Sub-sales occur when a property is bought from a developer and sold to another buyer before the development is completed and receives the Certificate of Statutory Completion . While the terms CSC and Temporary Occupation Permit are often used interchangeably amongst property owners, they mean different things.
A development can only be open for residential living after obtaining a TOP. Remaining works such as completing the swimming pool or other amenities can be carried out in the meantime.The legal completion dates for TOP and CSC may be completely different. Just because the condo has residents already living there doesn’t mean it has obtained its CSC., the general period given to developers to obtain the CSC is one year after obtaining TOP.
Paying SSD is compulsory if you decide to sell your residential property within three years of purchase. The rate is based on the property’s market valuation or selling price .• Sell within two years of purchase – 8 per cent SSDExample: You purchase a condo for $2 million. You decide to sell it next year. This means you have to pay a 12 per cent SSD of $240,000. Not factoring in the myriad of other legal fees, you need to sell your unit at S$2.24 million or more just to break even.
You should only sell your unit four years after signing the sales and purchase agreement to avoid paying SSD.the S&PA and the developer has not yet conveyed the legal title of the unit to you, you’ll need to inform the developer of the sub-sale. This can be done through the agent in charge of your original sale.
The developer will then enter into a new S&PA agreement with the sub-purchaser, with the same terms and conditions you received when purchasing the unit.Buyer’s stamp duty. You would’ve had to pay Buyer’s Stamp Duty when you first purchased your unit.Here are the current BSD rates: