SAL provides stakeholding services for sale and purchase transactions of newly developed private residential properties, commercial properties and executive condominiums under certain statutory schemes. SAL acts as a stakeholder in place of the purchasers' solicitors for the last installment 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 three local banks participate in this direct deposit service. The Singapore Academy of Law (Stakeholding) Rules provide procedures to ensure that the payments in and out of stakeholding monies can be effected smoothly. There are two main payment mechanisms:
- Paying in of stakeholding monies - The stakeholder will hold the installment payments until the appropriate times for their payment out to the vendor.
- Paying out of stakeholding monies - The Singapore Academy of Law (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.
SAL also issues Stakeholding Guidance Notes and Circulars from time to time for reference by the purchasers, vendors and their solicitors. Copies of these Stakeholding Guidance Notes and Circulars can be downloaded from the links here, or alternatively, hard copies can be obtained from SAL Stakeholding Counter during its opening hours.
The Statutory Schemes under SAL provides Stakeholding Services
- 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/Form 2 of the Executive Condominium Housing Scheme Regulations
- To see Singapore Academy of Law (Stakeholding) Rules, please click here.
- To see Housing Developers Rules, please click here.