Property lawyer in Singapore: How to choose the right one

Not many people realise that, when you buy a property, you can choose the law firm that handles the paperwork. Since the conveyancing fees range between $2,000 to $3,000, you can save yourself a bit of money by picking the cheaper firm. But more importantly, you’ll want a reputable firm because they do more than just charge fees; they also help with the paperwork. Here’s how to pick the right property lawyer in Singapore:

Step 1: Understand what you’re actually paying for

Most people don’t know how to pick a property lawyer in Singapore, because they don’t even know what the law firm is meant to do (besides charge them an arm and a leg for what looks like a template Word document).

You should know that your law firm is also supposed to:

• Check the details of the Option-to-Purchase
• Help you get your CPF monies to pay for the property (there’s an application process)
• Provide you with the breakdown of various costs, from stamp duties to the initial down-payment
• Act as the intermediary for the transfer of cash (setting up a conveyancing account)
• Investigate the details of the property, such as whether the seller actually owns it, or has put it up as collateral for a debt without telling you

Step 2: Start looking for a law firm before you sign the OTP

A good way to start finding a law firm is to ask your mortgage broker (visit a home loan comparison site). The mortgage broker doesn’t charge you anything, and is usually happy to find the cheapest reputable law firm for you.

Ideally, engage the law firm from the start – even before you sign the OTP. That’s because a shady seller might put in “extra” terms, or create an OTP that’s favourable to them. You should also involve your law firm if there are any pre-option agreements (these are agreements that sometimes come into being before the OTP).

For example, these buyers had a pre-option that required them to act in three calendar days instead of working days (they missed the deadline because it was right on a weekend).

Your property agent is also supposed to look over the OTP. But if you’re buying without an agent, your law firm can take over this role. If you already have an agent, it always pays to have a second set of legally trained eyes to read the document.

Step 3: Check the price

The market rate is around $2,500. However, there are some law firms that go to as low as $2,000. Smaller law firms tend to charge less.

If you just don’t have the time to call around and ask, ask your mortgage broker to do it for you. Mortgage brokers love spending their weekends calling and checking, and they prefer processing home loans to silly things like going out.

(You’re welcome, brokers!)

Step 4: Check if your law firm is on the bank’s board (and try to find one on every bank’s board)

Different banks will accept different law firms. It depends on whether the law firm is on their “board”, and this can change on a regular basis.

Ideally, try to find a law firm that’s cheap, and on the board of every bank (or almost every bank). The reason is that it allows you to easily switch banks later.

For example, say you use a law firm that is only on the board of Standard Chartered. A few years later, you want to refinance to a home loan from ANZ Bank. If your law firm is accepted by Standard Chartered but not by ANZ, you’ll need to switch law firms, which will add to the administrative cost of refinancing.

Bear this in mind if the mortgage banker tries to convince you to use “their” law firm. You may be directed to use a law firm that’s exclusively on their bank’s board, making it hard for you to switch banks later.

Step 5: Google the law firm to check its reputation

Just to be safe, check the law firm’s name on the internet. Look out for any issues such as poor service, lawyers running off with the money, or lawyers who allow clients to get ripped-off. Its not frequent, but it does happen.

Step 6: Make sure your law firm is present for you

Don’t let the lawyers disappear after you agree to their fee. Ensure that they walk you through each legal document, and highlight any red flags. If you want any changes made – such as an OTP that’s longer seven days – they’re the people to ask about it.

Call them for a second opinion, even if your property agent tells you a certain document is okay.

While we don’t want to disparage against agents, bear in mind that they’re incentivised to close the deal quickly. They’re less inclined to point out complications in, say, the OTP if that would slow or even derail the transaction.

We’re sure most agents are responsible professionals; but just to be sure, always seek your lawyer’s opinion. You’re paying for it anyway.

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