Buying a property can raise some concerns, especially if you are a first time buyer. Below are the FIVE basic things that you may want to know before investing your hard-earned money into something as liberating as owning a property.
- Landed properties are divided primarily into 2 categories, the landed property with individual title and the ones that comes with strata title (though the term strata title is more commonly used for apartments).
- Landed properties with individual titles are governed by a prescribed form of Sales & Purchase Agreement provided by the Housing Development Act (Schedule G), to ensure that the buyer’s rights are protected.
- Landed properties with strata titles are governed by a prescribed form of Sales & Purchase Agreement provided by the Housing Development Act (Schedule H), together with another set of Agreement on house rules (commonly known as Deed of Mutual Covenant) to be signed between the Developer/Seller and the Purchaser.
- Landed properties with strata title has monthly sinking fund payment obligations as well as monthly maintenance payment obligations as they are usually in a residential gated and guarded communities.
- Landed properties with individual title are only subjected to assessment (a bi-annual payment that’s to be paid to the respective city/town council) and quit rent payments (a payment to land registry which is on yearly basis)
Always remember to take a little time to meet and learn from experts, property lawyers, fellow investors and buyers!
