Formula for cash proceeds calculation – Home in Singapore for rent
Home in Singapore for rent – The formula for cash proceeds calculation is as follows, home in Singapore for rent:
1) Price sold
2) Less outstanding mortgage loan plus any outstanding instalment and interest.
3) Less CPF used plus accrued interest.
4) Less estate agent’s commission (if applicable).
5) Less property tax up to the date of completion.
6) Less seller stamp duty (if applicable).
7) Less legal fees from lawyer acting for seller in the conveyancing.
8) Less maintenance and service charge payable to the MC (if applicable) up to the date of completion.
1) Price sold
This is the purchase price paid by the buyer for the seller’s property. Home in Singapore for rent.
2) Less outstanding mortgage loan plus any outstanding instalment and interest.
If the seller had taken a mortgage loan previously for his property from a financial institution and the mortgage loan is still outstanding on completion, the seller is required to redeem his mortgage loan by giving the financial institute the required redemption notice period required by the financial institute, failing which the financial institute may impose a penalty/interest. The seller is also required to settle any outstanding instalment and interest (if any). Home in Singapore for rent.
3) Less CPF used plus accrued interest.
If the seller had used his CPF for the purchase of the property, whether in the initial payment and/or repayment of the mortgage loan, the total amount of CPF used plus accrued interest would have to be returned to his CPF Ordinary Account. Home in Singapore for rent.
4) Less estate agent’s commission (if applicable).
If the seller had used the services of an estate agent, the seller would have to pay a commission, normally around 1% to 2% of the price sold. Home in Singapore for rent.
5) Less property tax up to the date of completion.
Normally the sale and purchase is subject to “The Singapore Law Society’s Conditions of Sale, 2012”, which among other conditions states that the seller shall pay property tax up to the date of completion of sale. Home in Singapore for rent.
6) Less seller stamp duty (if applicable).
For any residential property purchased with exercise date before 20/2/2010, the seller does not have to pay any Seller Stamp Duty (SSD) for selling regardless of holding period. However, on 20/2/2010, 30/8/2010 and 14/1/2011, theSingaporegovernment introduced SSD payable by the seller under certain circumstances to help cool the property market. The circumstances under which SSD is payable by the seller are as follows, home in Singapore for rent:
– If it is sold within 1 year of holding period for OTP exercised between 20/2/2010 to 29/8/2010 – seller to pay full stamp duty computed in the same way as buyer’s stamp duty. If sold after the 1st yr of purchase – no SSD is payable (This rule is no longer applicable)
– If it is sold within 3 years of holding period for OTP exercised from 30/8/2010 to 13/1/2011, the SSD payable by the seller is as follows:
- If sold in the 1st yr of purchase – SSD is full stamp duty (same as buyer’s stamp duty)
- If sold in the 2nd yr of purchase – SSD is 2/3 of full stamp duty
- If sold in the 3rd yr of purchase – SSD is 1/3 of full stamp duty
- If sold after the 3rd yr of purchase – no SSD is payable
– If it is sold within 4 years of holding period for OTP exercised from 14/1/2011 onwards, the SSD payable by the seller is as follows, home in Singapore for rent:
- If sold in the 1st yr of purchase – SSD is 16% of price sold
- If sold in the 2nd yr of purchase – SSD is 12% of price sold
- If sold in the 3rd yr of purchase – SSD is 8% of price sold
- If sold in the 4rd yr of purchase – SSD is 4% of price sold
- If sold after the 4th yr of purchase – no SSD is payable
Computation of holding period is based on exercise date of purchase to exercise date of resale. If stamp duty is payable, it has to be paid within 2 weeks after exercising OTP. Home in Singapore for rent.
7) Less legal fees from lawyer acting for seller in the conveyancing.
Legal fees are no longer regulated. The seller is advised to shop around for competitive rates. The estimated legal fees acting for the seller plus mortgage discharge plus CPF discharge are as follows:
Purchase price Est. legal fees
<$1M $3,000
$1M to $2M $3,500
8) Less maintenance and service charge payable to the MC (if applicable) up to the date of completion.
If the property is a landed property such as a bungalow, there is usually no maintenance and service charge. If it is a strata titled property such as a condo, there is usually a maintenance and service charge payable to the Management Corporation (MC). In such a case, the seller shall pay for the maintenance and service charge to the MC up to the date of completion of the sale.
Please click here to search for home in Singapore for rent.
