Implications of Revising OTP after completion of SnP

[lifeline]

Need advice from forummers here on this unique problem of my friend.


He sold his landed LH99 to a Singaporean and his Chinese wife.
The plan was for him to buy under his own name. OTP was eventually prepared under both names.

The exercise was meant to be quick, but eventually got delayed cos the Chinese wife changed her nationality to US, and then exercise was done. She is a Singapore PR as well.

SnP completed and money disbursed.

Now my friend's lawyer called - Land Dealings Approval Unit <LDAU> wants a revised OTP - to include 'subject to LDAU approval'. On top of that, major AnA already underway - complete walls hacked, etc.



slip-ups at all levels, esp buyers' side.


I see many issues:



1. Accede to request - add in subject to LDAU with both buyers' names.

If LDAU rejects, then friend got to return money? with walls hacked +++?
potential risk... somemore also completed SnP and received money already.

If approved, buyer got to pay stamp duty again?? got to pay any ABSD again?? dun know how many properties they have. any other implications to friend?



2. Accede to request - but modify change to husband's name only - without the subject to LDAU.

same as above - buyer pays stamp duty again? unless IRAS agrees to waive.
any implications to friend?



3. Dun accede to request - then property cannot be properly transferred, more legal headaches.



4. Others ?



Has anyone encountered such situations before?
any suggestions and comments will be useful and appreciated.


Thanks in advance.

[silver023]

From experience, that clause will be required by authorities no matter what. Would suggest option 2... No need to pay SD again.

Otherwuse, use option 1, but add clauses for buyer to indemnify all costs.

[lifeline]

Thanks silver023. Guess that's the way to go.

[silver023]

You're welcome.

Just paperwork, so should be no material issues from your friend's perspective, esp since transaction completed.

Good luck! PM me if you need more info

[may2012]

The chinese wife was a SPR before buying the house?

If so why put her name?

[Laguna]

To play safe, suggest to table the options to SLA LDAU for consideration first.

Option 2 is better.

[carbuncle]

Failing which, can always have a 'National Conversation' on this unique issue with Ministers...

[lifeline]

The chinese wife was a SPR before buying the house?

If so why put her name?

Not sure, think she was already SPR then. Was told that they wanted to put husband's name only at first and rushed the exercise date. Then delayed cos changed the wife's nationality to US. We thought this may be due to the FTA with US, but no difference in ABSD treatment between US and SPR.

Prob just want equality and asset under her name. Prob the flipflop resulted in omission of the LDAU clause.

[silver023]

Found it: http://www.sla.gov.sg/doc/new/LDAU%20CIRCULAR%201%20OF%202012.pdf

[lifeline]

To play safe, suggest to table the options to SLA LDAU for consideration first.

Option 2 is better.

I dun think SLA being regulatory will accept buffet-style choices. It's more like you put up your option and they approve or otherwise.

Agree option 2 is better.

[lifeline]

Found it: http://www.sla.gov.sg/doc/new/LDAU%20CIRCULAR%201%20OF%202012.pdf


thanks once again! also found quite a number of other links as well while surfing.

ultimately whose responsibility is it?
the agent? - buyer's or seller's
the lawyers? - buyer's or seller's
the seller or buyer?
or everybody?

are you with SLA ? :)

[lifeline]

Failing which, can always have a 'National Conversation' on this unique issue with Ministers...


aiya... "small" matter la.
try to solve locally first and no need to escalate to that level la... :)

[lifeline]

another implication:

if go by option 2, that is, husband's name only, there will be a need to redo the SnP to change the name from couple name to husband only.

sounds complicating...

[silver023]

No la, not SLA.

Assuming buyer's agent met the wife before, the buyer agent should have checked and advised buyer. Both lawyers should have also checked (esp buyer's given they had full buyers' info).

But blame attributing will get messy without resolution.... Focus on rectifying paperwork. If they want Option 2, then just have them change the paperwork themselves (stamp duty should be payable (by new owners)).

[lifeline]

yes, focus on rectifying paperworks.
incidentally buyer's agent is the husband's brother.
will see how they sort out things.
thanks again.

[lifeline]

a repository of links for those who may need it in future:


http://www.sla.gov.sg/htm/ser/ser0306.htm

http://www.sla.gov.sg/doc/ser/Forms_Aug_2011/Form%20A.doc

http://www.ura.gov.sg/lad/HBG/basicCheck.htm

http://www.singaporeexpats.com/guides-for-expats/procedure-for-purchase.htm

http://blog.iproperty.com.sg/landed-property-reserved-for-singaporeans/

http://www.asiaone.com/print/Business/My%2BMoney/Property/Story/A1Story20120224-329930.html

http://www.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20120410-338715.html



other link provided by silver023:

http://www.sla.gov.sg/doc/new/LDAU%2...0OF%202012.pdf

[lifeline]

update:

buyer's lawyer trying to get matter resolved asap esp with the price having moved up further n QE3 announced.

anyway friend has decided to acceded to their request to add addendum to otp: for both names subject to LDAU approval, else buy in husband's name alone. make things easier for them, rather than void the otp due to technicality; afterall sales completed already.

[buttercarp]

Did not see this thread initially.
Wow, so messy situation.
Hopefully solved.
Lesson learnt - as a landed seller, we have to be cautious when it comes to non singaporean buyer who is PR.

[lifeline]

Did not see this thread initially.
Wow, so messy situation.
Hopefully solved.
Lesson learnt - as a landed seller, we have to be cautious when it comes to non singaporean buyer who is PR.



actually friend's friend said if void, will be to his advantage. however he decided to do the right thing and honour the original agreement.