Be careful in leasing property in Singapore

The property you are about to lease may be under mortgage or loan. There are a few ways one can protect himself just to make sure that the seller is paying the lender and the buyer will not be in trouble later when the seller disappears or dies. This is very critical point when the property is leased out to you as a foreigner in Singapore, specifically if the deal is for 99 years. Lease of property is commonly done in Singapore. Singapore is a well developed place and as a result lots and lots of people are interested in property dealing in Singapore. The sales and purchases of property in Singapore are very common. You can find the right investment opportunities in Singapore very easily.
 
While buying a property in lease, where the property is under a mortgage, do talk to your agent clearly and speak to the seller’s attorney if needed to secure two kinds of permission. Take a legal consent from the owner that he would allow you to directly talk to the lender regarding the outstanding amount on the property, the payment terms and if the seller has been regular in paying off his dues. The other consent that the seller needs to provide is the authority to directly pay the lender. You need to talk to the seller’s agent and attorney regarding making payments to the lender directly. This keeps the buyer in safe position and helps him to establish a trust with the lender and makes sure that the payments are updated.
 
Many sellers do not like this as they think its threat to the ownership of the property and the buyer may end up owning it. In this case one needs to take legal help and consult the seller’s attorney and make his intentions clear legally. The buyer may keep paying the seller and let the seller in turn pay the lender but it is always safe to have an authorization ready in case the seller becomes a defaulter. One can also have an accounted escrowed and the buyer would be paying this account, in turn allowing the escrow company pay the lender each month, but this can be too tedious and complicated, then again its better to be safe than sorry.

MINDY YONG

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