Subsale Conveyancing Lawyer for Sellers

As a seller your matter is different from the buyer’s. The focus is not on checking title, but on three things: discharging the existing charge, meeting your real property gains tax obligations, and making sure you receive the balance proceeds with no liability left behind.

Redemption and discharge of charge

If your property is still charged to a bank, the title cannot be transferred until the loan is settled and the charge discharged. The first step is to request a redemption statement from the bank, showing the exact figure required to settle as at a given date.

That figure changes with the date, so the timing between the buyer’s payment, settlement of the loan, and discharge of the charge has to be coordinated carefully.

Real property gains tax

This tax is charged on the gain, not on the sale price. The gain is the disposal price less the acquisition price less allowable costs.

Allowable costs include the legal fees and stamp duty on your original purchase, agent commission, and renovation costs that enhance the value of the property. Receipts matter. Without them those costs are difficult to claim, and the tax payable ends up higher.

Joint ownership

Where a property is owned by more than one person, every registered proprietor has to sign. If one of them has died, that share has to be dealt with through estate administration before the sale can proceed. This is the most common cause of delay we see in sale matters.

What your lawyer handles

• Checking the outstanding loan and requesting a redemption statement from your bank
• Preparing or reviewing the sale and purchase agreement so the completion period is realistic and your exposure is limited
• Attending to discharge of the charge once the outstanding loan is settled from the sale proceeds
• Calculating and withholding the retention sum for real property gains tax
• Preparing and filing Form CKHT 1A within 60 days of the disposal date
• Coordinating with the buyer's solicitors for delivery of title and the transfer instrument
• Ensuring quit rent and assessment are apportioned up to the date of handover
• Remitting the balance sale proceeds to you after all deductions

Timeline

Documents you need to prepare

• Copy of the identity card of the seller and every registered proprietor
• Copy of the title
• Current loan statement from the bank
• The original sale and purchase agreement from when you bought the property
• Receipts for stamp duty and legal fees on the original purchase, as these are allowable costs in the tax calculation
• Receipts for major renovation work, if you wish to claim them as allowable costs

Costs people often overlook

• Real property gains tax, depending on the holding period and disposer category
• A retention sum of 3% of the disposal price for a citizen seller, or 7% for a non-citizen
• Legal fees for the discharge of charge
• Estate agent commission, if the property is sold through an agent
• Outstanding quit rent and assessment, to be settled before handover
• Early redemption charges from the bank, if your loan is still within a lock-in period

When to stop and get advice first

Frequently asked questions