SSD1203 Help Sheet
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Two sheets (4 pages) help sheet for SSD1203 Real Estate Law and Investment (National University of Singapore) taught by ...
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1: Intro and Background Sources of Law • Parliament / Legislature • Cases or precedents Reception of English Law (East India Company) • Second Charter of Justice • Application of English Law Act Court Structure • Subordinate ! High ! Appeal • Small claims < 10,000SGD • Magistrate < 100,000SGD • District 100 – 250K • High > 250K 2: Concepts and Title Real Estate • Finite • Indestructible • Immovable • Heterogenous All Land Belongs to the State Types Freehold • Fee Simple • Estate in Perpetuity (has conditions) Leasehold • Limited duration (30 – 999 years) Berstein of Leigh (Baron) v Skyviews and General Ltd (1978) – Definition of air space Legal Definition of Land • The surface of any defined parcel of earth • All substances thereunder • So much of the column of airspace above (reasonably necessary for use and enjoyment) • Fixtures Quic quid plantatur solo, solo cedit – Whatever is attached to the land becomes part of the land Buyer gets to keep the item
Fixtures • Degree of annexation • Purpose of annexation (did it enhance value of property?) Holland v Hodgson (1872) 3: Rights and Interests in Land • Covenants • Easements • Licence • Natural Rights Covenants • Personal promise made under deed • Negative / Positive • Privity of contract • Subsequent parties no privity • Only those who have privy to contract have rights, and bound by it Easements • Rights over the land of another • Incorporeal hereditaments • Embedded and inherent on the land regardless of subsequent buyers • Must be expressly created, implied out of necessity or by Statute 1. Must be a dominant and servient tenement 2. Must accommodate the DT 3. DT and ST must be separate hands 4. Must be capable of forming the subject matter (be specific) Natural Right • Automatically from ownership of land Xpress Print v Monocraft Pte Ltd “Use your own property in such a manner as not to injure that of another” Licences • Merely a permission • Privity of contract • Certain duration and purpose
Co-ownership • Joint tenancy • Tenancy in common Joint Tenancy • No words of severance • No indications who owns how much • Right of survivorship o Interest passes to surviving tenants regardless of will • 4 unities o Possession o Interest o Title o Time Women’s Charter • Applies only in married couples • Not gender specific • Order division in such proportions as the court thinks just and equitable May be severed by • Instrument of declaration • Served on the other joint tenants • No need to be approved • All get same share • Rest of tenants pays the severed his share • Most likely sever all Tenancy in Common • Equal shares • No right of survivorship (Will takes place over own share) • Only unity of possession Termination • Death • Sale 4: Background to Planning Law Population surge 1819-1824 along the river Floods, Fires, Polluted water, Epidemic, Stray dogs Overcrowding, Unsanitary, Public health issue, Poor ventilation, Garbage disposal
Limitation to land reclamation • Sea routes of sea ports • Closely placed territorial boundaries • Sand ban by Indonesia • Soft ground • Displacement and settlement problems URA Act • Concept Plan (Long-term strategic) o Development Guide Plans – operationalize intention of concept plan o Review every 10 years o Map the vision of Singapore long term physical development • Master Plan o DGPs gazette as Master Plan o Clear guide to landowners on purpose of land o Reference for development o Zoning and Plot Ratio o Reviewed every 5 years 1. Protection of land needs 2. Utility installation and infrastructural needs 3. Nature conservation 4. Water-catchment areas 5: Control and Taxation of RE Development Planning Act No 3 of 1998 Enables URA – control all development of land S12 prohibits • Development • Works in conservation area • Subdivision of land Without written permission from URA
Two aspects • Operations o Carrying out of building, engineering, mining, earthworks or other operations in, on, over, under land o Any change in physical characteristics of land • Any material change in use of building or land Meaning of Development – PP v Khoor Eng Seng (1993) – Dumping of earth onto land Material Change of Use • 17 Use Classes • Planning permission for change of use required when o Change from one to another o Do not fall into any class I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII.
Shop Office or commercial school Restaurant Health / Amusement centre Motor vehicle showroom Theatre Light industrial building General industrial Special industrial Warehouse Convalescent home Child care centre Community building Sports & Recreation Nightclub Pet shop Community sports and fitness
Any proposed change should reference to Master Plan and use does not cause amenity problems White Sites • Give developers greater flexibility • No differential premium as long as gross floor area not exceeded
3 Possibilities 1. Grant unconditionally 2. Grant subject to conditions 3. Refuse permission • Public scheme • Excessive development • Not compatible • Not conform with standards Can appeal to Minister of New Development Development Charge (URA) • Tax on enhancement of land value • Only Freehold • Develop beyond constraints of Master Plan • Alter use / Add space • Development baseline (Master Plan) • Development ceiling (proposed) • Rates are fixed – review six-monthly Upgrading Premium (SLA) • Leasehold • Lease top-up Differential premium (SLA) • Modify or lift conditions • Leasehold equivalent of Dev charge 6: Land Acquisition for Public Purpose Public necessity greater than private 1959: • Singapore internal self government • Resolve severe housing and unemployment problems • Cheap wooden housing – fire risk • Built without approval • Increase in population after war • Lack of publicly-owned land hinder development • HDB – full powers to build
Married Years: • Provision in constitution – no person should be deprived of property except by law • Compulsory acquisition = adequate compensation Breakup: • Provision deliberately excluded • Land Acquisition Act 1966 o Based on Indian LAA 1894 o UK Legal provision LAA (SLA) • Any public purpose (general interest of community as opposed to interests of individuals) • Law Minister opinion, benefit public • Residential, commercial, industrial Acquisition is final and non-questionable Gaulston v Attorney General – Ultra vires • Acquire more than needed • Govt decides what is public purpose Basco Enterprises Pte Ltd v Soh Siong Wah • Stamford House • Acquired under urban development • Resold by URA to be preserved • Urban development = rebuild + conserve KFC Pte Ltd v Attorney General • Govt can acquire even as reversioner Compensation Collector’s Inquiry • Award made by Collector of Land Revenue under IRAS • Can appeal to Land Acquisition Appeals Board Payable to all interested persons Pegged at retrospective date Higher tax needed to give higher compensation Disregard • Degree of urgency • Disinclination to part with the land
2-year Rule • Disregards improvements made within 2 years 7-year rule • Disregards any increase in value attributed to govt infrastructural works within 7 years Set-off provision • Set off increase in value with reduction in value • Tan Chuan Park Condo $1 Case Ex-gratia • Useful prior to April 2007 (removal of alternative dates and 2,7-year rules • Out of goodwill • Case-by-case basis to owners who suffered severe hardship 7: LA for Private/ Sale and Purchase Gift o Intervivos – between living people o Testamentary succession – Will Inheritance (Family Provision) Act – Court can vary a will where financial provisions have not been made o Intestate succession • Succession • Joint Venture • Sale and Purchase o Government Land Sales or o Private agreement Two stages – Contract & Completion Contract • Offer • Acceptance o Absolute & Unqualified o Unconditional • Consideration o Bargain / Exchange • Intention to create legal relations • Formality o Parties, Property, Price, Provision •
Option to Purchase • Buyer deposit cash or property • Non-refundable 1% (9% more if exercise option - refundable) • 14 days • Irrevocable offer (seller cannot retract) • Conditional contract (seller cannot force) • “Subject to satisfactory requisitions” Terms of Contract – Express & Implied Vitiating factors • Misrepresentation • Incapacity (drunk, underage) • Illegality (foreigner) • Duress and Undue Influence • Mistake (Chwee Kin Keong and Others v DigilandMall.com Pte Ltd “A party who was aware of the error made by the other party cannot claim that there was consensus ad idem (meeting of minds)” Discharge • Performance (stated in contract) • Breach (of terms) • Clause in Contract (allows discharge) • Frustration (could not execute) Remedies – Damages / Performance Transfer of Rights • Exist competing interests • Caveat Emptor!Authoritative source • Land registration system Land Titles Act (SLA) • Torrens System • Certificate of Title • Registrable interests (+ priority) • Curtain and Mirror principle • Indefeasibility of title Stamp Duty • Payable on documents • Anti-speculation measures – property cooling
Seller’s Stamp Duty • Acquired on or after 14 Jan 2011 • Disposed within 4 years 8: RE Development Vehicles & Developer Statutory Regulation Accounting and Corporate Regulatory Authority (ACRA) Sole Proprietorship • Owned by one person • S5 Business Registration Act • Not separate entity • Voluntary/involuntary dissolution Partnership • Partnership Act • Arises out of agreement (need not be in writing) • 2-20 persons • Personal liability • Principal and agent • Any action by one is legally bound to everyone • Utmost good faith and fiduciary • Unlimited liability • Cannot be sued nor own property Limited Partnership • Limited Partnerships Act • >1 general partner with unlimited liability • Limited partners with limited liability Private Limited • Companies Act • Veil of incorporation (Saloman v Saloman & Co Ltd 1987) • No personal liability • Can own property • Can be sued in its own name • Perpetual succession Limited Liability Partnership • LLP ACT 2005 • Partners incorporate - limited liability • Partner held personally liable from his own wrongful act
Housing Developers (Control and Licensing) Act • LAA ! Housing development • Housing Boom in 1960s • Cowboy developers o Extract large option fees o No proper quality control o Poor financial accounting o Exorbitant prices • **Buying unit OFF-THE-PLAN** Housing Developer’s License needed • Housing project >4 units • Mixed project >4 units • Funding project >4 units Duties of Licensed Housing Developer • Separate Project Account for Installments o Cannot withdraw if bankrupt • Prescribed forms o Sets out scheme for instalment payments – progress payments Developers Obligations • Clause 10 Housing Developers Rule – Accordance to plans and specs • 12-month warranty period – defect/shrinkage/faults • (April 2012) Mandatory information • Track record • Buyers’ consent to changes • Controls on advertisements • Deadline to hand keys Sale of Commercial Properties Act • Dev free to dictate terms • No completion date specified • No stringent accounting provisions • Use prescribed Option and Agreement for Sale
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9/10: Strata Property & Redevelopment Maintenance of common areas Separate legal titles – Subsidiary certificate of title
Land Titles (Strata) Act 1967 (SLA) • Purchasers = Subsidiary Proprietor o His lot + share o Can deal like landed owner o Cannot damage shared stuffs • Each SP has share value o Voting rights o Service charge contributions o Ownership of common property • Management Corporation o Separate legal entity o Maintenance, carry out work, insurance, make by-laws o Elect Management Council (up to 14) • By-laws o Statutory or Development Management Council • Disclose nature of interest • Act honestly and due diligence • Not use position to gain advantage Termination of Strata • Damage or destruction • Termination by court order • En Bloc Sale En Bloc • 20-30% premium if collective • Changes to Master Plan • Increase plot ratio • Lift building height restriction • Change of land use Land value > Total value of all houses >> Redevelopment potential Impediments • Unanimous Consensus*** • Approval by court Land Titles (Strata)(Amendment) Act 1999 • > Protection on mortgagor (equity of redemption + extension) Stages of completion of work • Foundation • Reinforced concrete framework • Brickwalls • Roofing • Ceiling • Temporary Occupation Permit
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