When you have a property for lease, the task of handling and maintaining the daily activities can be tedious especially if you own other real estate and businesses in Singapore. Hiring estate maintenance might sound like a fancy and expensive move, but it is essential for landowners who cannot keep with various demands such as the collection of monthly rental payments, maintenance of properties, searching for tenants to occupy the units for lease, and the grounds upkeep.
These are the least of your worries, however, because owners who seek more income from properties also have to handle paperwork.
Property Ownership Laws
If you wish to own more properties in Singapore, you have to familiarize yourself with estate maintenance and the laws of property ownership, particularly the laws that cover the purchase of commercial and residential properties. These are detailed in the Residential Property Act or RPA, the Sale of Commercial Properties Act, and the Housing Developers Act.
A managing agent from http://www.estateinfo.sg in Singapore can act as your partner and liaison when you purchase land or residential property in Singapore. He or she can also help you understand the rights and restrictions defined by these Acts, such as the acquisition of flats in a non-landed house, units sold in the executive condominium scheme, and units approved in a condominium building. Your condo manager will also be able to arrange all the necessary paperwork and other requirements when searching and screening for prospective tenants.
When developing and selling property, the Housing Developers Act says that selling of four or more units should be done by a housing developer. Your managing agent in Singapore can make the arrangements for you without worrying if you have satisfied all the requirements and he/she even draw up the contracts in sale transactions for you. You will also need to get a certificate of fitness for occupation for commercial properties, a task that can also be simplified with the help of a property management company.
There are also procedures in buying property that must be observed, such as the completion of the form of direct agreement for sale, form for option to purchase from the vendor, and handling the booking fees and deposit payment. It is recommended to get legal advice whenever you’re buying property because you might lose your money if the vendor decided to forfeit the deposit you have paid or withdraw from the agreement. Property management can recommend a lawyer who will help you go over the terms of contract during negotiation to ensure fairness and accuracy.
Fees and Taxes for Property Buyers and Vendors
Your managing agent can help you arrange all the documents you will need for the following fees that you will be expecting when selling or buying properties:
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1. Agents’ Fees
There are no fixed laws in Singapore that can serve as guide for paying a commission to agents. When there isn’t a fixed percentage of commission, some agents can charge for up to 3% of the price of purchase.
2. Legal Fees
You will need a lawyer when you’re about to finalize the purchase or the selling of the property. Some lawyers follow the guideline when asking for their quotation, but others charge based on the law firm’s reputation or the type of service rendered.
3. Property Tax
The tax is based on the calculated annual property value, which in turn is based on the annual rent.
The Legal Aspects in Facilities Management
It is the landowner’s responsibility to create safe, clean and functional units for the tenants, that is why the Building Maintenance and Strata Management Act was written in 2004 to help owners understand their role better.
The Act details all the rights and restrictions of the landlord and the tenants, and the procedures and requirements for solving common issues that may arise, such as alteration and additional structures to lots; defective works in common property and buildings; inter-floor leaks; waterproofing warranty from the developer; misuse or enclosure of common properties; unsatisfactory management and maintenance; obtaining copies of documents from the management; social recreations and activities; maintenance charges; and the maintenance of the building and lifts.
It also explains the compulsory by-laws that management must observe and adopt. Other information included in the Act are key provisions that detail the maintenance contributions, significance of share values, management corporation, and the responsibilities and duties of the developer, the managing agent and council members.
If you don’t have time to study the different types of contract for example, your condo manager can arrange for all the requirements needed in service, tenancy, and rental of equipment agreements. During disputes, he or she can also assist you in understanding the law tort of negligence.
Property and building laws, legislations and regulations in facility management also require expertise that can be provided by your hired property management agency including giving legal advice regarding the Workplace Safety and Health Act, Environmental Protection and Management Act, and the Environment Public Health Act.
Distribution of Deceased’s Properties
Details of the inheritance laws and the distribution of your properties in case you are incapacitated or deceased can be provided by your estate management agency. If you own several properties, assets and business, it is important to set up preparations so that you can pass everything you have worked hard on to your loved ones without any hassle.
For estate planning, property management can help you understand the Trust Law in Singapore, the fiduciaries and fiduciary law, Muslim inheritance, discretionary living trust, and even the donation of your assets.
They can also guide you and your survivor when it comes to issues regarding the distribution of estate assets, such as; the execution of the will or what to do in absence of a will; contesting of a will; letters of administration; Inheritance Act in Singapore; application for a grant of probate; unaccounted residuary property; and access to bank accounts.
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