It’s not uncommon for people to want to own a piece of land in Singapore, but what about those who don’t have the money or even the means to purchase a property? Thankfully, there are other options. These include leasing your property and renting it out – either individually or collectively. Before you start looking for properties that you can lease, however, you should know about caveats.
What is a caveat?
A caveat is a legal document that alerts prospective tenants or lenders as to why they should do business with you instead of a stranger. It’s a way for people to protect themselves when they are doing business with someone who does not have the best reputation in the industry. For a person to be able to le ase or borrow money from someone else, he must raise a caveat in favor of the person lending it or borrowing it.
The person receiving the caveat needs to permit the lender or borrower to use their property as security prior to leasing it out. The owner of the property needs to lodge caveats on his property so that no one can take possession without first taking him into consideration and giving him notice of their intention before proceeding with the sale. Indeed, owners need caveats in place so that any third party cannot sell his property without first being given notice and consent.
What documents do I need to create a caveat?
You’ll always need an affidavit of truth and an affidavit of identity – this is due to Singapore’s personal information laws. Other documents may include certificates of ownership, affidavits from previous landlords that own rights over the property, letters of guarantee from past tenants, letters of guarantee for future tenants (if applicable), and more.
URA Caveat: How to Lodge a Caveat on a Property in Singapore
The URA caveat is the most common. It should be lodged on your property and all the documents that are submitted to the Land Titles Office before anyone else can purchase or lease it. You need to state that you have the first right of refusal or “right of pre-emption” over any potential buyer or lessee in your property. This caveat protects you from losing out on a deal, as it states that no one else can buy or rent your property until you permit them, meaning you will automatically gain priority over other interested parties.
To lodge a URA caveat, follow these steps:
- Contact the Land Titles Office for a copy of the Certificate of Title for your land if you don’t already have one.
- Write down all the names and contact information of everyone who has an interest in buying or leasing your property – including those who are not known to you – and attach it to your Certificate of Title.
- If there are unregistered structures attached to your land, make sure they are removed before lodging the URA caveat so that they aren’t demolished during construction works.
- Ensure that all documents related to your lands, such as deeds and leases, are registered with the Registrar of Deeds before submitting them with your URA caveat to the Land Titles Office.
How to Lodge a URA Caveat
A caveat is a legal document that informs potential lenders or renters about the reasons why you should be given priority in leasing a property as opposed to someone else. It must be lodged with the Urban Redevelopment Authority (URA) before it can be used for either purpose. Ideally, the caveat is filed online, but if you don’t have access to a computer, there are other ways to lodge your caveat.
To lodge your caveat, you need to do the following:
- Fill out the information on the URA website.
- Print and sign the form.
- Take a copy of the signed photocopy of your form.
- Bring your signed copy of your form and two copies of copies of all supporting documents to one of these locations: URA Head Office (Level 24-26), URA Technical Services Division, URA Land Registry Division and URA Building Control Division.
- Pay at least one month’s rent in advance.
- Wait for confirmation from the URA. After lodging a caveat, you will receive an acknowledgment letter from the Urban Redevelopment Authority within three working days confirming that their records show that a caveat has been lodged with them. This is either by you or another person on behalf of yourself or another person under your authority.
What are private residential properties?
Private residential property is the type of property that you would lease or rent for your personal use and not for business purposes. In general, private residential properties are those that are located in a freehold title area, i.e. an area where one has freehold ownership of the land.
Why Is the URA Caveat Important?
The URA caveat is an important document for those who own a piece of land in Singapore. It is used to alert prospective tenants or lenders that they should do business with you instead of a stranger. It’s really important to get your caveats in place before searching for properties that will comply with your requirements because you won’t be allowed to lease out your property if the land title isn’t properly registered.
If you haven’t got your caveat in place, you can choose not to lease out the property and keep it as a long-term investment or use it as collateral. Who can apply for a caveat? Anyone with ownership of or interest in a land parcel in Singapore can apply for one. If someone has applied for a caveat on a property but hasn’t been able to secure one, then they cannot lease the property without it being registered as legal ownership.
When Will the Caveat Take Effect?
The caveat will take effect only after the owner of the property has declared this intention. This means that the owner must have given you or your agent written notice that they are willing to lease their property to you, and it must be delivered by the owner or their agent to you personally.
How to Use the URA Transactions Portal to Search for Caveats
You can use the URA Transactions Portal to search for caveats in your area. This is a service offered by the Urban Redevelopment Authority, which helps you find a property that has been or has yet to be sought after. It’s an easy way of looking for properties that anyone can rent out or buy. Simply type in your postal code and select “caveats” from the drop-down menu. As soon as this option appears, it will load with all of the caveats in your area. You’ll have to search through them individually, but they are great assets if you want a quick way of finding properties well before they become available on the market.
How to Find URA Condo Transaction Prices and Landed Home Prices
The Urban Redevelopment Authority (URA) is responsible for the management of land and property in Singapore, especially those within the Central Area. This includes managing and licensing of private residential units and commercial spaces. You can use URA’s property search tool to find out what you can afford to purchase, lease, or rent. The same tool will also show you prices for completed properties on different floors.
How long does it take to register a caveat?
It’s important to note that the process of registering a caveat can take a while. It could be an entire month – or even more than that – before your caveat is approved by the Land Titles Registry. This means you should make sure that you’ve got all of your paperwork in order before you start searching for properties.
Conclusion
A caveat is a legal document that alerts prospective tenants or lenders as to why they should do business with you instead of a stranger. From this article, you can get all the information you need to get started on your covert. With all supporting documents, all you need to do is take the first step, and the rest is history.