Minister Lawrence Wong was responding to a query on whether the seller’s stamp duty is waived for those who do not sign the collective sale agreement. (Photo: Wikimedia Commons)
Homeowners who opposed the collective sale of a private residential development are still required to pay the seller’s stamp duty (SSD) if the sale occurred within the holding period, said Second Minister for Finance Lawrence Wong in Parliament on Tuesday (20 Nov).
This comes as the collective sales committee is given the power to enter into a sale and purchase agreement on behalf of all unit owners when it obtains the requisite consent of residents. This makes the agreement binding on all owners, Wong explained.
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Wong, who also serves as the National Development Minister, was replying to Lim Biow Chuan (Mountbatten)’s query on whether the SSD is waived for those who do not sign the collective sale agreement.
Aimed at discouraging short-term holding of residential properties, SSD is part of “the government’s measures to ensure a stable and sustainable property market”.
The consent of 90 percent of residents by strata area and share value is needed for the en bloc sale of properties less than 10 years old, and 80 percent for those aged 10 years or older, reported the Straits Times.
The SSD payable varies depending on how long a person has held the property.
For instance, a person who acquired a property in April 2017 and sold it in March this year will pay a 12 percent stamp duty based on the property’s market value or selling price, whichever is higher. Thus, if the house was sold for $1.5 million, the SSD payable is $180,000.
Wong noted that homeowners who are against a collective sale can file their objections with the Strata Titles Board. “Objections could be on the grounds of financial loss, and/or other reasons,” he said.
More: Understanding The En Bloc Process (August 2018)
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com