Restriction of Foreign ownership of landed residential property

What Is Landed Residential Property?

Landed residential property refers to properties for the purpose of residence and hence not for industrial or commercial use. It includes vacant land, detached houses, semi-detached houses, bungalows, terrace houses, buildings of less than six storeys and any other land gazetted for residential purposes. But it does not include flats and condominiums of six or more storeys high.

Ownership And Restrictions Imposed On Foreigners

The Residential Property Act defines a "foreign person" as any person who is not a citizen of Singapore, a permanent resident and any foreign company or converted foreign company. Any person or entity falling under this category is totally restricted from owning landed residential property unless approval is obtained from the Controller of Residential Property.

The only property that can be purchased by any person or entity falling under this definition without any approval required, include those residential properties which contains six or more storeys including the ground floor or "any flat or dwelling-house shown as a unit in an approved plan bearing the title condominium". In this case, there is no limit as to the number of units that a foreigner may purchase within the development.

The approval of the government is also required if the foreigner is a beneficiary or is entitled to receive landed residential property by way of gift, bequest, succession or inheritance. The rules are generally strict with regards to the transfer of landed residential property to foreigners. The legal personal representative of a foreign beneficiary or the foreign beneficiary himself is bound to sell such properties to a citizen or approved purchaser within a period of ten years from the death of the deceased owner.

However, foreigners are allowed by the Act to accept landed residential property as security for a loan. In exercising the power of sale, the foreign mortgagee is allowed to sell the property only to Singapore citizens or government approved purchasers. Finally, an alternative for foreigners who wish to stay in a landed residential property without having to go through so much hassle is to rent one. This is allowed provided that the tenancy does not exceed seven years.

How Can A Foreigner Own A Landed Residential Property?

A foreigner who wishes to acquire a landed residential property may apply to the Controller of Residential Property for a written approval. The Residential Property Advisory Committee will consider the application and thereafter make its recommendations to the Minister for Law.

If approval is granted, the foreigner is required to give an undertaking to the government that the property is to be used only for the purpose of residence and not for investment and any other income-generating purposes. The application takes approximately 3 months to process.

Form A needs to be submitted to the Land Dealings (Approval) Unit at No. 8 Shenton Way, #27-02 Temasek Tower. Application forms are to be submitted with income tax assessment statements, professional qualifications, marriage certificate, reasons for acquiring the residential property, and any other relevant supporting documents as required by Form A.

the form A document which also comes with a checklist on the requirements from the authorities for considerations. The application fee to IRAS is $900.

In the event In principle is approve will valid for 6 months.

Form A for download

LDAU CIRCULAR 1 OF 2012

permanent residents of Singapore;
foreigners who are of economic benefit to Singapore or who are able to economic contributions to Singapore; and
foreigners who possess professional or other qualifications or experience which are of value or benefit to Singapore.

When approval is received, a housing agent should be employed to assist with the selection and purchase of the property. Finally, a lawyer must be engaged to execute the details of the purchase, for example, mortgages or bank loans, title search, whether the property is affected by redevelopment, government projects etc.

For foreigners intending to purchase a landed residential property, it is important that they include an additional clause in the purchase contract or Option which reads:

"This sale and purchase is subject to the Purchaser obtaining the approval from the Land Dealings (Approval) Unit before completion. In the event that such approval is not granted, the sale and purchase herein shall be annulled and all monies paid shall be immediately refunded free of interest and neither party shall have any claim against the other thereafter."

PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

Restriction of Foreign ownership of landed residential property

What Is Landed Residential Property?

Ownership And Restrictions Imposed On Foreigners

How Can A Foreigner Own A Landed Residential Property?

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