Q & A

Q: I intend to buy a private property for the first time. What do I have to consider before committing myself to the purchase?

A: If you are buying a property for the first time, you may wish to consider the following before committing yourself to the purchase.

Please click here to view the points for your considerations before committing to the purchase.

Q: What if I am overseas and will not be able to personally handle the transactions for my property purchase?

A: If you are living overseas or are not able to personally handle the transactions, you may appoint someone under the Power of Attorney to act for you in the purchase of the property.

Q: What is joint-tenancy?

A: A joint-tenancy is a form of property ownership where all co-owners have an equal interest in the property, regardless of the individual owner’s contribution to the property purchase.

In joint-tenancy, there is a right of survivorship. This means that upon the death of a joint-tenant, his interest in the property will automatically pass on to the remaining co-owners, regardless of whether the late joint-tenant has left behind a will.

Q: What is tenancy-in-common?

A: A tenancy-in-common is a form of property ownership where each co-owner holds a separate and definite share in the property. However, all co-owners are entitled to the enjoyment of the whole property regardless of their share in the property.

There is no right of survivorship in tenancy-in-common. The tenant-in-common’s share in the property does not automatically pass to the remaining co-owners. Upon the death of a tenant-in-common, his interest in the flat will be distributed according to his will (if any) or according to the provisions of the Interstate Succession Act.

Using of CPF

Q: What is the Private Properties Scheme (PPS)?

A: The Private Properties Scheme allows CPF members to use their CPF savings to buy private properties in Singapore for home ownership or investment.

Q: Is there a minimum age limit for two non-related persons to use their CPF to buy a private property?

A: Two non-related persons can use their CPF to buy a private property jointly, provided they are both at least 21 years old. Non-related persons are allowed to use their CPF savings to buy a private property jointly as long as they are not undischarged bankrupt and do not own another property bought using CPF savings.

Q: Can I use my CPF to purchase more than one property?

A: Yes, you may use your CPF to purchase more than one property. However, if you already own a property (HDB flat or private property) bought with your CPF savings and wish to buy another property with CPF savings after 1 July 2006, you must set aside half of the prevailing Minimum Sum (not apply to new EC) before you can use the excess savings in your Ordinary Account for the second/subsequent property. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.

Please note that as the Minimum Sum will be raised in July each year, the amount you need to set aside will be adjusted accordingly.

If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside half of the prevailing Minimum Sum unless you subsequently buy another property using your CPF savings on or after 1 July 2006.

Q: I currently own a non-residential property paid using CPF monies. I would like to buy a private property using CPF monies now. Do I need to set aside half of the prevailing Minimum Sum (MS)?

A: No. You need not set aside half of the prevailing MS for the purchase of the new private property as the multiple properties rule applies only to private properties.

Q: Are non-related persons allowed to use their CPF to buy a private property?

A: Yes, non-related persons may use their CPF jointly to buy a private property if they satisfy the following conditions:

(1) All the prospective owners are single, i.e. unmarried, legally divorced or widowed, and

(2) They have not used CPF for property (private property or HDB flat). If a CPF member had used CPF for property previously but has refunded the CPF withdrawn and accrued interest to his CPF account, he is not considered as having used CPF for property.

Note: The information serves as a guide only. Members should seek advice from their lawyers, financiers or housing agents if they need further clarification.  

  Call Eric Tan @ 97881579 or Cindy Ng @ 97738372 for more Detail

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