Conducting real estate due diligence in Singapore is a crucial part of performing a real estate transaction, as it helps to mitigate risks and uncover any hidden issues or potential liabilities that may affect the property’s value. Property ownership in Singapore can be complex to understand, especially for foreigners; getting help from a legal professional who understands Singapore property law is wise.
There are several types of real estate due diligence in Singapore. Individuals or businesses that want to buy property in Singapore should conduct at least the following two due diligence types:
- Legal real estate due diligence in Singapore: This part consists of the property and the seller’s verification.
- Technical real estate due diligence in Singapore: Conducted by architects who check if the Health and Safety and Environmental regulations are complied with.
Another form of property due diligence in Singapore is commercial real estate due diligence, which is conducted on commercial property, such as hotels, restaurants, shops, factories, and offices.
Why always perform property due diligence checks in Singapore?
Conducting thorough real estate due diligence in Singapore when considering purchasing property in the country is important. The purpose of these due diligence checks is to uncover any hidden issues or potential liabilities that could impact the property’s value. Going through this process also allows sellers to address any problems that may be present and improve transparency in the transaction. By conducting real estate due diligence in Singapore, buyers can make informed decisions about the property they are interested in, while sellers can ensure a smooth and satisfactory sale experience for all parties involved.
9 steps to real estate due diligence in Singapore
Conducting real estate due diligence in Singapore is a complex process, and hiring professionals such as lawyers, real estate due diligence companies, and property agents are often recommended. However, if you choose to perform due diligence on your own, there are essential steps you should follow:
- Verify ownership and title: When conducting due diligence on a real estate property, it is essential to verify its ownership and title through the Singapore Land Authority (SLA). This ensures that there are no problems or issues with the property and that all the property due diligence report requirements are met.
- Property inspection: As part of your real estate due diligence checklist, it is essential to inspect the property thoroughly. This includes scrutinizing any potential structural issues and identifying necessary repairs, which can be part of technical due diligence for real estate.
- Review land use and zoning regulations: As part of the technical due diligence process for commercial property in Singapore, it is important to review the local zoning laws and land-use regulations that may impact the property’s intended use.
- Assessment of environmental factors: Your property’s technical due diligence should consider environmental factors, such as flood risks and proximity to industrial zones.
- Evaluate the property price: Evaluate the property’s financial aspects when conducting due diligence for property purchases in Singapore by analyzing its price against the market and exploring financing options.
- Bankruptcy check Singapore: Conduct a bankruptcy search in Singapore on the seller to ensure their financial stability. You can read how to check Singapore’s bankruptcy status further in this article.
- Rental property check: Research resale values and use a rental property due diligence checklist if you plan to rent out your property.
- Contract review: Consult a legal professional to prepare or review the sales contract as part of due diligence for intellectual property in Singapore.
- Obtain approvals and permits: A crucial part of Singapore’s due diligence checks is ensuring all the required governmental approvals, permits, and licenses.
Our real estate due diligence checklist for Singapore can help you make the right decisions when buying real estate in Singapore. However, seeking assistance from legal professionals specializing in property investment due diligence or property technical due diligence for Singapore always remains a wise choice.
Bankruptcy check Singapore
A bankruptcy check is a crucial part of real estate due diligence in Singapore. It relates to the financial status of both buyer and seller. If the seller is bankrupt or facing financial difficulties, transferring the title could cause legal complications. Being aware of this information can prevent any unexpected delays or issues in the transaction.
The bankruptcy check is also performed on buyers seeking financing for a property purchase. As part of their assessment, lenders evaluate the buyer’s financial history, including any bankruptcy filings. A history of bankruptcy or financial difficulties can impact the buyer’s ability to secure a mortgage or loan.
So, how to check bankruptcy status in Singapore? Individuals or businesses can use the online portal of the Insolvency Office or the Electronic Litigation System (eLitigation). They can also visit the Insolvency Office at the Ministry of Law or engage a legal professional to search on their behalf.
Get help with real estate due diligence in Singapore
When purchasing real estate in Singapore, conducting property due diligence yourself can be challenging. This is due to the numerous steps involved, such as verifying property ownership and land titles and conducting bankruptcy checks.
To avoid any potential risks, it is highly recommended to seek the assistance of a legal agent for real estate due diligence in Singapore. With their expertise and guidance, you can navigate the process with ease and confidence.
Get help with property due diligence in Singapore
Frequently Asked Questions (FAQs)
How to do due diligence on a property in Singapore?
To conduct due diligence on a property, especially for property investment or commercial real estate, start by verifying ownership and title. Inspect the property for structural issues as part of technical due diligence. Evaluate financial aspects, including bankruptcy checks in Singapore, review land use and zoning regulations, and understand resale and rental rules. Finally, prepare a property due diligence report and refer to a real estate due diligence checklist to enhance the process.
What is real estate due diligence in Singapore?
Real estate due diligence in Singapore involves a comprehensive investigation of a property before purchase or agreement. Key steps include verifying ownership through the Singapore Land Authority (SLA), conducting a bankruptcy search, assessing environmental factors, and complying with Singapore’s sanction list rules. This process ensures that the buyer knows all potential risks and rewards, whether it’s technical due diligence of commercial or residential property.
What are the best real estate due diligence companies in Singapore?
The top real estate due diligence companies in Singapore specialize in comprehensive checks, including property technical and intellectual property due diligence. They provide expertise in verifying ownership, conducting property inspections, and handling legal and financial assessments, including bankruptcy status checks in Singapore. Hiring such companies ensures a thorough property due diligence report and compliance with local regulations.
How to check the bankruptcy status in Singapore?
To check the bankruptcy status in Singapore, use the Insolvency Office online portal or the Electronic Litigation System (eLitigation) if you’re a legal practitioner. Singapore bankruptcies can also be checked by visiting the Insolvency Office or consulting legal or financial professionals. This information is essential for due diligence in real estate processes to ensure no legal encumbrances are related to the seller.