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Hi,

A similar question was raised last week. I'll try to simplify so that you are able to understand.

Decoupling actually is a buy and sale process by a couple who own the same property.

To do a decoupling, the legal fee might be as high as $8k compare to direct selling & buying of $2.5k~$3k.

There is a certain condition to meet before you decide to use this method:
1) Both parties must have a certain financial status, meaning both of you earn around 5 figures monthly income.
2) Both parties have sufficient CPF funds.

Let's do a simple calculation to understand where you stand:
1) TDSR assessment of $10k active income, assume no outstanding loan, own 2 credit cards, no car loan = $1,313,900.
2) Let say your current property worth $1.2M.

Mean if both of you earn $10k each, each of you able to take up a loan up to $1,313,900.

a) The buying party should be able to take over the selling party's share comfortably. So only need to takeover $600K++ or even up to $700k depending on how outstanding the loan currently have.
b) Outgoing party's sales proceed has to clear existing loan, CPF + accrued interest = $600k - $100 (loan) - $200k (CPF) = $300k cash
c) Although technical cash proceeds from the outgoing party can assist the buying party on the BSD, legal fee, 5% cash for the buying over share, etc. But legally, the lawyer would prefer to have a valid cashier order to pay the selling party from the buying party. Do take note of this.
So can see you are able to unlock around $300k cash from this process. And in a better position of getting something to your liking. $1.6M is able to get a comfortable 3 bedder in the current market.

You may consider this method if your current financial status, current property worth, CPF funds, etc are roughly in that range.
During this process of decoupling, no agent fee involved, only incur a legal fee, mortgage loan stamp duty, BSD, mortgage discharge fee, etc

So you have to calculate your fund from (i) to (v). The last thing to note is decoupling easily takes up around 2 months to complete. So do not commit until you are ready.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow up is to Whatsapp or email us directly. Read More

Hi,

In essence, decoupling involves selling of 1 owner's share of ownership to the remaining owner, so the outgoing owner no longer owns any residential property.

The downsides,
1) remaining owner needs to refund the cpf utilized + accrued interest of outgoing owner
2) remaining owner needs to be able to finance the property based on his/her sole income and bank must approve
3) relevant stamp duties (approx 3% of market value of share of ownership purchased) and legal fees of approx $5k applies
4) personal comfort level as outgoing owner is no longer an owner of the matrimonial property
5) potentially overall higher leverage after everything

The advantages,
1) outgoing owner, after MOP, can purchase residential property as 1st property without absd
2) one investment property, one own stay property
3) potential to restructure and optimize property portfolio to capitalize on any capital gains upside

Lead time to do decoupling approx 10 weeks, just like a normal private treaty sale. But once the OTP is exercised, usually can buy next property soon. Of course some pre-execution planning is involved which will take over a few weeks (optimizing the best approach to minimize costs, loan processing etc.).

I have worked on similar cases and would be happy to share the best approach. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --

I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you. Read More

Dear Mdm,

Decoupling can be done once your EC has reached the MOP mark and the whole decoupling process will take about 12 weeks to be completed. However, you do not wait for the full 12 weeks before the exiting party can buy another property.

There are some considerations that you will want to take note of before proceeding with the decoupling. The remaining party must have sufficient income to take over the loan and the exiting party must be able to secure a loan sufficient to purchase the next property. An experienced lawyer will be able to handle the decoupling and purchase process concurrently.

I have personally assisted a few of my clients to decouple and subsequently purchase another property. Please feel free to contact me so that I can understand your situation better and provide you with further assistance.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
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Visit my website to know me better: www.nicktan.com.sg

I was featured recently on Council for Estate Agencies (CEA) Newsletter:
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Mr & Mrs Tan (Seller of Inter-Terrace House) Read More

Hi Mdm,

You can only proceed to do decoupling when you have met your MOP. The decoupling process can take up to 10-12 weeks to be completed, depending on various factors.

In decupling, the outgoing party will need to have his/her CPF refund, while the party that stays will need to have the financial capabilities (based on sole income) to undertake the outstanding loan of the property.

Do take note that stamp duties is payable for decoupling. Assuming the property is held under Joint-Tenancy, 50% of the property valuation will be liable for the stamp duties.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi Sir/Madam

I will be glad to assist
Appreciate if you can contact me at (65) 96608508  or Silviayang8@gmail.com with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508 
Email: Silviayang8@gmail.com Read More

Decoupling is a process that allows joint homeowners to remove one co-owner’s name from the property. Here’s how it works:

Eligibility: For owners of executive condominiums (ECs), decoupling is only permitted after fulfilling the 5-year Minimum Occupation Period (MOP) 1.
Process:
Internal Buy and Sell: The co-owners jointly decide to transfer ownership. One party’s name is freed up, allowing them to purchase a second property without incurring Additional Buyer’s Stamp Duty (ABSD).
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