Introduction
The excitement of a new home often masks the legal complexities of the purchase of a property. The risks of a property transaction are often not apparent from a viewing or physical inspection of the property. Legal requisitions are the essential searches on property that ensure you are informed and aware of potential legal, planning, or financial liabilities affecting a property. These searches are crucial for ensuring the property is free from encumbrances, such as unpaid maintenance charges or taxes by the current owner, adverse planning decisions, lines of road reserves, notices issued by government departments or government acquisition plans, before finalizing a purchase.
When buying a property in Singapore, you are not just buying bricks and mortar— Legal requisitions are the “background checks” in addition to the title search on a property, which are conducted by lawyers to ascertain existing liabilities or encumbrances.
Here is an analysis of the usual key searches and why it matters.
- Inland Revenue Authority of Singapore (IRAS)
Purpose: To verify whether Property Tax is owing to IRAS.
Why it matters: Once a property is transferred, the new owner is liable for any outstanding property tax, including arrears owed by the previous owner. It is critical for buyers, through their lawyers, to check with IRAS for any outstanding property tax before completing the purchase.
If the tax remains unpaid, IRAS may appoint agents like the bank, tenant, lawyer or other third parties with money due to the buyer to recover the tax owing.
- Land Transport Authority (LTA) – Road Line Plan (RLP), CBR, RTS, SW
Purpose: LTA legal requisitions provide information in connection with cross-border railways (CBR), rapid transit system (RTS), public streets (SW), which are crucial for urban planning, infrastructure development, and road reserve planning to ensure safe and accessible roads, transportation networks for the public. For example, the searches will reveal the indicative location of any public sewerage system in the vicinity, or whether the property is affected by compulsory acquisition or any future rapid transit system proposal planned.
RLP provide clarity on land ownership and boundaries, reducing disputes and ensuring legal compliance. The searches will show whether the land is affected by Rapid Transit System (RTS) schemes or road safeguarding lines or if portions of land are required as road reserve, that might lead to future compulsory acquisition.
Why it matters: Imagine buying a “quiet” ground-floor unit only to find out a major highway viaduct is scheduled to be built a short distance in two years. Or buying a landed property and finding out that there are lines of road reserves which reduce the land area.
- National Environment Agency (NEA)
Purpose: To check for environmental health issues and drainage, for instance notices issued to abate pollution by fumes, vapours, gases, heat, radiation, or smells that are injurious or dangerous to health.
Why it matters: This covers “Pollution Control” and “Environmental Health.” It identifies if there are issues with the public sewerage system or disclose if the property is subject to investigations or restrictions related to environmental health.
- Public Utilities Board (PUB)
Purpose: To disclose information with respect to the water supply system and the public sewerage system within or in the vicinity of the property. It ensures that the building on the property doesn’t interfere with Singapore’s water management infrastructure.
Why it matters: If a property has been built over a public drain or encroaches on a drainage reserve without permission, the PUB can demand the structure be torn down.
- Urban Redevelopment Authority (URA)
Purpose: To confirm the “Master Plan” zoning and approved use. It verifies the allowable use of the land and whether there are any unauthorised structures on the site. The search will show the proposals to develop the site, the approval date/expiry date.
Why it matters: A buyer might think they are buying a residential home, but if the URA has it zoned as “Home Office” or “Commercial,” the financing and tax implications change drastically.
- Building and Construction Authority (BCA)
Purpose: To check for compliance with the Building Control Act and ensure that building works comply with standards for safety, accessibility, environmental sustainability and buildability. All building works, except those that are minor and exempted under the First Schedule of the Building Control Regulations, will require plan approval from the Commissioner of Building Control. The search will show the date of issuance of Certificate of Statutory Completion (CSC), Temporary Occupation Permit (TOP), any outstanding “Notices” or “Orders” regarding the structural integrity of the building.
Why it matters: If the BCA has issued an order to repair a crumbling facade or a notice to remove unauthorised works on the property, those repair costs or rectification costs (which can be massive) fall on the new owner after completion of the purchase of the property.
- Management Corporation Strata Title (MCST)
Purpose: The Section 47 Certificate (Building Maintenance and Strata Management Act) will disclose the management fund and sinking fund contributions payable quarterly by the owner, any special levy incurred for upgrading the common property and any notices issued to remove unauthorised renovation works at the specific unit.
Why it matters: If the seller owes thousands in unpaid management fees or sinking fund contributions, the MCST has the power to register a charge against the property, potentially preventing or delaying the completion of the sale of property. This certificate confirms whether the seller has fully settled maintenance and sinking fund fees due. If the condominium is undergoing a major project (for example, full facade repainting or lift replacement), the certificate will show what is the amount of the special levy or payments required from each subsidiary proprietor of their unit.
