Conveyancing is not exactly easy to understand, and hiring a conveyancing lawyer can also be quite confusing. However, if you look at conveyancing with a deeper understanding, you would know why many people hire conveyancing lawyers.
What is Conveyancing?
It is a part of real estate law that involves preparing documents for transferring a property from the seller to the buyer. In addition, some lawyers specifically practice conveyancing. In Singapore, several law firms cater to real estate, property law, and conveyancing. However, hiring any form of lawyer can be pretty expensive. Thus, people do not see the need for it until they encounter a transaction problem.
Conveyancing Types and Fees in Singapore
Several conveyancing fees are to be paid in Singapore real estate transactions, such as MCST certifications, mortgage stamping fees, transfer registration fees, and more, which are payable to different departments and people. However, conveyancing lawyer fees in Singapore range from $1,000 to $5,000. The costs are so high because once hired, the conveyancing lawyer takes care of all documents and processes needed for transferring property.
Conveyancing lawyer fees in Singapore include responsibilities such as:
- Overseeing contract signing
The lawyer ensures that both parties sign the contract and agree to the terms. Once the buyer exercises the OTP (Option To Purchase), they should give their lawyer 4% of the total purchase price.
- Performing a title search
The lawyer’s responsibility is to do a title search to find out whether a property has an outstanding mortgage, what type of property it is, the owners’ names, and the lease’s length.
- Lodging property caveats and making payments
Property caveats will notify third parties that the buyer has an interest in the property. Downpayment is also due at this point, and the lawyer collects this money. It is placed in a conveyancing account, which is created to ensure that the payment for the seller is already secured.
- Transferring the title and taking possession
Upon property turnover to the buyer, the previous owner’s conveyancing lawyer will also turn over the transfer documents to the other party’s lawyer. This allows the buyer to apply for a Certificate of Title from the SLA (Singapore Land Authority).
Conveyancing lawyers will take care of contacting the SLA, the IRAS (Inland Revenue Authority of Singapore), both the buyer and the seller’s banks, and other relevant parties so that the buyer and seller can focus on haggling and other transactions.
Conveyancing lawyer fees in Singapore are not as expensive when you look at it. However, when you experience being one party in a real estate transaction and do not agree to or fulfill an undertaking, more fees are to be paid once a lawsuit is filed. In addition, conveyancing law is often overlooked when a property transaction is in progress, but going through with it with a conveyancing lawyer by your side will turn out to be a relief once all the transactions are done, and all property documents have been turned over.