Everyone knows that buying a home is a big commitment, which is why property buyers should always do their due diligence before making a purchase. But what really sets the smart property buyers apart from the rest is the ability to identify the right data to draw insights from. One such useful resource is theUrban Redevelopment Authority’s (URA) transactions tool, which shows you the caveats lodged and options issued.
In this article, we’ll explain what the Urban Redevelopment Authority (URA) caveat is and how you can use this information to your benefit. Hang on tight, because this can get messy.
No time to read? Here’s a quick summary:
What is a URA caveat?
It is a legal document to protect buyers’ interests in a property for sale.
How to lodge a URA caveat
Your lawyer must lodge the document with SLA.
Benefits of URA caveat for buyers
Lodging a caveat helps you to secure the property. Analysing the data helps you to ensure you are paying a reasonable price.
Benefits of URA caveat for sellers
It helps you gauge the interest of buyers.
Benefits of URA caveat for those looking to sell
It helps you gauge the market price of your property.
How to find URA caveat data
Access the URA transactions portal and search by project name, or by the property type and district.
Need more details? Here’s more information for those looking to leverage URA caveat data to make smarter property buying decisions.
What Is a URA Caveat?
In layman’s terms, lodging a URA caveat is a legal way of telling everyone else to back off from buying a property that you’ve been eyeing. Typically, it is lodged once a buyer exercises the Option to Purchase (OTP) agreement or entered into a sale and purchase agreement with a seller.
It’s not compulsory, but it’s a good precautionary measure to protect your interest in a property while preventing others from buying it. In other words, it is a legally certified way of reserving your prospective new home.
Once the document is approved, you can legally prevent the seller of the property from making a deal with someone else.
Do note that this information is public. (Remember how we said that this information is readily available on the URA transactions tool?)
So when you lodge a caveat, you’re basically showing the world how much you’re paying for a property. This also means that the public (including your nosy neighbour) can search for your address on it and find out how much you’re buying or selling your home for, and vice versa.
URA Caveats: Why Is It Important?
So, how does lodging the document with SLA affect you? And more importantly, why should you bother to search for caveats?
1. If You’re a Home Buyer
As mentioned, if you’re interested to buy a particular unit that’s listed for sale, caveats are a sure-fire way to confirm that no one else has already called dibs on the unit.
In order to do that, you’ll need your lawyer’s help to search and ensure that there isn’t a caveat lodged on the unit. This saves you from wasting your time speaking to the owner and making house visits (unless the buyer foregoes his/her OTP).
2. If You’re a Seller Who Has Just ‘Sold’ Your Unit
As a seller, knowing that a potential buyer has lodged a URA caveat for your home is a sign that he/she is serious about acquiring your home. It gives you the assurance that you can start your hunt for another home to settle into.
3. If You’re a Potential Home Seller
Thinking about selling your home? URA caveats are a simple and fuss-free way of gauging the market price of your unit. All you need to do is to find a unit similar to yours on the URA caveat to check how much other sellers are offering their units.
For example, if you’re selling your private apartment, knowing how to search for condo transaction prices in your area will arm you with some valuable data.
Thinking of selling your home but not sure where to start? Let PropertyGuru help you make confident property decisions with our selling guides.
Making Full Use of URA Caveat Transaction Data
Regardless of where you are at in the home buying or selling journey, it is definitely useful to know how to make use of URA’s transaction portal, i.e. the list of URA caveats lodged.
For home buyers, the prices listed on the transaction portal are the most updated market transaction data you can get. The transactions are updated every Tuesday around 12pm and only show up till the previous Tuesday’s transactions.
Whereas on Friday, updates happen at 3pm and showcase new launch and resale transactions up till the previous Sunday transactions.
When comparing condo transaction prices, make sure you find a unit that has a similar tenure and size to the unit you are eyeing. Otherwise, the apple to orange comparison will give you a wrong impression of the unit’s desirability.
With actual condo transaction price data, you can now compare the per square foot (psf) prices of units similar to the unit you are eyeing, just to make sure that you aren’t getting ripped off. And if you find a bargain buy, make sure to close the deal as soon as possible!
Meanwhile, those thinking of selling their properties can use URA transaction data to gauge the sales volume in your area and how much you can expect your property to fetch.
So regardless of whether you’re looking for a home to call your own, or an investor who wants to keep up with market trends and look for underpriced gems, you’ll find the transactions portal extremely useful.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.
No, as it is not compulsory to lodge a caveat, this data set does not fully reflect all the property transactions in Singapore.
The buyer may not have lodged a caveat with the Singapore Land Authority. Otherwise, the transaction may have taken place over 60 months ago.
It may or may not - the price shown is based on the price declared by the purchaser when they lodged the caveat.
No, your property unit number will not be shown. It may, however, be available on URA’s Real Estate Information System (REALIS), which is a paid subscription portal for more detailed property-related data.
No, URA is not allowed to disclose the names of the buyer and seller.
The URA transaction portal lists all condo transactions with caveats lodged in the past 60 months. If you're looking for URA condo transaction prices for a particular property, go to 'Search by project name' and select the project name from the dropdown list.
A caveat is effective for five years from the date of notice.