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Freehold, Leasehold and Estate in Perpetuity, do you know the differences? | Real Talk Ep20 - YouTube
Channel: Home Quarters
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In Singapore property ownership
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actually comes in three forms, other than the freehold
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and leasehold that you usually know about.
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There's also another one called
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estate in perpetuity.
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So let's find out what's this.
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Hi everyone, my name is KC from Home Quarters.
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And at Home Quarters we specialize
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in customized marketing strategy
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to properly expose your unit for sale.
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In today's episode,
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we are gonna talk about property ownership.
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Whether or not it is a private property,
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a landed property or even a HDB property.
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Definitely it falls between one of these category.
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So there are three different categories
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in property ownership in Singapore.
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Firstly, it is freehold estate.
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Secondly, it is leasehold
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and lastly thirldly it is estate in perpetuity.
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So what are differences? Let's break it down today.
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Firstlt there are freehold estate.
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Freehold property, there are actually
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two main kinds. The first is actually free simple,
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meaning very simply,
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it is you do own that land indefinitely,
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without any terms and conditions.
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So for example, if let's say you do dug up some oil
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in that piece of land that you do own,
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actually belongs to you because
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there is no terms and condition
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for that piece of land.
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You actually own it and it is yours.
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Second type of freehold land in Singapore,
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actually very very much rare.
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I have not, in my line of work, actually encountered that.
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It's actually called a life estate.
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It is a form of ownership which the State
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gives that person for the duration of their life.
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Meaning that it is freehold but only
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during the duration of their lives.
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So there is no way it is possible
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to pass it on to the next generation.
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So that's number one, freehold estate.
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Number two, leasehold.
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which Leasehold estate is very common.
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Which you can see, all of our public housing
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meaning your HDB, actually all 99 years leasehold.
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It also some of our private property
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are also leasehold.
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If let's say you are actually being advertised,
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saying that this is a 99 years piece of land
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that the condominium is gonna be built on
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then of course, it flows that
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that unit is on a 99 years leasehold.
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Even though it could be brand new, it's still a leasehold.
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Of course, condominium and apartment, some of them do
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also hold that status of being freehold
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so you actually got to check
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with the Singapore Land Authority.
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Generally, for us agent, we use the inlis to check.
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So if let's say you are buying a piece of land
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you don't know or a unit that you don't know
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whether or not it is leasehold or freehold,
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do check with a professional or you can actually
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go to Singapore Land Authority to check that out.
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So what does leasehold estate mean.
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Leasehold estate can actually mean double nine.
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It's 99 years like HDB.
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It can also be 999.
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A lot of land property, for example, in Serangoon Garden,
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is actually 999 leasehold.
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In my opinion, 999 leasehold is as good as freehold
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but, of course it means that
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after this leasehold period expire,
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that land of that particular development
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actually go back to the State.
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Of course the State in exchange
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for some condition and fee
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actually do allow residences
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or the developer to developed
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that piece of land subjected to some terms and conditions.
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So that is leasehold property.
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So the estate in perpetuity, what does it mean?
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It means that it is a very similar to freehold land.
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Meaning that the State actually
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pass on this piece of land to an individual
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or a company indefinitely,
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but subjected to a certain terms and conditions.
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For example, if let's say you own a piece of land
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that is an estate in perpetuity.
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While you are excavating you actually
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discover like hidden treasures of gold and silver,
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and stuff like that or historical monuments
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just within your land.
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You actually do not own,
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those things that actually comes from the excavating
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because even though you do own that piece of land
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in perpetuity, meaning indefinitely,
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it is subjected to terms and conditions
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as stated out by the State.
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So these are the three forms of ownership
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of piece of land and of course it flows that whatever thing
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that you do build on that piece of land,
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be it like an apartment, a condominium,
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or even a bungalow or a detached houses.
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Very importantly, these are the three sort of
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different estate that you can see in Singapore
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Firstly freehold, leasehold and estate in perpetuity.
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Hope today's topic discussion is informative
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and helpful to you.
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And if you are looking to work together
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with Home Quarters, do visit us at
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www.homequarters.com.sg/contact-us/
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And also, follow our social,
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Instagram @homequarterssg
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And on Facebook @homequartessg as well.
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If you are watching this on YouTube
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do hit the red subscribe button,
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the small little bell at the side
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to be notified of new video that comes out in 2020
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and we've been producing a lot more of this context.
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See you on next episode. Thank you.
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