SINGAPORE Law and Practice Contributed by: Benjamin Tay, Chou Ching, Norman Ho, Vikna Rajah, Chun Kiat and Marcus Tay, Rajah & Tann Asia
Industrial Sector In the industrial sector, enhancements to the Jurong Town Corporation (JTC)’s lease framework are intend - ed to improve tenure certainty and renewal flexibility. These include adjustments to lease commencement mechanics for new developments and the introduc - tion of earlier renewal windows and flexible lease extension options for eligible lessees. These changes are commercially significant for industrial, logistics and data centre assets, where remaining lease tenure is a critical underwriting factor. JTC has also issued a circular indicating that it would consider allowing mortgagees to exercise their power of sale within the assignment levy period without imposing a levy (sub - ject to conditions). Sustainability and Building Performance Sustainability and building performance have also moved further into focus. Regulatory attention on energy performance has increased, with a stronger emphasis on audits, disclosure and retrofit planning for certain building types. This has implications for asset capital expenditure planning, compliance costs and transaction diligence, particularly for older com - mercial and industrial properties. Strata Sector In the strata sector, the government has indicated an ongoing review of management corporation frame - works, including proposals to enhance transparency around sinking fund adequacy for ageing develop - ments. If implemented, these measures would affect transaction diligence and pricing assumptions for strata titled assets. Retail Leasing Retail leasing practices have also evolved following the implementation of the Lease Agreements for Retail Premises Act, which has become embedded in mar - ket practice for qualifying retail leases. Enforcement of AML and Conveyancing Controls Separately, heightened enforcement focus on anti- money laundering and conveyancing controls has rein - forced the importance of robust transaction processes and documentation. Collectively, these reforms signal a continued emphasis on sustainability, transparency
and execution discipline within Singapore’s real estate market.
2. Sale and Purchase 2.1 Categories of Property Rights
Land in Singapore is held under a system of tenure rather than absolute ownership. The principal catego - ries of property interests encountered in commercial transactions are freehold estates, statutory grants in perpetuity and leasehold estates for fixed terms. Leasehold interests are common, particularly for state land and industrial properties, with unexpired lease tenure being a key underwriting consideration for investors and lenders. For subdivided developments, Singapore recognises strata titles under which an owner holds title to an individual lot together with an undivided share in the common property. In addition to estates in land, reg - istrable interests and encumbrances such as ease - ments, restrictive covenants, mortgages and charges may subsist over property and are reflected on the land register. Singapore’s Torrens-based registration system means that acquisition of title by adverse possession is gen - erally incompatible with registered land. As a result, transactional focus is typically on registered title, lease tenure, planning compliance and encumbrance profile rather than historical possession risks. 2.2 Laws Applicable to Transfer of Title Land Titles Act Transfers and other dealings in registered land are governed primarily by the Land Titles Act, which establishes the land registration system administered by the Singapore Land Authority. Registration is man - datory to effect a transfer of legal title or registrable interest, and instruments must be duly executed, stamped and lodged for registration. The Conveyancing and Law of Property Act and Stamp Duties Act The Conveyancing and Law of Property Act continues to apply to conveyancing matters not displaced by the Land Titles Act, including implied covenants in
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