In a subsale transaction, a buyer purchases a unit or property from an intermediate owner who has already entered into a Sales and Purchase Agreement (S&P) with the developer but has not taken physical possession or ownership of the property. Hence, the subsale unit is typically brand new in condition even though it has had more than one owners.
Your unit is considered a subsale unit as long as it has not reached CSC (Certificate of Statutory Completion), even if it has obtained TOP.
If you are considering a subsale property in Singapore, there are several key factors to be aware of to ensure a smooth and informed purchase process. Here’s what you need to know.
Property Details:
- As with any property purchase, understand the specifics of the property, including its location, size, layout, and any unique features.
Review the floor plan, property specifications, and any available documents related to the property.
In some cases, subsale properties may be partially constructed, so verify the completion status and expected handover date.
Check the property’s title deed and ownership status to ensure there are no encumbrances, liens, or legal issues that could affect your ownership.
Legal Advice:
- Engage a qualified property lawyer in Singapore to review the sales contract and provide legal guidance throughout the transaction.
You will need to enter a new S&P agreement with the development and this requires your lawyer to draft.
Searching for a Subsale Unit:
- When searching for a subsale unit which are not sold-out yet, there may be both developer and subsale listings in the market. Consider your options and compare the prices vs. the unit that are being offered to see what is the best unit for your needs.
- Developers who are selling their last few units may sometimes offer deeper discounts but the units may not be choice units hence, look at your subsale options and weigh the pros and cons.
Conclusion
By thoroughly researching, planning, and engaging the right professionals, you can navigate the purchase of a subsale condo unit with confidence and make an informed decision that aligns with your objectives and financials.