A Singapore Government Agency Website
Proceeds from the Sale of Your Property
Important things to take note of if you are considering selling your private property.
Proceeds from the Sale of Your Property
Financial planning is important, especially so if you need to buy your next home after selling your current property. You should take the following payments into account to help you evaluate your financial position.
1. Outstanding bank loan.
2. CPF refunds. This refers to the sum of:
- the CPF monies that you and your spouse have withdrawn for the private property with accrued interest; and
- any amount you or your spouse has pledged using the private property to make up your or his/her retirement sum if you or your spouse is aged 55 years old and above.
While you cannot choose to refund a different amount to your CPF Account, you and your spouse do not need to top up the shortfall in cash if the selling price (inclusive of the option monies) less the outstanding housing loan is insufficient to make the full required CPF refunds for you and your spouse. This is provided that the private property was sold at or above market value. In such a case, the amount to be refunded to you and your spouse will be pro-rated in the proportion below:
3. Any charges or fees arising from the sale of the private property, for example, admin charges, legal fees, conveyancing fees and stamp duty.
If there are any remaining proceeds, it may be split between you and your spouse. You and your spouse are at liberty to decide on the allocation, failing which it will be left to the court to make an order as to the allocation.
You may also wish to note that in some instances, parties may be required to do a cash top-up to make the required CPF refunds.
For instance,
1. The Court may order that the net sale proceeds are to be divided between the parties in a manner that is not commensurate with the percentage of CPF monies that each party used.
2. The Court may order that if the property is sold at a loss:
- Party A’s CPF monies used (plus accrued interest) will be refunded to Party A’s CPF Account in full first.
- The remainder of the net sale proceeds shall then be refunded to Party B’s CPF Account to make the full required CPF refunds to Party B’s CPF Account.
In both instances, the amount received by the parties may be insufficient to make the required CPF refunds and may require one or both parties to make cash top-ups in order to make the full required CPF refunds.
The information on this site is for general information only and is not intended to be, and should not be relied on as a substitute for professional legal advice.
