CEA Practice Guidelines on OTP and S&P Agreements – Singapore properties for sale/ rent
It is also provided in the CEA Practice Guidelines that Options to Purchase (OTP) and Sale and Purchase Agreements shall contain certain provisions to facilitate compliance with: Singapore properties for sale/ rent.
(a) new measures to safeguard conveyancing as provided in the Conveyancing (Miscellaneous Amendments) Act (Act 17 of 2011), the Conveyancing and Law of Property Rules 2011 (CLP Rules) and the Singapore Academy of Law (Conveyancing Money) Rules 2011 which will be brought into effect on 1 August 2011; and (b) the Residential Property Act Cap. 274 (RPA).
With effect from 1 August 2011, where an estate agent or salesperson makes available an Option to Purchase or Sale and Purchase Agreement to his/her client for use in the course of estate agency work, he/she shall comply with the Practice Guideline.
An example of such a clause is as follows:
1. This sale and purchase is subject to the Singapore Law Society’s Conditions of Sale 2012 (the “Conditions”) in so far as the Conditions and the terms and conditions of this Option to Purchase are not contrary to or in conflict with the following:
(a) Conveyancing & Law of Property (Conveyancing) Rules 2011 as promulgated under the Conveyancing & Law of Property Act (“Conveyancing Rules”); and
(b) Singapore Academy of Law (Conveyancing Money) Rules 2011 as promulgated under the Singapore Academy of Law Act (Cap 294A) (“SAL (Conveyancing Money) Rules”) (if applicable).
2. Where the terms and conditions of this Option to Purchase are in conflict with the Conditions, the former shall prevail.
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