e.g. A22X
LOT NUMBERING SYSTEM

The format for the land, strata and accessory lot numbers is designed to provide a simplified and
uniform lot numbering system.
Lot numbers are allotted uniquely in a running series within each survey district and suffixed with a
check alphabet.
Check alphabet is computer-generated and serves as a check against misquotes.
Please see the table below for a description of the lot number format where N ( ) is numeric and A ( )
is alphabetical:
TS or
Type of lot TS or MK Check
number MK number Prefix Lot no. Alphabet Range
1-69999 & 90000-

Land lot no. A(2) N(2) - N(5) A(1)
99999
Airspace lot no. A(2) N(2) - N(5) A(1) 70000-79999
Subterranean lot
A(2) N(2) - N(5) A(1) 80000-89999
no.
Strata lot no. A(2) N(2) U N(6) A(1) U1-U999999
Accessory lot no. A(2) N(2) A N(4) A(1) A1-A9999

Source: SLA

41 UNIT 1.4: LAND
INTEGRATED LAND INFORMATION SYSTEM (INLIS)

Integrated Land Information Service (INLIS) provides Land Titles searches where one can obtain map
and /or textual land information.
Information obtained from INLIS:
- Property Title Information
- Propery Ownership Infomration
- Land Information on Lot Particulars and Lot History
- Caveat Index Information
- Historical information
- Images of Instruments
- Images of Index to Land Books, Index to Caveat Books and Deeds
SURVEY MAPS
After a lot number is assigned to a parcel of land or a property, a cadastral survey of the land is
carried out to obtain an accurate measurement of the boundaries of the real property. The survey is
required for or in connection with the registration of any title to the land or a property.
SLA maintains maps and plans in electronic form. These records include
- Cadastral maps
- Registrar of Title Plans (RT)
- Certified Plans (CP) and Strata Certified Plans (CPST).

UNIT 1.4: LAND 42
CADASTRAL MAPS
Cadastral Maps are survey maps prepared and maintained under the Boundaries and Survey Maps
Act. To-date, there are 1,596 maps covering the whole of Singapore.
The data items shown in the maps are land lot numbers, house numbers, areas, lot boundaries, land
tenures, title boundaries, survey plan numbers, survey district numbers and their boundaries, and
road names.
The Cadastral Maps are updated as soon as the survey plans showing the subdivision or
amalgamation of land parcels have been approved by the Chief Surveyor. New Cadastral Maps are
created to accommodate newly reclaimed lands.
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Singapore Land Authority

Integrated Land Information Service (INLIS)
Cadastral Map
Scale 1 : 1000
Lot Boundary
Enquired Lot: For lot information, please refer to lot area text file
Area:For area information, please refer to lot area text file
Cadastral Map No:387
10 5 0 10 20 30 40 50 60 70 80 90 m
This Map is NOT the authority on International Boundaries

PO : F3E6832526709L Copyright © 2014 Singapore Land Authority. All Rights Reserved.

43 UNIT 1.4: LAND
REGISTRAR OF TITLE PLANS (RT)

A Registrar of Title (RT) Plan is a survey plan showing the provisional boundaries and areas of land
lots. The plan is prepared by registered surveyors and must be approved by the Chief Surveyor. RT
Plan will be superseded by the Certified Plan (CP) after a ground survey has been conducted. Since 1
Apr 2003, the RT plan has been abolished except in the survey of subterranaen lot, airspace lot,
reclaimed land and foreshore structure.
These are survey plans prepared for the survey of subterranean lots, airspace lots, reclaimed lands
and foreshore structures

UNIT 1.4: LAND 44
CERTIFIED PLAN (CP), STRATA CERTIFIED PLAN (CPST)

These are survey plans prepared upon final survey of the land and strata lots. The plans are called
Certified Plan (CP) for land lots and Strata Certified Plan (CPST) for strata lots.
These plans show the final boundaries and areas of the lots. They must be approved by the Chief
Surveyor. Plans which depict land parcels are called Certified Plans (CP). Plans depicting strata lots
are referred to as Strata Certified Plan (CPST). Each plan bears a unique plan number.
Sample of a Certified Plan

45 UNIT 1.4: LAND
Sample of a Strata Certified Plan

UNIT 1.5: ESTATES IN LAND 46
UNIT 1.5: ESTATES IN LAND
LEARNING OUTCOMES:
✓ Understand tenure and estate, and the various types of freehold and leasehold estates.
TENURE AND ESTATE IN LAND

Estate: Duration of ownership
Tenure: Conditions and terms of ownership
2 types of land tenure:
- Freehold
- Leasehold
FREEHOLD LAND
In order to be categorized as a freehold, an estate must possess the characteristics of
- Immobility – land/property
- indeterminate duration – holds land ‘forever’ (unless the Singapore Government overrides it by
compulsorily acquiring it)
A freehold title allows the owner to own the land forever.
2 categories of Freehold Property exists:
i. Estate in Fee Simple
- Also known as Grant in Fee Simple
- Issued by the State
- Greatest possible estate in land, wherein the owner has the right to use it. A fee simple
represents absolute ownership of land, and therefore the owner may do whatever he or
she chooses with the land. If an owner of a fee simple dies intestate, the land will
descend to the heirs.
- Property Tax is the only expense annually payable by all property owners. No further
payments compared to Statutory Land Grant (SLG).
ii. Estate in Perpetuity
- Also known as Statutory Land Grant (SLG)
- Freehold title issued by the State, subject to conditions in State Lands Act

47 UNIT 1.5: ESTATES IN LAND
LEASEHOLD LAND
Duration of ownership is defined.
Government Land Sales (GLS) for residential are ALL 99 years leasehold
- Eg HDB land
- URA for condos and apartments
Private leases (not from government) possible at 999 or 9999 year lease.
Other leases:
- JTC/HDB: 60/30 years
- MUIS properties: 199-year lease
LAND TITLES (STRATA) ACT

- Provides for the vertical subdivision of land into lots and common property
- Each lot is issued with a different title
TYPES OF STRATA-TITLED PROPERTIES

Strata titles are conferred upon:
- condominium;
- residential flats;
- townhouse;
- cluster housing;
- strata-bungalow;
- flatted factories;
- flatted warehouse;
- office;
- shopping;
- any combination of office, shopping and residential flats uses.

UNIT 1.5: ESTATES IN LAND 48
STRATA TITLE PLAN

- Submitted by developers to the Chief Surveyor for approval under the Boundaries and Survey
Maps Act.
- Schedule of Entitlement indicates the share values for each strata lot.
- Registrar will rely on the share value stated in the Schedule of Entitlement to issue the SSCTs.
- Strata title plan will be deemed registered upon the registration of the Strata Title Application.
- Register will assign a number to the strata title plan which forms the name of the management
corporation
SUBSIDIARY STRATA CERTIFICATE OF TITLE

Subsidiary Strata Certificates of Title are issued for units in a building or development which is strata
subdivided. This enables the transfer of the legal titles for the strata units.
When to apply
- When a development with 3 or more strata units is completed up to roof level and strata
subdivision approval has been granted by Chief Planner, URA.
- When subdivision approval for a strata lot is granted by Chief Planner, URA e.g. when an office
strata lot is subdivided to form 2 new office strata lots.
- When planning permission is granted by Chief Planner, URA for amalgamation of strata lots e.g.
when 2 existing office strata lots are amalgamated as one large strata lot.
- When owners of flats built before the operation of the Land Titles (Strata) Act with leases
registered under the Registration of Deeds Act or Land Titles Act apply to convert their leases to
strata titles.
Refer to the Appendix for a Sample of a Strata Certificate of Title

49 UNIT 1.6: STATE LANDS ACT
UNIT 1.6: STATE LANDS ACT
LEARNING OUTCOMES:
✓ Explain the implied covenants and conditions in the grant in perpetuity and State lease.
✓ Understand when differential premium is payable.
✓ Understand the nature of temporary occupation licence (TOL) issued by the State.
✓ Describe the State’s reversionary interest in State leases and the power to acquire land
compulsorily under Land Acquisition Act.
COVENANT
Covenant: Legal agreement made between 2 parties that is contained in a deed.
Covenantor: Person making the promise
Covenantee: Person to whom the promise is made
IMPLIED COVENANTS AND CONDITIONS

Under the State Lands Act, State land is granted or leased on special covenants and conditions.
The special covenants and conditions are endorsed and inserted in the titles.
IMPLIED COVENANTS IN STATUTORY GRANT

Grantee, his executors, administrators will:
- Pay rent, if any subject to period revisions
- Maintain all landmarks defined by the boundaries of the land
- Not to use any portion of the land for burial of a human body without written permisson of the
Minister
- Not assign or demise the land in parcel or in entirety except for a lease term of not exceeding 7
years
Covenants will run with the land.

UNIT 1.6: STATE LANDS ACT 50
IMPLIED CONDITION
State:
- has the right to enter the land and to search for and take any mineral oil which can be found,
and paying the grantee or lessee of the land for any damages.
- Owner or occupier of any land adjacent to the land has a right of way from his land to the
nearest public road
- Any land issued before 1st March 1961 is conferred an estate in perpetuity on the grantee
- A royaly of 10% of the gross produce of all mines and minerals other than laterite found in the
land
- Earth, clay, gravel, sand and stone and other materials which may be required for the roads,
public buildings or other public purposes may be taken or removed from the land
- Officers of the governemnt and their workmen can have free access to the land for the purpose
of making drains and sewers, and laying down water pipes, electric and telegraph wires, and
other underground communications, and using, repairing and maintaining them
- Collector of Land Revenue and any officer authorised shall have free access to the land
- In case of breach of implied covenants other than for the payment of rent and maintenace of
landmarks, Collector of Land Revenue can re-enter the land and forfeit the land.
STATE COVENANTS
- restrictive covenant that CANNOT be removed by court order
- eg: zoning, plot ratio, height restriction, setbacks, leasehold 99-year
- CAN be removed only by paying Differential Premium (DP).

DIFFERENTIAL PREMIUM
State lands are sold at a price based on the proposed use and intensity at the time of sale. The use
and intensity are stipulated as conditions in the State title.
Differential Premium (DP): Charged for lifting the title restriction.
DP is the difference in value between the use and/or intensity stated in the State title and the
approved use and/or intensity in the provisional planning permission.
DP is computed based on the Development Charge (DC) Table of Rates. The material date of
determination of DP is pegged to the date of Provisional Permission (PP) or the start date of the
validity of the second and subsequent PP extensions. Where the tenure of the land is leasehold, the
DC rates will be adjusted to reflect the remaining tenure of the land using the Leasehold Table.
However, in suitable cases where the State Title contains special restrictions, the DP payable may be
determined using other methods and the resultant amount could be higher than the rate
determined by the DC table.
Where the use stipulated in the title restriction does not fit into any of the Use Groups in the DC
Table, the DP payable will be determined by the Chief Valuer on a case-by-case basis.
For more information on how to calculate DP, please refer to Appendix: The Differential Premium
System and Changes to Differential Premium system on 18 July 2007.
EXEMPTION FROM DEVELOPMENT CHARGE IF DIFFERENTIAL PREMIUM IS

PAID
Lessees, with State leases that do not specify the use and/or the maximum allowable intensity for
the land, are liable to pay Development Charge in respect of the enhancement in land value arising
from a development proposal. With effect from 1 Sep 2011, subject to certain terms and conditions
being satisfied, a lessee may be exempted from paying Development Charge if Differential Premium
is paid for the enhancement in land value.

UNIT 1.6: STATE LANDS ACT 52
TEMPORARY OCCUPATION LICENCE (TOL)

SLA rents out vacant State lands through Temporary Occupation Licenses (TOLs).
A Temporary Occupation Licence (TOL) is a Licence issued by SLA for the temporary use of State land
or for the purpose of the retention of minor encroachment from private properties onto State land.
The TOL issued can either be renewable on a monthly or yearly basis depending on the use.
- Examples of uses under renewable TOL are worksite, signage, showflat, landscaping, etc.
Where the use of State land is for a one-off event and for a fixed duration of not more than 3
months, a Non-Renewable Temporary Occupation License (NRTOL) will be issued instead.
- Examples of uses under NRTOL are tradefair, pasar malam, religious event, wayang, funeral
wake, sale/entertainment event, etc.

Common Exam for House agents REHA) Paper I Compulsory Acquisition of Land by the State
LAND ACQUISITION ACT
GOVERNMENT’S RIGHTS TO ACQUIRE PROPERTY COMPULSORILY

Private property owners hold their land subject to the ability of the State to compulsorily acquire it
for public purposes. Compulsory acquisition of private land by the State in Singapore is governed by
the Land Acquisition Act.
Land in Singapore can be acquired for:
- for any public purpose;
- by any person, corporation or statutory board, for any work or an undertaking which, in the
opinion of the Minister, is of public benefit or of public utility or in the public interest; or
- for any residential, commercial or industrial purposes
VALUATION BASIS FOR COMPENSATION

On 7 May 2007, the Land Acquisition Act (LAA) was amended to pay market value compensation for
land acquired.
This Act amends the Land Acquisition Act to abolish the use of a statutory date in determining the
basic compensation for land that is compulsorily acquired on or after 12 February 2007 and to
provide that the basic compensation will instead be the market value of the land as at the date of its
acquisition.
However, the market value of the acquired land cannot exceed the price which a bona fide
purchaser might reasonably be willing to pay for the land.
The market value of the land is to be arrived having regard (but not only) to the zoning and density
requirements and any other restrictions imposed by or under the Planning Act at the date of
acquisition, and any restrictive covenants in the title of the acquired land. However, no account is to
be taken of any potential value of the land for any other use more intensive than what is permissible
by or under the Planning Act as at the date of its acquisition.
The Land Acquisition Act is also amended so that when accessing the market value of acquired land,
it will no longer be prohibited to take into account any increase in value arising from any
improvement to the land within 2 years before the date the land is declared to be required for a
public purpose, or from development in the neighbourhood by the provision of roads, drains,
electricity, water, gas or sewerage or social, education or recreational facilities within 7 years
preceding that date.
The special compensation provisions for acquired land which is used as a burial ground and acquired
land that is devastated or affected, directly or indirectly, by fire, explosion, thunderbolt, earthquake,
storm, tempest, flood or any act of God, have also been abolished. Such land, if acquired, will be
assessed no differently from other acquired land.
The compensation for land acquired before 12 February 2007 continues to be governed by the
existing law.

UNIT 1.7: RIGHTS IN ANOTHER’S LAND 54
UNIT 1.7: RIGHTS IN ANOTHER’S LAND
LEARNING OUTCOMES:
✓ Explain the term “encumbrances” on land title.
✓ Explain the nature of a licence.
✓ Distinguish a licence from a lease.
✓ Explain the nature and characteristics of an easement.
✓ Understand how an easement may be acquired and extinguished at common law, and under
the Land Titles Act (LTA) and Land Titles (Strata) Act (LTSA).
✓ Explain the easements implied under LTA and LTSA.
✓ Understand the extent to which covenants affecting adjacent land owners bind their
respective successors in title.
✓ Ascertain the existence of a restrictive covenant in a land title.
✓ Explain how a restrictive covenant may be discharged at common law and under the Land
Titles Act.
EMCUMBRANCES
Encumbrance: A right to, interest in, or legal liability on real property that does not prohibit passing
title to the property but may diminish its value
Can be in the form of: lien, mortgage, easements, unpaid property tax
LICENCE
A license may be granted by a party ("licensor") to another party ("licensee") as an agreement
between those parties
A licence does not give licensee a property right; it simply allows licensee to act in a way that would
otherwise interfere with licensor’s property right.
Licensee will not have any legal interest in the property.

55 UNIT 1.7: RIGHTS IN ANOTHER’S LAND
4 TYPES OF LICENCES:
- Bare licences: permission to enter land. eg, if I invite you to dinner, this removes your duty not
to enter my land. However, I am free to change my mind and revoke the licence.
- Contractual licences: Licence for specified period cannot be revoked until contractual period has
expired
o Granted by contract (valuable consideration)
o Short term licences:
▪ Entry to cinema, football match, car park.
o Long term licences:
▪ Occupy house/flat/shop
- Estoppel licences:
What is an ‘estoppel’?
“Equity…prevent a person insisting on his strict legal rights…when it would be inequitable for
him to do so having regard to the dealings which have taken place between the parties.”
Eg: if the licensee was informally promised certain interest provided he spends significant
amount of money to enhance the land, then the licensor (strict legal right) may be ‘estopped’
from stopping the licensee from using the land.
- Licences coupled with a grant: permission to enter the land to carry out approved activities,
usually for a profit.
Eg: A licence to go on land to sever and remove trees, are accepted examples of a licence
coupled with an interest.

EASEMENT
Easement: An easement is a certain right to use the
real property of another without possessing it.
Easements require the existence of at least two
parties. The party gaining the benefit of the easement
is the dominant tenement – “A”, while the party
granting the burden is the servient tenement – “B”.
A good example would the ‘Right of Way’ displayed by
diagram – A’s (receiving benefits) users can only
access to his land by passing through B’s (suffering the
burden) land.
Easement appurtenant is one that benefits the dominant estate and "runs with the land", i.e., an
easement appurtenant generally transfers automatically when the dominant estate is transferred.
AFFIRMATIVE AND NEGATIVE EASEMENTS

Affirmative easement: Right to use another's property (servient) for a specific purpose, while a
negative easement is the right to prevent another from performing an activity on their property.
Eg, an affirmative easement might allow land owner A to walk/drive over the land of B to go home.
A has an affirmative easement from B.
Negative easement might restrict B from blocking A's sea view by putting up a wall of trees. A has a
negative easement from B
ESSENTIAL CHARACTERISTICS OF AN EASEMENT

- There must be a dominant (A) and a servient (B) tenement;
- The easement must provide the dominant tenement with benefits and enjoyment;
- The dominant and servient owners must be different persons;
- The ‘easement right’ claimed must be capable of forming the subject-matter of a grant, eg you
can define the right of way for A over B’s land.

CREATION OF EASEMENTS
Easements are most often created by express language in binding documents. Parties generally
grant an easement to another, or reserve an easement for themselves.
There are a few ways that easements are created:
- Express easement: An express easement is created by a deed or by a will (must be in writing).
An express easement can also be created when the owner of a certain piece of property conveys
the land to another, but saves or reserves an easement in it. This arrangement is known as an
"easement by reservation."
- Implied Easements: Even when no document or agreement has created an express easement,
an easement right may still be implied (understood) in certain situations or circumstances.
Eg PUB takes care of the sewerage & sanitary works in Singapore, thus, it has implied easement to
enter a private property to perform its function of maintenance & repairs.
- By necessity:
E.g. An easement by necessity can only be created
when land held by a single owner is severed into two
or more parcels.
After severance, if any of the newly created parcels
(parcel ‘B’) is physically unable to reach a public road,
an easement by necessity may be created.
Easements by necessity are either granted to a buyer of a landlocked parcel (‘B’ in diagram), or
reserved by a seller of land who retains a landlocked parcel (‘B’) after the severance and sale.
- Easement by prescription: A right to use property, acquired by a long tradition of open and
obvious use.
For example, if hikers have been using a trail through your backyard for ten years and you’ve
never complained, they have an easement by prescription through your yard to the trail.
TERMINATION OF EASEMENTS
A party claiming termination should show one or more of the following factors:
- Release: agreement to terminate by the grantor and the grantee of the easement
- Merger: When one owner gains title to both dominant and servient tenement
- Necessity: If the easement was created by necessity and the necessity no longer exists
- Prescription: The servient estate reclaims the easement with actual, open, hostile and
continuous use of the easement
- Abandonment: This is usually claimed where the easement has not been used or enjoyed for a
significant length of time. Under the Land Titles Act, an easement can be removed if the period
exceeds 12 years of non-usage.

EASEMENTS UNDER THE LAND TITLES ACT

- Easements for installations: right to lay or maintain pipes or other installations through the land
of a proprietor confers on the person or authority entitled to that right the exclusive possession
or occupation of the soil, or of the space occupied by the pipes or other installations, shall not of
itself prevent the right of passage of matter or energy through the pipes or other installations
being registrable as an easement.
- Easement for passage of water, electricity, gas, sewerage, drainage and other services for
development
- Implied easements for right of way and other rights shown in subdivision plan
- Contribion to repairs
- Grant of right of way
- Party walls
EASEMENTS UNDER THE LAND TITLES (STRATA) ACT

- Easement of support
- Easement of shelter
- Easement for passage of water, sewerage, drainage and other services
- Easements for light over-hanging eaves and other projections
- Ancillary rights: Implied to make easements effective

LEASE VS LICENCE VS EASEMENT

Licence Lease Easement
Not an interest Interest Interest
No exclusive possession Exclusive possession No exclusive possession
Not assignable Can assign the balance of the Assign together with land
lease term
Revocable during the term Not revocable during the term Not revocable
Temporary Definite term
Terminates upon sale of Pass on to the buyer who buys Permanent till terminated
property; upon giving notice to with tenancy via Privity of
quit Estate
Does not run with land Runs with land Runs with the land
COVENANT
A covenant is a type of contract in which the covenantor makes a promise to a covenantee to do or
not do some action.
POSITIVE COVENANTS
A covenant to do or perform something. Does not automatically ‘run with the land’ unless:
- ‘Touch and concern’ the land – relate to interest in land
- Privity of estate - the relation that subsists between a landlord and his tenant (eg sale with
tenancy means the new buyer covenants to fulfill the Tenancy)
Useful tools to enforce obligations between landowners (e.g. a contribution towards the upkeep of
common facilities).
RESTRICTIVE COVENANTS
- Restrain/restrict from doing something.
- It ‘runs with the land’, ie subsequent buyers assume the ‘burden’ if it ‘touch and concern’ the
land.
- May prevent a landowner from using the land for a particular use (e.g. prohibit the sale of
alcohol) or may restrict development (e.g. no building without consent).
- Eg HDB/URA/Conservation of Trees
- Can be either:
- Implied by law (planning policies) – eg MCST by-laws in strata buildings; or
- Private agreement – restrict the height of trees so it does not block the neighbour’s view of
the reservoir.
- The Land Titles Act provides for restrictions to expire 20 years from the date of creation/entry of
a notification thereof on the land register.

- Removed by:
- release wholly or in part by notification of registered owner of dominant land and person
having a registered interest in the land;
- expiry term of restrictive covenants; and
- by extinguishment or variation by order of court.
RESTRICTIONS UNDER THE LAND TITLES ACT

Duration: Restrictions shall cease to be enforceable against assigns of the servient land at the expiry
of 20 years from the date of entry of a notification thereof on the land-register.
Where a restriction was created before bringing the servient land under the provisions of this Act
and the owner of the servient land is not the covenantor, the restriction shall (unless extended in
the manner provided by this section) cease to be enforceable against the owner or assigns of the
servient land at:
- the expiry of 20 years from the date of creation of the restriction;
- the expiry of 5 years from the date of entry of a notification thereof on the land-register; or
- the expiry of 24 months from 20th August 2001*,
whichever expires the latest.

61 UNIT 1.8: REGISTRATION OF TITLES
UNIT 1.8: REGISTRATION OF TITLES
LEARNING OUTCOMES:
✓ Associate a property type with a property title: certificate of title, subsidiary strata
certificate of title, or lease title.
✓ Interpret dealings that are notified in the title document, e.g. transfers, mortgages, charges,
and leases exceeding 7 years.
✓ Understand the effect of registration and the priority of registered interests.
✓ Understand the function of a caveat and the period of its effectiveness.
LAND REGISTRATION SYSTEM

Land Titles Registry, which comes under the SLA umbrella, handles the registration of property
transactions in Singapore.
The Registry registers all legal transactions affecting land, including
- landed property (bungalows, terrace houses and semi-detached houses)
- flats (whether private or HDB) and
- commercial and industrial properties.
Land register shows who owns the land and whether there are encumbrances, such as mortgages or
charge affecting the land.
- Protects the rights of property owners
- Prevent fraudulent or secret transactions. Enables those purchasing, financing or otherwise
dealing in land to conduct their transactions and business affairs efficiently and with certainty
- Facilitate transactions by giving proof of title
- Allows public searches to be conducted
TYPES OF REGISTRATION
2 Systems for registration of property rights in Singapore
i. The Register of Deeds for Common Law land under the Registration of Deeds Act; (OLD
SYSTEM) and
ii. The Land Titles Register for titles land under the Land Titles Act (Current System)

UNIT 1.8: REGISTRATION OF TITLES 62
REGISTRATION OF DEEDS ACT (RODA)

- Title Deeds administered by the Registry of Deeds
- In use since colonial times
- Registrable instruments must be registered with the Registry of Deeds – registrable instruments
includes conveyance, charge order of court, probate and letters of administration
- Cumbersome as title has to be deduced for 15 years to “good root of title”
- Legal interests in land pass by deed, i.e. a document signed, sealed and delivered.
- Under the Act, not compulsory for owners of land to register the deeds at the Registry of Deeds.
- To verify the ownership of the land, a 15-year title search at the Singapore Land Registry must
be made.
- Difficult and time consuming.
- Deed : document that transfers ownership of real estate. It contains the names of the old and
new owners and a legal description of the property, and is signed by the person transferring the
property
REGISTER OF DEEDS
- Record of deeds lodged against land held under the old Common Law system of land
registration.
- Presently there are hardly any deeds lodged at the Registry of Deeds.
What can be registered?

- Conveyance
- Mortgage
- Lease or agreement of lease exceeding 7 years
- Memorandum of lien, charge or discharge. (Where an equitable mortgage created by a deposit
of title deeds is accompanied by a memorandum, the memorandum is registrable);
- Deed of consent to the discharge of a trustee;
- Order of court (i.e. any judgement, decree, writ of execution or sequestration, adjustication in
bankruptcy)
- Certificate of appointment of trustee in bankruptcy
- Grant of probate or letters of administration
Any document which does not come within the definition of a deed or assurance cannot be
registered.
A person who has a non-registrable instrument, e.g. an agreement for sale, may want to protect his
interest. He can do this by lodging a caveat with the SLR.

ADVANTAGES FOR REGISTRATION

a) Evidence
A registered document can be used as evidence of title.
b) Secure priority
Registered documents have priority according to their dates of registration.
TORRENS TITLE SYSTEM (LAND TITLES ACT AND LAND TITLES (STRATA) ACT)
- Introduced in 1960.
- Registration of title was modelled on the Torrens system of title registration in Australia.
- Introduced under Land Titles Act, and extended to Strata Titles under Land Titles (Strata) Act
- Simplify form of titles by using standardised forms in place of deeds
- Facilitate transactions and results in lower registration costs
- Single document of proof of title (Certificate of Title)
- Contain all notifications of any dealings over land, therefore need not trace back 15 years.
- A Land Titles Register is maintained
- Registration is mandatory to effect the transfer of an estate or interest in land
- Indefeasible Title: Title is guaranteed by the State
- Register through STARS eLodgement.
- Some interests that need not be registered such as short-term tenancies & statutory easements
are not reflected in the Certificate of Title.
- Most of the old titles under the common law system have been converted to Torrens system.
THREE PRINCIPLES OF TORRENS SYSTEM

The Torrens system works on three principle:
- Mirror principle – the register (Certificate of Title) reflects (mirrors) accurately and completely
the current facts about a person's title.
- Curtain principle – one does not need to go behind the Certificate of Title as it contains all the
information about the title. All of the necessary information regarding ownership is on the
Certificate of Title.
- Insurance principle – Assurance Fund provides for compensation of loss if there are errors made
by the Registrar of Titles

THE LAND REGISTER

Land register is the authoritative record on the ownership of all properties registered under the Act
in Singapore.
The Land-register provides information on:
- Whether it is freehold or leasehold or others
- Land area of the property
- The name(s) of the registered owners
- The legal arrangement by which the registered owners own the property (eg. Joint tenants or
Tenants in common)
- The addresses for service of legal notices on the registered owners
- Whether there are legal interests (eg. Mortgages, CPF Charge) affecting the property
CERTIFICATE OF TITLE (CT)

Whenever the State issues a State title, the Registrar of Titles will issue a Certificate of Title for that
piece of land.
New Certificates of Title are issued when land is subdivided or amalgamated. This facilitates the
transfer of the legal titles relating to landed properties
QUALIFIED TITLES
- One which has a caution endorsed on it, stating that the title is subject to the pre-existing claims
or encumbrances.
- Means that State does not guarantee the title and buyer must investigate the pre-existing
common law deeds
- Only when caution lapses that the title becomes indefeasible.
- Caution automatically lapse after 10 years after land is converted, or after 2 years from the
commencement of the amendment of the Land Title Act in 2001, even if there has been a sale
after title conversion
- This will completely eliminate the number of qualified titles, as it is now more than 10 years
from the amendment in 2001.

CAVEATS
- Legal document lodged at SLA by any person (caveator) against a claiming an interest in land against a
property in which the caveator claims an interest
- Land Titles Act allows any person who claims an interest in the property to lodge a caveat
- When a caveat is lodged, the Registrar of Titles will notify it against the property
- Includes the following information
- the name of the caveator and the caveatee;
- an address in Singapore at which notices may be served on the caveator and the caveatee;
- particulars of the estate or interest claimed by the caveator;
- the grounds in support of the claim;
- the nature of the prohibition of the dealing in land;
- the lot affected by the caveat and, where that lot is comprised in a folio, the folio;
- where the caveat relates to only part of the land, such description of that part as will enable
it to be identified to the satisfaction of the Registrar;
- if the caveator is a purchaser or sub-purchaser of the interest in the land, the amount of the
purchase price and the date of the caveator’s contract or the date on which he exercised the
option to purchase the interest in the land, as the case may be; and
- the particulars required by section 19 of the Residential Property Act (Cap. 274).
CAVEATABLE INTERESTS
Caveats are lodged to protect interest in land and these include:
- transfer of land in favour of the Government by way of surrender for the purpose of reissuing
one or more new titles;
- an instrument of vesting pursuant to compulsory acquisition;
- a transfer of land sold;
- a total or partial discharge of a mortgage or a registered mortgage;
- a transfer of a mortgage or a registered mortgage;
- a transmission upon death of a registered proprietor, notice of death of one or more joint
tenants, a transmission upon a registered proprietor being adjudicated a bankrupt or on the
vesting of a corporation’s estate or interest in land upon the effective date of its winding up in
the Official Receiver;
- easements or restrictions which are not expressly prohibited by the caveat, or any discharge
thereof;
- a total or partial release of any easement or a total or partial release or extinguishment of
restrictions;
- a change in the name of a registered proprietor;

- in relation to a lease lodged in registrable form (leases above 7 years) and accepted before the
lodgment of the caveat, a dealing effected by the lessee pursuant to a right conferred by the
lease or by or under any existing law;
- an application made to a Strata Titles Board
LAPSING OF CAVEATS
Caveat shall lapse and cease to affect land:
- after 30 days from the date of the service of the notice given; or
- after 5 years from the date of the lodgment of the caveat, or where an extension is validly
claimed for a further 5 year
WITHDRAWAL OF CAVEATS
A caveat may be withdrawn either wholly or as to part of the land by:
- caveator or his authorised agent including a solicitor acting on his behalf;
- caveator is a natural person who has died, by his personal representative or the trustee of the
caveator’s estate;
- 2 or more caveators claim to be entitled as joint tenants and one or more (but not all) of them
has died, by the surviving caveator or caveators;
- where the caveator is adjudicated a bankrupt, by the Official Assignee; or where the caveator is
a corporation and is in liquidation, and the estate or interest claimed by the caveator has
become vested in the liquidator, by the liquidator;
- by the person or the deputy appointed or deemed to be appointed for such person by the High
Court under the Mental Capacity Act 2008, with power in relation to the management and care
of the estate or interest claimed in the caveat; or
- by the solicitor acting for any of the persons mentioned above
- by court order

67 UNIT 2.1: LAW OF CONTRACT
CU2: DEALINGS WITH INTERESTS IN LAND
To be able to advise clients on property matters and to deal with property transactions on behalf of
buyers/sellers or landlords/tenants, real estate salespersons need to understand when a contract is
entered and the consequences, if the obligations are not fulfilled. They should be mindful that they
owe a fiduciary duty to their principals and the duty of care to others.
Real estate salespersons should also understand an important concept of land, whereby “land”
refers not so much to the physical land but an “interest” or a “bundle of rights” in land. One of the
characteristics is the right of the owner to deal with the land. An interest is usually acquired through
a sale and purchase, but it may also be vested in a person by way of gift, trust or succession. Other
than alienation of the entire interest, an owner may carve out a lesser interest such as a lease,
mortgage or an easement to co-exist with his proprietary interest. If the right to possession is vested
only in the future, it is a future interest.
UNIT 2.1: LAW OF CONTRACT
LEARNING OUTCOME:
✓ Understand what constitute a valid contract with reference to letter of intent, tenancy
agreement, option to purchase (OTP) and sale & purchase (S&P) agreement:
o Offer and acceptance (including the 3Ps: Parties, Property, Price)
o Form (i.e. deed) or consideration
o Capacity of parties (cross-refer to Paper 1, Unit 2.12)
o Legality of object
✓ Illustrate the legal effects of valid, void, voidable and unenforceable contracts.
✓ Differentiate between warranty and condition in a contract.
✓ Explain misrepresentation vis-à-vis duty of disclosure (vs. caveat emptor) and its effect on
contract.
✓ Name and describe how a contract may be discharged and the remedies available for breach of
contract.
✓ Relate the above principles to real estate contracts in respect of (cross-refer to Paper 2, Units
4.2 and 4.3):
o When a contract for sale and purchase or for lease is formed
o Assignment of contract
o What constitutes a breach of condition
o What facts/defects ought to be disclosed

UNIT 2.1: LAW OF CONTRACT 68
o What constitutes misrepresentation
o When a contract is completed, rescinded or repudiated
o When to seek assistance from a solicitor
DEFINITION OF CONTRACT
A contract is an agreement entered into voluntarily by two parties or more with the intention of
creating a legal obligation, which may have elements in writing, though contracts can be made
orally.
Examples of Contracts:
- Option to Purchase (HDB / Private sale)
- Sales & Purchase Agreement
- Lease Agreement
- Sole Agency Agreement
- Commission Agreement etc
ELEMENTS OF CONTRACT
For a contract to be valid and enforceable, the following essential elements must be present:
- Intention to create legal relations
- Offers
- Acceptance
- Consideration

INTENTION TO CREATE LEGAL RELATIONS

- Creation of legal relations is a doctrine that states an agreement is legally enforceable only if
the contracting parties may be deemed by the court to have intended it.
- Commercial Agreements:
Parties involved are presumed to create legal relations, unless the circumstances or nature of an
agreement preclude this.
E.g., where a contract states expressly that it does not intend to create legal relations, then the
courts will not seek to create any
- Social and Domestic Agreements
Generally presumed not to intend legal consequences.
OFFER
- Promise, or other expression of willingness, by one person (offeror) to be bound on certain
specified terms upon the unqualified acceptance of these terms by the other person (offeree).
- Must be communicated and conveyed
INVITATION TO TREAT
An invitation to treat is an indication that someone is prepared to receive offers with the view to
forming a binding contract. It is not an offer in itself.
4 types of an invitation to treat

1. Auction sales
The rule is that the bidder is making an offer to buy and the auctioneer accepts this in whatever
manner is customary, usually the fall of the hammer.
2. Advertisements
This is an attempt to induce offers and is therefore classified as an invitation to treat.
3. Exhibition of goods for sale
This is displaying goods in a shop such as Tesco etc. this constitutes inviting customers to make
offers to purchases such items or invitation to treat.
4. An invitation for tenders
A tender is an estimate submitted in response to a prior request. When a person tenders for a
contract he is making an offer to the person who has advertised a contract as being available.
UNILATERAL CONTRACT VS. BILATERAL CONTRACT

A real estate sales contract is a "bilateral" (two-way) agreement. The seller agrees to sell, and the
buyer agrees to buy. Compare this with an option; an option is a unilateral (one-way) agreement in
that the seller is obligated to sell, but the buyer is not obligated to buy - it is his option to do so.

COUNTER-OFFERS
If the offeree tries to change the terms of the offer in the acceptance, then it is not an acceptance, it
is a counter-offer.
A counter-offer rejects the offer.
The position of the two parties is reversed. The offeree becomes the offeror and the offeror
becomes the offeree.
TERMINATION OF AN OFFER
Can be terminated under the following situations:
- Withdrawal: can happen at any time prior to its acceptance, provided there is communication,
of the withdrawal to the offeree, whether by the offeror or through some reliable source
- Rejection of an offer: includes making of a counter-offer or a variation of the original terms.
- Lapse: In the absence of an express stipulation as to time, an offer will lapse after a reasonable
time.
- Death of the offeror: If known to the offeree, would render the offer incapable of being
accepted by the offeree. Even in the absence of such knowledge, death of either party
terminates any offer which has a personal element
ACCEPTANCE
Offer is accepted by unconditional acceptance to its terms by the offeree. Counter offer is not an
acceptance.
Acceptance must be communicated to the offeror and cannot be inferred from mere silence.
Acceptance must be in the mode specified, eg options indicates that acceptance must be handed to
solicitor by 4pm.

CONSIDERATION
- Consideration is something of value
- Each party to the contract must receive something of value for the promise
- For real estate transactions, consideration is usually money.
- Few rules governing consideration:
- Consideration must move from the promisee;
- Consideration must move to the promisor;
- Past consideration is no consideration;
- The consideration given must be sufficient, but it need not be adequate.
DOCUMENTATION
Real estate contracts must be in writing to be enforceable.
Under the Conveyancing and Law of Property Act (Chapter 61), conveyance of any estate or interest
in land other than a lease for a period not exceeding 7 years must be done in deed in the English
language.
THE “3PS”
The 3Ps : parties, property, and price must be stated for a valid contract. For some cases, common
law may require a 4th P, “Provisions”
This can be in the form of emails or any other written correspondence and need not be in a single
document.

OPTION TO PURCHASE
Option to Purchase = Right to buy
When a property buyer has an Option (a right) , he has the right to demand for the seller’s title, and
to demand that the seller goes to legal completion.
If the option is assigned or transferred, (if assignment of Option is allowed), the same right is
enjoyed.
In order for the right to arise, the buyer must do the following:
i. Pay the seller the option money which is equivalent to 1% of the agreed sale price
ii. Within the stipulated Option period (usually within 14 days of the Option) exercise the right
by signing the ‘acceptance copy’ of the Option form, and pay the balance of 4%/9% of the
sale price.
IMPORTANT RULES OF OTP

- A right granted to the buyer to buy
It stops the seller from offering the same property to another prospective buyer up till the expiry
date of the option. When the Option provides for ‘and/or nominee(s)’ the seller has to accept
the contract with the eventual option holder.
- Does not compel the buyer to buy
If the buyer decides not to go ahead with the purchase, he is free to walk away from the deal,
losing only the 1% option money.
- Compels seller to sell
The OTP compels the seller to enter into a sale contract with the option holder, whoever the
holder may be, unless there is a provision prohibiting the assignment of the Option. Once a
binding contract is formed, neither party could retract from the contract without facing the legal
consequences.
- Seller has right to forfeit Option Money
In the event that the buyer decides not to go ahead with the purchase, the seller has the right to
forfeit the Option money and therefore no party can take any further action.
OPTION MONEY
- Where a vendor gives an "option' to a prospective purchaser, he is making an offer to sell his
property at a specified price.
- In consideration of the ‘option money' paid by the prospective purchaser, the vendor thereby
agrees to keep the offer open for the purchaser's acceptance, until the expiry of the appointed
day and time specified in the 'option'.
- Without the payment of the 'option money', the vendor is free to revoke his offer, at any time
before acceptance by the prospective purchaser.

SUBJECT TO CONTRACT
A contract specifies "subject to contract” may fall into one of three categories:
- The parties are immediately bound to the bargain, but they intend to restate the deal in a
formalised contract that will not have a different effect; e.g. Letter of Intent prior to the signing
of Tenancy Agreement or
- The parties have completely agreed to the terms, but have made the execution of some terms in
the contract conditional on the creation of a formalised contract; e.g. subject to optioning the
approval from LADU for foreigners purchasing restricted properties or
- It is merely an agreement to agree, and the deal will not be concluded until the formalised
contract has been drawn up, e.g. option to purchase will not translate to a sale and purchase
until the exercise of the option
LEGALITY OF CONTRACT
Any agreement to violate the law and any agreement forbidden by law is void.
E.g.. Foreigners are not allowed to buy landed properties in Singapore without permission.
CAPACITY
The parties must have the capacity to enter into a legally binding contract.
Persons do not have such capacity include:
- Minors
Under the law, persons who are below 21 years of age cannot enter into a contract involving
property transactions.
- Persons suffering from mental illness
Any contract made with a person who is suffering from mental illness at the time of contracting
and who is incapable of understanding the nature of the contract would be void.

TERMS OF CONTRACT
- Term(s) are provision(s) forming part of a contract.
- Each term gives rise to a contractual obligation
CONDITIONS & WARRANTIES

Conditions: terms which go to the very root of a contract
If one party breaches a condition then the other party may:
- End the contract: Refuse to perform their part of the contract; or
- Claim damages: Continue with the contract but then sue for damages.
Warranty: Warranty is not so imperative so the contract will subsist after a warranty breach.
If one party breaches a warranty then the other party can only continue with the contract and then
sue for damage
EXPRESS AND IMPLIES TERMS

- Term may either be express or implied
- Express term is stated by the parties during negotiation or written in a contractual document.
- Implied terms are not stated but nevertheless form a provision of the contract.
UNSATISFACTORY REPLIES
Buyer’s lawyer writes to relevant government department to obtain satisfactory replies on legal
requisitions. If no satisfactory reply, buyer can annul the OTP and take back all deposits.
REPRESENTATIONS
Not everything that’s said during the negotiations for a contract end up being actual terms of the
contract; some information only amounts to a representation
To distinguish between a term and a representation:
- Relative knowledge. Does one party have expert knowledge of the subject matter?
- Reliance. Did one party obviously rely on what was said when they entered into the contract?
- The strength of the statement.
- Timing. Did the statement immediately precede the making of the contract?

VITIATING FACTORS IN A CONTRACT

Contracts can be:
- Void: Stating that the contract does not exist
- Voidable: Vitiating factor identified and acknowledged yet party can continue if to benefit, or
avoid and set aside
- Unenforceable: Contract that is valid, but court will not enforce. For eg, contract is
unenforceable if it violates frauds.
Vitiating Factors:
- Mistake
- Misrepresentation
- Duress
- Undue influence
MISTAKE
3 different types of mistake in contract
- Unilateral mistake: Only one party has made a mistake
- Mutual mistake: Both parties have made a different mistake
- Common mistake: Both parties have made the same mistake
Mistakes relating to signed documents - non est factum

- If one of the parties signs a document under the complete misapprehension as to its affects a
plea of non est factum (it is not my deed) may be raised. However, this is rarely successful. It
applies only where the document signed is fundamentally different to what was believed to be
signed and only where the party was not careless in signing.

MISREPRESENTATION
A misrepresentation is a false statement of fact, made by one party to another, which induces the
other party to enter into a contract.
In the course of negotiations leading up to the formation of a contract, many statements of fact may
be made. Some of them may be incorporated into the final contract and they become the terms of
the contract. Other statements of fact may not be so incorporated. Yet, if they are material and turn
out to be untrue and there is a misrepresentation, the aggrieved partly may rescind the contract.
A representation may be express, or it may be inferred from the representor’s conduct. On its own,
silence or non-disclosure does not usually constitute a representation. There are, however,
exceptions to this general rule. If a party makes a positive but incomplete disclosure, the omitted
disclosure may amount to a misrepresentation if it has the effect of distorting the truth of the
information disclosed. Similarly, a failure to correct an earlier (and continuing) representation that
was true at the time it was made but which has subsequently become incorrect is actionable. A
failure to disclose material facts whilst negotiating contracts uberrimae fidei, such as insurance
contracts, would also give rise to an action for misrepresentation.
In order for an action for misrepresentation to succeed, the following must be shown:
- Statement of fact, not opinion.
- False statement.
- Statement must be material (sufficiently important) enough to make a difference in the decision
of the innocent party to enter into the contract. If it can be shown that the innocent party would
have entered into the contract regardless of whether the statement is true or false, then an
action for misrepresentation will not succeed.
- Statement of fact must be addressed to the innocent party.
TYPES OF MISREPRESENTATION
Fraudulent misrepresentation
Fraudulent misrepresentation is a statement made with an intent to deceive and with the
knowledge that it is false.
Negligent misrepresentation
Negligent misrepresentation is a statement made in the belief that it is true but without reasonable
grounds for the belief, because it was made without due care for its accuracy. Therefore, where due
care was taken, e.g. proper checks were performed, but the statement was nonetheless incorrect,
the courts have refused to impose liability for negligent misrepresentation.
Negligent misrepresentation arises not from the agent's intent to mislead or deceive the purchaser,
but rather from his lack of care in ascertaining or confirming the accuracy of the information he
provides to the purchaser. It can also be the result of the agent's failure to check the information he
receives from the vendor.

The most common complaint brought by potential purchasers against estate agents, is their
misrepresentation of information relating to a property.
Innocent misrepresentation
Innocent misrepresentation is a statement made in the belief that it is true and with reasonable
grounds for that belief.
CAVEAT EMPTOR
Principle of caveat emptor (let the buyer beware) applies i.e. the prospective buyer is required to
examine and satisfy himself of the property he is buying. He will bear his own risk in buying the
property subject to the seller not misleading him by making false statements or misrepresentations.
UNDUE INFLUENCE
- A contract is said to have been entered into as a result of undue influence where one is in a
position to determine the will of the other party and uses the position to obtain an unfair
advantage over the other.
- He is prevented from exercising an independent judgment because of the unfair pressure

exerted on him
ELEMENTS OF UNDUE INFLUENCE

- One person is in a position to dominate the will of the other.
- The party domination the will uses the position to dominate the will of the other.
DURESS
- Duress occurs when the buyer is given no choice to make his decision
Duress in contract law falls into two broad categories:

i. Physical duress: threat of physical violence
ii. Economic duress: economic pressure

DISCHARGE OF A CONTRACT
Discharge of a contract refers to the way in which it comes to an end.
Contracts can come to an end in the following ways:
- by performance
- by agreement
- by frustration
- by breach
DISCHARGE BY PERFORMANCE
The contract comes to an end when both parties perform their contractual obligations.
DISCHARGE BY AGREEMENT
The parties themselves can agree to end the contract, form a new contract or vary the original one.
- Performance of a contract may be subject to a condition precedent allowing for discharge upon
the failure of a certain event – e.g. in a contract for the sale of land where the purchaser has
been unable to obtain finance.
- A contract may contain a term that if some specified event occurs after the contract is formed
then it may be terminated at the option of either or one of the parties. This is a condition
subsequent e.g. the return of an item that is defective for a refund.
- The parties may enter a new contract to end the old one. This is called novation. Obviously the
new contract must satisfy all the usual rules for contractual formation.
- The parties can also release each other from their remaining obligations – called release and
discharge; or they may release each other from some of their obligations and retain or add
others – called variation.
DISCHARGE BY FRUSTRATION
A contract automatically comes to an end if it is discharged by frustration.
Four conditions must be satisfied for frustration to discharge a contract:
- an unforeseeable event – something that the parties did not expect to happen and didn’t make
provision for in the contract
- no fault of either party that makes performance impossible – i.e. death of one of the parties
where personal performance is necessary; destruction of the subject matter of the contract

- change in the law making a previously legal contract illegal
- or radically different than agreed– i.e. due to destruction of the object or purpose of the
contract
FORCE MAJEURE CLAUSE

Common clause in contracts that essentially frees both parties from liability or obligation when an
extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot,
crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake,
volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the
contract.
WILL THE CONTRACT BE DISCHARGED UPON DEATH OF SELLER

The contract is not discharged upon death of seller. If the buyer is willing to wait, buyer is able to
proceed with the purchase after obtaining the following. Otherwise, buyer can rescind the contract.
Seller death:
1) If there is a will, the court will issue a grant of probate.
2) If there is no will, letters of administration will substitute the term probate.
This process can last a few months to 2 years.
DISCHARGE BY BREACH
Where one of the parties fails to perform their side of the contract the innocent party may be able
to terminate the contract and commence proceedings for damages (or other appropriate remedy).
Not all breaches entitle the innocent party to terminate the contract. It is only breaches of
conditions or fundamental breaches that allow for termination. Breaches of warranties do not
allow for termination, however, the innocent party is entitled to sue for damages.

REMEDIES OF BREACH OF CONTRACT LAW

When a contract is breached, there are specific remedies to it:
- Damages
- Specific performance
- Injunction
DAMAGES
The major remedy available at common law for breach of contract is an award of damages. This is a
monetary sum fixed by the court to compensate the injured party.
In order to recover substantial damages the innocent party must show that he has suffered actual
loss; if there is no actual loss he will only be entitled to nominal damages in recognition of the fact
that he has a valid cause of action
In making an award of damages, the court has two major considerations:
- Remoteness – for what consequences of the breach is the defendant legally responsible?
- The measure of damages – the principles upon which the loss or damage is evaluated or
quantified in monetary terms
LIQUIDATED DAMAGES
If a contract includes a provision that, on a breach of contract, damages of a certain amount or
calculable at a certain rate will be payable, the courts will normally accept the relevant figure as a
measure of damages. Such clauses are called liquidated damages clauses. Eg, Law Society’s
Conditions of Sale provides a liquidated damage of 8% for delay in completion.
SPECIFIC PERFORMANCE
- Usually damages are granted by way or monetary compensation.
- In general the court will only grant specific performance where it would be just and equitable to
do so
- Specific performance shall not be granted as follows:
i. Where monetary compensation is adequate remedy.

ii. Where contract is of personal nature.
iii. Where the court cannot effectively supervise the execution of the contract e.g. building
contract.
iv. Where it will be inequitable e.g. against a minor.
v. Where the contract made be the company is ultra-vies the company.
vi. Where the contract is revocable.
vii. Made by trustee in breach or trustship.

INJUNCTION
An injunction is an order issued by a court that forces the defendant––a person, corporation or
government entity––to do something or stop doing something, depending on what the plaintiff is
requesting. In relatively rare cases, the court may issue a mandatory injunction, compelling a person,
company, or governmental unit to take affirmative action in carrying out a specified action.
CLAUSES IN CONTRACTS
Limitation Clause: a clause that limit one’s damages.
Eg. This option shall expire on the Expiry Date and will become null and void if not exercised on or
before the Expiry Date and the Option Money shall be forfeited to the Vendor.
Disclaimer Clause: a clause that disclaim one from being sued due to mistakes made on printing
materials.
E.g.. While we make every effort to ensure that all information displayed herein is accurate and
complete, we provide it for information purposes only and it is therefore indicative
rather than definitive. We thus do not guarantee its accuracy, whether explicit or implicit, and we do
not accept responsibility for any errors, inaccuracies or omissions, or for any loss which might result
directly or indirectly from reliance on the content it contains. We reserve the right to correct or
update content at any time without prior notification.
Indemnity Clause: a clause to indemnify the other party for breach of contract or tort.
Eg. The Tenant will indemnify the Landlord in respect of all liabilities costs and expenses suffered or
incurred by the Landlord in its capacity as Landlord of the site arising from any negligent act or
omission by the Tenant in the exercise of the rights granted by this Lease or by reason of any non
observance or non performance of the Tenant’s covenants and obligations herein.
Exclusion Clause: a clause to restrict the rights of the parties to the contract. The clause recognizes a
potential breach of contract, and then excuses liability for the breach.
Eg. The laundry shall not be responsible for any damage howsoever arising.

UNIT 2.2: LAW OF AGENCY 82
UNIT 2.2: LAW OF AGENCY
LEARNING OUTCOMES:
✓ Apply the fundamental knowledge of the following in the context of real estate agency:
o Meaning and creation of agency relationships (including the use of prescribed Estate
Agency Agreements).
o Differences between exclusive and non-exclusive agency.
o Agency as a contract uberrimae fidei, i.e. contract of the utmost good faith.
o Agent’s authorities as viewed by principal and third party.
o Rights and duties between principal and agent (e.g. right to commission and duty to
transmit all offers) and to third party.
o Termination of agency relationships.
o Remedies for breach of duties by principal, agent or third party.
GENERAL AGENCY PRACTICE

Agency: Describes the relationship that exists where one party, the agent, acts on behalf of another,
the principal, to create a legal relationship with a third party.
3 Parties:
1. Principal: Vendor/Landlord
2. Third Party : Buyer/Tenant
3. Agent: Real Estate Agent/Salesperson
In practice, there are many examples of agency relationships such as: estate agents and travel
agents.
CREATION OF AGENCY
- Agency relationship cannot be created unilaterally
- Both parties must consent
- Principal must allow the agent to represent him and to be bound by contracts entered into on
his behalf by the agent.
- Legal language or even knowledge that they are creating an agency relationship is not necessary

83 UNIT 2.2: LAW OF AGENCY
AGENCY BY CONSENT/AGREEMENT
Most common method by which an agency relationship comes into being between estate agents
and their principals.
Consent may be express or implied.
An agency can be expressly created either orally or in writing.
In commercial transactions it is usual (but not essential) to appoint an agent in writing, so that the
terms and extent of the relationship are set down to avoid misunderstanding. Oral and implied
contracts of agency is difficult to enforce.
For real estate work in Singapore, it is prudent to have CEA’s prescribed Estate Agency Agreements
signed. They are:
- Estate Agency Agreement for the Sale of Residential Property
- Estate Agency Agreement for the Purchase of Residential Property
- Estate Agency Agreement for the Lease of Residential Property by a Landlord
- Estate Agency Agreement for the Lease of Residential Property by a Tenant
- Exclusive Estate Agency Agreement for the Sale of Residential Property
- Exclusive Estate Agency Agreement for the Purchase of Residential Property
- Exclusive Estate Agency Agreement for the Lease of Residential Property by a Landlord
- Exclusive Estate Agency Agreement for the Lease of Residential Property by a Tenant
The 8 prescribed documents can be found on CEA’s website.
AGENCY BY ESTOPPEL (OR 'HOLDING OUT')

Agency by estoppel arises when:
- Words or conduct of the principal give to a third party the impression that the person who
purports to contract with the third party is the agent of the principal, and
- The third party, as a result, acts upon this.
The principal is 'estopped', or prevented, from denying the existence of the agency.
Agency by estoppel can only arise where the conduct of the apparent principal creates it. Agency
does not arise by estoppel if it is the ‘agent’ who holds himself out as agent, not the 'principal'.

AGENCY BY RATIFICATION
In certain circumstances the relationship of principal and agent can be created or extended with
retrospective effect, that is, once the contract has been entered into by the agent and third party.
Ratification only validates past acts of the purported agent. It gives no authority for the future.
Thus, where A makes a contract on behalf of P at a time when A has no authority from P, P may later
ratify the contract. This will have the retrospective effect of establishing an agency as at the time the
contract was made. All parties are then in the same position as if the principal had been the original
contracting party, ie the principal may sue or be sued by the third party and the agent no longer has
any liability.
The principal may only ratify if the following conditions are satisfied:
- The principal must have been in existence at the time of the agent's act.
- The principal must have the legal capacity to make the contract himself, both at the time the
act was carried out and at the time of the purported ratification.
- The agent must, at the time of making the contract, either name or sufficiently identify the
principal on whose behalf he is making the contract.
The principal must ratify the contract within a reasonable time and a ratification of part of the
contract will operate as a ratification of the entire contract (ie the principal cannot just select such
parts of the contract as he considers to be to his advantage). In order to ratify the contract, the
principal must communicate a sufficiently clear intention of ratifying, either by express words or by
conduct, such as refusing to return goods purchased for him by an agent who lacked authority. Mere
passive inactivity will not amount to ratification.
AGENCY OF NECESSITY
An agency of necessity is another way in which an agency can arise by operation of law. Its origins
can be found in mercantile law, and in shipping law in particular. It may arise where a person is faced
with an emergency in which the property or interests of another person are in imminent jeopardy
and, in order to preserve that property or those interests, it becomes necessary to act for that
person without his authority. An agency of necessity probably only applies where there is already
some existing contractual relationship between the parties, as the law is highly unlikely to allow a
person to be bound by the act of a complete stranger.
An agent who seeks to bind a principal on the grounds of an agency of necessity will need to show
that:
- The agent had no practical way of contacting the principal in order to obtain the principal's
instructions
- His actions arose from some pressing need for action (usually an emergency of some kind,
involving perishable goods or starving animals, for example)
- He acted in good faith in the interests of the principal rather than in his own interests, and
- His action was reasonable and prudent in the circumstances.

TYPES OF AGENCY
The common types of agency appointment are:
- Non exclusive agency: owner is open to deal with any agent who can introduce buyers/tenants
- Sole agency: owner appoints only 1 agent, but owner reserves the right to market the propery
himself
- Exclusive agency: owner appoints only 1 agent to market the property. If owner were to sellthe
property himeself or through another agenty, there must be compensation to the exclusive
agent
CONTRACT UBERRIMAE FIDEI

Uberrimae fidei is a Latin phrase meaning "utmost good faith" (literally, "most abundant faith").
Uberrimae fidei contracts are made in utmost good faith. There is no concealment or deception in
such contracts. If one of the parties to a contract has a special knowledge, he/she must disclose such
knowledge relevant to the contract. Although all contracts are to be made in utmost good faith,
insurance contracts are very strict in this regard. Failure to disclose these facts will make the
contract voidable.
AGENT’S AUTHORITY
The contract made by the agent is binding on the principal and the other party only if the agent was
acting within the limits of his authority from his principal.
3 sources of authority:
- Actual express authority
- Actual implied authority
- Ostensible or apparent authority
ACTUAL EXPRESS AUTHORITY

This is authority explicitly given by the principal to the agent to make a particular contract either
orally or in writing.
ACTUAL IMPLIED AUTHORITY

Authority may also be implied from the nature of the agent's activities or from what is usual in the
circumstances.
Implied authority cannot be contrary to authority expressly given.
Thus an agent also has actual implied authority
• To do all things that are incidental to the actions expressly authorised
• To do all things that are usual by virtue of the agent's office.
Eg, an agent appointed to sell a property will also have implied incidental authority to advertise the
car for sale.

OSTENSIBLE OR APPARENT AUTHORITY

The ostensible (or apparent) authority of an agent is that which his principal represents to other
persons (with whom the agent deals) that he has given to the agent. As a result, an agent with
limited actual authority can be held in practice to have a more extensive authority.
The representation must be made to the third party and it must be shown that the third party
relied on the representation. If there is no causal link between the third party's loss and his reliance
upon the representation, the third party will not be able to hold the principal liable.
If a principal creates the impression that an agent is authorized but there is no actual authority, third
parties are protected so long as they have acted reasonably. This is sometimes termed "agency by
estoppel" or the "doctrine of holding out", where the principal will be estopped from denying the
grant of authority if third parties have changed their positions to their detriment in reliance on the
representations made.
BREACH OF WARRANTY OF AUTHORITY

Agent is in breach of warranty of authority when he enters into a contract with a third party (for and
on behalf of a principal) where he has no authority to do so, creating an impression
LIMITS OF AN AGENT'S AUTHORITY

Agent can:
- Describe and discuss all the relevant aspects of the property
- CANNOT sign on or behalf of the principle, unless Power of Attorney is given
- CANNOT receive money/deposit in agent’s name

RIGHTS AND RESPONSIBILITIES OF AGENTS
DUTIES OF AN ESTATE AGENT
DUTY TO ACT OR PERFORM THE CONTRACT OF AGENCY

- Under duty to act for the benefit of his principal in the way which he has been commissioned to
do
- If it is or becomes impossible to carry out what he has been commissioned to do, he must inform
his principal accordingly.
- However, where an agent is not receiving a fee to perform a specified function, but is entitled to
a fee or commission conditional upon his fulfilment of a task (e.g. finalizing a sale at a minimum
specified price), it is currently unclear whether he will be in breach of duty if he does not act
(e.g. he does not do anything at all to attempt to secure a sale).
- While a real estate agent is not in breach of duty if he fails to sell a house, he will normally be
obliged to make reasonable endeavours to do so. This is particularly the case in relation to sole
agencies, since a sole agent impliedly promises to use his best endeavours to bring about a sale,
and could thus be sued for breach of contract if he did nothing.
DUTY TO OBEY THE PRINCIPAL'S INSTRUCTION

- Agent is bound to obey the instructions of his principal.
- Obligation only extends to instructions which are reasonable, lawful and which fall within the
agency agreement.
DUTY TO EXERCISE REASONABLE CARE AND SKILL

- Agents must also exercise reasonable care and skill in doing what they have undertaken
- Must display qualities which are generally associated with those involved in the real estate
agency business, although the standard of care may be higher where the agent has held out that
he has some special competence and has been paid to exercise that competence on behalf of his
principal.
- Examples of breaches of this duty include:
- Failing to obtain the best price for the seller because of failure to inform the seller of a
better offer. This duty to disclose a better offer applies so long as the contract has not been
signed.
- Negligently misinforming prospective purchasers about the characteristics of a property. The
purchaser must show that he relied on what the agent has told him, and it must be within
the scope of the agent's ordinary business".
DUTY NOT TO DELEGATE

- Agent has a duty to perform personally what he has undertaken to do and not to delegate his
function unless specifically authorised by the principal
- Actions of a sub-agent, whose appointment has not been authorised, is the responsibility of the
agent alone.

DUTY TO ACT HONESTLY (FIDUCIARY DUTIES)

- An agent must act in good faith and honesty when discharging his act in the best interests of his
principal alone
- Where any potential conflicts of interest arise (between the principal's interests and the agent's,
or a third party's), agent must make full and frank disclosure to the principal of all relevant facts,
so as to give the principal an opportunity to decide whether or not to continue with the
proposed transaction or with the employment of the agent. Otherwise, the principal may for any
profit the agent has made or for any loss the principal has suffered.
- Examples of the duty to act honestly general include:
- Not acting for both parties to a transaction.
- Not making a secret profit e.g. by receiving commission from the third party, bribes, or
discounts.
- Disclosing all material facts. For example, he should not sell his own property to the
principal and should not purchase his client's property in his own name or that of a nominee
without giving full disclosure.
- Not misusing or disclosing information acquired by him as agent or by means of
opportunities which has as agent. "Misuse" includes using the information for his own
benefit or the benefit of another client without the original client's consent. This applies
even if the agent is no longer engaged by the original principal.
- Disclosing conflicts of interest
- Accounting for all monies received on the principal's behalf e.g. option monies etc. where an
agent has multiple clients, the agent's duty to each of them cannot require him to disclose
information confidential to another client.
DUTIES OF AN AGENT TO THIRD PARTIES
DUTY NOT TO MISREPRESENT HIS AUTHORITY

- Agent has a duty not to misrepresent his authority innocently, negligently or fraudulently.
DUTY TO ACT HONESTLY

- Where a defect is hidden knowingly from a third party, the agent may be liable for fraud.
- In order for fraud to be actionable, there must be a representation of a material fact (not
opinion) which is false, or known to be false, or made in culpable ignorance of its truth or its
falsity. This representation must be reasonably relied upon by the third party, and leads to injury
to him.
- An agent acts in culpable ignorance when he consciously has no knowledge of the truth or falsity
of a particular matter but nevertheless makes representations without regard for their accuracy,
e.g. where an agent is asked if the house is connected to the sewer system and he replies in the
affirmative even though he has no knowledge, or is not certain, of this fact.

DUTY TO EXERCISE CARE AND SKILL

- Agent must exercise due care and skill, e.g. in ensuring accuracy of the information he provides,
or he may be liable for negligence.
RIGHTS OF AN ESTATE AGENT
RIGHT TO REMUNERATION
Agent is only entitled to remuneration for his services as an agent if the terms of the agency
agreement provides.
If it is not expressly provided in the agency agreement for payment of remuneration to the agent,
and there is a dispute between the principal and agent as to the right to claim any remuneration and
the amount and terms of payment of such remuneration, the court may have to determine if, on the
facts of the case, there are any implied terms in respect of the same in the agency agreement.
In the business world, if services are rendered by the agent and accepted by the principal, there is
often an implied term that the agent may be entitled to reasonable remuneration for such services
rendered, even if there is no express agreement for the payment of remuneration.
Where it is expressly provided that remuneration is payable upon the happening of an event (for
example, on successful completion of a transaction), the agent is not entitled to claim the
remuneration until that event has actually occurred. And if the event specified does not occur, the
agent will not be entitled to claim any remuneration even if he has spent time and effort in trying to
bring about the event.
Subject to any special terms in the agency agreement, where the remuneration of an agent is a
commission on a transaction to be brought about by the agent, the agent is not entitled to such
commission unless his services are the effective cause of the transaction being brought about. The
real question is whether the agent's action and services actually and directly bring about the
contractual relation between the principal and the third party. The agent's action and services must
not have been merely incidental.
RIGHT TO REIMBURSEMENT AND INDEMNITY

Generally, an agent has a right to be reimbursed by his principal for all expenses and to be
indemnified against all losses and liabilities incurred by him in the performance of his duties to the
principal.
When an agent carries out his duties according to the principal's instructions and in the course of
which he incurs expenses, he is normally entitled to reimbursement by the principal of such
expenses, as long as they are reasonable. Expenses may include items such as travelling expenses,
photocopying charges, fees for registration of documents payable to government departments, etc.

REMEDIES FOR BREACH

Where there is breach
- Agent are not entitled to comission
- Third party can sue Principal under tort (vicarious liability) for damages
- Principal can sue agent for damages
TERMINATION OF AGENCY
An agency relationship can be terminated at any time by:
- Agreement
Relationship can also be brought to an end by mutual agreement between the parties, either in
writing or orally.
Can also occur in the following situations:
- If the agreement provides for the appointment of the agent for a specified period of
time, the agency will come to an end automatically when that period of time expires.
- If the agreement provides for the agency to terminate upon the occurrence of a
specified event, the agency will come to an end upon the happening of the specified
event
- Act of the parties
- Performance by the agent
If an agent is appointed to accomplish a particular task or for a specific purpose, when
the task is accomplished by the agent or the specific purpose is attained, the agency will
terminate.
- Revocation by principal
- The authority of an agent may be revoked at any time by the principal. However,
unilateral revocation otherwise than in accordance with the provisions of the agency
agreement may render the principal liable to the agent for breach of the agency
agreement.
- Any word or conduct of the principal inconsistent with the continued exercise of
authority by the agent may operate as revocation of the agency.
- Revocation of the agent's power by the principal may not automatically discharge
the principal from liability to a third party who is entitled to rely on the apparent
authority of the agent on grounds of representation by the principal or previous
course of dealing with the agent before notice of revocation is given to the third
party. Therefore, notice of revocation of an agent's power should be given to the
third party as soon as possible.
- Renunciation by agent
- An agent is entitled to renounce his power by refusing to act or by notifying the
principal that he will not act for the principal.

- Unilateral termination of the agency by the agent before he has fulfilled his
obligations to the principal under the agency agreement will render the
agent liable to the principal for breach of the agency agreement, such as
payment of damages for loss suffered by the principal.
- By notice
- If the agency agreement provides that the agency may be terminated upon
either party serving on the other written notice of a specified duration, for
example, three months' written notice, either party may terminate the agency
agreement by serving the required notice on the other party.
- However, if the agency agreement does not contain any termination provision,
the general rule is that reasonable notice has to be given to the other party to
terminate the agency.
- By operation of law
- Upon the following situation of the parties involved:
- Death
- Insanity
- bankruptcy
- Frustration of the contract of agency

UNIT 2.3: LANDLORD AND TENANT LAW 92
UNIT 2.3: LANDLORD AND TENANT LAW
LEARNING OUTCOME:
✓ Understand a lease as an interest in land and its implications (cross-refer to Paper 1, Unit 1.3).
✓ Explain the dual relationship between landlord and tenant: privity of contract and privity of
estate, and the implications on the binding effect of their covenants on assignees.
✓ Distinguish fixed term lease, periodic lease, tenancy at sufferance and tenancy at will.
✓ Understand the essential elements of a lease and the formalities required.
✓ Understand the effect of dealing with a lease by assignment, subletting or novation.
✓ Understand option to renew and circumstances leading to the determination of a lease.
✓ Understand what rights and duties are implied by law on the part of the landlord and tenant
respectively.
✓ Explain commonly expressed terms/ covenants.
✓ Understand the remedies available for breach of term/covenant.
LEASES
Lease is an interest in land giving the tenant/lessee exclusive possession for a fixed period of a
certain duration, usually in consideration of a payment termed 'rent'.
Singapore laws relating to landlords and tenants are mainly derived from statutory provisions under
the Conveyancing and Law of Property Act, Chapter 61 (“CLPA”) and under common law which is
based historically on English laws.
ESSENTIAL FEATURES OF A TENANCY

- Tenant has exclusive possession of the property.
- Teancy runs for a certain or fixed period of time.
- Landlord’s rights are subject to the tenancy.
- Landlord has reversionary interest of the property upon termination of the tenancy.
LEASE VS LICENCE
Interest in property: License is a contractual right to do something on a property, whereas a lease is
a property interest that includes possession of the property
Exclusive possession: Tenant has exclusive possession in a lease, but a licence do not confer this
right on licensee

93 UNIT 2.3: LANDLORD AND TENANT LAW
TYPES OF LEASE
FIXED-TERM LEASE
- Lasts for a fixed period of time
- Has a definite beginning date and a definite ending date
- fixed term tenancy comes to an end automatically when the fixed term runs out
PERIODIC TENANCY
- A periodic tenancy also known as a tenancy from year to year, month to month, or week to
week
- Exists for some period of time determined by the term of the payment of rent.
- Either the landlord or the tenant may terminate a periodic tenancy when the period or term is
nearing completion, by giving notice to the other party
TENANCY AT WILL
- A tenancy at will is a tenancy which either the landlord or the tenant may terminate at any time
by giving reasonable notice.
- Unlike a periodic tenancy, it isn't associated with a time period.
- Could be ended at any time by either the lessor or the lessee for any reason, or for no reason at
all.
- Proper notice must be given
TENANCY AT SUFFERANCE
- A tenancy at sufferance (sometimes called a holdover tenancy) exists when a tenant remains in
possession of a property after the expiration of a lease, and until the landlord acts to eject the
tenant from the property.
- Although the tenant is technically a trespasser at this point, and possession of this type is not a
true estate in land, authorities recognise the condition in order to hold the tenant liable for rent.
- Landlord may evict such a tenant at any time, and without notice.
- Landlord may also impose a new lease on the holdover tenant.

TERMS IN A LEASE
A lease agreement consist of the following:
- Premises: Includes the date, name of parties and address of the property concerned
- Habendum: Meaning “to have and to hold”, indicates the commencement and duration of the
lease term
- Reddendum: Rent clause in the lease. Includes rent amount, deposit, service charge, rent review
- Convenants: Expressed and inplied covenants
- Conditions
- Warranty
A copy of a Sample TA with all the terms can be found in the Appendix.
OPTION TO RENEW
Option to renew a lease allows tenant to continue to occupy the premises after the initial term of
lease expires.
Tenants have no automatic entitlement to renewal of a lease. It must be a specific ‘option to renew’
clause is contained in the lease.
Clause must state:
- notice to exercise the option to renew the lease,
- how it should be exercised, eg in writing,
- the notice is served in accordance with the lease; and
- conditions that must be fulfilled.
DIPLOMATIC OR REPATRIATE CLAUSE

This clause is to safeguard the tenant if they are no longer employed, transferred to other countries.
Tenant can terminate the lease after 12 months by giving 2 months notice. The security deposit will
be refunded.
RENT REVIEW CLAUSE

Rent reviews take place at whatever intervals are agreed in the lease. Their purpose is usually to
adjust the rent to the current market level at the review date.

RIGHTS AND DUTIES IN TENANCY RELATIONSHIP

Although the rights and obligations of the tenant and landlord are expressly provided in the lease
agreement, common law will imply certain rights even if they are not specified.
LANDLORD’S COVENANT
- Quiet enjoyment of the premises, which means tenant can enjoy the use of the premises
without interference.
- No derogation from the grant, landlord must observe all the terms granted to tenant.
- Property must be fit for habitation at the start of the lease term
- Structure and facilities must be in good repair
- Good title
- Pay property tax and quit rent
- Exclusive possession of the premises for the fixed term, so long as the fixed term given has not
expired
- If landlord has sold or transferred his interest, buyer or successor-in-title is bound to observe the
terms of the lease granted
TENANT’S COVENANT
- To pay rent
- Keep the premises in good repair
- No authorised alterations
- Not to commit waste
- Not to sublet
- Not to cause nuisance
- Use the premises for it’s permitted purpose
- Allow access to landlord or potential tenant/buyer to view premises
- Pay all other rates, utilities etc

RIGHTS OF THE LANDLORD

The Land Title Acts implied the following powers in the landlord:
- Twice in every year during the term at a reasonable time of the day, landlord can give the lessee
2 days notice to enter upon the leased premises and view the state of repair. He can serve a
notice in writing of any defect, requiring tenant within a reasonable time
- If tenant fails to repairing any defect according to notice, the landlord may from time to time
enter the premises and effect the required repairs;
- Landlord or his agents at all reasonable times during the term, with workmen and others and all
necessary materials and appliances, enter upon the leased premises for the purpose of
complying with any written law affecting the premises and with any notices served by any public
authority involving the carrying out of repairs or the doing of any work or other act which the
tenant may not be bound, or, if bound, may neglect to do. Repairs, work or other acts carried
out or done must not interfere with the occupation and use of the premises by the lessee;
- Landlord may re-enter the leased premises:
o when the rent is in arrear for 30 days (although no formal demand therefor has been
made);
o default is made in the fulfilment of any covenant, condition or stipulation, whether

expressed or implied in the lease, and on the part of the lessee to be performed or
observed, and such default is continued for the space of 30 days; or
o the repairs required by a notice are not completed within the time therein specified
However this does not release tenant from liability in respect of the breach or non-
observance of any such covenant, condition or stipulation.

TERMINATION OF A LEASE
1. By expiry of the fixed term in the Lease Agreement
A lease automatically terminates when the term has expired, unless there is an option to
renew for a further period which was exercised by the Tenant.
2. By express power
This is where a clause is provided in the agreement allowing either party to terminate the
lease before the end of the fixed term on the happening of certain events.
3. By surrender of the unexpired term
This occurs when the tenant gives notice to the landlord that he will surrender the lease
even though the term of the lease has not yet expired, and the landlord accepts the
surrender of the lease. The surrender can be by express words of the tenant or by operation
of law. The latter happens if the tenant either accepts a new lease or gives up possession of
the premises even though he does not have to.
4. By forfeiture
This is where a term of the lease allows the landlord to end the lease in the event of certain
breaches by the tenant, for example, using the premises for an unlawful purpose.
5. By notice to quit
In any lease including one for a fixed term, there must be a clause clearly allowing for this
right to be exercised.
Under section 72 of the CLPA, any notice to be given under a lease must be in writing,
including a notice to quit.

RELIEF NON-PAYMENT OF RENT

The action must be brought within six years of the date that the arrears became due.
1) Distress Act
Tenant's goods are seized and sold, and the rent owing must not exceed 12 months of the
tenancy.
Procedure:
- File writ of distress that is addressed to the sheriff.
- Sheriff seize the goods, and make an inventory and a valuation.
- Notice given to tenant on the seizure, informing him of the rent owed and that the goods
seized will be sold at a stated place and time.
- Such a notice pasted in a conspicuous place on the premises.
- Tenant has five days to pay up from the date of notice or to apply to court for an order to
stop the sale.
- On the tenant's application, the court may order that the goods be released unconditionally,
direct that an issue be tried and so suspend the writ, or hold that the goods may be sold.
- If no application is made, the goods will be sold and the proceeds applied first to pay the
sheriff's costs and then to satisfy the outstanding rent. The balance, if any, would be
returned to the tenant.
- Where the tenant has abandoned the premises and there is insufficient property for
distress, then if (a) the rent is not less than 75 per cent of the annual value of the property
and (b) the rent has been in arrears for at least two months, the landlord may apply to court
to enter and take possession of the premises.
- Sheriff will paste a notice informing the tenant that possession will be given to the landlord
unless the tenant applies within 10 days, or the court orders otherwise, on the application of
the tenant or some other interested party.
- If the distress action is brought after bankruptcy proceedings have started against the
tenant, then only three months of arrears of rent are recoverable against him. The landlord
may also file a proof of debt with the Official Assignee against the bankrupt tenant, just as
he could with any other unsecured creditor.
2) Forfeiture of lease
The landlord may also apply for forfeiture of the lease, which would effectively bring the lease to
an end.
Tenant get relief from forfeiture
- by paying into court all the arrears of rent and costs within 4 weeks of notice and can
continue with the lease and not have to enter into a new lease.

DOCTRINE OF WASTE
Waste is any alteration or damage to land by an occupier of the land and can be brought to court to
address the change in condition.
PERMISSIVE WASTE
- Occupier allows the land to fall into disrepair.
- A person is not usually liable for permissive waste.
- Liability to repair can be imposed by the instrument creating the relationship between the
occupier of the land and the person whose interest in the land is being infringed
VOLUNTARY WASTE
- A positive act, where the occupier does something intentionally to damage the land. For
instance, a tenant is liable for voluntary waste unless excused by the lease
EQUITABLE WASTE
- Waste by an occupier, which is so serious that it will be restrained in equity, because it is an act
of ‘wanton destruction’ and a Court will not allow a party to a contract to act against conscience
by engaging in acts of ‘wanton destruction’
- It should, however, be noted that a life tenant can be excuse from liability for even equitable
waste by the instrument creating the relationship
AMELIORATING WASTE
- Waste that improves the land.
- Although the person, whose interest in the land is to be infringed, has not suffered loss, a Court
will nevertheless restrain the act of waste. The court, however, will only intervene where the
ameliorating waste is of a ‘substantially injurious character’.

ASSIGNMENT OF THE LEASE

An Assignment of Lease may be executed in a situation where an existing landlord assigns all the
tenancy rights to the new owner who has purchased the property subject to tenancy.
Assignment of rights under a contract is the complete transfer of the rights to receive the benefits
accruing to one of the parties to that contract.
Assignment only transfers the rights/benefits to a new owner. The obligations remain with the
previous owner.
NOVATION
A Novation document may be executed in a situation where an existing tenant assigns all the
tenancy rights to an incoming tenant.
- Novation replaces the original party with a new party.
- For a valid novation
o all parties must assent to novation,
o there must be a previously valid contract,
o the duties provided for in the contract be extinguished immediately, and
o a new, enforceable contract need be created
- E.g. in tenancy agreements, tenant finds a new tenant with landlord’s consent. Novation
agreement is signed, with incoming tenant taking over the obligations of the tenancy.
SUBLETTING OF THE LEASE

In sub-letting, the tenant relinquishes only some part of the leased property.
Tenant will still be responsible to the landlord in terms of his lease obligations and for what the sub-
tenant does. The landlord does not have anything to do with the sub-tenant except for giving
approval for the sub-letting. The landlord will hold the tenant responsible of any wrong doing of the
sub-tenant.

PRIVITY OF CONTRACT
- Principle of privity states that only parties to contract can sue and be sued on contract
- Only contractual parties can use the contract to sue each other
PRIVITY OF ESTATE
- Situations where it is possible for third party whose name is not in the contract but has interest
in the property to sue based on the contract
- E.g. Buyer who buys with tenancy: Law binds the new landlord and tenant via Privity of Estate

UNIT 2.4: NEGLIGENCE 102
UNIT 2.4: NEGLIGENCE
LEARNING OUTCOME:
✓ Distinguish the tort of negligence from negligent misrepresentation.
✓ Appreciate when a duty of care exists and whether it can be varied expressly.
✓ Assess the standard of care required in estate agency work.
✓ List and explain the remedies for breach of duty of care.
LAW OF TORT
- Tort: a civil wrong which does not depend on an agreement between the parties.
- Arises in situations where the law holds one party responsible to another party.
DEFINITION OF NEGLIGENCE
Negligence is a tort which targets a breach of duty by one person to another.
Elements of negligence are:
- A duty of care (Neighbour principle)
- Breach of that duty (Objective test)
- Breach causing harm in fact (But for test)
- Harm must not be too remote as a consequence of the breach.
DUTY OF CARE
An individual may be owed a duty of care by another, to ensure that they do not suffer any
unreasonable harm or loss. If such a duty is found to be breached, a legal liability is imposed upon
the duty-ower, to compensate the victim for any losses they incur.
Establishment of a duty of care:
- Concept of reasonable foreseeability of harm
- Relationship of proximity
- Fair, just and reasonable to impose liability on the defendant for his careless actions

103 UNIT 2.4: NEGLIGENCE
THE NEIGHBOUR PRINCIPLE

The rule that one must love one’s neighbour becomes in law one must not injure one’s neighbor.
Who is my neighbour?
Persons who are so closely and directly affected by my act that I ought reasonably to have them in
contemplation as being so affected when I am directing my mind to the acts or omissions that are
called in question.
BREACH OF THE DUTY OF CARE

In order to establish whether a duty of care has been breached the court will look first of all at the
standard of care that is expected in the circumstances.
The standard of care is determined by looking at what a “reasonable man” would have done (or not
done) in the same circumstances. (Objective test)
Where a defendant has acted in an unreasonable way or their actions fell well below the standard
expected they will be found to have breached their duty of care.
Where the defendant was in a special profession, e.g. being a doctor, the court will ask what
standard of care a "reasonable doctor" or the like might have done. No allowance is made for other
personal circumstances, such as the fact that the defendant was inexperienced in the task he set out
to perform. He is expected to perform this task as a reasonably skilled and competent person.
For real estate, a standard of care will include:
- Salesperson giving advice should have knowledge of the property market
- Agent knows that client would act on such advice
CAUSATION
Basic test for establishing causation is the "but-for" test in which the defendant will be liable only if
the claimant’s damage would not have occurred "but for" his negligence.
The claimant must prove, on the balance of probabilities, that the defendant’s negligence caused or
materially contributed to the injury or loss sustained.
REMOTENESS OF DAMAGE
The damage suffered by the claimant must not be too remote, which means that it must be
reasonably foreseeable. This is an objective test, and the defendant is only responsible for the
damage which a reasonable man would have foreseen as a likely consequence of his action.

UNIT 2.4: NEGLIGENCE 104
DEFENCES
3 defences which may be raised against an action for a claim of damages resulting from negligence
of the defendant are:
- Contributory Negligence
- Volenti Non Fit Injuria
- Illegality
CONTRIBUTORY NEGLIGENCE
- applies to cases where a plaintiff/claimant has, through his own negligence, contributed to the
harm he suffered.
- claimant's damages are reduced in accordance with the percentage of contribution made by the
claimant to the loss or damage suffered.
VOLENTI NON FIT INJURIA

- Latin for "to the willing, no injury is done"
- If someone willingly places themselves in a position where harm might result, knowing that
some degree of harm might result, they will not be able to bring a claim against the other party
in tort
ILLEGALITY
- Ex turpi causa non oritur actio: Latin for "no right of action arises from a despicable cause".
- If the claimant is involved in wrongdoing at the time the alleged negligence occurred, this may
extinguish or reduce the defendant's liability.
REMEDIES FOR BREACH OF DUTY OF CARE

- Damages
- Law of negligence awards compensation based on culpability meaning who is at fault
NEGLIGENCE VS NEGLIGENT MISREPRESENTATION

Professional Negligence: Breach of fiduciary duty and Duty of Care
Negligent Misrepresentation: Giving wrong factual information carelessly

105 UNIT 2.5: CONVEYANCE INTER VIVOS
UNIT 2.5: CONVEYANCE INTER VIVOS

This topic is pertinent to estate agents and salespersons and the scope is extensive. It will be dealt
with in detail in Paper 2, Competency Unit 4.

UNIT 2.6: MORTGAGE 106
UNIT 2.6: MORTGAGE
LEARNING OUTCOMES:
At the end of this unit, you should be able to
✓ Understand the nature of mortgage as a security.
✓ Ascertain the existence of a legal mortgage on a property title.
✓ Explain the mortgagor’s right to redeem and to lease the property, and the actions that the
mortgagee may take on the mortgagor’s default.
✓ Understand the priority of mortgages and charges e.g. a charge by CPF Board.
✓ Explain fixed rate and floating rate mortgages.
MORTGAGE
A mortgage occurs when an owner (mortgagor) pledges his or her interest (right to the property) as
security or collateral to a financial institution (mortgagee) for a loan.
- Mortgages have an interest rate and are scheduled to amortize over a set period of time.
- The mortgagee will return the interest to the mortgagor after the loan has been repaid.
Basic components of mortgages:
- Loan amount: you can loan up to 80% of the valuation of the property, or sale price, whichever
is lower.
- Interest: Interest rate can be
o fixed rate,
o flexible rate, or
o a combination of both over the duration of the loan.
- Term: duration of the loan (typically between 15-30 years)
Mortgage is also usually the cheapest financing available for people (e.g. compared to personal
loans).

107 UNIT 2.6: MORTGAGE
LEGAL ASPECTS
Mortgages may be legal or equitable.
Legal mortgage: gives the mortgagee rights over the property, such as the right to gain ownership
over the real estate or to execute a sale of the property. However, until the mortgagee chooses to
exercise the rights, the mortgagor possesses the legal ownership of the property. Also, to provide
safety to the mortgagee, the details of mortgage are recorded in a register.
Equitable mortgage: an agreement relating to the deposit of title deeds of the property to secure
the financing from the mortgagee.
Generally, the main difference between a legal and an equitable mortgage is that an equitable
mortgage loses priority to a subsequent legal mortgage if the subsequent mortgagee was a
purchaser for value in good faith without actual or constructive notice of the prior equitable
mortgage.
RULES OF PRIORITY
Under the Land Titles Act, priority is determined according to the date of registration of the legal
mortgage, followed by equitable mortgages.
When a property is sold, the money received are discharged in the following order:
1. Paymet for all costs and expenses incidental to the sale
2. Discharge of mortgage money, interest and costs secured by mortgage
3. Payment of subsequent mortgages and charges (if any) in order of their priority
When a property is purchased with a loan with banks or HDB and CPF monies, the priority of charges
are:
1. Paymet for all costs and expenses incidental to the sale
2. Discharge of mortgage money, interest and costs secured by banks/HDB
3. Payment of CPF monies
4. Any charges (if any) in order of their priority
RIGHTS OF THE MORTGAGOR (BORROWER)

- Right of Redemption: entitles the mortgagor to call for the re-transfer ownership to the
mortgagor when the secured debt is satisfied
- Right to sell the property: Mortgagor can sell the property
- Right to grant lease

UNIT 2.6: MORTGAGE 108
RIGHTS OF THE MORTGAGEE (LENDER)

When the mortgagor defaults, the mortgagee (bank, financial institute) has the following rights:
- Entry into Possession
- Power of sale: Provided notice given and mortgagor fails to pay up after 3 months from notice
- Appointment of a Receiver
- Foreclosure
COMMON TYPES OF MORTGAGES IN SINGAPORE

There can be many variations of mortgage packages offered by financial institutions in Singapore.
Below is a list of common ones found in Singapore.
STANDARD MORTGAGE (CAPITAL AND INTEREST)

Borrowers make payment for both the interest and the principal monthly.
Monthly payments are usually the same throughout the loan period. During the early years, a
bigger proportion of the installments will go towards interest payments. And the principal payment
portion gradually grows larger over the loan term. At the end of the loan term, the debt would have
been fully repaid.
INTEREST-ONLY MORTGAGE
There are no payments towards the principal throughout partial or whole loan term.
Only pay for the interests of the loan.
The full loan principal is then paid off at the end of the loan period.
FIXED RATE MORTGAGE

Fixed rate packages offer a fixed interest rate for a certain period, eg 1/2/3-year lock-in, after which
it becomes a floating rate loan.
Fixed rate loans also typically come with a lock-in period and early repayment penalties.
VARIABLE RATE MORTGAGE

Interest rate will fluctuate during the loan term.
Based on reference rate, eg the SIBOR (Singapore Inter Bank Offered Rate) or the bank’s board rate.

109 UNIT 2.7: GIFT
UNIT 2.7: GIFT
LEARNING OUTCOMES:
✓ Explain the formalities and the effect of a gift of property.
✓ Explain what makes a gift void or voidable under the Bankruptcy Act.
GIFTS OF PROPERTY
A gift, in the law of property, is the voluntary transfer of property from one person (the donor or
grantor) to another (the donee or grantee) without consideration of money.
Deed of Gift has to be drafted by lawyer.
Gifts can be either:
• lifetime gifts - a gift of a present or future interest made and delivered in the donor's
lifetime; or
• Testamentary gifts – A Testamentary gift is a gift made by will. Such gifts do not become
effective until the death of the donor. The ownership of the gift is transferred to the donee
only after the testator’s death.
• If the Donor (person giving the property) is bankrupt within 2 years from the date of the
Deed of Gift, the gift becomes absolutely void as against the Official Assignee (section 98 of
the Bankruptcy Act)
• Up to a period of 5 years from the date of the Deed of Gift, the Grantor's bankruptcy will
make the instrument voidable at the option of the Official Assignee only being rebuttable on
evidence being furnished of the Grantor's solvency at the date of the gift (section 52 of the
Bankruptcy Act, Cap. 20)

UNIT 2.8: TRUST 110
UNIT 2.8: TRUST
LEARNING OUTCOMES:
✓ Explain trust, and alienation by way of trust inter vivos or by succession.
✓ Understand the implications of buying property held on trust.
TRUSTS
A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the
right to hold title to property or assets for the benefit of a third party, the beneficiary.
Eg, a trust can be used if a beneficiary is under age or has a mental disability that impairs the
person's ability to maintain his or her own real estate. Once the beneficiary is deemed able to
manage the real estate by the terms dictated under the trust, the beneficiary will receive possession
of the trust.
Deed of Trust: Document that lay out the conditions of the trustor-trustee relationship.
Trustees have the right to make decisions based on due diligence and in the best interest of the
beneficiary, and can be held personally liable for their actions if the beneficiary deems there was a
breach of trust.
When buying properties held in trust, ensure that trustee has the right to make decisions. It is
important to ensure who has the legal interest and deal with the person who has the legal interest
of the land.
In Singapore property ownership where foreigners are restricted from buying properties, a
Singaporean cannot buy a landed property and hold it in trust on behalf of the foreigner. Such trust
is illegal and un-enforceable.
HOW IS A TRUST CREATED?

By 3 ways:
- Express intentions of the trustor
Inter Vivos Trust: Trust established by a living person for the benefit of another, such as a
trust established by a parent for an offspring.
- Will of the trustor
Testamentary trust: created by a will going into effect only when the will maker dies.
- Operation of law
Implied trusts – resulting and constructive trust.

111 UNIT 2.8: TRUST
TYPES OF TRUST IMPLIED BY LAW

Resulting Trust – the true purchaser paid the price of the property but registered it in another
person’s name. But under the Residential Property Act, Singaporeans are not allowed to hold
restricted property on trust for any foreigner. Any such trust is null and void
Constructive Trust – eg. Misappropriated company’s money to buy property under one’s name
Unregistered Trust – seller is holding the property on trust during transitional period before
completion
FIDUCIARY DUTIES OF TRUSTEE

- Not to gain any profit for himself
- Act with honesty
- To invest trust property carefully
- To render proper account of his dealings
- Act at best interest of the beneficiaries
- No misappropriation of trust funds
REMOVAL OF TRUST
- Remove it himself
- Apply to court
REAL ESTATE INVESTMENT TRUSTS (REITS)

Purpose of REITs is to encourage small investors to pool their money and participate in larger real
estate project.
Investors buy REIT shares or transfer title to real estate to a trustee, who agrees to manage the
property for the benefit and profit of the investors (beneficiaries).
Investors receives certificates of ownership as evidence of their investments.
These certificates are similar to shares of stock and can be freely traded to anyone else.
Income from the trust is distributed to the certificate owners.
REITs are for investors who wish to have liquidity or do not have high capital to buy real property.

UNIT 2.9: SUCCESSION 112
UNIT 2.9: SUCCESSION
LEARNING OUTCOMES:
✓ Explain how an estate devolves by will and by intestate succession.
✓ Assess whether the right of a beneficiary to dispose of an inherited property has arisen, e.g.
obtaining the grant of probate or letter of administration, registration of transmission on
death of proprietor.
✓ Appreciate the difference between the Civil law and Syariah law on inheritance.
SUCCESSION
When a person passes on, properties under his name will be passed to his successors.
WILL
A will provides for the administration and distribution of a person’s estate when he dies.
Valid Will must be:
- in writing
- signed by Testator and
- Witnessed by at least 2 persons who must be present at the same time and not beneficiaries
nor spouse of any of the beneficiaries under the Will.
Testator: Person who makes a will
Beneficiaries: persons how benefit/inherit the will. If there are minors (persons under age of 21),
trustee will administer assets for the benefit of the minors
Executor: Person nominated by the testator to administer his estate
Trustee: Usually the same person as executor, person who has the power to hold the estate of the
decreased
TESTATE SUCCESSION
Executors will apply to Court for Grant of Probate
Court issues the Grant once all procedural requirements are met.
Once Grant of Probate is issued, Will becomes a public document.
Executors will get a copy and all property and assets will be administered and distributed according
in the Will.

113 UNIT 2.9: SUCCESSION
INTESTATE SUCCESSION
If there is no will, assets will be distributed according to the Intestate Succession Act.
Administrators will administrator the estate.
Letters of Administration: instead of Grant of Probate
Procedure is more complicated and lengthy.
Intestate Rules:
Rule Surviving Relatives Beneficiary
1 Spouse (no parents or children) Spouse – 100%
2 Spouse and children (with or without Spouse – 50%
parents) Children – 50%
3 Spouse, Parents (no children) Spouse – 50%
Parents – 50%
4 Parents (no spouse or children) Parents – 100%
5 Siblings (no spouse, children or Siblings – 100%
parents)
6 Grandparents (no spouse children, Grandparents – 100%
parents or siblings)
7 Uncles and Aunts (no spouse, Uncles and Aunts – 100%
children, parents, siblings or
grandparents)
8 None of the above Government – 100%
ESTATE DUTY:
No longer applicable with effect from 15 February 2008.
Estate duty or sometimes called death duty is a tax levied on the market value of properties (both
movable and immovable) that pass upon the death of the person domiciled in Singapore.

UNIT 2.9: SUCCESSION 114
SYARIAH LAW ON INHERITANCE

In Singapore, the estate of a Muslim must be distributed in accordance with Islamic inheritance laws.
Under Section 115(1) of the Administration of Muslim Law Act, the beneficiaries must apply to the
President of the Syariah Court for an Inheritance Certificate to establish the share of each
beneficiary. Muslims can only dispose of or give away 1/3 of their estate to persons who are not
already entitled under the Inheritance Certificate mentioned above.
REAL PROPERTY
If the property of the deceased, be it a HDB property or private property, is held by the deceased
and other parties as tenants-in-common, then it is clear that the deceased’s share in the property
is to be divided according to his Will and/or Faraid.
All properties, regardless of whether they are private properties or say, HDB properties, if shared
through a joint tenancy, which is probably the case for most estates, will now give effect to the right
of survivorship as per the civil law position. This is the current state of the law in relation to joint
tenancies for Muslim estates.
An updated Fatwa which followed on the 3 April 2010 on joint tenancy, has suggested the use of
Islamic legal instruments in the form of a nuzriah or the 'hibah ruqbah' and so forth, to affirm and
facilitate the intention of a party in a joint tenancy to give effect to the right of survivorship in the
event of his/her demise.
The updated Fatwa also says that in cases where a party who solely inherits a property in a joint
tenancy but nevertheless wishes to distribute the deceased's share according to Faraid can still do
so. In such a situation, the surviving joint tenant is not obliged in any way to dispose of the said
property immediately just so he/she can make the distribution to the Faraid beneficiaries.
For more information regarding of the joint tenancy issue, please refer to MUIS website
at www.muis.gov.sg.

115 UNIT 2.10: FUTURE INTERESTS
UNIT 2.10: FUTURE INTERESTS
LEARNING OUTCOMES:
✓ Explain what constitutes a future interest.
✓ Distinguish reversionary interest from remainder interest of a life estate.
FUTURE INTEREST
Future interest is a legal right to property ownership that does not include the right to present
possession or enjoyment of the property.
REVERSIONARY INTEREST
Any future interest kept by a person who transfers property to another.
Eg developer bought condominium land and was granted 99-year lease. After 99-year lease is up,
the land shall return to the state.
A reversion occurs when a property owner makes an effective transfer of property to another but
retains some future right to the property.
Eg, if James transfers a piece of property to Kenny for life, Kenny has the use of the property for the
rest of his life. Upon his death, the property reverts, or goes back, to James, or if James has died, it
goes to his heirs. This is also commonly known as “LIFE ESTATE”. In this case, James maintains his
reversionary interests.
LIFE ESTATE
Designate the ownership of land for the duration of a person's life.
An estate in real property that ends at death when there is a "reversion" to the original owner. The
owner of a life estate is called a "life tenant”
For example, a deed stating that land would go "to Amy for life, then to Beth" gives Amy a valid life
estate, and Beth a remainder. Amy could use the land during her lifetime, and even sell her interest
to a third party, but that third party would have to surrender the property to Beth upon Amy's
death.
Amy is said to hold the life interest whilst Beth the remainder interest.

UNIT 2.11: CO-OWNERSHIP 116
UNIT 2.11: CO-OWNERSHIP
LEARNING OUTCOMES:
✓ Distinguish between the two forms of co-ownership: joint tenancy and tenancy in common.
✓ Explain how tenancy in common may be created at law and in equity.
CO-OWNERSHIP OF LAND
Two or more people may share ownership of a property.
There are two different ways to share:
i. Joint Tenancy
ii. Tenancy in common
JOINT TENANCY
Land is conveyed to 2 or more persons without indication that they are to take distinct shares.
Each owner is presumed to have an equal share in the property, unless proven otherwise.
Separate rights but as against all other persons they are in the position of a single tenant, i.e. each
is regarded as being wholly entitled to the property.
CHARACTERISTICS OF A JOINT TENANCY

The right of survivorship: On the death of one joint tenant his interest automatically passes to the
surviving tenants.
The existence of the 4 Unities:
- Unity of Possession: Possession of the land is vested in all the joint tenants, and none of them
holds any part of it to the exclusion of the others.
- Unity of Interest: The interest of each is the same in quantity; in practice, the rents and profits
of the lands divided equally between the joint tenants and that there can be no joint tenancy
between persons of different interest.
- Unity of Title: All the joint tenants together constitute a single tenant and each derives his title
from the same act or instrument.
- Unity of Time: All the joint tenants acquired the land and the interest in it at the same time.
Common mode of co-ownership between married couples or close relatives. Neither of the 2 can
dispose of their interest by will and on the death of either one, the survivor takes all.
Joint tenancy can be severed and converted to a tenancy-in-common by an instrument of
declaration.

117 UNIT 2.11: CO-OWNERSHIP
TERMINATION OF JOINT TENANCY

- By alienation: which means by selling away one’s share making the joint tenancy a sole
ownership or tenancy-in-common. Eg. One of the co-owners need money, sells his share to his
other joint tenant, such that the it’s now owned by one owner, sole ownership.
- By partitioning: means breaking the joint tenancy by way of mutual agreement. Sometimes
husband and wife in order to prevent the other party from being implicated in a law suit, may
partition the joint tenancy of their assets into tenancy-in-common so that the spouse can be
spared the joint liabilities.
- By partitioning via court order: eg in divorce where the court will instruct the divorced couple to
dispose of the martial home and split the sale proceeds according to a certain apportionment by
percentage. This effectively breaks up the joint tenancy into ownership by percentage shares.
TENANCY IN COMMON
Concurrent ownership of a property by 2 or more persons, each having a distinct but undivided
share in the property.
Each is not regarded as being entitled to the whole property.
Situations in which a tenancy in common arises are:
- Where land is limited to two or more persons with "words of severance" i.e. words importing
distinctness of interest showing intention to hold separate or equal shares in the land
- Where what is in strict legal terms a joint tenancy is treated in equity as though it was a tenancy
in common e.g. where joint tenants of land have provided the purchase money in unequal
shares, or where land is purchased by partners or where land is taken on mortgage by two or
more mortgagees.
- Where the law provides, e g the common property of a strata-titled building is held by subsidiary
proprietors as tenants in common
- Where one joint tenant alienates his interest to a stranger, e.g. by selling it, the stranger holds
the interest as a tenant in common with the remaining joint tenants who, however, as among
themselves, remain joint tenants.

UNIT 2.11: CO-OWNERSHIP 118
FORMS OF OWNERSHIP: SUMMARY

Tenants-in-common Joint Tenants
1. Shareholdings need not be equal 1. Upon severance, each owner is presumed to
have an equal share.
2. The rule of survivorship does not apply. The 2. The rule of survivorship applies. Upon the
deceased owner's entitlement in the property death of an owner, the deceased owner's
passes to his estate. entitlement in the property passes to the
survivor(s).
3. Upon death of a co-owner, the property 3. Upon death of a co-owner, the surviving co-
cannot be dealt with until the personal owner can deal with the property.
representative of the deceased co-owner has
been appointed.
4. Where the shareholding is equal, the 4.The joint tenancy can be converted to a
tenancy-in-common can be converted to a tenancy-in-common in equal shares by
joint tenancy by registering a declaration in the registering a declaration in the prescribed form
prescribed form at the Singapore Land at the Singapore Land Registry.
Registry.
5. Only 1 unity present, unity of possession 5. 4 unities must be present

119 UNIT 2.12: RESTRICTIONS ON CAPACITY TO HOLD LAND
UNIT 2.12: RESTRICTIONS ON CAPACITY TO HOLD LAND
LEARNING OUTCOMES:
✓ Determine the restrictions on the capacity of companies, societies, partnerships, infants, and
mentally handicapped persons to hold land.
✓ Be conversant with the Mental Capacity Act and the Lasting Power of Attorney (LPA) when
advising customers and/or performing estate agency work.
✓ Ascertain the extent to which foreign persons are restricted from acquiring or holding
residential restricted properties under the Residential Property Act.
RESTRICTIONS TO HOLD LAND

A Singapore citizen of majority age (i.e. 21 years old) may own land in Singapore.
MINORS
The Civil Law (Amendment) Act 2009 came into effect on 1 March 2009. The Act reduced the age of
contractual capacity from 21 to 18 years.
However, the Act excludes the following types of contract:
- Any contract for sale, purchase, mortgage, assignment or settlement of any land, other than
a contract for a lease of land not exceeding 3 years
- Any contract for a lease of land exceeding 3 years
- Any contract for the sale, transfer or pledging of ocollacteral for a minor’s beneficial interest
under a trust; and
- Any contract for settlement of any legal proceedings or action in respect of whihch the
minor is, pursuant to any written law, considered to be a person under disability on account
of his age, or of any cliam from which any such legal proceedings or action may arise.
While those below 21 are not allowed to hold land in their name or sell their beneficial interests in
land, the Act now allows them to contract for leases up to 3 years.
A minor may own properties or land subject to the Settled Estates Act. The land or property owned
by the infant will be managed by trustees.

UNIT 2.12: RESTRICTIONS ON CAPACITY TO HOLD LAND 120
MENTALLY DISORDERED PERSONS

If a person is of unsound mind and incapable of managing his affairs, the court may appoint a
committee of the person and of the estate of the person.
On appointment, the court may order that the person to have powers for the management of his
property. But the powers shall not extend to the sale, mortgage or charge of any part of the
property, and to lease of more than 3 years. Where it is deemed desirable to so deal with the
property, application should be made to the court through the registrar.
The court may order the sale, charge or mortgage of the property of the unsound person where it
considers this necessary or expedient for the purposes of his maintenance or benefit, provision for
his family, discharge his debts and that of his estates.
COMPANIES
A company which is registered under the Companies Act may own land in tis own name since it is a
separate entity. One should check that the company’s Memorandum and Articles of Association
provides for the company to hold land.
SOCIETIES
Societies cannot hold land in its registered name, but must do so through trustees. There should be
at least 2 trustees, or if only one, then it should be a trust corporation.
PARTNERSHIPS
A partnership is not a legal person and cannot hold property. When the property is intended as
partnership property, then the individual as legal owners hold the property in trust for themselves as
partners.

MENTAL CAPACITY ACT (MCA)

The Mental Capacity Act came into operation on 1 March 2010. The Office of Public Guardian (OPG),
headed by the Public Guardian, is set up under the MCA to provide a range of functions that
contribute towards the protection of persons who lack capacity.
The MCA allows individuals to voluntarily appoint one or more persons to decide and act on their
behalf, if they were to lose their mental capacity someday. Through a legal instrument, the Lasting
Power of Attorney (LPA), an individual may voluntarily appoint one or more trusted persons to
decide and act on his behalf in two broad areas: personal welfare and/or property and affairs
matters.
Even if the individual does not choose to elect a proxy decision maker in advance, applications can
be made to the Court to appoint a deputy to make decisions on an individual’s behalf, when he loses
his capacity. The MCA also enables parents of a child with intellectual disabilities to appoint a deputy
to oversee the child’s welfare and financial matters.
Under the Act, individuals who wish to make advance plans for themselves can do so through a new
statutory document known as the Lasting Power of Attorney (“LPA”). In the LPA, the individual
(donor) can appoint a proxy (donee) to act or make decisions on his behalf for matters relating to his
personal welfare and/or property and finances.
The Act also sets out safeguards to protect these vulnerable members of our society.
LASTING POWER OF ATTORNEY (LPA)

An LPA is a legal document which allows a person aged 21 years or older ('donor'), to voluntarily
appoint one or more persons ('donee') he trusts, to decide and act on his behalf should he lose
mental capacity.
An LPA takes effect when the donor loses mental capacity. A donee steps in only when the person
has lost mental capacity.
The LPA allows for a person to plan for a possible future occurrence where he/she may lose his/her
mental capacity.
There are two prescribed LPA forms. If the donor wishes to give his donee(s) powers to decide on all
matters for him, he may use the LPA Form 1, which is available at OPG (Office of the Public
Guardian) or which can be downloaded from www.publicguardian.gov.sg. If the donor has more
requirements to be included in his LPA, he should consult a lawyer to make the LPA, using LPA Form
2.
An independent certificate issuer is required to explain the terms of the LPA to every individual
looking to make an LPA, and ensure that the individual understands what he/she is signing, and that
he/she is doing it voluntarily and is not making the LPA under duress. The prescribed certificate
issuers include practising lawyers, psychiatrists and accredited general practitioners.
There is a six-week mandatory waiting period before an LPA can be registered. Objections which can
be raised during this waiting period include:
- The donor made the LPA under duress.
- The donor does not have the mental capacity to make the LPA.
- The donor is a bankrupt and appoints a property and affairs donee.

DONEE(S)
Donees can be appointed in two broad areas, namely: personal welfare and/or property & affairs
matters. If there are more than one donees appointed, the donor can specify for them to act
- Jointly: donees must always act together; or
- Jointly and severally: donees can act together or separately
A donor may choose to appoint one or more donees for similar/different matters. Any actions or
decisions made by the donee on behalf of the donor must be made in the best interest of the donor.
The donee should be a family member or friend who is:
- trustworthy;
- reliable; and
- competent to make decisions that you have authorised.
TERMINATION OF DONEE’S POWERS OR REVOCATION OF LPA

An LPA and/or powers of the donee(s) can be revoked under certain circumstances:
- The donor, while he still has mental capacity, decides to revoke the LPA;
- Death of the donor or donee;
- The donee loses mental capacity;
- Bankruptcy of the donor or donee terminates any powers granted by the LPA in respect of
property and affairs; and
- Dissolution or annulment of the marriage between the donor and donee, unless the donor
specified in the LPA that such an event will not cause the LPA to be revoked.

RESIDENTIAL PROPERTY ACT
RESIDENTIAL PROPERTY ACT
RESTRICTION OF FOREIGN OWNERSHIP

Since 1973, the Singapore Government has imposed restrictions on foreign ownership of all private
residential property in Singapore. Such ownership is governed by the Residential Property Act.
Residential Property (Amendment) Act 2010 was enacted by Parliament on 22 November 2010,
come into force on 17 January 2011.
A foreign person is not allowed to acquire or hold residential property in Singapore without
approval.
The Act seeks to strike a balance between giving Singaporeans a stake in the country by being able
to buy and own residential property at an affordable price and at the same time, attract foreign
talent by allowing permanent residents and foreign companies who make an economic contribution
to Singapore to purchase such properties for their occupation.
The Land Dealings (Approval) Unit administers the provisions of the Act and its rules by:
- processing applications from foreign persons for approval to acquire or retain restricted
residential property;
- issuing clearance certificates to Singapore companies, limited liability partnerships and societies;
- prosecuting offences under the Act; and
- dealing with general enquiries relating to the operation of the Act
FOREIGN PERSON
Under the Act, a foreign person means any person who is not any of the following:
- Singapore citizen;
- Singapore company;
- Singapore limited liability partnership; or
- Singapore society.
Permanent Resident is considered a foreign person.

RESTRICTED PROPERTIES
Foreigners are restricted from purchasing:
- vacant residential land;
- landed houses with land titles [i.e detached house, semi-detached house, terrace house
(including linked house or townhouse)]; and
- landed houses with strata titles in non-condominium developments under the Planning Act. (eg
strata terrace houses, strata bungalow, townhouse, cluster house); and
- shophouses which are not strata subdivided and are erected on land other than land which has
been declared to be non-residential property;
- Association premises;
- Place of worship; and
- Worker’s dormitory/service apartments/boarding house (not registered under the provisions of
the Hotels Act).
Approval will have to be obtained from the Minister for Law to purchase any of the above.
Foreign ownership rules for landed properties on Sentosa is relaxed, with an express processing time
and no minimum occupation period.
NON-RESTRICTED PROPERTIES
Foreigners are not restricted from acquiring:
- Condominium unit;
- Flat unit;
- Strata landed house in an approved condominium development
Note: A foreign person is not allowed to acquire all the apartments within a building or all the
units in an approved condominium development without the prior approval of the Minister for
Law.
- a leasehold estate in restricted residential property for a term not exceeding 7 years, including
any further term which may be granted by way of an option for renewal;
- Shophouse (for commercial use);
- Industrial and commercial properties;
- Hotel (registered under the provisions of the Hotels Act); and
- Executive condominium unit, HDB flat and HDB shophouse.
o Purchasers of these properties are subject to the eligibility conditions set out by the
Housing and Development Board (HDB)

CRITERIA FOR APPROVAL

Every application is considered on its own merits.
The main criteria are:
- whether the person applying is a permanent resident of Singapore; and
- their economic contribution to Singapore.
- In assessing economic contribution to Singapore, the main factors considered are:
- professional/technical/academic qualifications;
- expertise and working experience needed by Singapore; and
- investments in the type of industry or service sector needed in Singapore.
TO APPLY FOR APPROVAL

- Download and complete the Approved Form from SLA website
- Submit forms together with relevant supporting documents with application fees
- Application Fees Payable:
Sole application $1220 per
property
Husband and wife applying jointly $1220 per
property
For joint applications, other than by 2 persons who are married to each other and whose marriage is
recognized by the law of Singapore, applicants are required to submit separate applications.
Processing Time: Generally 20 working days after date SLA receive all the requisite documents and
information
If rejected, may appeal against the Minister's decision within 3 months from the date of the letter
informing of the disapproval.
Approval In-Principle (AIP) is valid for 1 year and not renewable. Once the 1-year period has lapsed,
a fresh application must be made and full application fee payable for another Approval In-Principle.
Application can be submitted before specific property in mind (encouraged)
If foreigner enter into any contract to purchase a specific property before getting approval, must
ensure that a clause stating that the purchase of the restricted residential property is subject to
obtaining Government approval is incorporated. Otherwise, the Option to Purchase or Sale and
Purchase Agreement is invalid under the Residential Property Act and LDAU cannot process an
invalid application.

OWNING RESTRICTED PROPERTIES
Purchase of vacant residential land

If approval is granted for individual buying vacant land to build own dwelling, it will be subject to:-
- to obtain the Temporary Occupation Permit or Certificate of Statutory Completion (whichever is
earlier) within 36 months after the date of letter conveying the decision;
- not to dispose of your interest in the property within 5 years after the date of issue of the
Temporary Occupation Permit or Certificate of Statutory Completion (whichever is earlier); and
- to use the property for your own occupation and that of your family members as a dwelling
house and not for rental or any other purpose.
Time limit to own property

- Cannot sell estate and interest in the property within 5 years after the date of purchase of the
property.
Note: The 5 years shall run from the date of contract to purchase the property if it is a built-up
property. If you enter into a contract to dispose of your interest in the property, the date of
contract shall be after the expiry of the 5-year non-disposal period. The date of contract refers to
the date of the exercise of the option or the date of the sale and purchase agreement
- Breach of the condition is an offence under the Residential Property Act ("the Act"). May be
fined up to $200,000 and/or imprisoned for a term of up to 3 years.
- Controller of Residential Property will lodge a caveat to prevent any unauthorised disposal of
the property.
- No MOP for Sentosa Cove
Restriction on land area

- Land area of the property should not exceed 1,393.5 sq metres (15,000 sq ft).
- Does not matter if property is freehold or leasehold
Disposal of other property if approval granted

- Must dispose of HDB flat/Executive Condominium if granted approval to buy restricted
residential property
- Must also ensure that meet HDB or EC’s MOP
- If own another restricted property, must dispose
o (where separate legal title has been issued for the new property to be purchased), on or
before the legal completion of the purchase of the new property; or
o (where the new property to be purchased is under construction), within 3 months from
the date issue of the Temporary Occupation Permit or Certificate of Statutory
Completion (whichever is the earlier) for the new property; or
o (where the Temporary Occupation Permit or Certificate of Statutory Completion for the
new property to be purchased has been issued but separate legal title has not been
issued), within 3 months from the date when the seller delivers vacant possession of
the new property

Rental Of Property
- Property is used solely for own occupation and that of family members as a dwelling house and
not for rental or any other purpose.
- Breach of the condition subject to financial penalty of up to 3 times the rental income earned
over the period of breach or $10,000 whichever is higher
Inheritance
- Foreign person cannot acquire/inherit a restricted residential property unless he obtains
approval. If approval is not granted to him, the personal representatives of the estate of the
deceased person must dispose of the foreign person's share in the restricted residential
property within a period of 5 years from the date of the death of the deceased person.
- If after 5 years still not disposed, have to apply to Land Dealing (Approval) Unit for an extension
of time to dispose of the foreign beneficiaries' interests in the property by completing Form ST
- Singaporean can will restricted residential property to foreign person as beneficiary. Upon
death, foreign beneficiary will have to obtain approval to acquire interest. If approval not
granted, have to dispose property within the 5 year period.
Obtaining Citizenship Status

- Individuals who subsequently obtain Singapore Citizenship need to write in officially to Land
Dealings (Approval) Unit on the change.
- Required to forward certified true copies of either Singapore passport, Singapore (pink) identity
card or certificate of Singapore citizenship.
- Will be released from the conditions imposed as SPR
Individuals Who Renounce Or Lose Their Singapore Citizenship Or Permanent Residency

Giving Up Of PR/Citizenship Status
- Individuals who renounce or lose their Singapore Citizenship or Permanent Residency will be
required to dispose of their restricted residential properties within 2 years from the date of
cessation of Citizenship/Permanent Residency
If fail to do so, liable to fine not exceeding $20,000 and/or imprisonment for a term not exceeding 3
years

UNIT 2.13: PLANNING AND DEVELOPMENT OF LAND 128
UNIT 2.13: PLANNING AND DEVELOPMENT OF LAND
LEARNING OUTCOMES:
✓ Identify, interpret and extract information that describes site uses and development
parameters for a specific property (e.g. the master plan).
✓ Explain the terms “zoning”, “plot ratio”, gross floor area”, “net lettable area”, “street block
plan”, “void” and others.
✓ Describe the planning concept and development control on designated landed housing area,
condominium, non-residential properties (e.g. 60:40 rule, approved use) and conservation
areas.
✓ Identify the need to apply for permission for change of use, building works or
redevelopment.
✓ Keep abreast of regulations and news releases from the following statutory authorities
involved in development of land:
o Housing and Development Board
o JTC Corporation
o Urban Redevelopment Authority
LAND PLANNING IN SINGAPORE

The Urban Redevelopment Authority (URA) is Singapore's national land use planning authority.
URA takes a long term and integrated approach in land use planning to optimise the use of
Singapore’s limited land in meeting the current and future needs of the people.
URA works with relevant government agencies to develop broad planning strategies to guide long
term planning, identify sufficient land for different needs and establish the broad pace of
development. Infrastructure is then planned and developed to support the proposed land uses, and
resources channelled to develop these areas over time.

129 UNIT 2.13: PLANNING AND DEVELOPMENT OF LAND
PLANNING PROCESS:
Concept Plan
Strategic land use and transportation plan that guides Singapore’s development over the next 40-50 years
Master Plan
Translates the broad and long-term strategies of the Concept Plan into detailed plans for implementation over 10-15 years
Implementation
Through the Government Land Sales (GLS), state land is released for development.
Development Control group

Evaluates and grants approval for development projects, to ensure they are in line with our planning strategies and guidelines
CONCEPT PLAN
- A strategic land use and transportation plan that guides Singapore’s development over the next
40-50 years.
- Reviewed every 10 years
- Ensures that there is sufficient land to meet long-term population and economic growth needs
while providing a good quality living environment for Singapore.
- First Concept Plan was formulated in 1971 and subsequently reviewed in 1991 and in 2001 to
factor in changes in local and global trends, and ensure that plans remain relevant to address
future challenges and meet needs.
- Most recent review was carried out in 2011.
In January 2013, the government released the Population White Paper which set out the key
considerations and roadmap for Singapore’s population policies and also projected Singapore's
potential population by 2030. MND released the Land Use Plan to complement the Population White
Paper. It outlines the strategies to support population and economic growth, while ensuring a high
quality living environment for all Singaporeans.
The Land Use Plan is a conceptual plan that outlines the strategies to provide the physical capacity to
sustain a high quality living environment for a possible population range of 6.5 to 6.9 million by
2030. It also sets aside land to provide options beyond 2030, so that future generations will have
room for growth and opportunities.

The strategies to sustain a high quality living environment include:

- Providing good affordable homes with a full range of amenities
- Integrating greenery into the living environment
- Providing greater mobility with enhanced transport connectivity
- Sustaining a vibrant economy with good jobs
- Ensuring room for growth and a good living environment in future
The broad strategies and proposals set out in the Land Use Plan will be translated into detailed plans
in the upcoming Master Plan review, which will guide Singapore’s development over the next 10 to
15 years.
MASTER PLAN
- A statutory plan
- Guides development over the next 10 to 15 years.
- Translates the broad, long-term strategies of the Concept Plan into detailed plans for
implementation by specifying the permissible land uses and densities.
- Reviewed once every five years.
- First introduced in 1958 and has undergone regular updates every 5 years.
- Has evolved from being a plan which simply reflected preceding land use amendments to one
which focuses on planning ahead for future developments. In particular, it was transformed to a
more forward-looking planning document in the mid 1990s through the advent of the
Development Guide Plans (DGPs), which set out detailed planning objectives at the local and
regional levels that were aligned with the broader planning intentions of the Concept Plan.
- Master Plan 2019 was gazetted on 27th November 2019.
PLANNING BOUNDARIES
PLANNING REGIONS
URA divides Singapore into 5 regions:
- Central
- West
- North
- North-East
- East
Each region has a population size of more than 500,000 people and provide a mix of residential,
commercial, business and recreational areas. Each region will be served by a Regional Centre to
complement the activities in the Central Business District.

PLANNING AREAS
- Planning Regions are divided into smaller Planning Areas.
- 55 Planning Areas
- Each Planning Area having a population of about 150,000 and served by a town centre and
several neighbourhood commercial/shopping centres.

- Number of Planning Areas within a Planning Region ranges from 6 to 22 depending on the
distribution of population within the region.
- Each Planning Area is further divided into smaller subzones which are usually centred around a
focal point such as neighbourhood centre or activity node. There can be more than 10 subzones
within a Planning Area.
- The size of each planning area and its subzones varies depending on the land uses, proximity to
the Central Area, existing physical separators like expressways, rivers, major open spaces and
other demarcators.

RESIDENTIAL DEVELOPMENT CONTROLS
ZONING
Under the Master Plan 2014, land is zoned into following zones:
Zoning Uses Examples Of Developments Remarks
Residential These are areas Residential developments for: The developments in this
used or intended to 1. Flats zone are subject to
be used mainly for controls on building form
2. Condominium
residential and building height as
development. 3. Townhouse determined by the
Serviced apartments 4. Terrace House competent authority. The
and student hostels quantum of all ancillary
may be allowed 5. Semi-Detached House or non-residential uses
subject to 6. Detached House needed for support or
evaluation by the management of a
7. Strata-Landed Housing
competent residential estate such as
authority. 8. Retirement Housing a condominium
development are to be
9. Serviced Apartments
determined by the
10. Student Hostel competent authority
according to the scale of
the residential
development.
Residential These are areas 1. Flats with commercial Commercial areas
with used or intended to uses at 1st storey are normally restricted to
commercial at be used mainly for 2. Shophouse the 1st storey.
1st storey residential 3. Residential Developments Commercial areas may be
development with (e.g. Flats) allowed above and/or
commercial use at below the 1st storey
the 1st storey only. subject to evaluation by
Residential the competent authority.
developments, Where the competent
without any authority allows
commercial use, commercial area above
may be and/or below the 1st
allowed subject to storey, the total quantum
evaluation by the of the floor area of
competent commercial uses in the 1st
authority. and other storeys shall
not exceed the maximum
allowable floor area at
the 1st storey.


Commercial & These are areas 1. Mixed Commercial & Commercial areas shall
Residential used or intended to Residential development not be located above
be used mainly for (e.g. Shopping/Office & residential areas.
mixed residential Residential) The type and quantum
and commercial for commercial and
purposes. related uses shall be
determined by the
competent authority with
regard to the locality
concerned. The
commercial quantum
shall not, unless
otherwise allowed by the
competent authority
exceed 40% of the
maximum allowable floor
area.
Commercial These are areas Developments for: The developments in this
used or intended to 1. Offices zone are subject to
be used mainly for 2. Mixed Uses (e.g. Office/ controls on the type and
commercial Shopping/Cinema/ Flat) quantum of commercial
development. 3. Convention/Exhibition uses as determined by
Recreation Clubs Centre the competent authority.
may be allowed 4. Commercial School
subject to 5. Bank
evaluation by the 6. Market/Food Centre/
competent Restaurant
authority. 7. Cinema
8. Entertainment
9. Foreign Trade Mission/
Chanceryl
10. Recreation Club
Hotel These are areas 1. Hotel At least 60% of the total
used or intended to 2. Backpackers’ Hostel floor area shall be used
be used mainly for 3. Boarding House for hotel room floors and
hotel development. hotel related uses as
defined in the Planning
(Development Charges)
Rules. Commercial and
residential uses may be
considered by the
competent authority
subject to control on the
use quantum as
determined by the
competent authority and
they shall not exceed 40%
of the total floor area.


White These are areas A development for any one or To realise the overall
used or intended to more of the following uses: planning intention for an
be used for 1. Residential area, specific controls on
commercial, hotel, 2. Office quantum and types of
residential, sports & 3. Shop uses may be imposed in
recreational and 4. Hotel some areas.
other compatible 5. Serviced Apartments
uses, or a 6. Recreation Club
combination of two 7. Association
or more of such 8. Convention/Exhibition
uses as a mixed use Centre
development. 9. Entertainment
Business Park These are areas 1. Business Park At least 85% of the total
used or intended to 2. Science Park floor area shall be used
be used mainly for for any combination of
business park business park operations
operations. (as may be defined and
set out in guidelines
issued by the competent
authority on Business
Park) and other
permitted ancillary uses.
Not more than 40% of the
total floor area comprised
in this 85% shall be used
for other permitted
ancillary uses.
total floor area shall be
used for uses permissible
under White zone.
Business Park - These are areas 1. Mixed Business Park and The quantum for the uses
White used or intended to commercial, residential, permissible under White
be used mainly for hotel (or other compatible zone shall not exceed the
business park uses) development. percentage of the total
operations and uses 2. Mixed Science Park and floor area specified in the
permissible under commercial, residential, Amendment Plan. For
White zone as a hotel (or other compatible example, for a site zoned
mixed use uses) development. as BP-W[40], the total
development. quantum of permissible
White use shall not
exceed 40% of the total
floor area of the
development.
The Business Park use
quantum shall be used
for any combination of
business park operations


(as may be defined and
set out in guidelines
issued by the competent
authority on Business
Park) and other
permitted ancillary uses.
total floor area of
the Business Park use
quantum shall be used
for other permitted
ancillary uses.
Business 1 (B1) These are areas Developments for: The quantum of
used or intended to 1. Computer software permitted ancillary uses
be used mainly for development shall not exceed 40% of
clean industry, light 2. Distribution services the total floor area.
industry, 3. Assembly and repair of The types of B1 and
warehouse, public computer hardware and ancillary uses that may be
utilities, and electronic equipment allowed are subject to the
telecommunication 4. Printing, publishing and evaluation of the
uses and other allied industries competent authority and
public installations 5. Packing of dried foodstuff other relevant
for which the 6. Warehouse except for authorities.
relevant authority storage of chemicals
does not impose a
nuisance buffer
greater than 50m.
Certain general
industrial uses that
are able to meet the
nuisance buffer
requirements of not
more than 50m
imposed by the
relevant authority
may be allowed in
the B1 zones,
subject to
evaluation by the
relevant authority
and the competent
authority.


Business 2 (B2) These are areas Developments allowed under The quantum of
used or intended to B1 and for the following: permitted ancillary uses
be used for clean 1. Biotechnology shall not exceed 40% of
industry, light 2. Manufacture of electrical the total floor area.
industry, general apparatus and supplies The types of B2 and
industry, 3. Vehicle repair and ancillary uses that may be
warehouse, public servicing allowed are subject to the
utilities and 4. Manufacture of furniture evaluation of the
telecommunication and fixtures competent authority and
uses and other 5. Warehouse other relevant
public installations. 6. Electric Substation authorities.
Special industries 7. Industry/power
such as manufacture generation plant
of industrial 8. Gas Installation
machinery,
shipbuilding and
repairing, may be
allowed in selected
areas subject to
evaluation by the
competent
authority.
Business 1 - These are areas A development for any one or A minimum plot ratio
White used or intended to more uses that may be must be achieved for the
be used mainly for allowed under B1 zone and B1 uses before White
uses permissible White zone. uses can be allowed. For
under B1 zone and example, for a site zoned
White zone as a as “4.2 [B-2.5] W” , the
mixed use permissible B1 uses must
development. achieve a minimum plot
ratio of 2.5 before White
uses can be allowed
subject to the maximum
prescribed plot ratio of
4.2 for the whole
development.
The quantum of
permitted ancillary uses
shall not exceed 40% of
the total floor area for B1
uses.
The types of B1, White
and ancillaryuses that
may be allowed are
subject to the evaluation
of the competent
authority and other
relevant authorities.


Business 2 - These are areas A development for any one or A minimum plot ratio
White used or intended to more uses that may be must be achieved for the
be used mainly for allowed under B2 zone and B2 uses before White
uses permissible white zone. uses can be allowed. For
under B2 zone and example, for a site zoned
White zone as a as “4.2 [B-2.5] W”, the
mixed use permissible B2 uses must
development. achieve a minimum plot
ratio of 2.5 before White
uses can be allowed
subject to the maximum
prescribed plot ratio of
4.2 for the whole
development.
The quantum of
permitted ancillary uses
shall not exceed 40% of
the total floor area for B2
uses.
The types of B2, White
and ancillary uses that
may be allowed are
subject to the evaluation
of the competent
authority and other
relevant authorities.
Residential/ These are areas 1. Residential Developments The type of community
Institution used or intended to (e.g. Flat) institution uses and other
be used mainly for 2. Community Institutions similar developments
residential purpose, uses (excluding funeral that may be allowed are
community parlour and workers’ subject to evaluation by
institution facilities dormitory) the competent authority.
or other similar
purposes.
Health These are areas 1. Hospital Hospitals shall only be
& Medical used or intended to 2. Polyclinic allowed subject to
Care be used mainly for 3. Clinic/Dental Clinic evaluation by the
medical services. 4. Veterinary Clinic competent authority.
5. Nursing Home
6. Medical suite


Educational These are areas 1. Kindergarten Nil
Institution used or intended to 2. Primary School
be used mainly for 3. Secondary School
educational 4. Junior College
purposes including 5. Institute of Technical
tertiary education. Education
6. Polytechnic
7. University
8. Religious School/Institute
9. Foreign System School
10. Special Education School
(e.g. School for the
Disabled)
Place These are areas 1. Church Praying area shall be the
of Worship used or intended to 2. Mosque predominant use and
be used mainly for 3. Temple shall be at least 50% of
religious buildings. the total floor area of the
development.
Civic & These are areas Civic Institutions The specific institutional
Community used or intended to 1. Courts use that may be allowed
Institution be used mainly for 2. Police Station for a site is subject to
civic, community or 3. Fire Station evaluation by the
cultural facilities or 4. Prison competent authority.
other similar 5. Drug Rehabilitation
purposes. Centre/Halfway House
6. Reformative Centre
Community Institutions
7. Association premises
8. Community Centre/ Club
9. Community Hall
10. Welfare Home
11. Child Care Centre
12. Home For The Aged
13. Home For The Disabled
14. Funeral Parlour
15. Workers’ Dormitory
Cultural Institutions
16. Television/ Filming Studio
Complex
17. Performing Arts Centre
18. Library
19. Museum
20. Arts Centre/
Science Centre
21. Concert Hall


Open Space These are areas 1. Wooded Area Where additional sites for
used or intended to 2. Swamp Area open space are deemed
be used as open 3. Natural Open Space necessary, they may be
space. 4. Public Promenades secured by the
5. Outdoor Pedestrian Malls competent authority.
6. Landscaped Plazas
Park These are areas 1. National Park Where additional sites for
used or intended to 2. Regional Park parks are deemed
be used mainly for 3. Community Park/ necessary, they may be
parks or gardens for Neighbourhood Park secured by the
the enjoyment of 4. Park Connectors competent authority.
the general public 5. Zoological Gardens, The notations used to
and includes Botanic Gardens, etc delineate the park
pedestrian linkages. connectors may not show
their precise boundaries
which are subject to
interpretation and
determination by the
competent authority.
Beach Area These are areas Nil The notation used to
used or intended to delineate the beach areas
be used for coastal may not show their
recreational precise boundaries. The
purposes for the extent of a beach area is
enjoyment of the subject to survey.
general public.
Sports These are areas 1. Sports Complex/ Indoor Nil
& Recreation used or intended to Stadium
be used mainly for 2. Swimming Complex
sports and 3. Golf Course
recreational 4. Golf Driving Range
purposes. 5. Recreation Club
6. Campsite
7. Chalet
8. Marina
9. Water Sports Centre
10. Outward Bound School
11. Theme Park


Waterbody These are areas 1. River The notations used to
used or intended to 2. Major Drain & Canal delineate the drainage
be used for drainage 3. Reservoir reserves may not show
purposes 4. Pond their precise alignment
and water areas which is subject to
such as reservoirs, interpretation and
ponds, rivers and determination by the
other water competent authority and
channels. other relevant
authorities. Additional
drainage reserves may be
secured by the
competent authority for
any locality as may be
deemed necessary.
Road These are areas 1. Expressway The notations used to
used or intended to 2. Semi-Expressway delineate the route of the
be used for existing 3. Major Arterial Road roads may not show their
and proposed roads. 4. Arterial Road precise alignment, which
Other uses under an 5. Primary Access Road is subject to
elevated road may 6. Local Access Road interpretation and
be allowed subject 7. Service Road & Backlane determination by the
to evaluation by the competent authority and
competent other relevant
authority. authorities. All roads
including their junctions
are subject to widening
and improvement, as may
be determined by the
competent authority.
Buffers along and
adjoining roads may be
required to be set aside
where deemed necessary
by the competent
authority. Additional road
reserves may be secured
by the competent
authority for any locality
as may be deemed
necessary.
Transport These are areas 1. Car Park Petrol Station/Kiosk shall
Facilities used or intended to 2. Heavy Vehicle Park only be allowed subject
be used mainly for 3. Trailer Park to evaluation by the
the parking of 4. Bus Depot/ Terminal competent authority.
vehicles and 5. Transport Depot
transport facilities 6. MRT /LRT Marshalling
including garages Yard/Depot


and at-grade 7. Driving Circuit/
structure of Test Centre
underground road 8. Petrol Station/ Kiosk
tunnel and rapid
transit system.
Rapid Transit These are areas 1. MRT/LRT Station The notations used to
used or intended to denote the MRT/LRT lines
be used mainly for and the locations of
Rapid Transit stations are
purposes. diagrammatic.
The precise alignment of
the MRT/LRT lines and
the locations of stations
are subject to
interpretation and
determination by the
competent authority and
other relevant
authorities.
Utility These are areas 1. Electric Substation Additional sites for such
used or intended to 2. Power Station purposes for any locality
be used mainly for 3. Gas Installation may be secured by the
public utilities and 4. Natural Gas Receiving competent authority,
telecommunication Terminal where deemed
infrastructure, 5. Gas Takeoff/ Regulator necessary.
including water Stations
works, sewage 6. Water Treatment Plant
disposal works and 7. Water Reclamation Plant
other public 8. Service Reservoir
installations such as 9. Water Pump House
electric substations. 10. Sewage Pumping Station
11. Incineration Plant
12. Desalination Plant
13. Transmitting Station/
Receiving Station
14. Earth Satellite Station
Cemetery These are areas 1. Cemetery Nil
used or intended to 2. Crematorium
be used for burial 3. Columbarium
grounds, crematoria
and columbaria.
Agriculture These are areas 1. Agrotechnology Park Nil
used or intended to 2. Aquaculture Farm (e.g.
be used mainly for Aquarium fish)
agricultural 3. Plant Nursery
purposes and 4. Hydroponics Farm
includes plant 5. Agriculture research/
nursery. experimental station


Port/ Airport These are areas 1. Airport Nil
used or intended to 2. Port Area
be used for 3. Port/Airport Related
airport/airfield or Facilities
dock/ port 4. Ferry Point/Terminal
purposes. 5. Cruise Centre
6. Landing Sites
7. Fishing Port
Reserve Site These are areas the Nil Nil
specific use of which
has yet to be
determined.
Interim uses that
are compatible with
the uses in the
locality may be
allowed subject to
evaluation by the
competent
authority.
Special Use These are areas Nil Nil
used or intended to
be used for special
purposes.
PLOT RATIO
Plot ratio is defined as the ratio of the gross floor area of a building(s) to its site area.
Plot ratio: Gross Floor Area / Site Area
Gross Floor Area: Total area of the covered floor space measured between the centre line of party
walls, including the thickness of external walls but excluding voids. Accessibility and usability are not
criteria for exclusion from GFA.
Net Lettable Area: NLA is the floor space between the internal finished surfaces of permanent
internal walls and the internal finished surfaces of dominant portions of the permanent outer
building walls. It generally includes window frames and structural columns and excludes toilets,
cupboards, plant/motor rooms and tea rooms where they are provided as standard facilities in the
building. It also excludes areas dedicated as public spaces or thoroughfares such as foyers, atrium
and building service areas.

VOID AREA
A Void Area refers to the empty space above the floor in a strata unit but the area is included in the
total saleable floor area of the strata unit. It is usually found in a property with a very high ceiling.
The detailed breakdown of a strata unit’s floor area is available in the Sale and Purchase (S&P)
agreement. Some examples of Void Areas are void over staircase, or a double-volume living room
within a maisonette.
For example developers construct a raised platform over the part of the unit with high ceiling height,
and market as an increase of usable floor area, which is not allowed.

STREET BLOCK PLAN

Street Block Plan guides the layout or form of development within identified development areas.
Details on development control parameters for identified areas can be found on URA’s website.
Sample of a Street Block Plan

BUILDING HEIGHT PLAN

Areas without special height controls are subject to prevailing development control guidelines. For
example, residential development will follow the GPR / Storey Height Typology for flats and
condominium as shown in Table. For other land uses without stipulated building height controls, the
permissible height will be subject to evaluation.
Standard GPR/Storey Height Typology for Residential Developments:
Gross Plot Ratio Storey Height Control
1.4 5
1.6 12
2.1 24
2.8 36
>2.8 >36
LANDED HOUSING AREAS PLAN

The Landed Housing Areas Plan is drawn up to help retain the character of landed housing estates.
By safeguarding these estates, URA ensures a variety of housing mix, to meet the needs and
aspirations of Singaporeans who want to live in landed housing.
The locations of these safeguarded estates, and the type of housing that can be built in each estate
can be found on the Landed Housing Plan. These estates are categorised by the predominant
housing form as follows:
Good Class Bungalow area
- bungalow development must have a minimum plot size of 1,400 sqm. Strata bungalows are
also permitted.
Bungalow area
- bungalow development must have a minimum plot size of 400 sqm. Strata bungalows are
also permitted.
Semi-detached area
- where bungalows, strata bungalows, semi-detached and strata semi-detached houses are
permitted.
Mixed Landed housing area
- any form of landed housing such as bungalows, semi-detached houses and terrace type I
(occupying a land area of 150 sqm) are permitted. In addition, townhouses, strata
bungalows and cluster housing with their own control guidelines are also permitted. Terrace
type II (occupying a land area of 80 sqm) is, however subject to evaluation as these houses
with 1.0m front setback could affect the streetscape.

PLOT SIZE
The minimum plot dimensions and plot sizes for all types of landed (Iand title) housing development
are as follows:
HOUSING FORM PLOT WIDTH(min) PLOT DEPTH(min) PLOT SIZE(min)
Good class bungalow 18.5m 30m 1400m²
Other bungalow 10m nil 400m²
Semi-detached house (including corner terrace I) 8m nil 200m²
Back-to-back Semi-detached house 10m nil 200m²
Terrace house I (intermediate units) 6m nil 150m²
Terrace house II (corner units) 8m nil 80m²
Terrace house II (intermediate units) 6m nil 80m²
MODIFICATIONS TO EXISTING BUILDINGS

Existing buildings may remain until they are rebuilt in the future.
The proposal to rebuild the existing building is subject to evaluation based on the landed housing
proposal for the area.
The following guidelines must be followed when renovating or modifying the existing house. In
addition, the prevailing planning controls on plot size, plot width and building setback requirements
must be satisfied. For bungalows, the proposed extensions must also satisfy the site coverage
requirements.

PREVAILING PLANNING CONTROLS FOR LANDED HOUSING

Type Minimum Minimum Minimum Site Setback Control Boundary
Plot Size Width (M) Dept (M) Coverage (M) Clearance For
(M2) Roof Eaves
(M)
DETACHED 400 10 No control Front : 7.51 Front Patio :
> 800 50% Side : 2 2.42
Rear : 2 Carporch :
For 3rd storey, 2.42
Side & Rear : 3 Side / Rear : 1
GOOD – CLASS 1400 18.5 30 40% Front : 7.51 Front patio :
BUNGALOW Side : 3 5.12
Rear : 3 Carporch :
2.42
Side / Rear :
1.6
SEMI – DETACHED 200 8 No control No Front : 7.51 Front patio:
& CORNER control Side : 2 2.42
TERRACE-I Rear : 2 Carporch: 2.42
For 3rd storey, Side / Rear: 1
Side & Rear : 3
TERRACE-I 150 6 No control No Front : 7.51 Front patio:
INTERMEDIATE control Rear : 2 2.42
For 3rd storey, Carporch: 2.42
Rear : 3 Rear: 1
TERRACE-II 80 6 No control No Front : 1 (fixed) Front : nil
INTERMEDIATE control Rear : 2 Rear : 1
For 3rd Storey,
Rear : 3
CORNER TERRACE- 80 8 No control No Front : 1 (fixed) Front : nil
II control Side : 2 Side / Rear : 1
Rear : 2
For
3rd Storey,Side
& Rear : 3
1. Applicable to sites fronting category 3 to 5 road. For sites fronting category 2 road, the front
setback would be according to the buffer requirements.
2. Applicable to sites fronting 3 to 5 road.
3. Applicable to 2-storey mixed landed and 2-storey semi-detached housing areas.

ENVELOPE CONTROL GUIDELINES FOR LANDED HOUSING

Envelope control guidelines guides the size and shape of the house in the redevelopment of landed
houses. It is effective from 11 May 2015.
The guidelines simplify the existing guidelines and provide developers and homeowners more
flexibility in the design of landed housing while safeguarding the low-rise character of landed
housing estates.
The new guidelines adopt a volumetric approach, where the allowable building massing of landed
houses is guided by the permissible building envelope. The latter serves as a three-dimensional limit
within which a landed house can be designed. It is determined by a combination of setbacks from
the road and common plot boundaries, as well as the allowable height for the house. Figure 1 shows
the envelope control for two and three-storey landed houses. They have an overall height of 12.0 m
and 15.5 m for two and three-storey landed houses respectively, with the topmost floor being 3.5 m
high and set back from the front and rear building facade as defined by the 45 degree line.
Within the building envelope, homeowners will now have flexibility to deviate from the existing
planning guidelines to configure the interior space of their homes. The existing planning guidelines
on the attic profile, basement protrusion, third storey setback and floor-to-floor height will no
longer apply. For instance, homeowners can now vary floor to ceiling height to have a mix of
spacious and compact spaces. They can also design the attic without the sloping roof and the
basement to have more protrusion above ground, which will let in more ventilation and light.
The envelope control guidelines are meant to guide only the main building. Hence, landed houses
will continue to be subject to existing guidelines on other building features and appendages such as
car porches, roof eaves and reinforced concrete ledges. In addition, the requirements of other
agencies, especially those relating to construction standards and safety, will continue to apply. As
the envelope control guidelines are not intended to promote intensification, houses should continue
to keep to the two-storey or three-storey height control applicable to the respective landed estates.
This will continue to safeguard the character of our landed estates.
The envelope control guidelines is applicable to all landed houses island-wide. They will supersede
the existing guidelines for proposals involving new erection or major reconstruction works to landed
houses. However, minor Additions & Alterations (A&A) works to existing landed houses which were
approved under the existing guidelines will continue to be evaluated under the existing guidelines.

FLATS AND CONDOMINIUMS
SHOEBOX UNITS
To ensure that there will not be an excessive development of shoebox units and to ensure that
residential estates can be supported by local infrastructural capacities, URA implemented a
guideline on the maximum number of dwelling units (DUs) for flat.
The dwelling unit (DU) cap stipulates the maximum number of DUs for all new flats and
condominium developments outside the Central Area (CA), including the residential component of
mixed-use developments, such as Residential with 1st storey commercial or commercial & residential
developments and residential estates within GPR 1.4.
The DU Cap is based on the following formula:
Maximum number of DUs per MP Allowable GPR x Site Area

<
development 85 sqm
SMALL OFFICE HOME OFFICE (SOHO)

SOHO is a marketing term used by developers and estate agents. It does not refer to any specific use
or type of development that is allowable or approved by the Competent Authority under the
Planning Act. The planning permission for a unit marketed as a SOHO unit is for either
residential or office use but not for both uses.
Residential units are intended for long-term residential stay, and cannot be converted to other uses,
like commercial uses, that could cause disturbances and inconveniences to residents. However,
under the Home-Office Scheme, owners of residential units can use their homes to conduct small-
scale businesses, provided they do not cause disamenity to other residents. To do so, the owner
must register for the home-office use under the Home Office Scheme (see
http://www.ura.gov.sg/uol/home-office/Register/Guidelines/about.aspx for details). Only small-
scale businesses that comply with the planning guidelines applicable to home-offices (e.g. not hiring
more than two non-resident employees) are permitted within residential units. Other commercial
businesses or uses that do not meet the guidelines are not allowed.
Office properties are to be used according to their approved use (i.e. as offices), and are not meant
for residential use. Hence, the term “SOHO” for office developments in any of advertisements
should be refrained and should not make any representations to intending purchasers that the office
units may be used for residential uses.

HOME OFFICE SCHEME

Under the Home Office (HO) scheme, home owners, tenants or occupiers of private residential
properties can conduct small–scale businesses in their homes, as long as they satisfy the prevailing
HO guidelines and performance criteria and ensure that the use does not cause amenity problems to
the neighbours.
Registering for the Home Office Scheme

Anyone who is the owner, tenant or any authorised occupier of a private residential property and
wish to operate a Home Office (HO) can register.
Written consent must be obtained from the owner before a tenant register for the Home Office use.
Restrictions
Restrictions and performance criteria ensures the scale of the home office use is kept small so that it
does not disturb or cause inconvenience to the neighbours.
These include:
- not hiring more than 2 non-resident employees
- not displaying any external business signage or advertisements
- not generating noise, smoke, odour, waste matter or dust
- the use does not fall within the list of businesses that are not permitted under the HO scheme
(e.g. car trading business, shops and any form of retail activity, etc)

Businesses Permitted/Not Permitted Under The Home Office Scheme

Permitted Businesses Not Permitted
Accountancy services Beauty, hair dressing or massage therapy services
Architectural services Car trading business
Consultancy services (business, engineering, Card reading/palm reading or fortune telling in any
IT, management or education) form
Design/Advertising services Catering/restaurants
Insurance/Financial planning services Clinics and pharmacies (e.g. dental, medical,
veterinary)
Real estate agencies
Commercial school (e.g. dance, music, language,
Technology based and knowledge intensive
tuition centre)
businesses
Courier business
Transportation services
Classes on dress-making and embroidery
Trading office
Employment agency
Funeral chapels or homes
Maid agency
Mausoleums
Manufacturing, preparation or processing of any
products and goods
Money lending businesses
Opticians
Repair activities (e.g. household appliances, electrical
products, footwear, etc.)
Sales/marketing that involves conducting seminars
and talks for large number of customers
Shops and any form of retail activity, including pet
shops

COMMERCIAL DEVELOPMENTS
SHOEBOX RETAIL
With effect from 27 March 2013, average retail unit size should be at least 50 square metres (sqm),
or the development’s total net floor area divided by the number of retail units at commercial or
mixed-use developments.
In addition, corridors width must have minimum width of 2.0m – 2.4m for corridors with only a row
of retail units on one side (single loaded). For corridors with retail units on both sides (double
loaded), the minimum width is between 2.4m and 3.0m.
INDUSTRIAL B1 SPACE
URA zones land as B1 to support industrial activities so as ensure that land is kept affordable.
Offices and shops are not considered industrial use and are not allowed within industrial
developments. These activities should be carried out on land zoned for commercial use.
URA requires at least 60% of the total floor area of an industrial development to be used for core
industrial activities.
Supporting non-industrial uses, together with other ancillary areas (e.g. lift lobbies and circulation
spaces) are allowed to occupy up to 40% of the total floor area of an industrial development.
GUIDELINES FOR SUPPORT USES IN INDUSTRIAL DEVELOPMENT

Industrial Canteens
Under previous guidelines, staff canteens within industrial developments were restricted to serving
staff working within the same building. To expand the range of food options within industrial
estates, URA will now allow such canteens to serve not only the workers of the same building but
also external customers. These canteens which serve primarily workers in the industrial estate will
now be termed as “industrial canteens”.
New industrial canteens will be:
i. Capped at a size of 700 sqm or 5% of the total proposed Gross Floor Area (GFA) per
development, whichever is lower;
ii. Levied Industrial “D” rates when computing Development Charge/Differential Premium; and
iii. Approved on Temporary Permission (TP) for up to 3 years.

URA USE CLASSES

A Use Class is a broad group of building uses with similar mode of operations or impact to the
surrounding. There are 18 Use Classes:
Class 1 – Shop
Class 2 – Office
Class 3 – Restaurant
Class 4 – Amusement Centre
Class 5 – Motor Vehicle Showroom
Class 6 – Theatre
Class 7 – Light Industrial Building
Class 8 – General Industrial Building
Class 9 – Special Industrial Building
Class 10 – Warehouse
Class 11 – Convalescent Home
Class 12 – Child Care Centre
Class 13 – Community Building
Class 14 – Sports and Recreation Building
Class 15 – Nightclub
Class 16 – Pet Shop
Class 17 – Community Sports and Fitness Building
Class 18 – Commercial School

USE CLASS Includes: Does not include:

Class 1 – Shop - Furniture shop, department - Preparation of food for sale by
Premises used for store, pawnship distribution or catering, even
any trade or business - Beauty salon, ticket agency, though the food is consumed
where its primary travel agency away from the premises.
purpose is the sale of - Confectionery or take-away - Storage or wholesale of goods
goods or foodstuff food shop that retails food or or foodstuff.
by retail or provision drinks for consummption away - Sale of coffins or motor vehicle
of services. from the premises only and parts and accessories.
without any provision for - Repair and servicing of motor
ancillary food preparation area. vehicles.
Retail Shops - Laundry shop, dry cleaner’s
- Departmental store, shop, pet shop, petrol station.
supermarket*, provision shop, - Market, fun fair, amusement
minimart, pawnshop centre, health centre, nightclub,
- Fashion boutique, florist, gift bar.
shop, stationery shop - Sex shop i.e. a building used for
- Furniture shop, home the carrying on of any trade or
furnishings and textile shop business where the primary
- Electrical purpose is the sale of products
appliances/equipment, (including toys, magazines,
computers and accessories clothing or equipment)
- Dispensary, Chinese medical connected with sexual activity.
hall - Showroom, motor vehicle
- Aquarium showroom, betting outlet,
- Other shops selling takeaway office.
good and beverages without - Any part of an industrial retail
consumption on the premises building or warehouse retail
Services building used for business zone
- Barber shop, beauty salon, retail.
hairdressing salon - Medical clinic which has the
- Photo studio, tailor shop same meaning as in the Prival
- Foot reflexology, Chinese Hospitals and Medical Clinics
physician/acupuncturist Act (CAP 248)
- Medical clinic, dental clinic
- Receiving agency, money
changer, travel/ticket agency
- Launderette (collection of
goods to be cleaned elsewhere)
Takeaway foodshops
- Shops selling curry puffs, rice
dumplings, pastries, buns,
bubble tea, ice cream, barbeque
meat, etc purely for takeway
and without tables and chairs
for dining at the premises
- Light and simple food
preparation (eg baking,
microwaving and steaming) may
be allowed. You will need to
comply with licensing

conditions from the National

Environment Agency and
ensure that activities do not
cause fumes, odour or other
nuisances.
* Supermarkets located in
shophouses may be subject to LTA’s
carparking requirements and may
not be appropriate in locations
where there are existing traffic and
parking problems. Operators are
advised to seek prior clearance from
URA and LTA for their proposal
before committing on the lease or
purchase of the shop premises.
Class 2 – Office - Bank - Shops

Premises used as a Office
place of business and - Finance office, insurance
for conducting company, stock exchange.
administrative work. - Real estate housing agency.
- Contractors, transport office.
- Professional, consultant,
architect, engineer, lawyer,
accountant, advertising agency,
research and marketing office.
- Employment agency, secretarial
services.
- Astrologers/palmists.
- Security office.
- Political party office.
Class 3 – Restaurant - Coffee shop - Canteen
Premises that are - Eating house - Bar
used for carrying on - Snack bar - Pub
of any trade of - Cafeteria
business where the - Foodcourt
primary purpose is - Fast-food restaurant
the sale of food for - Tea house
consumption on the
premises without
performance of live
music or live
entertainment, and
where the sale of
liquor and alcoholic
drinks, if any is for
consumption on the
premises and
incidental to the
consumption of
food.


Class 4 – Amusement - Video games arcade
Centre - Computer gaming centre
Premises where - Billiard saloon
jackpot machines, - Bowling alley
pin-ball machines,
video-game
machines and other
similar machines are
provided for
entertainment.
Class 5 – Motor - Car-mart
Vehicle Showroom - Car-trading office
Premises used for - Motor vehicle rental office
the display and sale - Motor vehicle trading office
of new or used
motor vehicles.
Class 6 – Theatre - Nightclub
Premises where live - Cinema
theatrical
performances,
including plays,
operas and music
performances, are
performed.
Class 7 – Light Premises classified as “light
Industrial Building industry” by the Director of
Premises where the Environmental Pollution Control,
processes carried out which includes:
or the machinery - Manufacture of made-up textile
installed can be done goods (excludes wearing
so in any residential apparel) without dyeing,
area without bleaching and/or other finishing
polluting the area operations.
with noise, vibration, - Servicing and refilling of fire
odour, fumes, extinguishers.
smoke, soot, ash, - Packing and bottling of
dust or grit. medicinal herbs and medicated
oil.
- Manufacture of aluminium
window frames and grilles from
aluminium extrusions without
spray-painting operations.
- Packing of dried foodstuff.
- Manufacture of containers and
boxes of paperboard.
- Printing, publishing and allied
industries.
For more details, please refer to the
Code of Practice on Pollution
Control on the NEA’s website.

Class 8 – General Premises classified as “general

Premises that are Environmental Pollution Control,
industrial buildings which includes:
but not light - Vehicle / motorcycles repair
industrial or special and servicing.
industrial buildings. - Installation of tyres & batteries.
- Installation of car accessories.
- Food manufacturing, food
catering.
- Manufacture of furniture &
fixtures.
- Manufacture of musical
instruments.
- Manufacture of wooden & cane
containers & small cane wares.
- Manufacture of emergency
lighting and power supply
systems.
- Repair and maintenance of
engines, motor and mechanical
pumps.
- Industrial laundry services
without scheduled boilers.
- Manufacture of sporting and
athletic goods
- Blending of detergents and
cleaning preparations,
perfumes, hair-care products,
cosmetics and other toilet
preparations.
Class 9 – Special Premises classified as “special
Premises that are Environmental Pollution Control
industrial buildings
where dangerous or
offensive processes
are carried out.
Class 10 – - A warehouse retail building
Warehouse
Premises where
storage is the
principal use and
where no business is
transacted other
than incidentally to
such storage.


Class 11 – - Hospitals
Convalescent Home - Premises used solely to receive,
Premises used or accommodate and care for
intended to be used dying or terminally ill persons.
to receive,
accommodate and
nurse persons
suffering or
convalescing from
any sickness, injury
or infirmity.
Class 12 – Child Care•
Centre
Premises that are:
- licensed as a
child care centre
under Section 4
of the Child Care
Centres Act
(Chapter 37A).
- used as a centre
where 5 or more
school-going
children
between the
ages of 7 and 14
years are cared
for/supervised
before or after
school hours.
- registered as a
kindergarten
under Section 23
of the Education
Act (Chapter 87).
Class 13 – - An office of an association or a - Funeral parlour
Community Building society - Welfare home
Premises used for - Community centre - Child care centre
community-based - Community club - Home for the aged
activities - Family service centre - Home for the disabled
- Residents’ committee centre
Class 14 – Sports and - Sports club - Community sports and fitness

Recreation Building - Sports complex building
Premises used for - Recreation club
sports and - Clubhouse
recreation activities. - Fitness centre
- Gymnasium


Class 15 – Nightclub
Premises used for
any trade or business
where its primary
purpose is the sale of
alcoholic drinks (with
or without the sale
of foodstuff) for
consumption on the
premises with
singing, dancing or
live
music/entertainment
performances.
Includes karaoke
lounge and
discothque.
Class 16 – Pet Shop - Veterinary clinic - Premises or aquariums used for
Premises used for - Domestic pet grooming service the sale of ornamental fish
the sale of live
animals or birds
normally kept as
domestic pets.
Class 17 –
Community Sports
and Fitness Building
Premises used for
sports and fitness
activities and
operated by:
- the Singapore
Sports Council;
- any person as
agent of the
Singapore Sports
Council; or
- any person who
is in a public-
private
partnership
agreement with
the Singapore
Sports Council.


Class 18 – - Tuition centre - Primary school
Commercial School - Language school - Secondary school
Premises used for - Computer school - Junior college
the purpose of - Dress-making school - Vocational and technical
teaching, training or - Baking and cooking school institution
imparting of - Music school - Polytechnic and university
knowledge or skill. - Dance school
- Acting school
- Speech and drama school
- Child development cenre, or
play school
- Art school
UNCLASSIFIED USES
Any uses that do not fall under these are Unclassified Uses, which requires planning permission.
Common unclassified uses include:
BAR/PUB
Premises used for any trade or business where its primary purpose is the sale of alcoholic drinks for
consumption on the premises without dancing, singing or performance of live music or live
entertainment.
MASSAGE ESTABLISHMENT
Massage Establishment means an establishment for massage within the meaning of section 2 of the
Massage Establishments Act (Cap. 173) that is required to be licensed under section 4(1) of that Act.
BACKPACKERS’ HOSTEL/BOARDING HOUSE/HOTEL

Backpackers’ Hostel
Premises used as open concept dormitories with minimum 6 beds per room used for providing
boarding and lodging or lodging only. The business is run for the purpose of gain or profit.
Boarding House/Hotel
Premises used for boarding and lodging only. The business is run for the purpose of gain or profit.
SHOWROOM
Premises used for the display of goods with no retail sales and does not include a shop or motor
vehicle showroom.
Showroom premises are used for the display of primarily 2 categories of products:
- products that are not typically transacted or exchanged over the counter (e.g. cars); or
- products that are predominantly delivered and installed off-site (e.g. floor tiles).

STUDENTS’ HOSTEL
Students’ hostels are premises used to provide boarding and lodging for students who are studying
in the local primary schools, secondary schools, junior colleges and tertiary institutions.
Owners of residential premises including landed houses and apartments can rent out bedrooms to
full-time students for long-term stays of at least 6 months without having to apply for Change of Use
permission if:
- the number of students per bedroom does not exceed 3;
- the number of students per residential unit does not exceed 15; and
- no internal partitions were constructed to create more bedrooms
WORKERS’ DORMITORY
Workers’ Dormitories (WD) in industrial premises are used to house foreign workers who are
engaged to perform industrial or production activities.
- Ancillary WD – for workers employed by the owner or lessee of the factory; and workers who
work on-site at the subject factory.
- Secondary WD – mainly for workers who are not employed by the owner or lessee of the
factory; as well as both on-site and off-site workers.
SELECTED COMMERCIAL USES
URA will now allow selected commercial uses (i.e. clinic, banking hall/ATM, minimart and fitness
centre/gym) in outlying industrial estates which are located far from existing commercial nodes, as
these are basic amenities which serve the needs of industrial workers.
These commercial uses will be capped at a size of 200 sqm or 10% of the total proposed GFA per
development, whichever is lower. They have to be located on the first storey of the building. If
supported, the uses will be approved on TP for up to three years and levied Commercial “A” rates.

CHANGE OF USE
Planning permission for Change of Use is required when the proposed use changes:
- from one Use Class to another Use Class
e.g. furniture shop (Class 1) to gym (Class 4).
- from one Use Class to an unclassified Use Class, or vice versa
e.g. office (Class 2) to student hostel (unclassified).
- from an unclassified Use Class to another unclassified Use Class
e.g. hotel to pub.
Planning permission for Change of Use is not required when the proposed use is within the same
Use Class, e.g. retail shop (Class 1) to beauty salon (Class 1).
Planning permission is also not required for Change of Uses that are authorised under the following
categories:
- HDB commercial premises and living quarters of HDB shops
- private commercial premises and shophouses
- childcare centres in work places, commercial, community and institutional buildings
- changing from a general industry to light industry
The authorisations apply to change of use of individual units and do not involve en-bloc
conversions.
The approved use of premises is indicated in the Grant of Written Permission issued by URA. A copy
of the document can be obtained from the landlord or the property owner.
Alternatively, a search enquiry can be submitted to URA to find out the approved use. There is a
search fee of S$53.50 (including GST) per property unit and the result will be received within 2
weeks.
URA has a free Electronic Development Register to check for approved use. This is an electronic
repository for information on all Written Permissions granted or rejected by URA from 2000.

CONSERVATION PROPERTIES
Historic buildings provide a valuable link to Singapore’s heritage and conserving them is an
important part of Singapore urban planning. There are over 7,000 buildings have been gazetted for
conservation. They are located mainly in the city centre and around its fringes, and comprise largely
shophouses and bungalows.
The 4 main categories area are:
- Historic Districts: include Boat Quay, Chinatown, Kampong Glam and Little India, are among the
city’s oldest areas. Most of the buildings in these areas are still intact, and the entire building has
to be retained and restored.
- Residential Historic Districts: Blair Plan, Cairnhill and Emerald Hill. Rear extension lower than
the main roof can be built for greater flexibility in adapting the building for modern living.
- Secondary Settlements: Geylang and Joo Chiat areas. Emphasis is placed on retention of
streetscape. A new rear extension up to the maximum height allowed for the area can be built.
- Bungalows: Detached buildings with architectural styles. For bungalows, the main house needs
to be kept.
SHOPHOUSE
- narrow, small terraced houses, with a sheltered ‘five foot’ pedestrian way at the front.
- can be used for both business and living.
- constructed between the 1840s and the 1960s,
- two- to three- storeys high, built in contiguous blocks with common party walls.
- Form the bulk of our gazetted conservation buildings.
- Need to follow URA’s guidelines for restoration.

DEVELOPMENT CHARGE
- Tax on the enhancement in land value (betterment tax) resulting from the State approving a
higher value development proposal.
- Payable when:
- Change in use to a higher use
- Change in zoning to a higher use zone, e.g. from a residential zoning to a commercial zoning
- Increase in intensity of development, e.g. an increase in the plot ratio beyond what is
permitted in the Master Plan 2003
- A combination of both change in use and intensity resulting in a higher value.
- Owner of the land or the applicant for the planning permission is liable for payment.
- Development charge rates may vary.
- IRAS and MND carry out a joint review of the rates every 6 months, in Mar and September of
each year.
- Latest information on the DC rates, use groups and sector maps can be obtained at
http://www.ura.gov.sg/dc/Development%20Charge.htm.
The following forms of development or property projects are exempt from payment of Development
Charge:
a) Buildings under conservation
b) Dwelling houses within a landed housing development that cannot be subdivided
c) Conversion of “industrial” land in Hillview and Bukit Timah areas for residential development
d) Erection or extension to any single detached, semi-detached, linked or terrace house
e) Conversion from net plot ratio as per 1958 and 1985 Master Plan to gross plot ratio
f) Land sold by the government or by a statutory board
CALCULATION OF DEVELOPMENT CHARGE

Development charge is payable when the development ceiling exceeds the development baseline,
i.e.
Development Charge payable = Development Ceiling – Development Baseline
2 Basis of computing:
1) Fixed rate Development Charge
- Refers to a Fixed Rate Table containing rates for different land use groups in different
geographical areas.
- 118 geographical sectors, 10 use groups (2 for residential groups)
- If you are dissatisfied with the development charge determined by the fixed rate
method, you may request the Competent Authority to determine the development
charge on a case by case valuation of the land enhancement. However, this must be
done within 14 days of the Interim Order being served on you.

2) Case by case valuation

- Once you have chosen the case by case basis to determine the development charge, you
cannot revert to the fixed rate system. However, you may abort the first application for
planning permission, and reapply for a new planning permission.
- With effect from 18 July 2007, development charge is determined at 70% of the
enhancement in value.
DEVELOPMENT CEILING
Development ceiling is the value of the development proposed for a site and allowed by URA.
You can work out the development ceiling by using the following formula:
Development Ceiling = Proposed Gross Floor Area X DC rate for the use group in the Sector where
the site is located
DEVELOPMENT BASELINE
With effect from 1 Jan 2008, development baseline is defined in the Planning Act as the value
derived from the use and intensity of the approved development on the land, for which
development charge was paid, exempted, remitted or not required to be paid.
USE GROUP
Purposes of Development within Use Groups (W.E.F. 1st Sep 2013)
Use Purposes for which development is permitted or to be authorised
Group
A Shop, office, association office, cinema, place of entertainment, clinic, medical suite,
restaurant, petrol station, auto-service centre, commercial garage, market
B1 Residential (landed dwelling-house1)
B2 Residential (non-landed residential building)
C Hospital and health centre, hotel room and hotel-related uses
D Industrial, warehousing, science park, business park, transport depot, airport, dock, port
uses, utility installation, telecommunication infrastructure, Mass Rapid Transit Station,
Light Rail Transit Station
E Place of worship, community building, educational and institutional uses, government
building
F Open space, nature reserve
G Agriculture
H Drain, road, railway, cemetery, Mass Rapid Transit Route, Light Rail Transit Route
I Business zone commercial use
1
Can be land-titled or strata-titled dwelling house
2
Refer to residential density at 185 persons per hectare or less, or at 75 persons per acre or less
3
Refer to residential density more than 185 persons per hectare or 75 persons acre

EXAMPLE ON COMPUTATION OF DEVELOPMENT CHARGE
USING FIXED RATE TABLE

Information
Land area: 2,000 sq m
Existing development: Residential (Use group B1), plot ratio 2
Proposed development: Retail commercial (Use group I), plot ratio 3
Geographical Sector: 27
Latest DC Table: Use Group B1: $2,100; Use Group I: $4,184
Development ceiling
Proposed retail commercial development
Gross floor area (2000 x 3) @ $4,184 = $25,104,000
Less
Development baseline
Existing residential development
Gross floor area (2000 x 2) @ $2,100 = $8,400,000
Development Charge = $16,704,000
Using Valuation Method

Residential Land worth $8,000,000
Rezoned to commercial development, valued at $28,000,000
Value of commercial land: $28,000,000

Less value of residential land: $ 8,000,000
Enhancement in value: $20,000,000
DC @ 70% = 70% of $20,000,000 = $14,000,000

REFERENCES 168
SOURCES OF INFORMATION
REFERENCES
- Attorney-General Chambers: Singapore Statutes Online
- Government websites and government publications:
o Council for Estate Agencies (CEA)
o Urban Redevelopment Authority (URA)
o Housing Development Board (HDB)
o Singapore Land Authority (SLA)
o Inland Revenue Authority Singapore (IRAS)
o Central Provident Fund (CPF)
o Building & Construction Authority (BCA)
o Jurong Town Corporation (JTC)
o Immigration and Checkpoints Authority of Singapore (ICA)
- CASE Singapore
- Singapore Law Watch website, www.singaporelawwatch.sg
- Jacobus, C J (2010) Real Estate Principles, Cengage Learning, USA
- Tan, SY (2009) Principles of Singapore Land Law, LexisNexis, Singapore
- Tay, KP and Lee-Khor, ALS (1996) CCH/SISV Singapore Real Estate Handbook, CCH Asia Pte
Limited, Singapore

169 REFERENCES
APPENDICES

APPENDIX – STRATA CERTIFICATE OF TITLE 170
APPENDIX – STRATA CERTIFICATE OF TITLE

171 APPENDIX – STRATA CERTIFICATE OF TITLE





APPENDIX - THE DIFFERENTIAL PREMIUM 176
APPENDIX - THE DIFFERENTIAL PREMIUM

177 APPENDIX - THE DIFFERENTIAL PREMIUM






183 APPENDIX – SAMPLE TENANCY AGREEMENT
APPENDIX – SAMPLE TENANCY AGREEMENT

APPENDIX – SAMPLE TENANCY AGREEMENT 184
2. The Tenant shall pay to the Landlord the sum of Dollars TENANCY DEPOSIT
________________________________________________________
____________________________________ (S$ ) which
is equivalent to _________________( ) months rental upon
signing hereof to be held by the Landlord as a security deposit for the
due performance and observance of the stipulations and agreements
hereinafter contained and upon the expiration of the tenancy provided
the Tenant shall have duly performed and observed the stipulations
and agreements the said sum shall be refunded within fourteen (14)
days at any expiry or lawful termination of this tenancy without
interest to the Tenant but otherwise the same or part thereof shall be
used by the Landlord to offset any payments owing by the Tenant
without prejudice to the right of the Landlord to recover all monies
which may become due or payable by the Tenant under this
Agreement.
3. The Tenant hereby agrees with the Landlord as follows:
(a) To pay the said rent and hiring charges at the times and in the manner RENT/HIRING
aforesaid without any deduction whatsoever. SERVICE CHARGES
(b) Not to do or suffer or permit to be done anything whereby the policy NOT TO VOID
or policies of insurance in respect of the said premises or any part INSURANCE
thereof against loss or damage by fire may become void or voidable
or whereby the rate of premium thereon may be increased and to pay
the Landlord all sums paid by way of increased premiums and all
expenses incurred by them in or about the renewal of such policy or
policies rendered necessary by a breach of this Agreement.
(c) At the Tenant’s own cost and expense to keep the interior of the REPAIR OF DEMISED
premises in good and tenantable repair and condition, fair wear and PREMISES
tear excepted, throughout the term and to replace the same with new
ones if damaged, lost or broken and to yield up the same in good order
and condition at the termination of the tenancy.
(d) To provide and replace electric bulbs and tubes at the Tenant’s own REPLACE ELECTRIC
expense. BULBS
(e) To permit persons with authority from the Landlord at all reasonable ACCESS TO
times by prior appointment to enter and view the Premises for the PREMISES – NEW
purpose of taking a new tenant during two (2) calendar months TENANT
immediately preceding the termination of the tenancy.
ACCESS TO
(f) To permit persons with authority from the Landlord at all reasonable PREMISES -
times by prior appointment to enter and view the Premises whenever POTENTIAL
the Landlord wants to sell the Premises. PURCHASER
(g) Not to assign, sublet or part with the possession of the said premises
or any part thereof without the written consent of the Landlord, whose SUBLETTING
consent shall not be unreasonably withheld, in the case of respectable
or reputable person or corporation.
(h) Not to carry out or permit or suffer to be carried out alterations, NO UNAUTHORISED
additions or any changes of whatsoever nature to the premises without ALTERATIONS
first having obtained the consent in writing of the Landlord
(i) Not to do or permit to be done anything on the premises which shall NOT TO CAUSE
be or become a nuisance or annoyance or cause injury to the Landlord NUISANCE
or to the inhabitants of the neighbouring premises nor to carry on any
activity on the premises of an unlawful or illegal nature or constituting
an offence or being in contravention of any statute or law of the
country.
PERMITTED USE OF
(j) To use the premises as a private dwelling house only and not for any PREMISES
immoral or illegal or other purpose.
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Landlord Tenant
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(k) To take up a service contract with a competent air-conditioned

SERVICE OF AIRCON
maintenance contractor, but the Landlord shall pay for all necessary
repairs of the air-conditioned.
(l) To be responsible for all minor repairs and routine maintenance of the MINOR REPAIRS
premises not exceeding S$100.00 throughout the term of the said
lease.
(m) To pay all rates, taxes, levies, fees, charges and other outgoings on
PAY ALL RATES,
water, sewerage, sanitation, electricity, gas, telephone and other
ETC.
services imposed on, charged or payable upon or in respect of the said
premises with the exception on property tax and quit rent payable by
the Landlord under clause 4 (b).
(n) Not to keep or permit to be kept on the said premises or any part
thereof any materials of a dangerous, explosive or radioactive nature DANGEROUS
or the keeping of which may contravene any local statute or MATERIALS
regulations or bye-law or in respect of which an increased rate of
insurance is usually or may actually be required or the keeping of
which may cause the fire policy in respect thereof to become null and
void.
(o) To maintain the garden and fencing, if any, surrounding the Premises
MAINTAIN GARDEN
in a neat and tidy manner at the Tenant’s own expenses.
(p) At the expiration of the tenancy to peaceably and quietly deliver up to YIELDING UP OF
the Landlord the said premises in like condition as if the same were PREMISES
delivered to the Tenant at the commencement of this Agreement, fair
wear and tear and act of God excepted.
(q) If the Tenant is in breach of any clause and /or terminates this
REIMBURSE
tenancy prematurely / exercise the diplomatic clause, then the Tenant
COMMISSION FOR
shall in any event reimburse the Landlord commission paid to the
PREMATURE
Agency on a pro-rata basis for the remaining unfulfilled term.
TERMINATION
(r) The Landlord shall be entitled to deduct such reimbursement from the
security deposit held by the Landlord under Clause 2.
(s) To permit only occupants who are registered herein to occupy the
REGISTERED
premises. The Tenant must produce original/photocopy of documents
OCCUPANTS
such as Nric/passport/work permit/employment pass/student pass to
prove his/her legal stay in Singapore to the landlord.
(t) To insure for personal chattels against theft, loss or damage by fire. INSURANCE
(u) To comply and conform at all times and in all respects during the
COMPLIANCE WITH
continuance of this agreement with the provisions of all laws, acts,
LAW AND RULES
enactment’s and ordinances and rules, regulations, by-laws, orders
and notice made thereunder or made by other competent authority.
4. The Landlord hereby agrees with the Tenant as follows:-
(a) The Tenant paying the rents hereby reserved, performing and
QUIET ENJOYMENT
observing the several covenants and stipulations herein contained
shall peaceably hold and enjoy the premises during the term without
any interruption by the Landlord or any person rightfully claiming
under or in trust for the Landlord.
(b) To pay all property tax, rates and assessments in respect of the PAYMENT OF
premises. PROPERTY TAX
(c) To keep the roof, ceiling, main structure, walls, floors, wiring and KEEP PREMISES IN
pipes of the premises in good and tenantable repair and condition. GOOD REPAIR
(d) To insure the said premises against loss or damage by fire and to pay
FIRE INSURANCE
the necessary premium punctually.
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Landlord Tenant
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5. PROVIDED ALWAYS and it is hereby agreed as follows:-

(a) If the rent hereby reserved or any part thereof shall be unpaid for
DEFAULT OF
seven (7) days after becoming payable (whether formally demanded
TENANT
or not) or if the Tenant shall at anytime fail or neglect to perform or
observe any of the obligations, stipulations and agreements herein
contained on his part to be performed or observed or if the Tenant or
any other person in whom for the time being the tenancy be vested
shall become bankrupt or enter into composition with the Tenant’s
creditors or suffer any distress or execution to be levied on the
Tenant’s goods or if the Tenant being a company shall go into
liquidation whether voluntary (save for the purpose of amalgamation
or reconstruction) or compulsory then and in any of the said cases it
shall be lawful for the Landlord at any time thereafter to re-enter upon
the premises or any part thereof and thereupon this tenancy shall
absolutely terminate but without prejudice to the right of action of the
Landlord in respect of any antecedent breach of this Agreement by the
Tenant.
(b) The Landlord shall not be held to have waived the condition herein
contained where the Landlord has permitted the Tenant to do any act WAIVER OF
in breach of conditions or stipulations herein and the Landlord shall DEFAULTS
always have the right to enforce such conditions or stipulations
notwithstanding any antecedent breach of the conditions or
stipulations permitted by the Landlord.
(c) In the event of the rent, hire charge, management fee and or service
INTEREST FOR RENT
charge remaining unpaid for SEVEN (7) calendar days after becoming
ARREARS
payable (whether formally demanded or not) it shall be lawful for the
Landlord to claim an interest at ten percent (10%) per month.
Amount unpaid calculated as from the date payable.
(d) Provided the Tenant has occupied the premises for a minimum period
of TWELVE ( 12 ) months, the Tenant may exercise the diplomatic DIPLOMATIC
clause by giving the Landlord Two ( 2 ) calendar month’s notice in CLAUSE
writing of the Tenant’s intention to terminate the tenancy or Two ( 2 )
months’ rent in lieu of such notice if __________________________
________________________________________, the occupier of the
premises and employee of the Tenant shall be required by the Tenant
to leave Singapore permanently on a job transfer or if the said
occupier’s employment with the said Tenant is terminated for any
reason whatsoever. Provided always that the said written notice shall
be accompanied by documentary evidence proving the event relied
upon by the Tenant in the said written notice.
(e) Any notice required under this Agreement shall be sufficiently served
if it is sent by post in a registered letter addressed to the Tenant or the
SERVICE OF NOTICE
Landlord or other person or persons to be served by name at their
address specified herein at the last known place of abode or business.
A notice sent by registered letter shall deemed to be given at the time
when it ought in due course of post to be delivered at the address to
which it is sent.
(f) That the Landlord shall on the written request of the Tenant made not
less than two (2) calendar months before the expiration of the tenancy
hereby created and if there shall not at the time of such request be any OPTION TO RENEW
existing breach or non-observance of any of the agreements and
stipulations on the part of the Tenant grant to the Tenant a tenancy of
the said premises for a further term of one (1) year from the expiration
of the tenancy hereby created at the prevailing market rent and upon
the same terms and conditions.
Initials
Landlord Tenant
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RES EXAMINATION FORMAT

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USING THE COURSE NOTES

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CU1: REAL ESTATE AGENCY INDUSTRY OVERVIEW & BASIC

UNIT 1.1: REAL ESTATE MARKET AND SUBMARKETS

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CHARACTERISTICS OF REAL ESTATE

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- Intervention of the government

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REAL ESTATE AS AN INVESTMENT

REAL ESTATE INVESTMENT TRUSTS (REITS)

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CHARACTERISTICS OF REAL ESTATE INVESTMENT TRUSTS (REITS)

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COMPARISION OF REITS VS PROPERTY STOCKS

REITs Property Stocks

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REAL ESTATE MARKET

CHARACTERISTICS OF REAL ESTATE MARKET

OVERVIEW OF SINGAPORE PROPERTIES CLASSIFICATION

Landed Non Landed HDB Flats

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Office Shop Factory Warehouse Business Park

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Detached House (Bungalow)

Good Class Bungalow (GCB)

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Belmont Park Cornwall Gardens Leedon Park

Corner Terrace House

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SUMMARY OF LANDED HOUSING DEVELOPMENT

STRATA LANDED HOUSING (STRATA TITLE)

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MIXED COMMERCIAL & RESIDENTIAL DEVELOPMENT

SHOPHOUSES & SHOP FLATS

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SUPPLY AND DEMAND OF PROPERTIES

MARKET /PRICE MECHANISM

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Factors affecting demand are:

INTERACTION BETWEEN SUPPLY AND DEMAND

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REAL ESTATE CYCLE

Real Estate Cycle

- Expansion (boom or peak) — sustained growth in demand, increasing construction, speculators

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BUSINESS AND REAL ESTATE CYCLES

REAL ESTATE SUBMARKETS

SINGAPORE PROPERTY MARKET

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SINGAPORE PROPERTY PRICE INDEX

Covers the following sub markets:

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a) URA Private Residential Price Index

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Core Central Region

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b) Commercial Property Price Index

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c) JTC Industrial Property Price Index

Industrial Property Price and Rental Indices and Sub-Indices

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d) HDB Resale Price Index

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