The Academy provides stakeholding services in sale and purchase transactions over newly developed private residential properties, commercial properties and executive condominiums under certain statutory schemes (the “Applicable Properties”). The Academy functions as a stakeholder in place of the Purchasers' Solicitors for the last instalment payments. This involves a direct deposit service for Purchasers of the Applicable Properties to conveniently pay in their stakeholding monies through banking outlets near their homes or solicitors’ offices.

All the three local banks are participating in the direct deposit service. The Singapore Academy of Law (Stakeholding) Rules (the “Stakeholding Rules") provide procedures to ensure that the payment in and out of stakeholding monies can be effected smoothly. There are two main payment mechanisms:

  • Payment in of stakeholding monies. The stakeholder will hold the instalment payments until the appropriate times for their payment out to the Vendor.
  • Payment out of stakeholding monies. The Stakeholding Rules provide procedures for parties to call for payment out of the stakeholding monies to the Vendor and deal with any authorised deductions which the Purchaser is entitled to make under the Sale and Purchase Agreements, and deductions which are disputed by the Vendor.

The Academy also issues Stakeholding Instructions and Circulars from time to time for reference by the Purchasers and Vendors and their solicitors. Copies of the Stakeholding Instructions and Circulars can be downloaded, or emailed to law firms as a soft copy upon request. Alternatively, hard copies can be obtained from Level 4M of the Singapore Academy of Law.

 

The Statutory Schemes under which the Applicable Properties Come

  • Forms D/Form 4 and Form E/Form 5 of the Housing Developers Rules
  • Form B of the Housing and Development (Design-Build-and-Sell Scheme-Form of Contract) Rules 2006
  • Form D of the Sale of Commercial Properties Rules
  • Form B of the Executive Condominium Housing Scheme Regulations
With effect from 18 May 2012, the Housing Developers Rules will be amended. At the same time, “working day” under the Singapore Academy of Law (Stakeholding) Rules (R 2) is amended to have the same meaning as defined in the Sale and Purchase Agreement under which the stakeholding money is paid. The amendments to the above mentioned rules were gazetted on 18 April 2012 for implementation from 18 May 2012.
  • To see the amendments to the Housing Developers Rules, please click here.
  • To see the amendments to the SAL Stakeholding Rules, please click here.