Frequent Asked Questions (FAQs)

1. What is decoupling in the context of property ownership?

Decoupling is a strategy where one co-owner transfers their share of a jointly owned property to the other co-owner, allowing the former to purchase another property without being subjected to Additional Buyer’s Stamp Duty (ABSD).

2. Why consider decoupling for purchasing private property?

Decoupling can help reduce the ABSD liability when purchasing a second property, thus potentially saving a significant amount of money and enabling more strategic investment in real estate.

3. Who is eligible to decouple a property in Singapore?

Generally, only married couples or immediate family members who co-own a property can decouple. The process involves transferring ownership from one party to another, subject to legal and financial criteria.

4. What are the costs involved in decoupling a property?

Costs include legal fees, stamp duties (such as Buyer’s Stamp Duty (BSD) on the transfer), valuation fees, and potentially ABSD for the transfer of ownership, depending on circumstances.

5. How does decoupling affect the existing mortgage on the property?

The remaining owner must be able to service the entire mortgage, either by refinancing or proving sufficient income. The transferring owner may need to pay off their share of the mortgage before decoupling.

6. What are the legal requirements for decoupling a property?

Legal requirements include a formal transfer of ownership, documentation such as the deed of assignment, and compliance with HDB or private property regulations. Engaging a conveyancing lawyer is essential.

7. How long does the decoupling process take?

The process typically takes a few months, depending on the complexity of the transfer, the efficiency of the legal process, and the response times of relevant authorities.

8. Are there any risks or downsides to decoupling a property?

Risks include the financial burden on the remaining owner to service the entire mortgage, potential impact on credit scores, and the complexity of reversing the process if circumstances change.

9. Can decoupling be applied to HDB flats?

Decoupling is generally not allowed for HDB flats due to strict ownership and eligibility rules. However, for private properties, decoupling is a viable strategy.

10. How can I start the decoupling process?

Begin by consulting with a real estate agent and a conveyancing lawyer to understand the financial and legal implications. Assess your mortgage situation, prepare the necessary documents, and follow the legal procedures for the transfer of ownership..