Conveyancing in Singapore – Am I Overpaying?
For every transaction, whether you are a buyer or seller of a property, you will need to appoint a law firm to represent you. To find out more about what do conveyancing lawyers do Click here
There are plenty of conveyancing law firms in Singapore, ranging from a lawfirm with 1 lawyer, all the way to your tier 1 big law firms like Allen & Gledhill. Pricing will also vary greatly from a couple of thousand all the way to tens of thousand, depending on the price of your property and also the lawfirm selected. I will talk more about conveyancing for purchase in this article.
If you are taking up a mortgage with a bank, you are only allowed to select a conveyancing law firm that sits on that banks panel. Some conveyancing law firm sit on only a few bank’s panels. This will lead to extra charges during refinancing if the existing law firm is not on the panel of the new financial institution. You will have to engage a new lawyer, who will then charge additional fees for taking over the legal work.
Another factor to consider is that if you are recommended lawyers by a property agent, sometimes the agents get a very big commission from such referrals and the law firms will pass the increase in cost to the clients as they are allowed to do so.
The trick to all this is to find a lawfirm that sits on most bank panels, can deliver their service without charging sky high prices and having service lapse.
Not to worry, we have attached the pricing guideline by the Law society of Singapore for non-CPF conveyancing services on the right for your reference. 0.4% of purchase price means that a $1million loan will cost you around $4,000 in legal fees.
Total Legal Fees consist of 4 parts.
I will quote a breakdown for loans below $2million dollars for HDB, residential and commercial properties
- Professional Legal Fees -do expect to pay between $2000-$2500, depending on property type
- GST on Professional Legal Fees – 7%
- Stamp Duty on Mortgage – $500
- Conveyancing Account fees – $200-$400
If you are paying more than $3k for your legal fees for a standard straight forward case, you are probably overpaying!
Home Loan Whiz works with a panel of lawyers that are reliable and decently priced. Our panel of lawyers have been collated through positive feedback from customers and bankers. We are able to offer you a lower conveyancing fee than the market rate due to our high volume with these firms and strategic partnership.
If you are planning to Buy, Sell or Remortgage your property, Legal fees from as low as $2000!