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I would like to clarify, I am planning to buy a condo and I have sufficient fund including CPF to make the required down payment. I was told that I had to pay the stamp duty in cash to the lawyer first. Then when my CPF is transfered to IRAS for the stamp duty, the IRAS then will reimburse the monies to me. Is that true ? If that is true, why can't I pay the stamp duty directly from my CPF account since I have sufficient fund ? I would appreciate your clarification. Thank you.
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1 Answer

Natasha Goh
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Dear Hanz,

As a former conveyancing lawyer, I can safely confirm that the stamp duty is paid in cash first and then reimbursed by the CPF Board once such application to utilise CPF funds is approved.

The law firm must obtain a valuation report from either the mortgagee bank or the buyer (if not taking bank loan)before they can submit an application to utilise CPF funds to the CPF Board. The board then requires another 10-12 working days before the funds may be approved for disbursement. It thus usually takes about 3-4 weeks for CPF funds to be disbursed.

On the other hand, stamp duty needs to be paid within 14 days of the exercise of the option, thus the timeline doesn't quite match up.

Do note that the payment for stamp duty should be issued to the Commissioner of Stamp Duties and not your lawyers though. Your lawyers will stamp the Option on your behalf.

Warmest regards,

Natasha Goh LL.B (NUS) Hons

Sales Manager (SRI5000)
Reg No: R045004B

Mobile - (65) 9834 3604 

Web - http://natashagoh.com
SRI5000 - An Elite Division of SLP Realty (Reg: L3009793I) Read More
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