#3: Property Inheritance, Trust and Damaging Neighbour’s Property | with Ivan Lee | SFSG S2 E3

1 (Ivan lee)
00:00:00,000 –> 00:00:02,839
– But that generally shouldn’t be the main concern.

2 (Melvin Lim )
00:00:02,839 –> 00:00:04,519
– Shouldn’t be the main intent.

3 ( Ivan Lee)
00:00:04,519 –> 00:00:06,320
– That shouldn’t be.

4 (Melvin Lim)
00:00:06,320 –> 00:00:07,700
– Okay. Okay.

5 ( Melvin Lim )
00:00:07,700 –> 00:00:09,080
It’s just that it became popular.

6 ( Ivan Lee)
00:00:09,080 –> 00:00:11,720
– It became popular
because ABSD is very high.

7 ( Ivan Lee)
00:00:11,720 –> 00:00:14,759
So whatever device that
people can get their hands on,

8 ( Ivan Lee)
00:00:14,759 –> 00:00:16,079
they will want to try it.

9 ( Melvin Lim )
00:00:24,440 –> 00:00:27,219
– All right. Welcome back to our Sofa So Good season two,

10 ( Melvin Lim)
00:00:27,219 –> 00:00:30,699
and we’re back with a brand new season talking

11 (Melvin Lim )
00:00:30,699 –> 00:00:34,000
to different partners, different vendors, and of course,

12 ( Melvin Lim )
00:00:34,000 –> 00:00:36,820
different real estate experts that are related

13 ( Melvin Lim )
00:00:36,820 –> 00:00:37,899
to the real estate industry.

14 ( Melvin Lim)
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We hope that this season two right here,

15 ( Melvin Lim)
00:00:40,060 –> 00:00:43,119
in our Sofa So Good series is going to add value to you,

16 ( Melvin Lim )
00:00:43,119 –> 00:00:44,920
especially in your decision of buying, selling,

17 ( Melvin lim)
00:00:44,920 –> 00:00:48,359
or investing in real estate and do catch us on Spotify.

18 ( Melvin Lim )
00:00:48,359 –> 00:00:51,020
We’re also on Apple Podcast, as well as our YouTube channel.

19 ( Melvin Lim )
00:00:51,020 –> 00:00:52,700
This is also going to be uploaded on Facebook,

20 ( Melvin Lim )
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Instagram via IGTV, and Facebook video as well.

21 ( Melvin Lim )
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So today we have Mr. Ivan Lee,

22 ( Melvin Lim )
00:00:59,100 –> 00:01:01,979
a partner at Tito Isaac and Company.

23 ( Melvin Lim )
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He is also the head of real estate practice,

24 ( Melvin Lim )
00:01:04,180 –> 00:01:06,400
and today we’re going to chat a lot

25 ( Melvin Lim )
00:01:06,400 –> 00:01:08,359
about conveyancing and things that are related

26 ( Melvin Lim )
00:01:08,359 –> 00:01:11,439
to the buying and selling of real estate in Singapore,

27 ( Melvin Lim )
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especially when the market is so hot right now

28 ( Melvin Lim )
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in the year 2021.

29 ( Melvin Lim )
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Ivan, it’s good to have you with us.

30 ( Ivan Lee )
00:01:15,719 –> 00:01:17,120
– Hi, thank you. Welcome.

31 ( Melvin Lim )
00:01:17,120 –> 00:01:19,280
– Thanks for making time and also appearing

32 ( Melvin Lim )
00:01:19,280 –> 00:01:20,579
on season number two.

33 ( Ivan lee )
00:01:20,579 –> 00:01:21,799
– Thank you for inviting me.

 

34 ( Melvin Lim )
00:01:21,799 –> 00:01:22,640
– No problem.

35 ( Melvin Lim )
00:01:22,640 –> 00:01:24,280
How have you been for year 2021?

36 ( Ivan Lee )
00:01:24,280 –> 00:01:27,280
– I think 2021 has been a good year,

37 ( Ivan Lee )
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quite a number of transactions, I believe in real estate

38 ( Ivan Lee )
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so after the agents starts doing all their work

39 ( Ivan Lee )
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and then it comes with a lawyer.

40 ( Ivan Lee )
00:01:35,040 –> 00:01:37,400
So we’re also quite busy.

41 ( Melvin Lim )
00:01:37,400 –> 00:01:38,359
– Okay, great.

42 ( Melvin Lim )
00:01:38,359 –> 00:01:40,180
Maybe share with our audience a brief introduction.

43 ( Melvin Lim )
00:01:40,180 –> 00:01:41,920
When did you start practicing law?

44 ( Ivan Lee )
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– I actually admitted to Bar in 2016.

45 ( Ivan Lee )
00:01:45,900 –> 00:01:49,239
So just about five years ago, graduated from SMU.

46 ( Ivan Lee )
00:01:49,239 –> 00:01:52,400
Admitted to Bar with the current law firm,

47 ( Ivan Lee )
00:01:52,400 –> 00:01:54,700
Tito Isaac and Company LLP as an associate.

48 ( Ivan Lee )
00:01:54,700 –> 00:01:56,480
Then I worked my way up.

49 ( Ivan Lee )
00:01:56,480 –> 00:01:58,859
So currently a partner and head of real estate.

50 ( Melvin Lim )
00:01:58,859 –> 00:02:02,560
– I think you, must be a very fast high flyer

51 ( Melvin Lim )
00:02:02,560 –> 00:02:04,719
in the firm because you are very young

52 ( Melvin Lim )
00:02:04,719 –> 00:02:08,340
and then now you are head of conveyancing, I believe?

53 ( Ivan Lee )
00:02:08,340 –> 00:02:09,379
– Yes.

54 ( Melvin Lim )
00:02:09,379 –> 00:02:11,879
– In the world of conveyancing, (you) definitely have met a lot

55 ( Melvin Lim )
00:02:11,879 –> 00:02:13,620
of different kinds of cases.

56 ( Ivan Lee )
00:02:13,620 –> 00:02:14,439
– Right, yeah.

57 ( Melvin Lim )
00:02:14,439 –> 00:02:15,840
– Especially when it comes to purchasing, selling.

58 ( Ivan lee )
00:02:15,840 –> 00:02:16,680
– Correct.

59 ( Melvin Lim )
00:02:16,680 –> 00:02:18,460
– Yeah, we’re going to pick on your brain today

60 ( Melvin Lim )
00:02:18,460 –> 00:02:23,099
because we deal with a lot of investing and purchase

61 ( Melvin Lim )
00:02:23,099 –> 00:02:26,379
and we go through a lot of options, day in and day out.

62 ( Melvin Lim )
00:02:26,379 –> 00:02:28,780
But definitely I think your advice to our audience

63 ( Melvin Lim )
00:02:28,780 –> 00:02:30,400
is coming straight from a conveyance lawyer

64 ( Melvin Lim )
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especially with your years of experience.

65 ( Melvin Lim )
00:02:31,860 –> 00:02:33,740
So maybe we’re going to do a few different kinds

66 ( Melvin Lim )
00:02:33,740 –> 00:02:34,580
of questions today.

67 ( Melvin Lim )
00:02:34,580 –> 00:02:38,340
How about we start off with the part on inheritance,

68 ( Melvin Lim )
00:02:38,340 –> 00:02:40,840
because we have recently a couple of questions coming in

69 ( Melvin Lim )
00:02:40,840 –> 00:02:42,400
from a few of our clients.

70 ( Melvin Lim )
00:02:42,400 –> 00:02:43,240
Like they’re asking,

71 ( Melvin Lim )
00:02:43,240 –> 00:02:45,900
they inherited a property from their parents

72 ( Melvin Lim )
00:02:45,900 –> 00:02:49,180
after the parents passed away and things like that,

73 ( Melvin Lim )
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they are concerned about the manner of holding.

74 ( Melvin Lim )
00:02:52,719 –> 00:02:55,819
Like, are they allowed to hold or do they have to sell?

75 ( Melvin Lim )
00:02:55,819 –> 00:02:59,639
And also, is there any stamp duty that’s involved?

76 ( Melvin Lim )
00:02:59,639 –> 00:03:02,500
Because based on our little bit of research,

77 ( Melvin Lim )
00:03:02,500 –> 00:03:05,120
we know that this thing called the inheritance tax

78 ( Melvin Lim )
00:03:05,120 –> 00:03:07,419
has been abolished many years back.

79 ( Melvin Lim )
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But the presence of stamp duty will still apply

80 ( Melvin Lim )
00:03:11,340 –> 00:03:14,639
for maybe their future purchase, right?

81 ( Melvin Lim )
00:03:14,639 –> 00:03:18,699
If a couple is already owning a HDB property

82 ( Melvin Lim )
00:03:18,699 –> 00:03:22,120
and maybe they have really fulfilled the MOP period.

83 ( Ivan Lee )
00:03:22,120 –> 00:03:22,960
– [Ivan] Okay.

84 ( Melvin Lim )
00:03:22,960 –> 00:03:24,599
– And then when their parents pass away

85 ( Melvin Lim )
00:03:24,599 –> 00:03:27,599
and the parents actually want to hand over

86 ( Melvin Lim )
00:03:27,599 –> 00:03:32,599
to them via their will, the full ownership of the HDB flat.

87 ( Melvin Lim )
00:03:32,759 –> 00:03:35,099
What happens in this instance?

88 ( Ivan Lee )
00:03:35,099 –> 00:03:37,780
– In this instance, because it’s already after MOP,

89 ( Ivan Lee )
00:03:37,780 –> 00:03:41,039
so most of the time it shouldn’t be an issue

90 ( Ivan Lee )
00:03:41,039 –> 00:03:44,879
for the owners to be able to take over a second property.

91 ( Ivan Lee )
00:03:44,879 –> 00:03:48,860
So the regulations are quite similar.

92 ( Ivan Lee )
00:03:48,860 –> 00:03:51,900
So I would assume that the second property

93 ( Ivan Lee )
00:03:51,900 –> 00:03:53,419
is a private property.

94 ( Melvin Lim )
00:03:53,419 –> 00:03:55,039
– Okay. If it’s a HDB property?

95 ( Ivan Lee )
00:03:55,039 –> 00:03:56,500
– If it’s a HDB property,

96 ( Melvin Lim )
00:03:56,500 –> 00:03:59,500
then there are actually two ways to look at this thing.

97 ( Ivan Lee )
00:03:59,500 –> 00:04:03,319
So general rule is that you cannot hold two HDB properties

98 ( Ivan Lee )
00:04:03,319 –> 00:04:04,159
at the same time.

99 ( Ivan Lee )
00:04:04,159 –> 00:04:05,439
That much is clear.

100 ( Ivan Lee )
00:04:05,439 –> 00:04:09,340
Unless the inherited property has been purchased

101 ( Ivan Lee )
00:04:09,340 –> 00:04:12,599
by the parents before a certain date, right?

102 ( Ivan Lee )
00:04:12,599 –> 00:04:16,160
So if it has been purchased before a certain date,

103 ( Ivan Lee )
00:04:16,160 –> 00:04:19,800
then that property can actually continue to be held

104 ( Ivan Lee )
00:04:19,800 –> 00:04:23,019
for private property and HDB property, right?

105 ( Ivan Lee )
00:04:23,019 –> 00:04:25,139
But when there are two HDB properties,

106 ( Ivan Lee )
00:04:25,139 –> 00:04:26,720
generally one of them will have to be sold.

107 ( Ivan Lee )
00:04:26,720 –> 00:04:30,000
So that one is actually quite clear.

108 ( Ivan Lee )
00:04:30,000 –> 00:04:32,759
So the scenario can be quite different depending

109 ( Ivan Lee )
00:04:32,759 –> 00:04:35,220
on whether you own a HDB property first,

110 ( Ivan Lee )
00:04:35,220 –> 00:04:37,800
or you own a residential property,

111 ( Ivan Lee )
00:04:37,800 –> 00:04:38,620
a private residential property first.

112 ( Ivan Lee )
00:04:38,620 –> 00:04:42,720
And whether the inherited property is private residential,

113 ( Ivan Lee )
00:04:42,720 –> 00:04:44,660
or it’s a HDB property.

114 ( Ivan Lee )
00:04:44,660 –> 00:04:48,500
So if it’s actually both HDB properties,

115 ( Ivan Lee )
00:04:48,500 –> 00:04:51,040
then I think the answer is generally quite straightforward

116 ( Ivan Lee )
00:04:51,040 –> 00:04:54,600
that you will have to either sell one of it.

117 ( Ivan Lee )
00:04:54,600 –> 00:04:57,079
Or if one of it is still with the MOP,

118 ( Ivan Lee )
00:04:57,079 –> 00:05:00,699
then you probably have to return it back to HDB

119 ( Ivan Lee )
00:05:00,699 –> 00:05:03,279
for that purposes.

120 ( Melvin Lim )
00:05:03,279 –> 00:05:04,779
– Right.

121 ( Melvin Lim )
00:05:04,779 –> 00:05:09,839
What if the couple is already owning a private property,

122 ( Melvin Lim )
00:05:09,839 –> 00:05:14,819
parents so-called will to them, a private property as well.

123 ( Melvin Lim )
00:05:15,060 –> 00:05:17,600
So would there be stamp duty involved?

124 ( Ivan Lee )
00:05:17,600 –> 00:05:21,139
– For transmission or transfer property by will,

125 ( Ivan Lee )
00:05:21,139 –> 00:05:23,819
whether it’s actually by will or intestate

126 ( Ivan Lee )
00:05:23,819 –> 00:05:25,019
in the sense that there’s no will

127 ( Ivan Lee )
00:05:25,019 –> 00:05:27,819
but it complies with the intestate succession act.

128 ( Ivan Lee )
00:05:27,819 –> 00:05:30,339
So stamp duty-wise generally I think IRAS

129 ( Ivan Lee )
00:05:30,339 –> 00:05:31,860
has been quite clear on this point.

130 ( Ivan Lee )
00:05:31,860 –> 00:05:33,800
There’s no stamp duty that’s required

131 ( Ivan Lee )
00:05:33,800 –> 00:05:36,639
for this particular transfer.

132 ( Ivan Lee )
00:05:36,639 –> 00:05:41,540
But it would also mean that only this remission

133 ( Ivan Lee )
00:05:41,540 –> 00:05:44,459
or this waiver of stamp duty, so called,

134 ( Ivan Lee )
00:05:44,459 –> 00:05:48,420
is only applicable to this current transfer

135 ( Ivan Lee )
00:05:48,420 –> 00:05:50,459
pursuant to the will, right?

136 ( Ivan Lee )
00:05:50,459 –> 00:05:54,319
So you must comply strictly with the will,

137 ( Ivan Lee )
00:05:54,319 –> 00:05:55,779
if you want to deviate from the will,

138 ( Ivan Lee )
00:05:55,779 –> 00:06:00,240
for example, A wills it to B and C, right?

139 ( Ivan Lee )
00:06:00,240 –> 00:06:02,720
But maybe the C is a brother who doesn’t want the property

140 ( Ivan Lee )
00:06:02,720 –> 00:06:04,779
and it’s quite common.

141 ( Ivan Lee )
00:06:04,779 –> 00:06:06,439
So he wants to give it to somebody else,

142 ( Ivan Lee )
00:06:06,439 –> 00:06:11,439
maybe another family member or the children maybe,

143 ( Ivan Lee )
00:06:11,480 –> 00:06:13,879
so now they want to transfer it instead of giving it

144 ( Ivan Lee )
00:06:13,879 –> 00:06:17,759
to B and C, to give it to B and D instead, right?

145 ( Ivan Lee )
00:06:17,759 –> 00:06:21,740
Then because the transfer to B is pursuant to the will,

146 ( Ivan Lee )
00:06:21,740 –> 00:06:22,600
there is no stamp duty

147 ( Ivan Lee )
00:06:22,600 –> 00:06:24,800
for that share of the property, right?

148 ( Ivan Lee )
00:06:24,800 –> 00:06:28,360
But since now, the will states to give the other share

149 ( Ivan Lee )
00:06:28,360 –> 00:06:29,740
to C, but C, doesn’t want it,

150 ( Ivan Lee )
00:06:29,740 –> 00:06:32,439
he want to direct it to D instead,

151 ( Ivan Lee )
00:06:32,439 –> 00:06:34,600
then that share of the transfer to D,

152 ( Ivan Lee )
00:06:34,600 –> 00:06:36,639
whether or not through C,

153 ( Ivan Lee )
00:06:36,639 –> 00:06:39,139
when it’s being affected will be subject to stamp duty.

154 ( Melvin Lim )
00:06:39,139 –> 00:06:41,680
– Mm, because it’s like another transaction?

155 ( Ivan Lee )
00:06:41,680 –> 00:06:43,579
– Either it can be considered as another transaction,

156 ( Ivan Lee )
00:06:43,579 –> 00:06:44,920
or sometimes what we will do is

157 ( Ivan Lee )
00:06:44,920 –> 00:06:47,959
instead of having to transfer to C then to D,

158 ( Ivan Lee )
00:06:47,959 –> 00:06:51,680
sometimes we will do what we call “deed of disclaimer”,

159 ( Ivan Lee )
00:06:51,680 –> 00:06:54,180
that means D will just disclaim the property,

160 ( Ivan Lee)
00:06:54,180 –> 00:06:55,500
and then it will get transferred

161 ( Ivan Lee )
00:06:55,500 –> 00:06:57,000
to somebody that he appoints.

162 ( Ivan Lee )
00:06:57,000 –> 00:07:01,220
So it can be done directly from the estate to Party D.

163 ( Ivan Lee )
00:07:01,220 –> 00:07:03,500
But the situation is

164 ( Ivan Lee )
00:07:03,500 –> 00:07:06,720
that as long as it is not strictly in compliance

165 ( Ivan Lee )
00:07:06,720 –> 00:07:08,300
with what the will says,

166 ( Ivan Lee )
00:07:08,300 –> 00:07:11,300
then that will become a transaction

167 ( Ivan Lee )
00:07:11,300 –> 00:07:14,860
that requires a payment of stamp duties.

168 ( Melvin Lim )
00:07:14,860 –> 00:07:17,100
– Great, I think great illustration.

169 ( Melvin Lim )
00:07:17,100 –> 00:07:20,860
And of course, I think when this inherited property

170 ( Melvin Lim )
00:07:20,860 –> 00:07:21,699
is being taken over,

171 ( Melvin Lim )
00:07:21,699 –> 00:07:24,100
this would add to the property count

172 ( Melvin Lim )
00:07:24,100 –> 00:07:25,519
that this couple is holding.

173 ( Melvin Lim )
00:07:25,519 –> 00:07:27,000
So it will be counted as a second property.

174 ( Melvin Lim )
00:07:27,000 –> 00:07:29,399
And then although the inherited property

175 ( Melvin Lim )
00:07:29,399 –> 00:07:30,899
has no stamp duty involved,

176 ( Melvin Lim )
00:07:30,899 –> 00:07:33,540
but the moment they want to purchase a third property,

177 ( Melvin Lim )
00:07:33,540 –> 00:07:37,399
definitely they will be counted as having the third property

178 ( Melvin Lim )
00:07:37,399 –> 00:07:38,899
ABSD per se.

179 ( Ivan Lee )
00:07:38,899 –> 00:07:39,740
– Correct.

180 ( Melvin Lim )
00:07:39,740 –> 00:07:41,000
– Right.

181 ( Melvin Lim )
00:07:41,000 –> 00:07:43,639
So far, what has been like the most complicated case

182 ( Melvin Lim )
00:07:43,639 –> 00:07:45,439
that you have ever seen?

183 ( Ivan Lee )
00:07:45,439 –> 00:07:48,579
– From inherited property the complication usually

184 ( Ivan Lee )
00:07:48,579 –> 00:07:50,120
from a conveyancing perspective

185 ( Ivan Lee )
00:07:50,120 –> 00:07:55,120
is where the will is not clear.

186 ( Melvin Lim )
00:07:55,139 –> 00:07:55,959
– Hmm.

187 ( Ivan Lee )
00:07:55,959 –> 00:07:58,800
– Yeah, so all these things can actually be prevented

188 ( Ivan Lee )
00:07:58,800 –> 00:08:05,019
because how should I describe this area of our legal work

189 ( Ivan Lee )
00:08:05,019 –> 00:08:09,019
essentially is actually to assist the clients

190 ( Ivan Lee )
00:08:09,019 –> 00:08:12,879
to perform the title transfer.

191 ( Melvin Lim )
00:08:12,879 –> 00:08:13,720
– Hmm.

192 ( Ivan Lee )
00:08:13,720 –> 00:08:14,620
– Right.

193 ( Ivan lee )
00:08:14,620 –> 00:08:16,560
So the title transfer is a separate matter in terms of,

194 ( Ivan Lee )
00:08:16,560 –> 00:08:19,920
in law as compared to the contract itself

195 ( Ivan Lee )
00:08:19,920 –> 00:08:23,740
or to the drafting of the will or to the court order.

196 ( Ivan Lee )
00:08:23,740 –> 00:08:28,120
So things like the will or the court order,

197( Ivan Lee )
00:08:28,120 –> 00:08:29,819
or the contract, right?

198 ( Ivan Lee )
00:08:29,819 –> 00:08:33,100
Essentially tells you what you need to do, right?

199 ( Ivan Lee )
00:08:33,100 –> 00:08:36,720
But then what the conveyancing transaction is essentially

200 ( Ivan Lee )
00:08:36,720 –> 00:08:39,679
is to assist the clients, to comply with the order

201 ( Ivan Lee )
00:08:39,679 –> 00:08:42,519
and to ensure that what they have been asked to do

202 ( Ivan lee )
00:08:42,519 –> 00:08:45,059
is done legally, right?

203 ( Ivan Lee )
00:08:45,059 –> 00:08:46,639
So when the will is unclear,

204 ( Ivan Lee )
00:08:46,639 –> 00:08:49,179
it becomes very difficult to follow

205 ( Ivan Lee )
00:08:49,179 –> 00:08:52,480
and to know exactly what needs to be performed, right?

206 ( Ivan Lee )
00:08:52,480 –> 00:08:57,419
Because wills can become complicated.

207 ( Ivan Lee )
00:08:57,419 –> 00:09:00,440
It becomes very unclear whether the property is to be held

208 ( Ivan Lee )
00:09:00,440 –> 00:09:02,840
in succession, for example,

209 ( Ivan Lee )
00:09:02,840 –> 00:09:05,440
certain clauses when they are not very clear

210 ( Ivan Lee )
00:09:05,440 –> 00:09:10,440
to say that the property is to be gifted to the son,

211 ( Ivan Lee )
00:09:10,440 –> 00:09:14,919
but the spouse or the mother will have a right

212 ( Ivan Lee )
00:09:14,919 –> 00:09:17,620
to stay in the property until she passes on.

213 ( Ivan Lee )
00:09:17,620 –> 00:09:18,840
And without her consent,

214 ( Ivan >ee )
00:09:18,840 –> 00:09:21,299
they cannot sell the property, right?

215 ( Melvin Lim )
00:09:21,299 –> 00:09:22,000
– Right.

216 ( Ivan lee )
00:09:22,000 –> 00:09:26,039
– So we will need to, actually, if there’s no dispute,

217 ( Ivan Lee )
00:09:26,039 –> 00:09:29,820
then of course we will have to look at it.

218 ( Ivan Lee )
00:09:29,820 –> 00:09:33,860
And then we will of course speak to the

219 ( Ivan Lee )
00:09:33,860 –> 00:09:38,299
executor to see what is the actual intention

220 ( Ivan Lee )
00:09:38,299 –> 00:09:41,360
of the deceased when he actually drafted the will.

221 ( Ivan Lee )
00:09:41,360 –> 00:09:44,179
And we try to do the transfer accordingly,

222 ( Ivan Lee )
00:09:44,179 –> 00:09:47,500
so when there’s no dispute, it’s more straightforward.

223 ( Ivan Lee )
00:09:47,500 –> 00:09:48,559
Yeah.

224 ( Ivan Lee )
00:09:48,559 –> 00:09:49,399
But some of these things,

225 ( Ivan Lee )
00:09:49,399 –> 00:09:51,539
like the one that I just previously mentioned essentially is

226 ( Ivan Lee )
00:09:51,539 –> 00:09:54,700
because it’s complicated because in Singapore,

227 ( Ivan Lee )
00:09:54,700 –> 00:09:57,139
it’s very rare for that to happen.

228 ( Ivan Lee )
00:09:57,139 –> 00:09:59,440
There’s this thing called life interest.

229 ( Ivan Lee )
00:09:59,440 –> 00:10:01,220
Right, and life interest essentially is

230 ( Ivan Lee )
00:10:01,220 –> 00:10:04,340
that I can give a property to A,

231 ( Ivan Lee )
00:10:04,340 –> 00:10:08,159
for the duration of A’s life.

232 ( Ivan lee )
00:10:08,159 –> 00:10:11,120
And then after A passes on the property

233 ( Ivan lee )
00:10:11,120 –> 00:10:12,580
then goes to B,

234 (Melvin Lim )
00:10:12,580 –> 00:10:13,440
– [Melvin] Oh!

235 ( Ivan Lee )
00:10:13,440 –> 00:10:15,399
– So this is something that was developed

236 ( Melvin Lim )
00:10:15,399 –> 00:10:18,360
from olden days, England time

237 ( Ivan Lee )
00:10:18,360 –> 00:10:22,559
when they tried to keep the property within the same family.

238 ( Melvin Lim )
00:10:22,559 –> 00:10:24,700
– [Melvin] Hmm, interesting.

239 ( Ivan Lee )
00:10:24,700 –> 00:10:27,539
– But this is very rarely done in Singapore.

240 ( Melvin Lim )
00:10:27,559 –> 00:10:29,159
– Is it because a lot of people don’t know

241 ( Melvin Lim )
00:10:29,159 –> 00:10:30,720
of it’s existence?

242 ( Ivan Lee )
00:10:30,720 –> 00:10:33,000
– It’s also true that most people don’t know

243 ( Ivan Lee )
00:10:33,000 –> 00:10:33,840
of its existence,

244 ( Ivan lee )
00:10:33,840 –> 00:10:37,019
but it’s also because it will lower

245 ( Ivan Lee )
00:10:37,019 –> 00:10:38,159
the value of the property.

246 ( Melvin Lim )
00:10:38,159 –> 00:10:42,620
Because when the life interest holder is holding a property,

247 ( Ivan Lee )
00:10:42,620 –> 00:10:44,960
essentially a life interest holder only has

248 ( Ivan Lee )
00:10:44,960 –> 00:10:50,940
a right against the property for the period of his life.

249 ( Melvin Lim )
00:10:50,940 –> 00:10:53,399
– Provided it is like a freehold property.

250 ( Ivan Lee )
00:10:53,399 –> 00:10:54,740
– Yeah, generally.

251 (Ivan Lee )
00:10:54,740 –> 00:10:56,200
Yeah, for the period of his life.

252 ( Melvin Lim )
00:10:56,200 –> 00:10:57,419
– So, he cannot sell it away.

253 ( Ivan Lee )
00:10:57,419 –> 00:10:58,259
– It’s very hard to sell

254 ( Ivan Lee )
00:10:58,259 –> 00:11:00,200
because he then only has the right to sell

255 ( Ivan Lee)
00:11:00,200 –> 00:11:01,820
for that period of his life,

256 ( Ivan Lee )
00:11:01,820 –> 00:11:04,860
which means that nobody knows when he’s going to…

257 ( Melvin Lim )
00:11:04,860 –> 00:11:06,799
– But is he allowed to sell it in the first place,

258 ( Melvin Lim )
00:11:06,799 –> 00:11:09,220
because, or there will be a caveat

259 ( Melvin Lim )
00:11:09,220 –> 00:11:11,659
being lodged against that property?

260 ( Ivan Lee )
00:11:11,659 –> 00:11:15,080
– It’s almost quite impossible to sell it.

261 ( Melvin Lim )
00:11:15,080 –> 00:11:15,919
– Okay.

262 ( Ivan Lee )
00:11:15,919 –> 00:11:18,700
– Okay, because there is almost no marketability

263 ( Ivan Lee )
00:11:18,700 –> 00:11:22,200
because the first person that is holding the shorter term

264 ( Ivan Lee )
00:11:22,200 –> 00:11:26,220
and not the remaining period really has like,

265 ( Ivan Lee )
00:11:26,220 –> 00:11:30,100
a lease over that property which generally has no value,

266 ( Ivan Lee )
00:11:30,100 –> 00:11:31,259
right?

267 ( Ivan Lee )
00:11:31,259 –> 00:11:33,240
But the remaining person,

268 ( Ivan Lee )
00:11:33,240 –> 00:11:35,139
if he’s not willing to also sell his share,

269 ( Ivan Lee )
00:11:35,139 –> 00:11:37,179
that means to sell both of it together.

270 ( Ivan Lee )
00:11:37,179 –> 00:11:39,480
The buyer essentially is only buying

271 ( Ivan Lee )
00:11:39,480 –> 00:11:41,419
for an unknown period of time.

272 ( Ivan Lee )
00:11:41,419 –> 00:11:43,279
So essentially there’s no marketability.

273 ( Ivan Lee )
00:11:43,279 –> 00:11:44,879
So which is why it’s not actually done

274 ( Ivan Lee )
00:11:44,879 –> 00:11:46,940
in Singapore most of the time.

275 ( Ivan Lee )
00:11:46,940 –> 00:11:49,299
But then it appears more frequently

276 ( Ivan Lee )
00:11:49,299 –> 00:11:52,879
when it’s in a will situation, yeah.

277 ( Ivan Lee )
00:11:52,879 –> 00:11:55,519
So sometimes different kinds of drafting,

278 (Ivan Lee )
00:11:55,519 –> 00:11:57,159
using different kinds of language.

279 ( Ivan Lee )
00:11:57,159 –> 00:11:59,360
We are not sure whether this should constitute

280 ( Ivan Lee )
00:11:59,360 –> 00:12:03,820
a legal life interest which can be registered

281 ( Ivan Lee )
00:12:03,820 –> 00:12:05,620
because when this is actually registered,

282 ( Ivan Lee )
00:12:05,620 –> 00:12:08,600
there are actually separate title deeds issued for this property, right?

283 ( Ivan Lee )
00:12:08,600 –> 00:12:10,440
One for the life and one for the remaining one

284 ( Ivan Lee )
00:12:10,440 –> 00:12:13,360
after the person passes away.

285 ( Ivan Lee )
00:12:13,360 –> 00:12:17,759
So this is one of the things that we face

286 ( Ivan Lee )
00:12:17,759 –> 00:12:19,340
when we deal with conveyancing,

287 ( Ivan Lee )
00:12:19,340 –> 00:12:22,360
also very much similar to divorce cases

288 ( Ivan Lee )
00:12:22,360 –> 00:12:24,220
where the court order is not clear.

289 ( Ivan Lee )
00:12:24,220 –> 00:12:26,379
Essentially this is where the complication

290 ( Ivan Lee )
00:12:26,379 –> 00:12:27,820
will start to arise.

291 ( Melvin Lim )
00:12:27,820 –> 00:12:30,360
– Right, which brings us to the next question,

292 ( Melvin Lim )
00:12:30,360 –> 00:12:32,080
because nowadays, over the past few years,

293 ( Melvin Lim )
00:12:32,080 –> 00:12:36,000
decoupling has been so popular and not just decoupling,

294 ( Melvin Lim )
00:12:36,000 –> 00:12:38,320
I mean, couples are buying a property

295 ( Melvin Lim )
00:12:38,320 –> 00:12:42,139
under each name because everybody wants to avoid having

296 ( Melvin Lim )
00:12:42,139 –> 00:12:44,580
to pay the additional buyer stamp duty.

297 ( Melvin Lim )
00:12:44,580 –> 00:12:46,620
If both couples have buying power,

298 ( Melvin Lim )
00:12:46,620 –> 00:12:49,120
I mean decoupling or buying one under each name

299 ( Melvin Lim )
00:12:49,120 –> 00:12:51,080
is a natural route, right?

300 ( Melvin Lim )
00:12:51,080 –> 00:12:55,159
And how has been the trend like?

301 ( Melvin Lim )
00:12:55,159 –> 00:12:57,279
When it comes to decoupling,

302 ( Melvin Lim )
00:12:57,279 –> 00:12:59,399
of buying a property under each name?

303 ( Ivan Lee )
00:12:59,399 –> 00:13:04,580
– Most of the time, what we see is that couples

304 ( Ivan Lee )
00:13:04,580 –> 00:13:06,259
after they decouple

305 ( Ivan Lee )
00:13:06,259 –> 00:13:08,940
or they actually own separate properties,

306 ( Ivan Lee )
00:13:08,940 –> 00:13:12,039
most of the time they will actually will it

307 ( Ivan Lee )
00:13:12,039 –> 00:13:17,240
to the surviving spouse first, everything.

308 ( Ivan Lee )
00:13:17,240 –> 00:13:22,440
And only if, let’s say the surviving spouse passes on

309 ( Ivan Lee )
00:13:22,440 –> 00:13:26,539
in the event the spouse actually passes on before them,

310 ( Ivan Lee )
00:13:26,539 –> 00:13:28,960
then it will actually go to the children.

311 ( Ivan Lee )
00:13:28,960 –> 00:13:30,779
Yeah, so this is something

312 ( Ivan Lee )
00:13:30,779 –> 00:13:32,980
that I think is quite common.

313 (Melvin Lim )
00:13:32,980 –> 00:13:37,419
– So you’re saying like inter-willing kind of practice?

314 ( Ivan Lee )
00:13:37,419 –> 00:13:38,259
– Correct.

315 ( Melvin Lim )
00:13:38,259 –> 00:13:39,100
– Okay.

316 ( Melvin Lim )
00:13:39,100 –> 00:13:43,259
How about in the event, if let’s say there’s a divorce.

317 ( Ivan Lee )
00:13:43,259 –> 00:13:46,679
– For divorces instituted in Singapore,

318 ( Ivan Lee )
00:13:46,679 –> 00:13:50,460
there’s this concept of matrimonial property,

319 ( Ivan Lee )
00:13:50,460 –> 00:13:52,580
even though legally the properties are all

320 ( Ivan Lee )
00:13:52,580 –> 00:13:55,559
under the respective, the husband’s name

321 ( Ivan Lee )
00:13:55,559 –> 00:13:58,159
or the wife’s name,

322 ( Ivan Lee )
00:13:58,159 –> 00:14:00,179
where this property is acquired

323 ( Ivan Lee )
00:14:00,179 –> 00:14:02,039
after the marriage

324 ( Ivan Lee )
00:14:02,039 –> 00:14:05,379
or where it is acquired before the marriage

325 ( Ivan Lee )
00:14:05,379 –> 00:14:09,340
but there was substantial improvements made to the property.

326 ( Ivan Lee )
00:14:09,340 –> 00:14:13,039
It can actually be considered as matrimonial asset, right?

327 ( Ivan Lee )
00:14:13,039 –> 00:14:15,860
So when it is considered as matrimonial asset,

328 ( Ivan Lee )
00:14:15,860 –> 00:14:18,100
then the court will have jurisdiction

329 ( Ivan Lee )
00:14:18,100 –> 00:14:21,539
to actually redistribute the property.

330 ( Ivan Lee )
00:14:21,539 –> 00:14:25,100
So, some of the things that we have actually seen,

331 ( Ivan Lee )
00:14:25,100 –> 00:14:28,019
the property either remains in their own name

332 ( Ivan Lee )
00:14:28,019 –> 00:14:30,899
or that sometimes they will do an exchange

333 ( Ivan Lee )
00:14:30,899 –> 00:14:32,500
of the properties,

334 ( Ivan Lee )
00:14:32,500 –> 00:14:38,159
especially when they have both the names on both properties.

335 ( Ivan Lee )
00:14:38,159 –> 00:14:40,320
In those situations then they will divide it

336 ( Ivan Lee )
00:14:40,320 –> 00:14:41,840
in such a way that one person will end up

337 ( Ivan Lee )
00:14:41,840 –> 00:14:43,360
with one property.

338 ( Ivan Lee )
00:14:43,360 –> 00:14:45,240
But if they are already separated,

339 ( Ivan Lee )
00:14:45,240 –> 00:14:52,799
then usually it can be counted as the matrimonial asset

340 (Melvin Lim )
00:14:52,799 –> 00:14:53,639
– In total?

341 ( Ivan Lee )
00:14:53,639 –> 00:14:54,820
– In total.

342 ( Ivan Lee )
00:14:54,820 –> 00:14:55,639
So the court will have a right

343 ( Ivan Lee )
00:14:55,639 –> 00:14:58,960
to actually divide the property, right?

344 ( Ivan Lee )
00:14:58,960 –> 00:15:01,340
And in the recent years,

345 ( Ivan Lee )
00:15:01,340 –> 00:15:05,919
a lot of the divorce orders are consent orders.

346 ( Melvin Lim )
00:15:05,919 –> 00:15:07,120
– What is a consent order?

347 ( Ivan Lee )
00:15:07,120 –> 00:15:12,840
– Consent order essentially means that both parties agree

348 ( Ivan Lee )
00:15:12,840 –> 00:15:14,700
to have the distribution of assets.

349 ( Ivan Lee )
00:15:14,700 –> 00:15:18,940
And this agreement is filed as a court order, right?

350 ( Ivan Lee )
00:15:18,940 –> 00:15:23,399
So essentially it makes the divorce more straightforward,

351 ( Ivan Lee )
00:15:23,399 –> 00:15:24,340
right?

352 ( Ivan Lee )
00:15:24,340 –> 00:15:25,480
Because they’ve already agreed to,

353 ( Ivan Lee )
00:15:25,480 –> 00:15:27,600
and they don’t have to contest it

354 ( Ivan Lee )
00:15:27,600 –> 00:15:28,539
in front of the court

355 ( Ivan Lee )
00:15:28,539 –> 00:15:30,019
and the court generally,

356 ( Ivan Lee )
00:15:30,019 –> 00:15:31,740
if there’s no major issues with it,

357 ( Ivan Lee )
00:15:31,740 –> 00:15:34,419
they will generally agree and they will seal on it.

358 ( Ivan Lee )
00:15:34,419 –> 00:15:36,240
So it has the force of a court order,

359 ( Ivan Lee )
00:15:36,240 –> 00:15:40,220
but essentially the agreement behind the distribution has

360 ( Ivan Lee )
00:15:40,220 –> 00:15:43,580
already been consented by both parties, right?

361 ( Ivan Lee )
00:15:43,580 –> 00:15:45,940
So consent order makes it easier

362 ( Ivan Lee )
00:15:45,940 –> 00:15:47,879
to deal with the conveyance.

363 ( Ivan Lee )
00:15:47,879 –> 00:15:52,379
So if anything requires some clarification

364 ( Ivan Lee )
00:15:52,379 –> 00:15:53,759
then we’ll just go back to the parties

365 ( Ivan Lee )
00:15:53,759 –> 00:15:56,600
to ask them to clarify what
was the actual agreement,

366 ( Ivan Lee )
00:15:56,600 –> 00:15:58,220
at the point in time.

367 ( Ivan Lee )
00:15:58,220 –> 00:16:03,679
So, this is to assist with the distribution obligations

368 ( Ivan Lee )
00:16:03,679 –> 00:16:07,519
to make sure that the conveyance is done correctly.

369 (Melvin Lim )
00:16:07,519 –> 00:16:09,639
– Yeah. Great, great.

370 ( Melvin Lim )
00:16:09,639 –> 00:16:12,440
We have done the topic
on buying properties

371 ( Melvin Lim )
00:16:12,440 –> 00:16:15,080
under trust in season one,

372 ( Melvin Lim )
00:16:15,080 –> 00:16:18,360
with another guest that appeared on the show,

373 ( Melvin Lim )
00:16:18,360 –> 00:16:20,419
but just to bring back the purchasing

374 ( Melvin Lim )
00:16:20,419 –> 00:16:23,039
and the trust kind of concept,

375 ( Melvin Lim )
00:16:23,039 –> 00:16:25,779
do you see it rising over the past year?

376 ( Melvin Lim )
00:16:25,779 –> 00:16:27,220
Because definitely over the past few years,

377 ( Melvin Lim )
00:16:27,220 –> 00:16:31,539
it has been a very popular practice, buying,

378 ( Melvin Lim )
00:16:31,539 –> 00:16:32,620
but this is of course,

379 ( Melvin Lim )
00:16:32,620 –> 00:16:35,620
pertaining to only families that can fully pay a property.

380 ( Melvin Lim )
00:16:35,620 –> 00:16:39,399
Cause when you buy trust, you can’t take a mortgage on it.

381 ( Ivan Lee )
00:16:39,399 –> 00:16:40,240
– [Ivan] Yeah.

382 ( Melvin Lim )
00:16:40,240 –> 00:16:41,759
– Yeah, so let me just to bring back that topic.

383 ( Melvin Lim )
00:16:41,759 –> 00:16:44,519
Has there been any changes to the trust law buying

384 ( Melvin Lim )
00:16:44,519 –> 00:16:48,320
properties under children that’s below 21 years old

385 ( Melvin Lim )
00:16:48,320 –> 00:16:50,980
over this past one to two years?

386 ( Ivan Lee )
00:16:50,980 –> 00:16:53,039
– Over the past one to two years,

387 ( Ivan Lee )
00:16:53,039 –> 00:16:57,539
I don’t think trust law has actually developed a lot

388 ( Ivan Lee )
00:16:57,539 –> 00:16:59,000
or changed a lot in respect

389 ( Ivan Lee )
00:16:59,000 –> 00:17:04,440
to purchasing real estate or trust for minors,

390 ( Ivan Lee )
00:17:04,440 –> 00:17:06,599
the law has actually stayed the same,

391 ( Ivan Lee )
00:17:06,599 –> 00:17:08,740
but I think there is increasing demand

392 ( Ivan Lee )
00:17:08,740 –> 00:17:12,839
to have properties actually purchased

393 ( Ivan Lee )
00:17:12,839 –> 00:17:18,240
or structured under a trust situation.

394 ( Ivan Lee )
00:17:18,240 –> 00:17:20,859
So, trust device is something

395 ( Ivan Lee )
00:17:20,859 –> 00:17:24,559
that requires consideration, proper consideration,

396 ( Ivan Lee )
00:17:24,559 –> 00:17:26,599
because there are many legal obligations

397 ( Ivan Lee )
00:17:26,599 –> 00:17:30,859
that is being tagged to this trust device, right?

398 ( Ivan Lee )
00:17:30,859 –> 00:17:37,559
So briefly, essentially, a trust deed is set up right?

399 ( Ivan Lee )
00:17:37,559 –> 00:17:40,359
When there is a trust deed

400 ( Ivan Lee )
00:17:40,359 –> 00:17:41,960
and the terms of a trust deal

401 ( Ivan Lee )
00:17:41,960 –> 00:17:47,299
essentially creates this legal concept called a trust.

402 ( Ivan Lee )
00:17:47,299 –> 00:17:50,259
So, how should we think of it,

403 ( Ivan Lee )
00:17:50,259 –> 00:17:53,720
of the trust essentially is that we should think of a trust

404 ( Ivan Lee )
00:17:53,720 –> 00:17:57,000
as a person who is holding,

405 ( Ivan Lee )
00:17:57,000 –> 00:17:59,019
there are two parties who are holding different sets

406 ( Ivan Lee )
00:17:59,019 –> 00:18:02,220
of legal interests over the asset, right?

407 ( Ivan Lee )
00:18:02,220 –> 00:18:04,720
So I’m a little bit technical,

408 ( Ivan Lee )
00:18:04,720 –> 00:18:07,039
but the concept essentially is

409 ( Ivan Lee )
00:18:07,039 –> 00:18:09,700
there are two different concepts in law.

410 ( Ivan Lee )
00:18:09,700 –> 00:18:12,299
One is called the legal title, right?

411 ( Ivan Lee )
00:18:12,299 –> 00:18:15,740
And one is called beneficial title.

412 ( Ivan Lee )
00:18:15,740 –> 00:18:17,940
So the legal title is usually held

413 ( Ivan Lee )
00:18:17,940 –> 00:18:20,000
by the person called the trustee.

414 ( Ivan Lee )
00:18:20,000 –> 00:18:24,640
And the beneficial ownership is held by the beneficiary.

415 ( Ivan Lee )
00:18:24,640 –> 00:18:28,440
Most of the time in Singapore context will be the kid

416 ( Ivan Lee )
00:18:28,440 –> 00:18:30,539
that’s below 21, yeah.

417 ( Ivan Lee )
00:18:30,539 –> 00:18:32,720
So there’s a difference in this obligation

418 ( Ivan Lee )
00:18:32,720 –> 00:18:35,720
and between the beneficial owner,

419 ( Ivan Lee )
00:18:35,720 –> 00:18:37,359
which is the children

420 ( Ivan Lee )
00:18:37,359 –> 00:18:39,480
and the parent who is the trustee,

421 ( Ivan Lee )
00:18:39,480 –> 00:18:43,180
there’s a set of legal obligations and duties

422 ( Ivan Lee )
00:18:43,180 –> 00:18:44,619
that the trustee need to follow

423 ( Ivan Lee )
00:18:44,619 –> 00:18:48,019
in discharging the management of the property

424 ( Ivan Lee )
00:18:48,019 –> 00:18:52,519
under the trust concept model, trust creation.

425 ( Ivan Lee )
00:18:52,519 –> 00:18:57,180
So I think many people use it as a device

426 ( Ivan Lee )
00:18:57,180 –> 00:18:59,460
to avoid additional buyer stamp duty,

427 ( Ivan Lee )
00:18:59,460 –> 00:19:02,140
but there are also implications

428 ( Ivan Lee )
00:19:02,140 –> 00:19:04,180
because these implications will not surface

429 ( Ivan Lee )
00:19:04,180 –> 00:19:06,579
until many, many years down the road.

430 ( Melvin Lim )
00:19:06,579 –> 00:19:09,019
– Maybe, what are the implications that you came across?

431 ( Ivan Lee )
00:19:09,019 –> 00:19:12,380
– Some of these implications essentially is

432 ( Ivan Lee )
00:19:12,380 –> 00:19:16,779
that the first one is that the property count

433 ( Ivan Lee )
00:19:16,779 –> 00:19:19,579
is counted as the beneficiaries property count

434 ( Ivan Lee )
00:19:19,579 –> 00:19:22,599
for ABSD purposes, right?

435 ( Ivan Lee )
00:19:22,599 –> 00:19:24,519
So in the future,

436 ( Ivan Lee )
00:19:24,519 –> 00:19:28,339
when this kid actually turns 21

437 ( Ivan Lee )
00:19:28,339 –> 00:19:33,720
or is of age already, they want to buy a property.

438 ( Ivan Lee )
00:19:33,720 –> 00:19:36,500
And if they do not know that they have a property

439 ( Ivan Lee )
00:19:36,500 –> 00:19:39,339
under trust in their name,

440 ( Ivan Lee )
00:19:39,339 –> 00:19:42,619
they are going to be hit with ABSD

441 ( Ivan Lee )
00:19:42,619 –> 00:19:45,859
for their so-called first property purchase, right?

442 ( Ivan Lee )
00:19:45,859 –> 00:19:49,039
So it is important that

443 ( Ivan Lee )
00:19:49,039 –> 00:19:50,599
if the property has not been sold

444 ( Ivan Lee )
00:19:50,599 –> 00:19:52,099
by the time the beneficiary decides

445 ( Ivan Lee )
00:19:52,099 –> 00:19:55,900
to buy another residential property in Singapore,

446 ( Ivan Lee )
00:19:55,900 –> 00:19:58,779
then the beneficiary needs to know

447 ( Ivan Lee )
00:19:58,779 –> 00:20:00,220
that he has this property.

448 ( Ivan Lee )
00:20:00,220 –> 00:20:02,460
Even though the title deed doesn’t show his name,

449 ( Ivan Lee )
00:20:02,460 –> 00:20:05,799
this property is beneficially his, right?

450 ( Ivan Lee )
00:20:05,799 –> 00:20:09,740
Because the property count for tax purposes actually shifts.

451 ( Ivan Lee )
00:20:09,740 –> 00:20:13,740
So when he buys his own property under his own name,

452 ( Ivan Lee )
00:20:13,740 –> 00:20:16,180
he will actually be hit with Additional Buyer’s Stamp Duty.

453 ( Ivan Lee )
00:20:16,180 –> 00:20:18,480
So this consideration is something

454 ( Ivan Lee )
00:20:18,480 –> 00:20:20,779
that needs to be kept in mind

455 ( Ivan Lee )
00:20:20,779 –> 00:20:24,759
because it will only come into play many, many, many years

456 ( Ivan Lee )
00:20:24,759 –> 00:20:28,220
down the road when the kid actually turns 21

457 ( ( Ivan Lee )
00:20:28,220 –> 00:20:30,000
and he can actually buy his own property.

458 ( Ivan Lee )
00:20:30,000 –> 00:20:33,160
So one of the other situation that I can also think of is

459 ( Ivan Lee )
00:20:33,160 –> 00:20:35,460
if the kid wants to buy a BTO,

460 ( Ivan Lee )
00:20:35,460 –> 00:20:38,859
he has a private property.

461 ( Ivan Lee )
00:20:38,859 –> 00:20:40,440
He’s supposed to dispose it 30 months

462 ( Ivan Lee )
00:20:40,440 –> 00:20:42,799
before he can apply for BTO.

463 ( Ivan Lee )
00:20:42,799 –> 00:20:45,559
And he realises at the point of application

464 ( Ivan Lee )
00:20:45,559 –> 00:20:47,079
that he cannot make the application

465 ( Ivan Lee )
00:20:47,079 –> 00:20:48,740
because he has a private property.

466 ( Ivan Lee )
00:20:48,740 –> 00:20:52,000
So these are things that you need to keep in mind.

467 ( Ivan Lee )
00:20:52,000 –> 00:20:56,319
As long as a person who wants to purchase a trust property,

468 ( Ivan Lee )
00:20:56,319 –> 00:21:00,240
understands all these risks that they are creating

469 ( Ivan Lee )
00:21:00,240 –> 00:21:01,279
and undertaking

470 ( Ivan Lee )
00:21:01,279 –> 00:21:05,720
and very much involuntary for the beneficiary

471 ( Ivan Lee )
00:21:05,720 –> 00:21:08,440
because the beneficiary has no control.

472 ( Ivan Lee )
00:21:08,440 –> 00:21:09,819
Then it’s definitely fine,

473 ( Ivan Lee )
00:21:09,819 –> 00:21:11,779
but they must understand that these things can happen.

474 ( Ivan Lee )
00:21:11,779 –> 00:21:14,720
And it may end up being a very big dispute down the road,

475 ( Melvin Lim )
00:21:14,720 –> 00:21:15,559
– Right.

476 ( Ivan Lee )
00:21:15,559 –> 00:21:16,460
– [Ivan] Yeah.

477 ( Melvin Lim )
00:21:16,460 –> 00:21:19,019
– How many years does the trustee have

478 ( Melvin Lim )
00:21:19,019 –> 00:21:22,940
to hold the property before they can sell it?

479 ( ( Ivan Lee )
00:21:22,940 –> 00:21:28,319
– For Seller’s Stamp Duty purposes currently is three years.

480 ( Ivan Lee )
00:21:28,319 –> 00:21:35,079
But this trust concept it’s a legal concept.

481 ( Ivan Lee )
00:21:35,079 –> 00:21:38,240
So whether there are any restrictions

482 ( Ivan Lee )
00:21:38,240 –> 00:21:40,440
on the trustee’s ability or power

483 ( Ivan Lee )
00:21:40,440 –> 00:21:43,619
to sell the property can also be found

484 ( Ivan Lee )
00:21:43,619 –> 00:21:45,140
in the trust deed, right?

485 ( Ivan Lee )
00:21:45,140 –> 00:21:48,500
So if this is a very detailed trust deed

486 ( Ivan Lee )
00:21:48,500 –> 00:21:50,019
that has special restrictions saying

487 ( Ivan Lee )
00:21:50,019 –> 00:21:51,859
that this is a property trust,

488 ( Ivan Lee )
00:21:51,859 –> 00:21:55,579
but the trustee is not entitled to sell the property, right?

489 ( Ivan Lee )
00:21:55,579 –> 00:21:58,460
Then the trustee will not have power to sell the property.

490 ( Ivan Lee )
00:21:58,460 –> 00:22:00,740
Right? So in terms of seller stamp duty,

491 ( Ivan Lee )
00:22:00,740 –> 00:22:02,619
we know for now it’s three years, yeah.

492 ( Ivan Lee )
00:22:02,619 –> 00:22:04,019
But when everything is under trust,

493 ( Ivan Lee )
00:22:04,019 –> 00:22:07,079
a lot of it, how to manage the property

494 ( Ivan Lee )
00:22:07,079 –> 00:22:10,000
and what the trustee can do with the property.

495 ( Ivan Lee )
00:22:10,000 –> 00:22:13,779
Actually, we always need to look back at the trust deed itself.

496 ( Melvin Lim )
00:22:13,779 –> 00:22:16,599
– Who decides what’s in the trust deed?

497 ( Ivan Lee )
00:22:16,599 –> 00:22:20,680
– Usually the trust deed will be drafted by a lawyer.

498 ( Ivan Lee )
00:22:20,680 –> 00:22:24,380
And it depends on what perspectives

499 ( Ivan Lee )
00:22:24,380 –> 00:22:26,460
and what do you want inside the trust deed.

500 ( Ivan Lee )
00:22:26,460 –> 00:22:30,940
So most people when they enter into a trust device,

501 ( Ivan Lee )
00:22:30,940 –> 00:22:34,079
their main concern is about Additional Buyer’s Stamp Duty,

502 ( Ivan Lee )
00:22:34,079 –> 00:22:36,660
which by right, it shouldn’t be okay,

503 ( Ivan Lee )
00:22:36,660 –> 00:22:38,299
because the trust–

504 ( Melvin Lim )
00:22:38,299 –> 00:22:39,119
– [Melvin] Isn’t the main purpose.

505 ( Ivan Lee )
00:22:39,119 –> 00:22:40,099
– Yeah, the main purpose
of a trust concept

506 ( Ivan Lee )
00:22:40,099 –> 00:22:41,799
in general law essentially–

507 ( Melvin Lim )
00:22:41,799 –> 00:22:43,839
– [Melvin] Is a gift for the minor?

508 ( Ivan Lee )
00:22:43,839 –> 00:22:49,339
– It’s actually to allow the management

509 ( Ivan Lee )
00:22:49,339 –> 00:22:55,019
of the property to be done by the trustee

510 ( Ivan Lee )
00:22:55,019 –> 00:22:57,099
for the benefit of the beneficiary.

511 ( Melvin Lim )
00:22:57,099 –> 00:22:58,180
– Until 21.

512 ( Ivan Lee )
00:22:58,180 –> 00:23:00,000
– Yes, until 21.

513 ( Ivan Lee )
00:23:00,000 –> 00:23:05,059
Trusts can be set up even if the beneficiary is not below 21.

514 ( Melvin Lim )
00:23:05,059 –> 00:23:06,140
– Hmm.

515 ( Ivan Lee )
00:23:06,140 –> 00:23:07,980
– It can be done, right?

516 ( Melvin Lim )
00:23:07,980 –> 00:23:09,880
– It can be done for an adult?

517 ( Ivan Lee )
00:23:09,880 –> 00:23:12,619
– It can be done for charitable purposes, right?

518 ( Ivan Lee )
00:23:12,619 –> 00:23:14,519
Eh, for example,

519 ( Ivan Lee )
00:23:14,519 –> 00:23:15,680
if you want to create a trust

520 ( Ivan Lee )
00:23:15,680 –> 00:23:21,160
so that maybe your disabled child who is above 21,

521 ( Ivan Lee )
00:23:21,160 –> 00:23:22,740
you are afraid that he is not able

522 ( Ivan Lee )
00:23:22,740 –> 00:23:26,420
to manage the finances properly by himself.

523 ( Ivan Lee )
00:23:26,420 –> 00:23:28,140
Right. You can set up a trust.

524 ( Ivan Lee )
00:23:28,140 –> 00:23:29,460
The trustee essentially is the person

525 ( Ivan Lee )
00:23:29,460 –> 00:23:32,240
who is holding the legal ownership,

526 ( Ivan Lee )
00:23:32,240 –> 00:23:34,779
but must manage the property

527 ( Ivan Lee )
00:23:34,779 –> 00:23:38,160
for the benefit of the beneficiary.

528 ( Ivan Lee )
00:23:38,160 –> 00:23:39,359
So he cannot do anything

529 ( Ivan Lee )
00:23:39,359 –> 00:23:42,960
that would generally be detrimental to the beneficiary.

530 ( Ivan Lee )
00:23:42,960 –> 00:23:45,819
So this is the kind of legal relationship

531 ( Ivan Lee )
00:23:45,819 –> 00:23:47,180
that we have in a trust.

532 ( Ivan Lee )
00:23:47,180 –> 00:23:50,940
So the trust device is very useful in many, many areas,

533 ( Ivan Lee )
00:23:50,940 –> 00:23:52,319
but for real estate, right.

534 ( Ivan Lee )
00:23:52,319 –> 00:23:54,920
Most people think of it as a way to avoid ABSD.

535 ( Ivan Lee )
00:23:54,920 –> 00:23:58,819
But that generally shouldn’t be the main concern.

536 ( Melvin Lim )
00:23:58,819 –> 00:24:00,619
– It shouldn’t be the main intent.

537 ( Ivan Lee )
00:24:00,619 –> 00:24:01,940
– That shouldn’t be.

538 ( Melvin Lim )
00:24:01,940 –> 00:24:03,880
– Okay, okay.

539 ( Melvin Lim )
00:24:03,880 –> 00:24:05,240
It’s just that it became popular.

540 ( Ivan Lee )
00:24:05,240 –> 00:24:07,400
– It became popular because ABSD is very high.

541 ( Ivan Lee )
00:24:07,400 –> 00:24:10,200
So whatever device that people can get their hands on,

542 ( Ivan Lee )
00:24:10,200 –> 00:24:12,019
they will want to try it.

543 ( Melvin Lim )
00:24:12,019 –> 00:24:12,859
– Sure.

544 ( Ivan Lee )
00:24:12,859 –> 00:24:13,700
– Yeah.

545 ( Melvin Lim )
00:24:13,700 –> 00:24:15,380
– Okay, thanks for sharing on the trust portion.

546 ( Melvin Lim )
00:24:15,380 –> 00:24:20,259
Let’s move on a little bit to the purchasing and selling

547 ( Melvin Lim )
00:24:20,259 –> 00:24:23,099
kind of minute details.

548 ( Melvin Lim )
00:24:23,099 –> 00:24:26,920
So, you know, recently the past,

549 ( Melvin Lim )
00:24:26,920 –> 00:24:28,279
especially the past 24 months,

550 ( Melvin Lim )
00:24:28,279 –> 00:24:31,079
there has been a very common practice,

551 ( Melvin Lim )
00:24:31,079 –> 00:24:33,460
because the market is moving very fast, right?

552 ( Melvin Lim )
00:24:33,460 –> 00:24:37,720
So market is moving fast with the restrictions of COVID,

553 ( Melvin Lim )
00:24:37,720 –> 00:24:41,059
the amount of viewings into the property physically,

554 ( Melvin Lim )
00:24:41,059 –> 00:24:42,759
is also being affected,

555 ( Melvin Lim )
00:24:42,759 –> 00:24:45,240
especially for properties that are very popular.

556 ( Melvin Lim )
00:24:45,240 –> 00:24:48,180
We talk about a lot, during our Nuggets on the Go,

557 ( Melvin Lim )
00:24:48,180 –> 00:24:49,440
the other podcasts that we talk about

558 ( Melvin Lim )
00:24:49,440 –> 00:24:51,700
the market conditions right now is

559 ( Melvin Lim )
00:24:51,700 –> 00:24:53,539
that landed properties are extremely hot,

560 ( Melvin Lim )
00:24:53,539 –> 00:24:57,700
large-sized apartments, very popular right now.

561 ( Melvin Lim )
00:24:57,700 –> 00:24:59,740
I think there’s been like a change in shift

562 ( Melvin Lim )
00:24:59,740 –> 00:25:03,559
in sort of like our preferences for a home,

563 ( Melvin Lim )
00:25:03,559 –> 00:25:06,920
especially after the circuit breaker and all that,

564 ( Melvin Lim )
00:25:06,920 –> 00:25:10,500
people are looking for bigger properties and more space,

565 ( Melvin Lim )
00:25:10,500 –> 00:25:12,279
which is also why the penthouses, ground floors

566 ( Melvin Lim )
00:25:12,279 –> 00:25:13,440
are getting very popular as well.

567 ( Melvin Lim )
00:25:13,440 –> 00:25:15,859
So people want to have a combination of outdoor indoor,

568 ( Melvin Lim )
00:25:15,859 –> 00:25:17,920
or maybe just an additional bedroom

569 ( Melvin Lim )
00:25:17,920 –> 00:25:19,720
to use it as a home office, right?

570 ( Melvin Lim )
00:25:19,720 –> 00:25:20,980
Or for their kids.

571 ( Melvin Lim )
00:25:20,980 –> 00:25:23,000
So, because of this,

572 ( Melvin Lim )
00:25:23,000 –> 00:25:25,000
when it is an uptrend market,

573 ( Melvin Lim )
00:25:25,000 –> 00:25:30,799
it is also very common that a lot of home sellers right now

574 ( Melvin Lim )
00:25:30,799 –> 00:25:32,700
that wants to purchase the next property

575 ( Melvin Lim )
00:25:32,700 –> 00:25:34,740
is a natural instinct.

576 ( Melvin Lim )
00:25:34,740 –> 00:25:36,940
Let’s say, for example, if I’m looking for a home,

577 ( Melvin Lim )
00:25:36,940 –> 00:25:39,500
I would want to sort of see what

578 ( Melvin Lim )
00:25:39,500 –> 00:25:40,599
is out there in the market first.

579 ( Melvin Lim )
00:25:40,599 –> 00:25:42,740
So I want to hunt for a property.

580 ( Melvin Lim )
00:25:42,740 –> 00:25:45,700
And by the time maybe I have viewed like 20 properties,

581 ( Melvin Lim )
00:25:45,700 –> 00:25:47,059
I finally found the one I liked,

582 ( Melvin Lim )
00:25:47,059 –> 00:25:49,259
now, I realise that, “hey, I haven’t sold my place yet”.

583 ( Melvin Lim )
00:25:49,259 –> 00:25:50,420
If I were to put in the option,

584 ( Melvin Lim )
00:25:50,420 –> 00:25:52,720
I’ll be taxed with the ABSD,

585 ( Melvin Lim )
00:25:52,720 –> 00:25:55,400
I cannot get the full 75% loan all that kind of stuff.

586 ( Melvin Lim )
00:25:55,400 –> 00:25:56,740
And then if I were to come back

587 ( Melvin Lim )
00:25:56,740 –> 00:25:57,700
and then focus on selling

588 ( Melvin Lim )
00:25:57,700 –> 00:25:59,119
by that time that property might be gone.

589 ( Melvin Lim )
00:25:59,119 –> 00:26:01,900
So there’s always the dilemma in the uptrend market.

590 ( Ivan Lee )
00:26:01,900 –> 00:26:02,740
– [Ivan] Right.

591 ( Melvin Lim )
00:26:02,740 –> 00:26:04,519
– So, which gave rise to, of course,

592 ( Melvin Lim )
00:26:04,519 –> 00:26:07,539
the practice of putting in a high option fee

593 ( Melvin Lim )
00:26:07,539 –> 00:26:12,539
plus negotiating with the next home, current seller

594 ( Melvin Lim )
00:26:12,619 –> 00:26:14,240
for a longer option period.

595 ( Ivan Lee )
00:26:14,240 –> 00:26:15,079
– Right.

596 ( Melvin Lim )
00:26:15,079 –> 00:26:18,960
– So of course this 24 months, past 24 months,

597 ( Melvin Lim )
00:26:18,960 –> 00:26:20,319
this has been pretty common.

598 ( Melvin Lim )
00:26:20,319 –> 00:26:23,000
I mean, a lot of negotiations, options are drafted

599 ( Melvin Lim )
00:26:23,000 –> 00:26:25,200
with a longer option period.

600 ( Melvin Lim )
00:26:25,200 –> 00:26:27,160
So maybe you can share with us, like,

601 ( Melvin Lim )
00:26:27,160 –> 00:26:28,839
what are some of the things
you see on the ground,

602 ( Melvin Lim )
00:26:28,839 –> 00:26:32,039
from your perspective,as a conveyancing lawyer?

603 (Ivan Lee)
00:26:32,039 –> 00:26:37,619
– Most people or most buyers in Singapore know for a fact

604 (Ivan Lee)
00:26:37,619 –> 00:26:39,140
that when they actually grant an option

605 (Ivan Lee)
00:26:39,140 –> 00:26:40,440
with a longer option period,

606 (Ivan Lee)
00:26:40,440 –> 00:26:42,380
I think they have already been advised many times

607 (Ivan Lee)
00:26:42,380 –> 00:26:45,160
that they are they are undertaking a risk here.

608 ( Melvin Lim )
00:26:45,160 –> 00:26:47,059
– As a seller?

609 (Ivan Lee)
00:26:47,059 –> 00:26:47,900
– As a seller.

610 (Ivan Lee)
00:26:47,900 –> 00:26:51,319
They are not able to resell this property

611 (Ivan Lee)
00:26:51,319 –> 00:26:55,039
to anybody else until the option

612 (Ivan Lee)
00:26:55,039 –> 00:26:57,019
that they have granted has expired.

613 (Ivan Lee)
00:26:57,019 –> 00:26:58,859
So on the ground, we actually don’t see

614 (Ivan Lee)
00:26:58,859 –> 00:27:01,900
that many cases where the sellers want to back out.

615 (Ivan Lee)
00:27:01,900 –> 00:27:02,759
I think most of them–

616 ( Melvin Lim )
00:27:02,759 –> 00:27:04,460
– Will honour the contract.

617 (Ivan Lee)
00:27:04,460 –> 00:27:05,619
– Yeah, they have to honour the contract

618 (Ivan Lee)
00:27:05,619 –> 00:27:08,180
and if they want to back out,

619 (Ivan Lee)
00:27:08,180 –> 00:27:11,480
they either have to get into a very complicated dispute

620 (Ivan Lee)
00:27:11,480 –> 00:27:12,799
with the buyer.

621 (Ivan Lee)
00:27:12,799 –> 00:27:16,180
If not, then they may have to fork out more money

622 (Ivan Lee)
00:27:16,180 –> 00:27:18,400
to convince the buyer to give up the option,

623 (Ivan Lee)
00:27:18,400 –> 00:27:24,059
which then may not be good for them.

624 (Ivan Lee)
00:27:24,059 –> 00:27:25,140
Yeah. So on the ground,

625 (Ivan Lee)
00:27:25,140 –> 00:27:27,259
we actually don’t see that many cases,

626 (Ivan Lee)
00:27:27,259 –> 00:27:32,980
but for the issue with the grant

627 (Ivan Lee)
00:27:32,980 –> 00:27:35,079
of a longer option period,

628 (Ivan Lee)
00:27:35,079 –> 00:27:40,299
I think it’s something that is very common.

629 (Ivan Lee)
00:27:40,299 –> 00:27:43,980
And I think it has been used quite well,

630 (Ivan Lee)
00:27:43,980 –> 00:27:47,880
just that the sellers are taking

631 (Ivan Lee)
00:27:47,880 –> 00:27:51,480
this business risk on themselves,

632 (Ivan Lee)
00:27:51,480 –> 00:27:53,900
which is usually why when
there’s a longer option period,

633 (Ivan Lee)
00:27:53,900 –> 00:27:56,319
the option fee will also be higher.

634 (Ivan Lee)
00:27:56,319 –> 00:27:58,640
So this is essentially to compensate them.

635 (Melvin Lim )
00:27:58,640 –> 00:28:01,240
– Both parties partake
in the risk in a sense.

636 (Ivan Lee)
00:28:01,240 –> 00:28:02,380
– Yeah, correct.

637 (Ivan Lee)
00:28:02,380 –> 00:28:05,440
So on the ground, we don’t really see

638 (Ivan Lee)
00:28:05,440 –> 00:28:08,759
that many cases, most of the time,

639 (Ivan Lee)
00:28:08,759 –> 00:28:12,880
even if we do hear where our clients are sellers,

640 (Ivan Lee)
00:28:12,880 –> 00:28:15,900
who want to toy with the idea of trying

641 (Ivan Lee)
00:28:15,900 –> 00:28:18,680
to back out after they
hear the repercussions,

642 (Ivan Lee)
00:28:18,680 –> 00:28:21,440
they usually will just wait it out.

643 ( Melvin Lim )
00:28:21,440 –> 00:28:22,279
– Sure.

644 ( Melvin Lim )
00:28:22,279 –> 00:28:24,240
What if the seller backs out?

645 ( Melvin Lim )
00:28:24,240 –> 00:28:26,619
Like maybe it’s a three months option period,

646 (Melvin Lim )
00:28:26,619 –> 00:28:30,299
and the seller has remorse, seller decides to back out.

647 ( Melvin Lim )
00:28:30,299 –> 00:28:32,519
What are the legal implications,

648 ( Melvin Lim )
00:28:32,519 –> 00:28:35,140
or what recourse does the buyer have

649 ( Melvin Lim )
00:28:35,140 –> 00:28:37,559
to take against the seller?

650 ( Ivan Lee)
00:28:37,559 –> 00:28:39,259
– For the buyer’s side,

651 (Ivan Lee)
00:28:39,259 –> 00:28:43,400
of course, the first starting point we will always

652 (Ivan Lee)
00:28:43,400 –> 00:28:45,819
tell the clients essentially is

653 (Ivan Lee)
00:28:45,819 –> 00:28:49,339
that you have to firstly, negotiate

654 (Ivan Lee)
00:28:49,339 –> 00:28:52,940
for the cancellation of the option, right?

655 (Ivan Lee)
00:28:52,940 –> 00:28:54,819
And then we will see whether the terms

656 (Ivan Lee)
00:28:54,819 –> 00:28:57,819
of the cancellation is something

657 (Ivan Lee)
00:28:57,819 –> 00:29:00,259
that you would be able to undertake.

658 (Ivan Lee)
00:29:00,259 –> 00:29:01,400
I mean, there are also buyers

659 (Ivan Lee)
00:29:01,400 –> 00:29:02,579
who are nice enough to say that,

660 (Ivan Lee)
00:29:02,579 –> 00:29:04,680
okay, it’s fine, we can cancel.

661 (Ivan Lee)
00:29:04,680 –> 00:29:07,720
And then we can just do a refund of the option fee

662 (Ivan Lee)
00:29:07,720 –> 00:29:11,839
and then both parties go their own way, right?

663 (Ivan Lee)
00:29:11,839 –> 00:29:16,119
So, the first step is always to enter into negotiations.

664 (Ivan Lee)
00:29:16,119 –> 00:29:17,720
But if the buyer is not willing,

665 (Ivan Lee)
00:29:17,720 –> 00:29:19,440
because the buyer really loves the house

666 (Ivan Lee)
00:29:19,440 –> 00:29:22,779
and wants to exercise but he is waiting

667 (Ivan Lee)
00:29:22,779 –> 00:29:24,859
to sell his existing property first,

668 (Ivan Lee)
00:29:24,859 –> 00:29:29,480
then essentially this will be considered

669 (Ivan Lee)
00:29:29,480 –> 00:29:33,779
as a repudiation of the contract by the seller, right?

670 (Ivan Lee)
00:29:33,779 –> 00:29:36,700
So when it’s repudiated, essentially meaning

671 (Ivan Lee)
00:29:36,700 –> 00:29:39,680
that the seller is telling the buyer upfront,

672 (Ivan Lee)
00:29:39,680 –> 00:29:42,700
that I don’t intend sell you this property anymore,

673 (Ivan Lee)
00:29:42,700 –> 00:29:46,059
and I want to back out.

674 (Ivan Lee)
00:29:46,059 –> 00:29:48,720
So the worst case scenario essentially is

675 (Ivan Lee)
00:29:48,720 –> 00:29:51,720
that because it’s still within the option period,

676 (Ivan Lee)
00:29:51,720 –> 00:29:54,019
the buyer can actually go to court

677 (Ivan Lee)
00:29:54,019 –> 00:29:57,500
to ask for specific performance.

678 (Ivan Lee)
00:29:57,500 –> 00:30:01,319
So specific performance essentially is a remedy

679 (Ivan Lee)
00:30:01,319 –> 00:30:03,400
where the court would order

680 (Ivan Lee)
00:30:03,400 –> 00:30:06,000
that the transaction is to continue to proceed.

681 (Ivan Lee)
00:30:06,000 –> 00:30:09,099
And that will also mean that the seller will be forced

682 (Ivan Lee)
00:30:09,099 –> 00:30:16,259
to sell and to transfer the property to the buyers.

683 (Ivan Lee)
00:30:16,259 –> 00:30:18,880
So that will actually mean that it makes no difference now

684 (Ivan Lee)
00:30:18,880 –> 00:30:20,940
because he will still lose his house.

685 (Ivan Lee)
00:30:20,940 –> 00:30:23,799
And then of course the sale proceeds will come in,

686 (Ivan Lee)
00:30:23,799 –> 00:30:25,299
he still gets the sales proceeds.

687 (Ivan Lee)
00:30:25,299 –> 00:30:32,599
So this is the worst case or the worst case scenario

688 (Ivan Lee)
00:30:32,599 –> 00:30:34,039
that can actually happen.

689 (Ivan Lee)
00:30:34,039 –> 00:30:37,700
If not, then the buyers either will ask

690 (Ivan Lee)
00:30:37,700 –> 00:30:41,539
for additional compensation in order to settle

691 (Ivan Lee)
00:30:41,539 –> 00:30:44,079
amicably to cancel the option

692 (Ivan Lee)
00:30:44,079 –> 00:30:47,200
or they can actually ask for damages, right?

693 (Ivan Lee)
00:30:47,200 –> 00:30:52,200
So if any loss has been incurred on the buyer side,

694 (Ivan Lee)
00:30:52,200 –> 00:30:58,759
then that can also be claimed against the seller, right?

695 ( Melvin Lim )
00:30:58,759 –> 00:31:02,279
– How long is the process to apply for specific performance?

696 (Ivan Lee)
00:31:02,279 –> 00:31:04,200
– Specific performance, nowadays,

697 (Ivan Lee)
00:31:04,200 –> 00:31:08,019
I think the application to court is not very common.

698 ( Melvin Lim )
00:31:08,019 –> 00:31:09,019
– Oh.

699 (Ivan Lee)
00:31:09,019 –> 00:31:12,339
– Yeah, it’s not very common

700 (Ivan Lee)
00:31:12,339 –> 00:31:15,059
because the whole process is long,

701 (Ivan Lee)
00:31:15,059 –> 00:31:19,779
it’s essentially a litigation case.

702 ( Melvin Lim )
00:31:19,779 –> 00:31:22,059
– So let’s say the seller backs out,

703 ( Melvin Lim )
00:31:22,059 –> 00:31:24,559
buyer really wants the house

704 ( Melvin Lim )
00:31:24,559 –> 00:31:26,079
and they want this thing to go through.

705 ( Melvin Lim )
00:31:26,079 –> 00:31:29,900
How long does this whole thing take to go to court

706 ( Melvin Lim )
00:31:29,900 –> 00:31:30,740
and things like that?

707 ( Melvin Lim )
00:31:30,740 –> 00:31:32,279
Does it take a year, or?

708 ( Ivan Lee )
00:31:32,279 –> 00:31:34,019
– It could take up to a year,

709 (Ivan Lee)
00:31:34,019 –> 00:31:37,960
depending on how much evidence you need to put forth

710 (Ivan Lee)
00:31:37,960 –> 00:31:41,799
to convince the court to grant this remedy

711 (Ivan Lee)
00:31:41,799 –> 00:31:43,319
as specific performance.

712 (Ivan Lee)
00:31:43,319 –> 00:31:44,940
Of course, if you have a lawyer

713 (Ivan Lee)
00:31:44,940 –> 00:31:47,319
that is expediting the case,

714 (Ivan Lee)
00:31:47,319 –> 00:31:49,259
it could of course be done in a couple of months.

715 ( Melvin Lim )
00:31:49,259 –> 00:31:50,099
– [Melvin] Right.

716 (Ivan Lee)
00:31:50,099 –> 00:31:55,259
– Right. But, I think one of the reasons probably why

717 (Ivan Lee)
00:31:55,259 –> 00:31:57,680
there aren’t so many cases–

718 ( Melvin Lim )
00:31:57,680 –> 00:31:59,440
– Most people honor the contract.

719 (Ivan Lee)
00:31:59,440 –> 00:32:01,240
– Well, most people honour the contract,

720 (Ivan Lee)
00:32:01,240 –> 00:32:04,519
but also it’s quite expensive to go to court.

721 ( Melvin Lim )
00:32:04,519 –> 00:32:05,359
– Right.

722 ( Melvin Lim )
00:32:05,359 –> 00:32:09,740
But what if at the end, the buyer wins the case?

723 ( Melvin Lim )
00:32:09,740 –> 00:32:11,460
I mean, because they paid the option fee,

724 ( Melvin Lim )
00:32:11,460 –> 00:32:13,099
the option has been granted.

725 ( Melvin Lim )
00:32:13,099 –> 00:32:14,799
It’s a willing buyer, willing seller thing

726 ( Melvin Lim )
00:32:14,799 –> 00:32:16,559
at the initial point,

727 ( Melvin Lim )
00:32:16,559 –> 00:32:18,880
but the seller decides to back out two months later,

728 ( Melvin Lim )
00:32:18,880 –> 00:32:22,259
and let’s say after six months court proceeding

729 ( Melvin Lim )
00:32:22,259 –> 00:32:23,400
and things, and buyer wins.

730 ( Melvins Lim )
00:32:23,400 –> 00:32:25,880
Can buyer claim damages in terms

731 ( Melvin Lim )
00:32:25,880 –> 00:32:28,039
of like the delay in the completion

732 ( Melvin Lim )
00:32:28,039 –> 00:32:29,799
and then the legal fees and things like that.

733 ( Melvin Lim )
00:32:29,799 –> 00:32:31,759
Like usually how is it done?

734 (Ivan Lee)
00:32:31,759 –> 00:32:33,440
– Well, the court application itself,

735 (Ivan Lee)
00:32:33,440 –> 00:32:35,640
usually if the buyer actually wins,

736 (Ivan Lee)
00:32:35,640 –> 00:32:40,059
then it is quite likely that the court will probably order

737 (Ivan Lee)
00:32:40,059 –> 00:32:45,619
that the costs will be paid to the buyer, right?

738 (Ivan Lee)
00:32:45,619 –> 00:32:50,640
So damages for the delay in completion,

739 (Ivan Lee)
00:32:50,640 –> 00:32:53,539
all those things have to be asked for.

740 (Ivan Lee)
00:32:53,539 –> 00:32:57,299
And one of the reasons is because specific performance

741 (Ivan Lee)
00:32:57,299 –> 00:33:00,640
is not what we usually call as granted,

742 (Ivan Lee)
00:33:00,640 –> 00:33:03,099
as of right, essentially it means

743 (Ivan Lee)
00:33:03,099 –> 00:33:04,660
that if you applied to a court

744 (Ivan Lee)
00:33:04,660 –> 00:33:07,500
and then you fulfill certain conditions,

745 (Ivan Lee)
00:33:07,500 –> 00:33:09,119
then definitely you will get it.

746 (Ivan Lee)
00:33:09,119 –> 00:33:11,400
It’s not something that is so straightforward

747 (Ivan Lee)
00:33:11,400 –> 00:33:12,279
that a court will order.

748 (Ivan Lee)
00:33:12,279 –> 00:33:13,720
The court will actually have to look

749 (Ivan Lee)
00:33:13,720 –> 00:33:16,839
at various circumstances and decide

750 (Ivan Lee)
00:33:16,839 –> 00:33:21,559
whether they think it’s fair to actually grant this remedy.

751 (Ivan Lee)
00:33:21,559 –> 00:33:24,420
Because this remedy is, as the court mentioned,

752 (Ivan Lee)
00:33:24,420 –> 00:33:27,279
usually the concept is quite onerous, right?

753 (Ivan Lee)
00:33:27,279 –> 00:33:31,640
So if, for example, if damages

754 (Ivan Lee)
00:33:31,640 –> 00:33:35,180
or payment of compensation monies

755 (Ivan Lee)
00:33:35,180 –> 00:33:36,380
by the seller to the buyer

756 (Ivan Lee)
00:33:36,380 –> 00:33:40,420
is sufficient to compensate the buyer

757 (Ivan Lee)
00:33:40,420 –> 00:33:43,140
for whatever losses that he has incurred, right?

758 (Ivan Lee)
00:33:43,140 –> 00:33:46,140
Because of the withdrawal of the option by the sellers.

759 (Ivan Lee)
00:33:46,140 –> 00:33:48,019
Then in this case,

760 (Ivan Lee)
00:33:48,019 –> 00:33:50,980
you may not be able to get specific performance.

761 (Ivan Lee)
00:33:50,980 –> 00:33:54,539
So you may be able to get money, damages,

762 (Ivan Lee)
00:33:54,539 –> 00:33:57,660
but you may not get the house.

763 (Ivan Lee)
00:33:57,660 –> 00:34:02,220
Correct, so the issue with this particular remedy

764 (Ivan Lee)
00:34:02,220 –> 00:34:04,559
is that you can spend all the court fees to go to court,

765 (Ivan Lee)
00:34:04,559 –> 00:34:07,039
but you may not get what you want at the end of the day.

766 (Ivan Lee)
00:34:07,039 –> 00:34:09,519
You might end up having just money,

767 (Ivan Lee)
00:34:09,519 –> 00:34:10,619
and not the house.

768 (Ivan Lee)
00:34:10,619 –> 00:34:13,099
So sometimes after people assessing the risk,

769 (Ivan Lee)
00:34:13,099 –> 00:34:15,559
they say that I don’t want to waste my time.

770 ( Melvin Lim )
00:34:15,559 –> 00:34:17,280
– Okay, I understand.

771 ( Melvin Lim )
00:34:17,280 –> 00:34:18,820
How about, let’s flip over to the other side,

772 ( Melvin Lim )
00:34:18,820 –> 00:34:21,980
let’s say, example, the buyer places in the option fee,

773 ( Melvin Lim )
00:34:21,980 –> 00:34:25,019
and then two days later,

774 ( Melvin Lim )
00:34:25,019 –> 00:34:28,960
seller wants to bank in and then cheque bounces,

775 ( Melvin Lim )
00:34:28,960 –> 00:34:31,059
right then option has been granted,

776 ( Melvin Lim )
00:34:31,059 –> 00:34:34,400
let’s say it’s option granted, cheque exchange

777 ( Melvin Lim )
00:34:34,400 –> 00:34:35,519
on the same day,

778 ( Melvin Lim )
00:34:35,519 –> 00:34:40,059
two days later, cheque bounce, buyer MIA.

779 ( Melvin Lim )
00:34:40,059 –> 00:34:41,219
What’s going to happen here?

780 ( Melvin Lim )
00:34:41,219 –> 00:34:45,039
What kind of recourse can the seller take?

781 (Ivan Lee)
00:34:45,039 –> 00:34:49,719
– Essentially can claim for the auction fee, right?

782 (Ivan Lee)
00:34:49,719 –> 00:34:51,159
Most likely can claim for the option fee,

783 (Ivan Lee)
00:34:51,159 –> 00:34:53,420
because at this particular point in time,

784 (Ivan Lee)
00:34:53,420 –> 00:34:58,239
it’s a little bit different from the first scenario, right?

785 (Ivan Lee)
00:34:58,239 –> 00:35:00,199
Because in this particular case,

786 (Ivan Lee)
00:35:00,199 –> 00:35:04,079
whatever that the seller has on hand, essentially,

787 (Ivan Lee)
00:35:04,079 –> 00:35:08,739
he’s only entitled to forfeit the option monies.

788 (Melvin Lim )
00:35:08,739 –> 00:35:10,400
– [Melvin] Right.

789 (Ivan Lee)
00:35:10,400 –> 00:35:11,840
– If the buyer doesn’t exercise, right?

790 (Ivan Lee)
00:35:11,840 –> 00:35:14,820
So in this case where the buyer actually hands

791 (Ivan Lee)
00:35:14,820 –> 00:35:17,420
over the option fee but it bounces

792 (Ivan Lee)
00:35:17,420 –> 00:35:18,780
so it didn’t clear.

793 (Ivan Lee)
00:35:18,780 –> 00:35:21,739
We do not know whether the buyer will actually exercise.

794 (Ivan Lee)
00:35:21,739 –> 00:35:27,199
So if there’s anything to be claimed,

795 (Ivan Lee)
00:35:27,199 –> 00:35:32,000
essentially the losses that will be incurred by the seller

796 (Ivan Lee)
00:35:32,000 –> 00:35:35,440
would be the fact that he did not receive the money

797 (Ivan Lee)
00:35:35,440 –> 00:35:37,039
that he was entitled to forfeit,

798 (Ivan Lee)
00:35:37,039 –> 00:35:39,320
which is usually the option fee.

799 (Ivan Lee)
00:35:39,320 –> 00:35:41,179
So that would generally be the amount

800 (Ivan Lee)
00:35:41,179 –> 00:35:42,239
that he would get here.

801 ( Melvin Lim )
00:35:42,239 –> 00:35:44,480
– So, how is the seller going to claim this amount?

802 ( Melvin Lim )
00:35:44,480 –> 00:35:48,579
I mean, let the law firm do the job to locate the buyer, or?

803 (Ivan Lee)
00:35:48,579 –> 00:35:50,260
– I don’t think the law firm will be able

804 (Ivan Lee)
00:35:50,260 –> 00:35:51,300
to locate the buyer.

805 (Ivan Lee)
00:35:51,300 –> 00:35:56,219
If the buyer hasn’t even contacted their own law firm.

806 ( Melvin Lim )
00:35:56,219 –> 00:35:57,820
– Like through the I/C number,

807 ( Melvin Lim )
00:35:57,820 –> 00:36:01,340
the full name that’s listed on the OTP, like,

808 ( Melvin Lim )
00:36:01,340 –> 00:36:03,260
what is the next step of action?

809 (Ivan Lee)
00:36:03,260 –> 00:36:06,000
– So in this case, if you really want to claim for it,

810 (Ivan Lee)
00:36:06,000 –> 00:36:09,380
you will have to initiate court proceedings,

811 (Ivan Lee)
00:36:09,380 –> 00:36:13,280
which may or may not be cost-effective to recover the costs.

812 (Melvin Lim )
00:36:13,280 –> 00:36:15,019
– [Melvin] How much would it cost?

813 (Ivan Lee)
00:36:15,019 –> 00:36:21,239
– I think essentially when you actually apply to court,

814 (Ivan Lee)
00:36:21,239 –> 00:36:22,539
definitely legal fees will be

815 (Ivan Lee)
00:36:22,539 –> 00:36:24,619
at least a couple of thousands already.

816 (Ivan Lee)
00:36:24,619 –> 00:36:27,179
So depending on how big the option fee is,

817 (Ivan Lee)
00:36:27,179 –> 00:36:29,539
whether you want to go through the trouble of going through

818 (Ivan Lee)
00:36:29,539 –> 00:36:32,559
the whole court proceedings.

819 (Ivan Lee)
00:36:32,559 –> 00:36:34,400
And for court proceedings to actually start,

820 (Ivan Lee)
00:36:34,400 –> 00:36:38,119
you will have to notify the buyer

821 (Ivan Lee)
00:36:38,119 –> 00:36:40,579
that you have initiated
court proceedings on him.

822 (Ivan Lee)
00:36:40,579 –> 00:36:43,239
So if he has really fiscally gone MIA,

823 (Ivan Lee)
00:36:43,239 –> 00:36:46,119
and even the agents, lawyers, nobody can find him.

824 (Ivan Lee)
00:36:46,119 –> 00:36:49,940
Then there will be some difficulty

825 (Ivan Lee)
00:36:49,940 –> 00:36:50,920
in initiating the court proceedings.

826 (Ivan Lee)
00:36:50,920 –> 00:36:52,900
That’s the first hurdle.

827 (Ivan Lee)
00:36:52,900 –> 00:36:58,280
The second hurdle, essentially, of course, will be that,

828 (Ivan Lee)
00:36:58,280 –> 00:37:00,260
there’s something called substituted service

829 (Ivan Lee)
00:37:00,260 –> 00:37:01,360
in all these court proceedings.

830 (Ivan Lee)
00:37:01,360 –> 00:37:03,679
Means that even if you cannot find the person,

831 (Ivan Lee)
00:37:03,679 –> 00:37:05,260
you will have other means of trying

832 (Ivan Lee)
00:37:05,260 –> 00:37:07,539
to so-called serve the notice, right?

833 (Ivan Lee)
00:37:07,539 –> 00:37:09,699
Even if you cannot personally find them.

834 (Ivan Lee)
00:37:09,699 –> 00:37:12,019
But all of this will mean additional costs.

835 (Ivan Lee)
00:37:12,019 –> 00:37:14,159
So it’s a cost benefit analysis.

836 ( Melvin Lim )
00:37:14,159 –> 00:37:16,019
– Serving at the workplace and things like that?

837 (Ivan Lee)
00:37:16,019 –> 00:37:18,760
– Yeah, sometimes I think recently service on WhatsApp.

838 (Ivan Lee)
00:37:18,760 –> 00:37:21,380
I believe, Facebook has also been acknowledged

839 (Ivan Lee)
00:37:21,380 –> 00:37:22,219
by the courts,

840 (Ivan Lee)
00:37:22,219 –> 00:37:23,780
but you will need the court approval

841 (Ivan Lee)
00:37:23,780 –> 00:37:27,500
to allow you to do it digitally.

842 ( Melvin Lim )
00:37:27,500 –> 00:37:28,320
– Well, okay.

843 ( Melvin Lim )
00:37:28,320 –> 00:37:33,880
What if the, the buyer didn’t MIA

844 ( Melvin Lim )
00:37:33,880 –> 00:37:34,719
and the buyer says that,

845 ( Melvin Lim )
00:37:34,719 –> 00:37:36,099
you know, they just don’t want to pay,

846 ( Melvin Lim )
00:37:36,099 –> 00:37:38,159
they stop the check, they don’t wanna pay,

847 ( Melvin Lim )
00:37:38,159 –> 00:37:41,000
even though it’s stated I mean,

848 ( Melvin Lim )
00:37:41,000 –> 00:37:43,619
by the law conditions, 2012,

849 ( Melvin Lim )
00:37:43,619 –> 00:37:46,460
that OTP granted, cheque issued,

850 ( Melvin Lim )
00:37:46,460 –> 00:37:48,900
this is a legitimate transaction

851 ( Melvin Lim )
00:37:48,900 –> 00:37:52,920
that you have to fulfill the covenant of the check

852 ( Melvin Lim )
00:37:52,920 –> 00:37:54,760
and making good of the check.

853 ( Melvin Lim )
00:37:54,760 –> 00:37:57,619
So what if the buyer just says, you know, after two days,

854 ( Melvin Lim )
00:37:57,619 –> 00:37:59,239
three days, I say, oh, no, I just stopped.

855 ( Melvin Lim )
00:37:59,239 –> 00:38:00,360
I don’t want, I don’t wanna proceed.

856 ( Melvin Lim )
00:38:00,360 –> 00:38:03,119
I don’t want to continue.

857 ( Melvin Lim )
00:38:03,119 –> 00:38:07,739
And seller, they will continue to serve court proceedings.

858 ( Melvin Lim )
00:38:07,739 –> 00:38:09,059
If they want to weigh the costs.

859 ( Ivan Lee )
00:38:09,059 –> 00:38:10,699
– [Ivan] Correct, yeah if they want to.

860 ( Melvin Lim )
00:38:10,699 –> 00:38:14,300
– Should they serve it after the option expires?

861 ( Melvin Lim )
00:38:14,300 –> 00:38:16,639
Or should they serve it during the option?

862 ( Melvin Lim )
00:38:16,639 –> 00:38:17,599
What is the obligation?

863 ( Melvin Lim )
00:38:17,599 –> 00:38:19,320
Because just for example,

864 ( Melvin Lim )
00:38:19,320 –> 00:38:23,019
if it’s a 14-day option period,

865 ( Melvin Lim )
00:38:23,019 –> 00:38:24,940
the buyer can come back on the 14th and say,

866 ( Melvin Lim )
00:38:24,940 –> 00:38:27,280
“Hey, you know, why did you send me a court proceeding?

867 ( Melvin Lim )
00:38:27,280 –> 00:38:28,860
I want to exercise, I want to exercise.

868 ( Melvin Lim )
00:38:28,860 –> 00:38:30,139
Yeah. I’ll make it a 1%.

869 ( Melvin Lim )
00:38:30,139 –> 00:38:31,880
And then I’ll continue the exercise”.

870 ( Melvin Lim )
00:38:31,880 –> 00:38:38,579
Right. So, but what if is like a three months option period and say that,

871 ( Melvin Lim )
00:38:38,579 –> 00:38:40,739
can a buyer come back later, you know,

872 ( Melvin Lim )
00:38:40,739 –> 00:38:42,159
after the court proceeding has been served

873 ( Melvin Lim )
00:38:42,159 –> 00:38:44,199
during the option period to them, you know,

874 ( Melvin Lim )
00:38:44,199 –> 00:38:45,659
“I still have the option with me.

875 ( Melvin Lim )
00:38:45,659 –> 00:38:48,019
I didn’t make good with the 1%

876 ( Melvin Lim )
00:38:48,019 –> 00:38:50,239
or I didn’t make good with the 2%,

877 ( Melvin Lim )
00:38:50,239 –> 00:38:52,760
now I want to make good all 5% together

878 ( Melvin Lim )
00:38:52,760 –> 00:38:53,760
to exercise the option”.

879 ( Melvin Lim )
00:38:53,760 –> 00:38:57,260
Like, what is, I mean it’s a bit sensitive in this case,

880 ( Melvin Lim )
00:38:57,260 –> 00:38:59,679
what should be done by the seller?

881 ( Ivan Lee )
00:38:59,679 –> 00:39:00,599
– For this kind of scenario,

882 ( Ivan Lee )
00:39:00,599 –> 00:39:06,179
I think it’s not extremely clear what is

883 ( Ivan Lee )
00:39:06,179 –> 00:39:09,619
the best way forward.

884 ( Ivan Lee )
00:39:09,619 –> 00:39:11,099
But I think most of the time,

885 ( Ivan Lee )
00:39:11,099 –> 00:39:13,400
what you would want to do is

886 ( Ivan Lee )
00:39:13,400 –> 00:39:16,639
if you really want to initiate court proceedings,

887 ( Ivan Lee )
00:39:16,639 –> 00:39:19,179
then I think you, you should be able

888 ( Ivan Lee )
00:39:19,179 –> 00:39:22,199
to initiate them as early as possible, right?

889 ( Ivan Lee )
00:39:22,199 –> 00:39:26,159
Because I think it would be clear to say that,

890 ( Ivan Lee )
00:39:26,159 –> 00:39:27,619
I think most options also state

891 ( Ivan Lee )
00:39:27,619 –> 00:39:29,840
that it is in consideration of the monies.

892 ( Ivan Lee )
00:39:29,840 –> 00:39:32,960
So if the monies has not cleared,

893 ( Ivan Lee )
00:39:32,960 –> 00:39:36,699
then the seller could very well say

894 ( Ivan Lee )
00:39:36,699 –> 00:39:39,159
that the option was not properly granted.

895 ( Ivan Lee )
00:39:39,159 –> 00:39:41,239
And even if you wanted to exercise, you couldn’t.

896 ( Ivan Lee )
00:39:41,239 –> 00:39:48,579
So because the money hasn’t come into my hands,

897 ( Ivan Lee )
00:39:48,579 –> 00:39:51,119
the option is not considered as properly granted

898 ( Ivan Lee )
00:39:51,119 –> 00:39:53,079
for you to exercise, right?

899 ( Ivan Lee )
00:39:53,079 –> 00:39:54,420
Even though we know that most of the time

900 ( Ivan Lee )
00:39:54,420 –> 00:39:58,199
it’s exchanged for the check, right?

901 ( Ivan Lee )
00:39:58,199 –> 00:40:02,920
So in this case, there are many ways it can actually go,

902 ( Ivan Lee )
00:40:02,920 –> 00:40:05,739
but if you really want to initiate court proceedings,

903 ( Ivan Lee )
00:40:05,739 –> 00:40:07,780
then it should be as early as possible.

904 ( Ivan Lee )
00:40:07,780 –> 00:40:08,880
Because then you should realise–

905 (Melvin LIm )
00:40:08,880 –> 00:40:10,000
– [Melvin] It’s not to wait?

906 ( Ivan Lee )
00:40:10,000 –> 00:40:12,320
– Is to rely on the fact that,

907 ( Ivan Lee )
00:40:12,320 –> 00:40:13,960
and to make it very clear

908 ( Ivan Lee )
00:40:13,960 –> 00:40:16,619
that the option is only granted properly,

909 ( Ivan Lee )
00:40:16,619 –> 00:40:20,780
and the offer will only be, you know, held out

910 ( Ivan Lee )
00:40:20,780 –> 00:40:23,440
for the three months, right?

911 ( Ivan Lee )
00:40:23,440 –> 00:40:24,699
For the buyer to exercise.

912 ( Ivan Lee )
00:40:24,699 –> 00:40:29,780
If the option money has been properly paid, yeah.

913 ( Melvin Lim )
00:40:29,780 –> 00:40:30,739
– Okay, great.

914 ( Melvin Lim )
00:40:30,739 –> 00:40:32,539
Let’s move on to this part

915 ( Melvin Lim )
00:40:32,539 –> 00:40:37,860
of a buyer successfully purchase a landed property.

916 ( Melvin Lim )
00:40:37,860 –> 00:40:39,739
I mean, the past one year landed properties

917 ( Melvin Lim )
00:40:39,739 –> 00:40:41,300
has also been very hot.

918 ( Melvin Lim )
00:40:41,300 –> 00:40:43,940
So for example, let’s say,

919 ( Melvin Lim )
00:40:43,940 –> 00:40:46,960
if somebody were to purchase a landed property

920 ( Melvin Lim )
00:40:46,960 –> 00:40:48,219
and they want to go through a process

921 ( Melvin Lim )
00:40:48,219 –> 00:40:51,099
of A&A or reconstruction,

922 ( Melvin Lim )
00:40:51,099 –> 00:40:55,340
and then halfway into the process,

923 ( Melvin Lim )
00:40:55,340 –> 00:40:58,559
something happened during the reconstruction phase

924 ( Melvin Lim )
00:40:58,559 –> 00:41:00,179
or rebuild process, or maybe A&A phase,

925 ( Melvin Lim )
00:41:00,179 –> 00:41:03,159
and then there’s been some damages

926 ( Melvin Lim )
00:41:03,159 –> 00:41:04,519
to the neighbour’s property.

927 ( Melvin Lim )
00:41:04,519 –> 00:41:07,139
Yeah, especially if it’s like inter-terrace,

928 ( Melvin Lim )
00:41:07,139 –> 00:41:09,659
you know, the sidewalks are all shared

929 ( Melvin Lim )
00:41:09,659 –> 00:41:11,139
with the left and right neighbors.

930 ( Melvin Lim )
00:41:11,139 –> 00:41:15,139
And let’s say the neighbours decides

931 ( Melvin Lim )
00:41:15,139 –> 00:41:19,719
to claim damages and sue the owner.

932 ( Melvin Lim )
00:41:19,719 –> 00:41:24,599
What is the responsibility route over here?

933 ( Melvin Lim )
00:41:24,599 –> 00:41:26,079
Like, who is responsible?

934 ( Melvin Lim )
00:41:26,079 –> 00:41:28,960
Because from the owner’s point of view, sorry,

935 ( Melvin Lim )
00:41:28,960 –> 00:41:31,619
from the, the buyer’s point of view,

936 ( Melvin Lim )
00:41:31,619 –> 00:41:34,139
who is the new owner now of this property,

937 ( Melvin Lim )
00:41:34,139 –> 00:41:36,920
they have engaged a builder or contractor

938 ( Melvin Lim )
00:41:36,920 –> 00:41:41,059
to renovate it and rebuilt, right.

939 ( Melvin Lim )
00:41:41,059 –> 00:41:43,059
So when the neighbour wants to sue,

940 ( Melvin Lim )
00:41:43,059 –> 00:41:46,679
is to sue the contractor, or the owner, like,

941 ( Melvin Lim )
00:41:46,679 –> 00:41:50,380
what is that relationship over here?

942 ( Ivan Lee )
00:41:50,380 –> 00:41:57,519
– I think most of the time the neighbour will sue everybody.

943 ( Melvin Lim )
00:41:57,519 –> 00:41:58,360
– [Melvin] Okay. (laughs)

944 ( Ivan Lee )
00:41:58,360 –> 00:42:01,179
– Right, because usually when you start a suit,

945 ( Ivan Lee )
00:42:01,179 –> 00:42:06,179
you’ll probably sue both the contractor,

946 ( Ivan Lee )
00:42:06,239 –> 00:42:09,679
as well as the, the owner.

947 ( Ivan Lee )
00:42:09,679 –> 00:42:14,559
Right, so that they see who is found liable

948 ( Ivan Lee )
00:42:14,559 –> 00:42:16,440
and then who will pay, right?

949 ( Ivan Lee )
00:42:16,440 –> 00:42:17,280
Because generally

950 ( Ivan Lee )
00:42:17,280 –> 00:42:19,440
only these two parties are involved, right?

951 ( Ivan Lee )
00:42:19,440 –> 00:42:23,119
So the relationship here is not one of contract

952 ( Ivan Lee )
00:42:23,119 –> 00:42:27,039
because there’s no contract between the contractor.

953 ( Ivan Lee )
00:42:27,039 –> 00:42:30,059
And there’s no contract between the owner

954 ( Ivan Lee )
00:42:30,059 –> 00:42:31,239
as well as the neighbour.

955 ( Ivan Lee )
00:42:31,239 –> 00:42:35,960
So this is essentially what we would consider

956 ( Ivan Lee )
00:42:35,960 –> 00:42:39,179
as most likely a negligence suit.

957 ( Ivan Lee )
00:42:39,179 –> 00:42:40,960
So this is a tort suit.

958 ( Ivan Lee )
00:42:40,960 –> 00:42:45,239
So essentially, negligence is something

959 ( Ivan Lee )
00:42:45,239 –> 00:42:50,239
that is a duty from the owner to the neighbour

960 ( Ivan Lee )
00:42:50,239 –> 00:42:53,800
and the duty from the contractor to the neighbour, right?

961 ( Ivan Lee )
00:42:53,800 –> 00:42:59,860
So depending on what is their relationship

962 ( Ivan Lee )
00:42:59,860 –> 00:43:03,300
and depending on whether the owner

963 ( Ivan Lee )
00:43:03,300 –> 00:43:06,820
and whether the contractor that’s being employed

964 ( Ivan Lee )
00:43:06,820 –> 00:43:09,500
by the owner has actually fulfilled

965 ( Ivan Lee )
00:43:09,500 –> 00:43:10,840
that duty of care.

966 ( Ivan Lee )
00:43:10,840 –> 00:43:12,960
So this duty of care is a legal standard.

967 ( Ivan Lee )
00:43:12,960 –> 00:43:15,820
Essentially court will have a look

968 ( Ivan Lee )
00:43:15,820 –> 00:43:18,340
at all the evidence and they will see

969 ( Ivan Lee )
00:43:18,340 –> 00:43:22,880
whether the parties have been negligent.

970 ( Ivan Lee )
00:43:22,880 –> 00:43:25,380
So most likely it’s going to be this kind of cases.

971 ( Ivan Lee )
00:43:25,380 –> 00:43:27,199
If the parties have not been negligent

972 ( Ivan Lee )
00:43:27,199 –> 00:43:29,480
and they have actually complied with whatever

973 ( Ivan Lee )
00:43:29,480 –> 00:43:33,260
that the law requires them to do in terms of,

974 ( Ivan Lee )
00:43:33,260 –> 00:43:34,659
for the owner,

975 ( Ivan Lee )
00:43:34,659 –> 00:43:37,199
most of these will of course be the contractor

976 ( Ivan Lee )
00:43:37,199 –> 00:43:39,380
or subcontractor, they are not direct employees

977 ( Ivan Lee )
00:43:39,380 –> 00:43:40,619
of the owner, right?

978 ( Ivan Lee )
00:43:40,619 –> 00:43:45,199
So whether the owner has actually contracted

979 ( Ivan Lee )
00:43:45,199 –> 00:43:48,980
for a contractor who has the licenses

980 ( Ivan Lee )
00:43:48,980 –> 00:43:51,920
and the experience to do the kind of work

981 ( Ivan Lee )
00:43:51,920 –> 00:43:54,099
that he has employed the contractor to do.

982 ( Ivan Lee )
00:43:54,099 –> 00:43:58,239
And when the contractor actually carries out the A&A

983 ( Ivan Lee )
00:43:58,239 –> 00:44:00,119
or the construction, on the property,

984 ( Ivan Lee )
00:44:00,119 –> 00:44:06,000
whether they have complied with the reasonable standard

985 ( Ivan Lee )
00:44:06,000 –> 00:44:09,559
in actually doing construction work

986 ( Ivan Lee )
00:44:09,559 –> 00:44:11,079
for the particular owner.

987 ( Ivan Lee )
00:44:11,079 –> 00:44:12,840
So if they have actually met

988 ( Ivan Lee )
00:44:12,840 –> 00:44:14,880
with this legal standard, right?

989 ( Ivan Lee )
00:44:14,880 –> 00:44:17,500
Essentially what we call the duty of care,

990 ( Ivan Lee )
00:44:17,500 –> 00:44:23,280
then there will be no legal obligation for the owner,

991 ( Ivan Lee )
00:44:23,280 –> 00:44:25,480
as well as the contractor

992 ( Ivan Lee )
00:44:25,480 –> 00:44:28,039
to have to compensate the neighbour

993 ( Ivan Lee )
00:44:28,039 –> 00:44:31,099
for damages to their property.

994 ( Ivan Lee )
00:44:31,099 –> 00:44:32,880
Yeah, generally, that wouldn’t be,

995 ( Ivan Lee )
00:44:32,880 –> 00:44:35,619
but of course, if the contractor had been negligent,

996 ( Ivan Lee )
00:44:35,619 –> 00:44:39,059
he didn’t correctly, you know, protect the wall

997 ( Ivan Lee )
00:44:39,059 –> 00:44:41,619
before he did the hacking, right?

998 ( Ivan Lee )
00:44:41,619 –> 00:44:43,440
Then the court found that, yeah,

999 ( Ivan Lee )
00:44:43,440 –> 00:44:47,480
this is not the standard that has been met legally,

1000 ( Ivan Lee )
00:44:47,480 –> 00:44:49,219
then yes, probably they might have

1001 ( Ivan Lee )
00:44:49,219 –> 00:44:52,059
to pay the neighbour for the damages

1002 ( Ivan Lee )
00:44:52,059 –> 00:44:55,239
that has been incurred on their property.

1003 ( Melvin Lim )
00:44:55,239 –> 00:44:58,800
– In the relation of the owner, with the builder,

1004 ( Melvin Lim )
00:44:58,800 –> 00:45:01,480
what kind of duty of care relationship does the owner

1005 ( Melvin Lim )
00:45:01,480 –> 00:45:03,519
and the builder need to have?

1006 ( Melvin Lim )
00:45:03,519 –> 00:45:05,579
Does the builder need to compensate themselves,

1007 ( Melvin Lim )
00:45:05,579 –> 00:45:06,800
or the owner have to compensate

1008 ( Melvin Lim )
00:45:06,800 –> 00:45:09,719
because it was the owner that employed the builder.

1009 ( Melvin Lim )
00:45:09,719 –> 00:45:12,639
Right, so what is that kind of relationship there?

1010 ( Ivan Lee )
00:45:12,639 –> 00:45:15,019
– Okay, so the relationship,

1011 ( Ivan Lee )
00:45:15,019 –> 00:45:19,860
as I mentioned earlier on the neighbour probably will sue

1012 ( Ivan Lee )
00:45:19,860 –> 00:45:22,820
both the owner and the contractor, right?

1013 ( Ivan Lee )
00:45:22,820 –> 00:45:25,420
So the damage was suffered on the neighbour’s side.

1014 ( Ivan Lee )
00:45:25,420 –> 00:45:28,360
So the relationship that a court will be looking at

1015 ( Ivan Lee )
00:45:28,360 –> 00:45:31,119
is between the owner and the neighbour,

1016 ( Ivan Lee )
00:45:31,119 –> 00:45:32,880
as well as the contractor and the neighbour.

1017 ( Ivan Lee )
00:45:32,880 –> 00:45:35,599
So most of the time,

1018 ( Ivan Lee )
00:45:35,599 –> 00:45:39,340
I don’t think the owner will be found negligent,

1019 ( Ivan Lee )
00:45:39,340 –> 00:45:43,760
because I think contractors all have their license.

1020 ( Ivan Lee )
00:45:43,760 –> 00:45:46,780
And then if you give them this piece of work to do,

1021 ( Ivan Lee )
00:45:46,780 –> 00:45:48,900
if they don’t have the experience

1022 ( Ivan Lee )
00:45:48,900 –> 00:45:51,460
or the license to do it,

1023 ( Ivan Lee )
00:45:51,460 –> 00:45:52,960
they shouldn’t have accepted it.

1024 ( Ivan Lee )
00:45:52,960 –> 00:45:54,840
If they accepted generally,

1025 ( Ivan Lee )
00:45:54,840 –> 00:45:58,260
that will also mean that they have the expertise

1026 ( Ivan Lee )
00:45:58,260 –> 00:46:00,139
to be able to do it properly.

1027 ( Ivan Lee )
00:46:00,139 –> 00:46:01,480
So most likely,

1028 ( Ivan Lee )
00:46:01,480 –> 00:46:03,699
I don’t think the owners will be involved.

1029 ( Ivan Lee )
00:46:03,699 –> 00:46:06,320
So maybe it will be,

1030 ( Ivan Lee )
00:46:06,320 –> 00:46:08,719
the contractor who would have to pay directly

1031 ( Ivan Lee )
00:46:08,719 –> 00:46:12,480
to compensate the neighbour, right?

1032 ( Ivan Lee )
00:46:12,480 –> 00:46:14,099
So if the contractor has

1033 ( Ivan Lee )
00:46:14,099 –> 00:46:16,340
to compensate the neighbour directly,

1034 ( Ivan Lee )
00:46:16,340 –> 00:46:18,820
then there’ll be no loss to the owner.

1035 ( Ivan Lee )
00:46:18,820 –> 00:46:22,139
So the contractor doesn’t have to pay anything to the owner

1036 ( Ivan Lee )
00:46:22,139 –> 00:46:24,099
because that’s no loss to the owner, right?

1037 ( Ivan Lee )
00:46:24,099 –> 00:46:24,940
– Right.

1038 ( Ivan Lee )
00:46:24,940 –> 00:46:27,440
Maybe say for legal costs, I suppose, yeah.

1039 ( Ivan Lee )
00:46:27,440 –> 00:46:30,760
But let’s say if for some odd reason,

1040( Ivan Lee )
00:46:30,760 –> 00:46:32,039
the owner is the one that is found

1041 ( Ivan Lee )
00:46:32,039 –> 00:46:34,019
to have to compensate the neighbour, right?

1042 ( Ivan Lee )
00:46:34,019 –> 00:46:37,159
It’s possible that the relationship between the owner

1043 ( Ivan Lee )
00:46:37,159 –> 00:46:41,320
and the contractor is not really one of negligence,

1044 ( Ivan Lee )
00:46:41,320 –> 00:46:43,940
most likely you will go for the contract,

1045 ( Ivan Lee )
00:46:43,940 –> 00:46:45,820
because they have a contract

1046 ( Ivan Lee )
00:46:45,820 –> 00:46:49,199
for the construction works to be done.

1047 ( Ivan Lee )
00:46:49,199 –> 00:46:52,400
So we will have to look into the contract

1048 ( Ivan Lee )
00:46:52,400 –> 00:46:56,340
and see if there are such things that happen.

1049 ( Ivan Lee )
00:46:56,340 –> 00:47:02,179
What is the contractor’s
obligation to indemnify

1050 ( Ivan Lee )
00:47:02,179 –> 00:47:06,280
or to reimburse the owner for the losses

1051 ( Ivan Lee )
00:47:06,280 –> 00:47:08,139
that has been incurred, yeah.

1052 ( Melvin Lim )
00:47:08,139 –> 00:47:09,280
– Okay, great.

1053 ( Melvin Lim )
00:47:09,280 –> 00:47:12,539
I think we’ve talked about five broad topics today.

1054 ( Melvin Lim )
00:47:12,539 –> 00:47:14,059
So I think the very first thing we talked

1055 ( Melvin Lim )
00:47:14,059 –> 00:47:16,820
about today was about inheritance

1056 ( Melvin Lim )
00:47:16,820 –> 00:47:19,639
and then move on to some common questions

1057 ( Melvin Lim )
00:47:19,639 –> 00:47:21,579
when it comes to divorce.

1058 ( Melvin Lim )
00:47:21,579 –> 00:47:26,239
And then we talk about trust and then on the option money,

1059 ( Melvin Lim )
00:47:26,239 –> 00:47:28,340
as well as some recourse between seller and buyer

1060 ( Melvin Lim )
00:47:28,340 –> 00:47:31,880
and of course lastly would be some renovation kind

1061 ( Melvin Lim )
00:47:31,880 –> 00:47:35,380
of guidelines to avoid any disputes and things like that.

1062 ( Melvin Lim )
00:47:35,380 –> 00:47:37,420
I think has been very insightful with Ivan,

1063 ( Melvin Lim )
00:47:37,420 –> 00:47:40,099
With us from Tito Isaac and Company,

1064 ( Melvin Lim )
00:47:40,099 –> 00:47:42,340
and maybe Ivan just to end off,

1065 ( Melvin Lim )
00:47:42,340 –> 00:47:44,500
is there any advice you want to give

1066 ( Melvin Lim )
00:47:44,500 –> 00:47:48,860
to our audience, just on one point

1067 ( Melvin Lim )
00:47:48,860 –> 00:47:50,559
that you want our audience to take away

1068 ( Melvin Lim )
00:47:50,559 –> 00:47:52,840
when it comes to buying a property right now

1069 ( Melvin Lim )
00:47:52,840 –> 00:47:54,139
in the current market?

1070 ( Ivan Lee )
00:47:54,139 –> 00:47:55,539
– The main point, essentially

1071 ( Ivan Lee )
00:47:55,539 –> 00:47:57,579
when you are transacting, real estate

1072 ( Ivan Lee )
00:47:57,579 –> 00:48:02,000
is the issue of getting the option correct.

1073 ( Ivan Lee )
00:48:02,000 –> 00:48:04,539
So the option essentially will be

1074 ( Ivan Lee )
00:48:04,539 –> 00:48:06,639
the contract governing the relationship

1075 ( Ivan Lee )
00:48:06,639 –> 00:48:08,340
between the buyer and the seller

1076 ( Ivan Lee )
00:48:08,340 –> 00:48:12,019
and how the ownership is to be transferred

1077 ( Ivan Lee )
00:48:12,019 –> 00:48:13,619
to the buyer at the end of the day.

1078 ( Ivan Lee )
00:48:13,619 –> 00:48:15,599
So in this current market,

1079 ( Ivan Lee )
00:48:15,599 –> 00:48:18,199
I think there are a lot of situations where,

1080 ( Ivan Lee )
00:48:18,199 –> 00:48:21,219
you know, people want to take early possession.

1081 ( Ivan Lee )
00:48:21,219 –> 00:48:23,519
They want to change a completion date

1082 ( Ivan Lee )
00:48:23,519 –> 00:48:26,800
because they always have another pending transaction

1083 ( Ivan Lee )
00:48:26,800 –> 00:48:29,460
that they will need to time.

1084 ( Ivan Lee )
00:48:29,460 –> 00:48:33,840
All these things needs to be considered carefully

1085 ( Ivan Lee )
00:48:33,840 –> 00:48:37,619
before they even enter into the particular option, right?

1086 ( Ivan Lee )
00:48:37,619 –> 00:48:39,460
So the reason why I say this is

1087 ( Ivan Lee )
00:48:39,460 –> 00:48:41,880
because regarding completion timings,

1088 ( Ivan Lee )
00:48:41,880 –> 00:48:46,860
regarding early possession, regarding early completion,

1089 ( Ivan Lee )
00:48:46,860 –> 00:48:49,179
all these things should be negotiated

1090 ( Ivan Lee )
00:48:49,179 –> 00:48:50,780
before the option is granted,

1091 ( Ivan Lee )
00:48:50,780 –> 00:48:53,880
because once the option is granted on the terms,

1092 ( Ivan Lee )
00:48:53,880 –> 00:48:57,360
as it should have been granted as per the agreement

1093 ( Ivan Lee )
00:48:57,360 –> 00:48:58,219
between the parties,

1094 ( Ivan Lee )
00:48:58,219 –> 00:49:00,639
the contract for the sale and purchase

1095 ( Ivan Lee )
00:49:00,639 –> 00:49:04,260
of the property can only form

1096 ( Ivan Lee )
00:49:04,260 –> 00:49:07,099
if there is no variation to the option, right?

1097 ( Ivan Lee )
00:49:07,099 –> 00:49:09,539
Because in law, the acceptance

1098 ( Ivan Lee )
00:49:09,539 –> 00:49:12,840
to the offer must be unconditional.

1099 ( Ivan Lee )
00:49:12,840 –> 00:49:13,679
So you cannot say that, okay,

1100 ( Ivan Lee )
00:49:13,679 –> 00:49:16,380
I agreed to buy your property,

1101 ( Ivan Lee )
00:49:16,380 –> 00:49:19,500
but then I want to add ABCDE, right?

1102 ( Ivan Lee )
00:49:19,500 –> 00:49:22,380
So that doesn’t form a proper acceptance

1103 ( Ivan Lee )
00:49:22,380 –> 00:49:24,320
and that doesn’t form a proper contract.

1104 ( Ivan Lee )
00:49:24,320 –> 00:49:27,019
So all these things I think needs to be negotiated.

1105 ( Ivan Lee )
00:49:27,019 –> 00:49:30,440
And if they are not found in the option,

1106 ( Ivan Lee )
00:49:30,440 –> 00:49:33,099
they should be drafted into the option, right?

1107 ( Ivan Lee )
00:49:33,099 –> 00:49:34,400
I know this* practice

1108 ( Ivan Lee )
00:49:34,400 –> 00:49:39,260
because the options a lot of times are granted very quickly.

1109 ( Ivan Lee )
00:49:39,260 –> 00:49:41,239
So there isn’t sufficient time

1110 ( Ivan Lee )
00:49:41,239 –> 00:49:43,639
for a professional to look through the terms

1111 ( Ivan Lee )
00:49:43,639 –> 00:49:47,760
and to incorporate what other considerations they require.

1112 ( Ivan Lee )
00:49:47,760 –> 00:49:50,940
And then they start asking for additional documents, like,

1113 ( Ivan Lee )
00:49:50,940 –> 00:49:52,800
okay, can we have a tenancy later on,

1114 ( Ivan Lee )
00:49:52,800 –> 00:49:55,019
can we do the letter of indemnity later on,

1115 ( Ivan Lee )
00:49:55,019 –> 00:49:58,719
but all these things are not part of the contract, right?

1116 ( Ivan Lee )
00:49:58,719 –> 00:50:01,139
So if you actually negotiate for it,

1117 ( Ivan Lee )
00:50:01,139 –> 00:50:04,380
then you should try to get it into the option,

1118 ( Ivan Lee )
00:50:04,380 –> 00:50:06,440
because that is where your foundation

1119 ( Ivan Lee )
00:50:06,440 –> 00:50:09,119
of your legal obligation is.

1120 ( Ivan Lee )
00:50:09,119 –> 00:50:10,780
So if it’s inside there, which means

1121 ( Ivan Lee )
00:50:10,780 –> 00:50:15,059
that you can be ensured that it will be performed

1122 ( Ivan Lee )
00:50:15,059 –> 00:50:17,079
in the manner that you have agreed,

1123 ( Ivan Lee )
00:50:17,079 –> 00:50:20,400
but if you discuss it verbally and you don’t put it inside,

1124 ( Ivan Lee )
00:50:20,400 –> 00:50:23,059
and most options also have entire agreement clause,

1125 ( Ivan Lee )
00:50:23,059 –> 00:50:25,320
meaning that all the terms and conditions

1126 ( Ivan Lee )
00:50:25,320 –> 00:50:27,320
of the transaction is found inside, right.

1127 ( Ivan Lee )
00:50:27,320 –> 00:50:29,940
So this, I think should be the main takeaway

1128 ( Ivan Lee )
00:50:29,940 –> 00:50:32,639
given that this market is a little bit different

1129 ( Ivan Lee )
00:50:32,639 –> 00:50:33,480
from the past years

1130 ( Ivan Lee )
00:50:33,480 –> 00:50:35,699
and a lot of back to back transactions.

1131 ( Melvin Lim )
00:50:35,699 –> 00:50:36,539
– Yep.

1132 ( Ivan Lee )
00:50:36,539 –> 00:50:39,219
– So all these considerations it should be discussed

1133 ( Ivan Lee )
00:50:39,219 –> 00:50:41,639
and once it’s discussed should be put inside the option.

1134 ( Ivan Lee )
00:50:41,639 –> 00:50:44,900
So we do not actually end up in a dispute down the road.

1135 ( Melvin Lim )
00:50:44,900 –> 00:50:45,719
– Right.

1136 ( Ivan Lee )
00:50:45,719 –> 00:50:47,860
– Right, and then we will have to ask,

1137 ( Ivan Lee )
00:50:47,860 –> 00:50:50,239
“but you said this”, then they will say,

1138 ( Ivan Lee )
00:50:50,239 –> 00:50:52,599
“but it’s not here, so it’s not enforceable”.

1139 ( Ivan Lee )
00:50:52,599 –> 00:50:55,760
Now we will have to end up doing a request

1140
00:50:55,760 –> 00:50:58,480
and when you do a request, you may not get what you want

1141 ( Ivan Lee )
00:50:58,480 –> 00:51:00,039
at the end of the day, yeah.

1142 ( Ivan Lee )
00:51:00,039 –> 00:51:01,960
So it’s best to have everything in the contract

1143 ( Ivan Lee )
00:51:01,960 –> 00:51:05,260
so that you know, that you have something

1144 ( Ivan Lee )
00:51:05,260 –> 00:51:06,579
to fall back on.

1145 ( Ivan Lee )
00:51:06,579 –> 00:51:09,260
And everybody knows what their obligations are.

1146 ( Ivan Lee )
00:51:09,260 –> 00:51:10,099
– Yeah.

1147 ( Ivan Lee )
00:51:10,099 –> 00:51:10,980
– [Ivan] Yeah.

1148 ( Melvin Lim )
00:51:10,980 –> 00:51:11,820
– Great, thanks for that advice.

1149 ( Melvin Lim )
00:51:11,820 –> 00:51:12,659
I think that’s very important

1150 ( Melvin Lim )
00:51:12,659 –> 00:51:16,119
because everybody wants a happy purchase

1151 ( Melvin Lim )
00:51:16,119 –> 00:51:17,059
and sales experience,

1152 ( Melvin Lim )
00:51:17,059 –> 00:51:20,340
and nobody wants to get into unnecessary litigation

1153 ( Melvin Lim )
00:51:20,340 –> 00:51:22,599
and to make this an unpleasant experience.

1154 ( Melvin Lim )
00:51:22,599 –> 00:51:24,500
So buying a home is a happy event.

1155 ( Melvin Lim )
00:51:24,500 –> 00:51:26,320
Selling a property should also be a happy event

1156 ( Melvin Lim )
00:51:26,320 –> 00:51:27,360
because when you sell,

1157 ( Melvin Lim )
00:51:27,360 –> 00:51:29,300
you are definitely going to your next home,

1158 ( Melvin Lim )
00:51:29,300 –> 00:51:31,400
if it’s your primary residence.

1159 ( Melvin Lim )
00:51:31,400 –> 00:51:34,559
So thank you Ivan for taking time to come to our studio.

1160 ( Ivan Lee )
00:51:34,559 –> 00:51:36,300
– Thank you, thank you for having me.

1161 ( Melvin Lim )
00:51:36,300 –> 00:51:37,820
– Sofa so good, season number two.

1162 ( Melvin Lim )
00:51:37,820 –> 00:51:41,019
And if you want to locate Ivan,

1163 ( Melvin Lim )
00:51:41,019 –> 00:51:44,059
we’ll put in his details, contact details

1164 ( Melvin Lim )
00:51:44,059 –> 00:51:45,500
of him and his firm,

1165 ( Melvin Lim )
00:51:45,500 –> 00:51:47,039
right under the description link down below.

1166 ( Melvin Lim )
00:51:47,039 –> 00:51:48,559
And of course, if you want to reach him,

1167 ( Melvin Lim )
00:51:48,559 –> 00:51:50,960
you can reach him via email or by his contact number.

1168 ( Melvin Lim )
00:51:50,960 –> 00:51:52,039
And I think he’d be very happy

1169 ( Melvin Lim )
00:51:52,039 –> 00:51:54,039
to assist you together with his associates.

1170 ( Melvin Lim )
00:51:54,039 –> 00:51:55,639
So thank you once again.

1171 ( Melvin Lim )
00:51:55,639 –> 00:51:58,179
And thank you for watching Sofa So Good

1172 ( Melvin Lim )
00:51:58,179 –> 00:51:59,159
by PropertyLimBrothers,

1173 ( Melvin Lim )
00:51:59,159 –> 00:52:00,320
we hope to see you on the next episode.

1174 ( Melvin Lim )
00:52:00,320 –> 00:52:01,320
Meantime, take care.

1175
00:52:04,500 –> 00:52:06,440
– That period of his life which means

1176
00:52:06,440 –> 00:52:07,760
that nobody knows when he’s going to.

1177
00:52:07,760 –> 00:52:09,860
– But is it a lot to sell in
the first place, because–