Additional Buyer Stamp (ABSD) & Seller Stamp Duty (SSD) Explained

Since the introduction of Seller’s Stamp Duty (SSD) on 22 February 2010 and Additional Buyer Stamp Duty (ABSD) on 7 December 2011, there have been a number of revisions in the rates as the cooling measures intensify throughout the years.

This is the latest rate. (you can find out about the latest ABSD and LTV adjustment here since 5th July 2018)

Seller’s Stamp Duty
• Holding period of 1 year : 16% of price or market value, whichever is higher
• Holding period of 2 years : 12% of price or market value, whichever is higher
• Holding period of 3 years : 8% of price or market value, whichever is higher
• Holding period of 4 years : 4% of price or market value, whichever is higher

Properties acquired before 20 Feb 2010 will not be subject to SSD.

Additional Buyer’s Stamp Duty

a) FR and *entities- 15% on the purchase or acquisition of any residential property.

b) SPR – 5% on the purchase or acquisition of their first residential property

SPR who already own# 1 or more residential properties 10% on the purchase or acquisition of another residential property.

c) SC – who already own# one residential property 7% on the purchase or acquisition of the second residential property.

– SC who already own# 2 or more residential properties 10% on the purchase or acquisition of another residential property.

# Whether owned wholly, partially or jointly with others.
* Entity means a person who is not an individual, and includes an unincorporated association, a trustee for a collective investment scheme when acting in that capacity, a trustee-manager for a business trust when acting in that capacity and, in a case where the property conveyed, transferred or assigned is to be held as partnership property, the partners of the partnership whether or not any of them is an individual.

I have invited Ms. Dorothy Tay of LegalWorks Law Corporation to answer some of my questions to clear up some confusing facts of how both of it works. Legalworks is a boutique law firm that specializes solely in conveyancing and has lawyers of more than 20 years experience in the field. Ms. Dorothy Tay is the principle solicitor behind Legal Works.

LegalWorks Law Corp

Additional Buyer Stamp Duty (ABSD)

Q: Many people are very confused for a fact for this mix of spouse. When you have a Singapore Citizen (SC) and a Foreign (FR) Spouse. How much Additional Buyer Stamp Duty you are supposed to pay for your first matrimonial house? Continue reading “Additional Buyer Stamp (ABSD) & Seller Stamp Duty (SSD) Explained”

Advantage of Having An Exclusive Agent To Market Your Property

Ah, I’ll have critics soon for blunting the reasons of getting simply one property agent to do your marketing. Let’s see the disadvantage of awarding an exclusive and advantage of doing so.

Disadvantages of Engaging an Exclusive Property Agent

You have gotten yourself an unethical agent

He appears eloquent, looks capable and has good product knowledge to win your trust for an exclusive contract for 3 months. Trusting he’ll do his job, you left him alone for 1 month.

When you realise time has passed but there are no updates, your mind began to wonder what has the agent done. You called him for updates but he says he has been marketing but there wasn’t any response.

You flip your Classifieds or fire up your browser, to realise that he hasn’t been even trying to market your unit at all. Frustrated, you wanted to end his exclusive, but you realise you’re bounded for 3 months.

This happens.

You decide not to sell for various reasons

The market is in your favour, you’ve decided to put your home in the market to catch the trend. Unfortunately, the cycle ended, a crisis has happened in the financial sector.

Or for some reasons your family goes against your will to sell, you’re in a pickle but you have your exclusive signed.

These are definitely the possible factors that you would regret having an exclusive contract signed with a Realtor if you haven’t think things through or haven’t done your research properly on the Realtor whom you have appointed.

On the contrary, if you found the correct person to deal with,

Advantages of Engaging an Exclusive Property Agent

One of SRI5000 exclusive shophouse unit sold
One of SRI5000 exclusive shophouse unit sold

Clear Relationship Established

With the exclusive contract, you won’t have to haggle with the Realtor when a deal is closed on his commission. He would also know his roles and duties as your agent to be responsible to his principle, which is you.

Efficient and Dedication to Marketing

With an exclusive contract signed with the right Realtor, he would be literally working towards a clear goal; to reach your target price stipulated in the exclusive contract. He feels more motivated as there couldn’t be another Realtor which could undercut him. He will work hand in hand with other Realtors to reach your price goal as his interest is protected.

Unchallenged Price Control

With too many Realtors handling an open listing, it tends to bring the price down as Realtors will try to attract any buyers with the lowest price. With a smart Realtor, he would be controlling the price and work hand in hand with other Realtor agents to bring the BEST offer to you.

One Point of Contact

Without notion, having your home marketed by a couple of agents, you’ll have to macro manage them and remember what you have told them.

You will also have dilemma on who to award to if both agents brings you the same offer.

One point of contact, one person to liaise. Best results with one person. One clearly has to find the right Realtor to achieve the best results in terms of pricing and satisfaction.

In a Nutshell

If you have gotten yourself someone who’s inefficient in marketing and is irresponsible to their listings, you would have wasted your opportunity for the duration of your exclusive is covered.

Should you have gotten a prized Realtor who knows how to take care of your interest, goals would be achieved in a stipulated time. Win-win situation.