What to look out for when appointing a conveyancing lawyer for your sale and purchase of property and refinancing transaction?
A conveyancing lawyer comes into the picture during the sale and purchase of a property transaction or refinancing of property loans. Therefore, it is important to appoint a competent lawyer to conduct the necessary searches, serving notices to banks and relevant authorities on time and follow you throughout till the completion date.
One of the main consideration factors is legal fees. For sale and purchase transactions, property seller and buyer has to bear the legal fees from their own pocket. This is in view of the MAS (Monetary Authority of Singapore) guideline years ago which prohibits banks to offer legal subsidies for bank loans taken up for property purchase.
However, for refinancing cases, the cost of legal fees can be brought down by legal subsidies offered by banks. Depending on loan package type, the minimum loan amount to qualify for legal subsidy can be as low as $80K for HDB flats and $100K for private residential properties, subject to approval. Some banks offer legal subsidy in a form of cash can be up to $3K, depending on loan amount and package type.
Another important point to note is that the law firm that you are appointing has to be in the bank panel. For instance, if you refinance your home loan from Bank A to Bank B and the law firm is not in Bank A panel, you may end up paying additional costs.
If you are in doubt, you may like to approach any of our mortgage broker for advice. Having to work with 16 banks in Singapore, we can guide you on the above aspects as we know what is required by our different bank partners here.
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