Losing a loved one is one of the hardest things anyone can face.
When it comes to inheriting a property, the process of selling it can be
equally challenging. The main asset that one has in Singapore is usually the
property. We’ve compiled this guide to selling inherited private property to help families or individuals
navigate such situations for Private Property.
For HDB, the process is more complicated.
This guide here will be useful
The First Step: Will or No Will
The first thing to establish is if there is a will by the deceased. You would
be required to obtain a Grant of Probate if there is a will. If there is no
will, the family must apply for Letter of Administration. The main difference
will be the distribution of assets. With a will, the beneficiaries can be
identified and the % of assets can be allocated according to the deceased’s
wishes. Without a will, the division of assets will be in accordance to
intestate laws or Muslim laws.
Once it is established, you will obtain a Grant of Probate or Letter of
Administration can take some time – usually around 2-3 months for a
straightforward case and over 6 months for a more complicated one. It’s
important to note that this application must be done within 6 months of the
deceased’s passing. Before obtaining these documents, families should avoid
jumping the gun and marketing the property.
What happens to the Deceased Private Property?
Before getting the Letter of Grant of Probate or Letter of Administration, the
property will be frozen. Upon approval, the executor or administrator will be
the key person for the Private Property. If there is a will, it will be
executed accordingly. If there is no will, it will be subjected to Intestacy
as follows.
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You could opt to keep the Private Property or Sale of the property. The
person’s legal personal representative can
execute the sale within 6 years of death. After the expiration of 6
years from the death, you may need a court sanction to sell the product.
The property can be parked under the executor or administrator’s name during
this period. You can also transfer the title to the beneficiary. If you
do so, there will be implications depending on the beneficiary’s current
property ownership.
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| Inheriting Private Property in Singapore |
If the beneficiary owns a private property
The beneficiary will increase his/her property count by 1. This will impact
future property purchases due to the Additional Buyer Stamp Duty (ABSD)
If the beneficiary owns an HDB
There are two possible scenerio. If you own an HDB with MOP, there is no
implication other than increasing the property count by 1 and impacting future
property purchases for ABSD.
If the HDB is not MOP, you must dispose of the private property if you wish to
keep the HDB. If you want to keep private property, you must sell the HDB.
Landed Property Inheritance
The above scenerio applies to non-landed. To inherit landed properties, the
beneficiary has to be Singapore Citizen. Otherwise, there is a need to sell
the inherited property unless you obtain the requisite approval from
Land Dealings Approval Unit (LDAU).
Without LDAU approval, the property must be disposed of within a 10-year time
limit.
In conclusion, selling an inherited property can be lengthy and complicated,
but it can be done smoothly with some patience and preparation. Just be sure
to fulfil all the necessary criteria and follow the correct procedures to
avoid unnecessary delays or hiccups.
