Guide to Selling Inherited Private Property in SIngapore

 Losing a loved one is one of the hardest things anyone can face.

When it comes to inheriting a property, the process of selling it can be equally challenging. The main asset that one has in Singapore is usually the property.  We've compiled this guide to selling inherited private property to help families or individuals navigate such situations for Private Property.

For HDB, the process is more complicated. This guide here will be useful

The First Step: Will or No Will

The first thing to establish is if there is a will by the deceased. You would be required to obtain a Grant of Probate if there is a will. If there is no will, the family must apply for Letter of Administration. The main difference will be the distribution of assets. With a will, the beneficiaries can be identified and the % of assets can be allocated according to the deceased's wishes. Without a will, the division of assets will be in accordance to intestate laws or Muslim laws.

Once it is established, you will obtain a Grant of Probate or Letter of Administration can take some time - usually around 2-3 months for a straightforward case and over 6 months for a more complicated one. It's important to note that this application must be done within 6 months of the deceased's passing. Before obtaining these documents, families should avoid jumping the gun and marketing the property.

What happens to the Deceased  Private Property?

Before getting the Letter of Grant of Probate or Letter of Administration, the property will be frozen. Upon approval, the executor or administrator will be the key person for the Private Property. If there is a will, it will be executed accordingly. If there is no will, it will be subjected to Intestacy as follows.

You could opt to keep the Private Property or Sale of the property. The person's legal personal representative can execute the sale within 6 years of death. After the expiration of 6 years from the death, you may need a court sanction to sell the product.

The property can be parked under the executor or administrator's name during this period. You can also transfer the title to the beneficiary.  If you do so, there will be implications depending on the beneficiary's current property ownership.

Inheriting Private Property in Singapore

If the beneficiary owns a private property

The beneficiary will increase his/her property count by 1. This will impact future property purchases due to the Additional Buyer Stamp Duty (ABSD)

If the beneficiary owns an HDB

There are two possible scenerio. If you own an HDB with MOP, there is no implication other than increasing the property count by 1 and impacting future property purchases for ABSD.

If the HDB is not MOP, you must dispose of the private property if you wish to keep the HDB. If you want to keep private property, you must sell the HDB.

Landed Property Inheritance

The above scenerio applies to non-landed. To inherit landed properties, the beneficiary has to be Singapore Citizen. Otherwise, there is a need to sell the inherited property unless you obtain the requisite approval from Land Dealings Approval Unit (LDAU).

Without LDAU approval, the property must be disposed of within a 10-year time limit. 

In conclusion, selling an inherited property can be lengthy and complicated, but it can be done smoothly with some patience and preparation. Just be sure to fulfil all the necessary criteria and follow the correct procedures to avoid unnecessary delays or hiccups.