Preliminaries

1. (a)Firstly, the purchaser’s solicitor would obtain all the necessary information in order to prepare the sale and purchase agreement and the deed of assignment. This information would include:
   1. (i)A copy of the purchaser’s identity card;
   2. (ii)A copy of the vendor’s identity card and address;
   3. (iii)All previous documents up until the principal sale and purchase agreement between the vendor and developer;
   4. (iv)The property address;
   5. (v)Details of the vendor’s present financier;
   6. (vi)The details of the master chargee on the master title;
   7. (vii)The developer/proprietors details
2. (b)The purchaser’s solicitor should also conduct a land search on the master title to ensure the land is not encumbered, who the proprietor of the land is, whether the land is freehold or leasehold, and who the master chargee of the said land is.
3. (c)The purchaser’s solicitor should also conduct a bankruptcy search on the vendor or if the vendor is a company, a winding up search on the same. If the vendor is discovered to be a bankrupt or if the vendor’s company is found to be wound up, the vendor does not have the right to sell the property without the permission of the official assignee or the liquidators, and therefore the sale transaction should be terminated.
4. (d)The purchaser’s solicitor should only proceed to draft the sale and purchase agreement and the draft deed of assignment after obtaining the search results and the relevant documents.
5. (e)Once the draft sale and purchase agreement and the deed of assignment have been prepared they should be forwarded to the vendor’s solicitor for his perusal and amendment (if any).
6. (f)Once the terms and conditions of the draft sale and purchase agreement and deed of assignment have been agreed, the purchaser’s solicitor should then finalise the documents.
7. (g)The agreements and documents the purchaser’s solicitor needs to prepare for the purchaser to execute, are as follows:
   1. (i)Four copies of the approved sale and purchase agreement;
   2. (ii)Four copies of the approved deed of assignment;
   3. (iii)The CKHT 2A form
   4. (iv)Five copies of the PDS 15 form;
   5. (v)The vendor’s statutory declaration that he is not a bankrupt or if the vendor is a company, the vendor’s directors’ statutory declaration that they are not bankrupts and the company is not subject to winding up proceedings;
   6. (vi)The relevant part of the state authority consent application form with its statutory declaration (if applicable); and
   7. (vii)The bill for the purchaser’s solicitor’s legal fees and disbursements
8. (h)After these documents have been prepared, the purchaser’s solicitor shall arrange for the purchaser to execute them and to pay the deposit sum in favour of the vendor or the vendor’s solicitor, and the purchaser’s solicitor’s legal fees and disbursements.
9. (i)At the time of filing the tax return forms [CKHT2A], the purchaser must pay 2% of the purchase price, on behalf of the vendor. The balance 3% will be paid by the vendor upon receipt of the tax form (Notis Taksiran).

It should be noted that the 2% paid by the purchaser forms part of the purchase price.

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