**Yes, your parents can specify mechanisms in their Will to prevent a deadlock, and doing so is strongly recommended.**
Without clear instructions, bequeathing a property equally creates a tenancy-in-common. If one sibling wants cash and the other wants to keep the house, it often leads to bitter disputes or an expensive High Court application under the Land Titles Act to compel a sale.
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### How Parents Can Structure the Will
1. **Option of First Refusal / Buy-Out Clause:**
* The Will grants Sibling A (who wants to stay) the right to **buy out Sibling B’s 50% share** within a set window (e.g., 6 to 12 months).
* The Will should state how market value is determined (e.g., averaging two independent licensed valuations) to avoid price disputes.
* If Sibling A cannot secure a mortgage or cash to buy out Sibling B within the timeframe, the property must be sold on the open market, with net proceeds split 50/50.
2. **Direction to Sell and Distribute Proceeds (Trust for Sale):**
* The cleanest way to prevent friction: the Will directs the Executor to sell the property upon their passing and distribute the net cash proceeds equally.
* If both siblings mutually agree later to keep it, they can execute a Deed of Family Arrangement; otherwise, liquidation is the default.
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### Key Regulatory Traps to Factor In
* **If it is an HDB Flat:** HDB policies override a Will. An individual cannot hold two HDB flats. If either sibling already owns an HDB flat, they are legally ineligible to retain an inherited HDB share and **must sell** or surrender their interest.
* **Private Property & ABSD Count:** Inheriting even a partial share of a private residential property counts as owning a home for Additional Buyer’s Stamp Duty (ABSD) purposes. If the sibling keeping the property plans to buy their own home later, that inherited share triggers 20% ABSD on their subsequent purchase.
**Recommendation:** Have your parents consult a conveyancing/estate planning lawyer to draft a tailored testamentary buy-out clause.
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile:
(+65) 88899918
Email: onassis@sgagent.com
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