Conveyancing Practice – written notes – Emily Law

Topic 5: Sale and Financing of Property Without Title

Note: Until the individual title is issued, vendor = legal owner; purchaser = beneficial owner.

Procedure for SPA

Developer Sale

1. VS will prepare 5 sets of SPA (Schedule G/H/I/J) stating the particulars of: V’s co name,
registered & office address, license no & details of property sold.

2. VS will write to PS, forward 5 sets SPA for completion of P’s particulars (name, IC, add)

3. PS will:
a) vet the SPA
b) conduct title search on master title, company winding up search on developer
& bankruptcy search on purchaser
c) request for the utilities bills, quit rent & assessment receipt to ensure the true
identity of P
d) prepare CKHT form
e) prepare 5 sets of stamping proformas
f) prepare entry & removal of private caveat forms on master title specifying P’s
parcel and interest
g) prepare deed of assignment (DOA) between V and P (for sub-sale only)
h) write to give notice of sub-sale in writing to V in pursuant to s. 22D of HDA
Under S. 22D(4), it is the duty of PS to obtain necessary confirmations from V
(refer Act) (for sub-sale only)

4. PS then send a letter to inform P that the SPA is ready for execution & to pay 10%
deposit upon signing. A bill for legal fees & disbursement is attached together.

5. P, in the presence of his solicitor executes the SPA, CKHT & entry and removal of
private caveat (and DOA – for sub-sale only). P has to pay 10% deposit and settle the
legal fees & disbursement.

6. PS will forward to VS the 10% deposit, SPA & CKHT form (and DOA – for sub-sale
only) for V’s execution.

7. V forward to PS the duly executed SPA & CKHT forms (and DOA – for sub-sale only)
 Note: V will only execute DOA upon confirmation of loan from P2’s financier
bank. (for sub-sale only)

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Conveyancing Practice – written notes – Emily Law

8. PS will stamps the SPA at stamp office & give each party 1 copy of SPA.

9. PS will then lodge the private caveat on master title specifying P’s parcel and interest in
order to protect the interest of P

Procedure for Loan (sub-sale)

1. P2 takes the SPA to PB2 & applies for loan to finance the purchase of the property. Once
the loan is approved, the PB2 will send a letter of offer & letter of instruction to P2.

2. PBS2 will conduct 1st title search on master title, bankruptcy search for P1 and P2
and company winding up search (if any)

3. PBS2 will write to P2 to inform him to execute the Loan Agreement Cum Assignment
(LACA) and Power of Attorney (PA) and to inform P2 to bring the original SPA,
photocopy of IC and legal fees. (letter 1: inform P2 to execute loan doc – by PBS2 to P2)

4. PBS2 informs PS1 that loan has been granted & seek the confirmation of PS1 on the
following: (letter 2: letter of inquiry – by PBS2 to PS1)
a) Whether the DOA between P1 and P2 has been duly executed
b) Whether the DOA has been presented for adjudication

5. PBS2 will request undertaking from the PS1 to forward them (undertaking 1: by PS1)
a) A duly executed, valid and stamped SPA2 & DOA between P1 and P2.
b) The letter of undertaking by P1 addressed directly to PB2 to refund the loan sum
released in the event that the DOA cannot be perfected (undertaking 2: by P1)
c) The duly executed MOT in favour of P2 upon issuance of individual title
d) The original stamped SPA between developer and P1 and all subsequent
documents evidencing the chain of beneficial ownership of P1.
e) The redemption statement from PB1
f) The duly executed and stamped Receipt and Reassignment (R&R) with PA
Clause revoked and registered in HC
g) The PBS1’s letter of undertaking to PB2 to refund the redemption sum in the
event the R&R cannot be perfected

6. PS2, upon confirmation from PS1 that they had stamped the duly executed R&R,
will send the DOA for adjudication.

7. Then, PS1 will inform PBS2 that DOA has been executed and presented for adjudication.

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Conveyancing Practice – written notes – Emily Law

8. PBS2 will also write to PS2 for the following (letter 3: letter of inquiry – by PBS2 to
PS2)(undertaking 3: by PS2)
a) Whether the differential sum has been settled by P2
b) The name & address of the bank to which the property is currently assigned to
c) To forward the redemption statement cum letter of undertaking upon receipt from
PB1 to deliver all original documents and the duly executed and stamped Receipt
and Reassignment (R&R) with PA Clause revoked and to refund the redemption
sum in the event the R&R cannot be perfected
d) To forward P1’s undertaking to refund the full loan sum in the event the DOA
cannot be perfected
e) To forward all original documents & the duly executed and stamped R&R upon
receipt from PB1.
f) To forward current quit rent and assessment receipt
g) To forward the stamp duty for stamping the DOA

9. PS1, upon receipt PBS2’s letter will write to inform PBS1 that P2 had obtained a loan.
The PBS2 requires direct undertaking from PB1 that they will deliver the duly executed
R&R and to refund the redemption sum in the event that the R&R cannot be perfected.

10. At the same time, PS1 will forward the letter of undertaking as requested by PBS2 (refer
5. ) (undertaking 3 – by PS1) and will also reply to PBS2 that:
a) Differential sum has been settled by P2
b) The property is assigned to PB (name the bank’s name)
c) They have written to PB1 to request for the redemption sum cum letter of
undertaking

11. PB1 will reply to PS1 & forward the original redemption statement cum undertaking
addressed directly to PB2.

12. PS1 will forward PBS2 the:

a) Original redemption sum cum undertaking from PB1
b) Letter of undertaking from P1 addressed directly to PB2 to refund the loan sum
released in the event that the DOA cannot be perfected (undertaking 2: by P1)

13. PBS2 will forward the same to PB2 & advise to release the redemption sum.

14. PBS2 will release the sum to PS1 & PS1 will forward to PBS1 together with R&R for
execution.

15. PBS2 will lodge a private caveat in favour of PB2 specifying PB2’s parcel and interest.
16. PBS1 will execute the R&R & forward it to PS1 with all original documents.
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Conveyancing Practice – written notes – Emily Law

17. Then, PS1 will:

a) stamp the R&R
b) register the revocation of PA with HC
c) forward the R&R with all original documents to PBS2

18. PS2 will forward to PBS2 the duly adjudicated & stamped DOA and the withdrawal of
private caveat lodged by PS2 & registration fees for withdrawal of caveat.

19. Upon receipt R&R and DOA, PBS2 will stamp the LACA and send the LACA, DOA and
all original documents to PB2 and advise to release the balance loan sum to P1.

20. PBS2 will proceed to register the PB2’s PA at HC.

21. PS2 to file Borang I to change the name of owner at relevant municipal council.

Note: it is advisable for purchaser/borrower to negotiate with the bank that in the event that
individual title is issued and the MOT had been executed and presented for registration, the
LACA should also be converted to a Charge and to be registered.

Note: in requesting undertaking from charge bank, the sequence is as follows:

 PBS2 → PS2 → PS1 → PB1/chargee bank

Note: To shortcut, PBS2, upon inquire PS1 the details of chargee bank, can directly write to
PB1/chargee bank to request the redemption statement cum undertaking.

 PBS2 → PS1 (ask details of chargee bank)

 PBS2 → PB1/chargee bank