02 Lesson 2 - 3 and 4

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Competency Unit 1.3: Introduction to Basic Land Law Concepts

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Learning Outcomes 01
1. Proprietary Rights Vs Personal Rights 02
2. Ownership Vs Lesser interest 03
2.1 Ownership 03
2.2 Lesser Interests 04
3. Real property Vs personal property 05
4. Legal Interests Vs Equitable Interests 06
Ver. 17.1
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1. Proprietary Rights Vs Personal Rights

The legal aspect of rights may be classified into proprietary rights or personal rights.
 Personal Right
A personal right is enforceable only against one person or a specified group of
persons.
Example 1A:
Ahmad contracts with Hamid to buy Hamid’s motorcycle. However, Hamid
failed to deliver the motorcycle because he has subsequently sold it to Fandi
for a higher price. Ahmad can only sue Hamid and claim of damages (ie,
monetary compensation). He has no right to sue Fandi to recover the
motorcycle as he only has personal right against Hamid for the breach of
contract.
 Proprietary Right
In contrast, the holder of a proprietary right or interest can generally enforce his
right over the object or thing against the entire world. A proprietary right
attaches itself to, and follows the object or thing, rather than the person.
Following the earlier example, say if the motorcycle has been successfully
transferred to Fandi, Ahmad in anger, breaks the motorcycle’s mirrors; Fandi
has the right to sue Ahmad over such damage.
In the context of land law, the distinction between proprietary and personal
rights is particularly important because very similar dealings in land may
sometimes give rise to proprietary rights and at other times to personal rights.
Example 1B:
If Robert, the owner of a condominium, allowed his friend Michael to occupy
one of his rooms at a monthly fee, Michael would have a personal right against
Robert for the licence to occupy the said room. If Robert subsequently sells the
condominium to Mary, Michael whose licence would only be based on contract
with Robert cannot be enforceable against Mary.
However, if Michael had rented the whole condominium unit from Robert for his
exclusive occupation for a fixed term, then Michael would have a lease which is
a proprietary interest, such right not only binds Robert but also his successor in
the condominium’s title, i.e. Mary.
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2. Ownership Vs Lesser Interest

One of the proprietary rights is ownership of a property, and the other is the lesser
interest.
2.1 Ownership
Ownership of a property refers to the residue of rights in a property remaining in a
person after specific rights over it have been granted to others. These rights are:
 The right to possess
 The right to alienate
 The right to enjoy
 The right to transmit after death
 The right to exclude others from enjoyment or possession.
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2.2 Lesser Interests

Lesser interests are proprietary interest carved out of ownership, the largest bundle of
rights which a person may have over a thing or property. A unique feature of
ownership of land is that the ownership may be divided into estates (segment of time)
so that different persons may own the land at different times. Thus, it is important to
know that ownership of land comprises both physical as well as temporal, time-based
elements.
As stated in Example 1B, since Michael had rented the whole unit of condominium
from Robert for his exclusive occupation for a fixed term, Michael would have a lease
which is a Lesser interest (also a proprietary right). If during this lease term, a third
party John enter the condominium without Michael’s consent, Michael can sue John
for trespass. Michael may even sue Robert who is the owner to the condominium if he
too enters into the property during such lease term without the consent of Michael.
Whilst Michael has the right of exclusive and immediate possession during the lease
term, his lesser interest will cease at the end of the tenancy. Robert, on the other
hand, is the owner of the property in the reversion, has the right of possession and
enjoyment of the property at the end of Michael’s lease.
Whilst the ability to slice ownership of land into sequential segments may partly be
attributed to the permanent nature of land compared to chattels, the doctrine of estates
is mostly tied to the feudal system of landholding due to historical reason.
In Singapore, there are three types of estates which we shall discuss in Competency
Unit 2.3 in details.
Other then the lease, other lesser rights include the following examples:
(1) security interests created over a property to secure a loan from a financier (i.e.
mortgage or charge);
(2) right of way to cross over land belonging to someone else (i.e. an easement);
and
(3) a promise to a neighbour not to build your house higher than 3 storeys (i.e. a
restrictive covenant).
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3. Real property vs Personal property

The layman understanding of “property” means a thing or things belonging to
someone; it is sometimes referred to the right that a person has over a thing as
opposed to the thing itself. In everyday use, the word “property” generally refers to
land, houses, apartments, shop-houses etc.
In actual fact property can be classified into various ways:
 Immovable Vs Movable
 Tangible Vs Intangible
 Real property Vs Personal property
All the above comparisons may overlap as the bases of classification differs. As it is
obvious that lands and buildings are tangible and immovable, they are also known as
real properties. If owners of real properties are deprived of their freehold estate in land,
they can recover them through legal action. On the contrary, chattels such as furniture,
or the motorcycle as mentioned in an earlier example, are tangible but movable. These
are just personal properties the wrongful deprivation of which would normally entitle
owners to damages claimed for it in an action.
As professionals, real estate agents (salespersons) are expected and needed to be
specific. It is important to distinguish “real property” from “personal property”,
especially so when we are dealing with a sale and purchase of interest in “real
property” and not “personal property”.
Many a times the lack of clarity on what is actually the subject of a real estate
transaction has led to unnecessary disputes between Sellers and Buyers. Accordingly,
a real estate agent (salesperson) needs to be certain as to the subject matter of a real
estate transaction to advise the Sellers or the Buyers.
In general all items that are secured to the walls and the floors are part of real
property, and therefore sold with the real property, whereas, free-standing items are
not part of the sale unless otherwise agreed between the parties.
 Real property
Refers to land, including buildings and things that are attached to land which
are immovable (e.g. built-in wardrobes, air-conditioning system and these are
known as “FIXTURES”).
 Personal property
Refers to movable property like personal items, goods and chattels. (e.g.
furniture, electrical appliances and these are known as FITTINGS).
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4. Legal Interests Vs Equitable Interests

When a person says he has an interest in a certain land, it means he has some rights
over that land.
The person whose name is registered as the proprietor of a land is the legal owner of
the land. The law recognizes him as the person having legal interest in the land.
However, even if his name is not registered as the proprietor of the land, he may have
rights because he had paid a deposit to buy the land. In law, this person is recognized
as having a beneficial interest in the land. He has the full benefit of the land except in
name.
A legal interest is enforceable against the whole world while an equitable interest is
enforceable against the whole world except for the bona fide purchaser for value
without notice (of the existence of the equitable interest holder).
Apart from the above, there are other rights such as the right of passage through a
land, a right to temporary occupation of a land, mortgagee’s right over a land. All of
which, we will touch on later.
Interests in land can arise at different points in time, e.g. future interest like
reversionary interest or remainder. And, multiple interests may also co-exist in the
same piece of land.
Three main characteristics of interests in land are:
 They are irrevocable;
 They are binding on third parties;
 They are assignable.
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Competency Unit 1.4: Legal Meaning of Land

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1. What is Land 02
2. Fixture Vs Fitting 03
2.1 Fixtures 03
2.2 Fittings 03
2.3 Whether fixture or fitting 03
2.4 Trade fittings 03
3. Legal Description of Land 04
3.1 Identification of property 04
3.2 The Lot base system 04
3.3 Lot numbering system 04
Ver. 17.1
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1. What is Land ?
Real Estate refers to Interest in Immovable Property. Immovable Property refers to
land
But, what is “land”?

As per Section 4 of the Land Titles Act (Cap 157) "land" is defined as:
(a) the surface of any defined parcel of the earth, all substances thereunder and so
much of the column of airspace above the surface whether or not held apart
from the surface as is reasonably necessary for the proprietor’s use and
enjoyment, and includes any estate or interest therein and all vegetation
growing thereon and structures affixed thereto; or
(b) any parcel of airspace or any subterranean space whether or not held apart
from the surface of the earth and described with certainty by reference to a
plan approved by the Chief Surveyor and filed with the Authority, and includes
any estate or interest therein and all vegetation growing thereon and structures
affixed thereto, and where the context so permits, the proprietorship of land
includes natural rights to air, light, water and support and the right of access to
any highway on which the land abuts;
Therefore, land is not just confined to the earth parcel, it includes all substances under
and airspace above as is reasonably necessary for the use and enjoyment, and
includes all vegetation growing and structures affixed.
Land may be classified as corporeal and incorporeal hereditaments. A corporeal
hereditament refers to a tangible and physical aspect of the land such as a fixture,
whereas an incorporeal hereditament refers to intangible rights that may be enjoyed in
for example an easement, over or in respect of the land. Collectively, corporeal and
incorporeal hereditaments are referred to as real property as distinct from 'personal
property' (which refers to personal or movable property).
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2. Fixture vs Fitting
The law specifies that “fixture” becomes part of the land itself which will be included in
the transaction of real property and pass from the seller to the buyer. It is therefore
important to distinguish “fixture” from “fitting”.
2.1 Fixtures
A fixture is defined as a chattel firmly attached to the land; the attachment is for
substantial improvement to the land. (e.g. built-in wardrobe or kitchen cabinets.)
2.2 Fittings
A fitting is a personal item/chattel not permanently fixed to the land, or item/chattel
fixed for the purpose of personal enjoyment (e.g. a wall mounted 42” LCD TV).
2.3 Whether something is a fixture or not, will depend on the following tests:
 The degree of annexation
To which the item/chattel is attached to the land. An item, which is firmly
attached to the land, is likely to be a fixture. (e.g. a mango tree, a built-in
wardrobe etc).
If the item is not attached to the land so firmly that it can be removed easily,
then it is likely to be a fitting. (e.g. a huge sofa set, a projector screen, a fridge
or a washing machine.)
 The purpose of annexation
The attachment to the land for temporary and for better enjoyment of the
chattel is likely a fitting. For example: a set of surround speakers mounted to
the ceiling, or a swing bolt to the ground of the courtyard.
If the attachment is permanent and makes substantial improvement of the land
then it would suggest a “fixture”. For example: a landscape, a pond or solar
heater system.
Lastly, we shall discuss about “fixture” attached by tenants which is known as
trade fitting or trade fixture.
2.4 Trade fittings (also known as trade fixtures)

 Refers to any ornament/machinery brought in and firmly attached to the land by
the tenant for his personal/business purpose.
 Trade fixture is classified as personal property.
 Trade fixture must be removed when tenancy ends by the tenant.
(reinstatement or revert to its original condition) .
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3. Legal description of Land

3.1 Identification of property
Every real estate property in Singapore is allotted a unique identification number. This
identifier has 2 components, namely the survey districts Mukim (MK) or Town
Subdivision (TS) number and the lot number or strata lot number.
Singapore is divided into 64 districts which consist of 30 TS and 34 MK. TS are located
around the city area whereas MK are found in the rural districts since Mukim is the
Malay word for rural area. The TS and MK boundaries may be altered by the Chief
Surveyor.
Singapore Land Authority (SLA) issues lot numbers to identify land parcels, called land
lots, within a TS or MK. And strata lot numbers are assigned to units in a building when
a building is subdivided.
3.2 The Lot Base System

The Lot Base System (LBS) maintains a complete inventory of all lot numbers in
Singapore. It records the history of lot creation, amalgamation and subdivision of all
lots in Singapore.
3.3 Lot Numbering System

The format for the land, strata and accessory lot numbers is designed to provide a
simplified and uniform lot numbering system. The lot numbers are allotted uniquely in a
running series within each survey district and suffixed with a check alphabet. The
check alphabet is computer-generated and serves as a check against misquotes for
example:
Land Lot - TS8 Lot 368X (no alphabet before lot number)
Strata Lot - TS8 Lot U368X (letter U before lot number)
Accessory Lot - TS8 Lot A368X (letter A before lot number)
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Competency Unit 1.5: Estates in Land

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1. Tenure and Estate 02
2. Freehold Vs Leasehold Estates 03
2.1 Freehold estate 03
2.2 Leasehold estate 04
Ver. 17.2
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1. Tenure and estate in land

When we say a person has the ownership of an object, e.g. a watch, he is known to be
the owner of the said watch and the law protects his rights of possession and exclusive
use of the watch. The content of rights that make up ownership varies with whether the
object owned is movable property or immoveable property (i.e. land).
In regard to land the object of rights is not directly the land itself but as estate in the
land. This is feudal concept which is at the very root of English land law.
Any person who owns land would own an “estate” in the land and the law protects the
rights of the owner of these different periods of time in the land, which is determined in
terms of “tenure”.
In short, “Tenure” refers to the mode of holding or occupying land on various terms
and conditions. And “Estate” defines the length of time which land is held (e.g. freehold
or 99 years leasehold) and it also means “longer interest” in land. (longer than seven
years).
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2. Freehold Vs Leasehold Estates

In Singapore, all land belongs to the State which alienates parcels to individuals either
in perpetuity under the State Lands Act or by way of leases under the State Lands Act.
Fee simple estates which were granted before 1902 still remain. The State is
empowered to grant land to individuals and/or corporations by issuing different titles,
i.e. interests. The difference in Freehold estate and Leasehold estate would translate
to a significant difference in price. It is therefore, important that real estate agents
(salespersons) are very aware of the estate when facilitating a real estate transaction.
Any misrepresentation may translate to significant loss.
There are two ways of holding or owning land in the following estate and tenure:
2.1 Freehold estates

The owner of a freehold estate holds land forever, subject only to the State’s right to
acquire land compulsorily. There are two broad types of freehold estates:
 Estate Fee Simple (Fee simple absolute) – Grant / Indenture

Estate : Ownership of the land is “forever”.
Tenure: Subject to State’s restriction in usage (e.g. zoning, building
heights & plot ratio), compulsory acquisition and taxation. No
obligation to pay any type of rent except statutory charges (e.g.
property tax).
 Estate in Perpetuity (Statutory Land Grant)

Estate : As good as fee simple, ownership also last “forever”,
Tenure: Subject to State’s restriction in usage, compulsory acquisition
and taxation. Owners have to pay ground rent (has been waived
w.e.f. 1 Jan 1992) Also subject to terms, covenants and
conditions in accordance to State Land Act, Cap 314, Sec 4 - 7.
For example: rights for the State to search for and take any
mineral oil, claims to the right of way, obligation to maintain
boundary landmarks, cannot use the land for burial etc.
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2.2 Leasehold estates –

The owner of a leasehold estate owns land for a fixed number of years.
Estate : The leasehold has its origin in an agreement between the owner of land
(can either be the State or private owner) and the tenant (lessee)
holding and staying on the land for a fixed number of years.
The title deed is in the form of a lease for a fixed duration usually 99
years (most common), 999 years, 9999 years, as for commercial
properties, 30, 60 years are also common.
Tenure : The powers of enjoyment of an owner of a leasehold estate are
governed by the lease agreement. Usually there are many conditions
which restrict the owner’s right in the land. For example: HDB lessees
are subjected to HDB ruling, and JTC lessees have to abide with JTC’s
set of rules and regulations.
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Competency Unit 1.6: State Lands Act

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1. Implied Covenants and Conditions in the Grant in Perpetuity and State
Lease 02
2. What is Development Charges 02
3. What is Differential Premium 03
4. What is Temporary Occupation Licence (TOL) issued by the State 04
5. State’s Reversionary Interest in State Leases 05
6. State’s Power to acquire land compulsorily under Land Acquisition Act 05
Ver. 17.2
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1. Implied covenants and conditions in the grant in perpetuity and State Lease.
All land in Singapore belongs to the State unless alienated (to be sold or otherwise
transferred). As mentioned in Competency Unit 1.5, the State may grant land to
individuals in estates in perpetuity, leaseholds or in fee simple.
The Estate in Perpetuity is granted to the grantee forever. A State lease may be for
any period, e.g. 99, 999 or even 9999 years. In other word, the grantee of an estate in
perpetuity has the interest forever and the holder of a State lease has it until the
expiration of the lease.
It is relatively common for land earmarked for residential purposes to be granted 99
leases with the scarcity of land in Singapore. Both the Estate in Perpetuity and the
State Lease are subject to covenants and conditions implied by the State Land Act.
These covenants and conditions provide for the payment of an annual rent and
reserve to the State various rights such as the right to mine for minerals. A breach of
the covenant to pay rent empowers the State to sell the land and a breach of any other
covenant entitles the State to re-enter and forfeit the land.
2. Development Charge
Development charge is a tax that is levied when planning permission is granted to
carry out development projects that increase the value of the land. For instance:
 rezoning to a higher value use
 increasing the plot ratio
The development charge rates are reviewed every 6 months (on 1 March and 1
September), in consultation with the Chief Valuer at the Inland Revenue Authority of
Singapore (IRAS).
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3. Differential Premium
As mentioned earlier, a State land is normally alienated with specific conditions in the
lease agreement, for example, the land can only be used for a specific purpose or at a
specific intensity (plot ratio).
Differential premium has to be paid if the developer/owner subsequently requests for:
 a change of use (e.g. from commercial to residential)
 extension of the lease term (e.g. from remaining 70 years to a full 99 years);
 an increase in plot ratio (e.g. from 1.4 to 2.0)
 lifting of a restriction on addition and alteration for intensification of
development
 lifting of restrictive covenant imposed by the State (e.g. prohibition to build
dwelling units)
Therefore, Differential Premium is the consideration (price) for the grant of additional
rights beyond those agreed in the original lease. In practice, the DP is computed
based on the difference between the “existing” value and the “increased” value of the
site.
In the case of a lease “top-up”, e.g. from remaining 70 years to 99 years, the
computation of the DP will be the difference in the “before” and “after” lease term.
4. Temporary Occupation Licence (TOL)

A licence is like a tenancy agreement issued by the Singapore Land Authority (SLA) to
individuals for the temporary use of State land or for the retention of minor
encroachment from private properties onto State land.
The TOL issued can be renewable on a monthly or yearly basis depending on the use
up to a maximum of three years at any one time.
Examples of usages : mini fair, trade fair, exposition, carnivals, religious celebration,
wedding function, funeral wake, erection of signage for direction, advertisement,
project, office site, worksite, storage of materials, location filming, temporary access
road, landscaping.
NOTE : No permanent building or sign is allowed.
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5. Reversionary interest in State lease

Alienated land may revert to the State in the following ways:
1) In the case of a State lease, on the expiration of the lease the land will revert to
the State.
2) The State may exercise its right of re-entry and forfeit the estate in perpetuity or
the State lease where the grantee has breached a condition or covenant
implied by the State Lands Act. Where the breach is of payment of rent the
land may be sold by the State. In the event that the land cannot be sold to
another individual the land reverts to the State.
3) Where the grantee or lessee or his successor has abandoned the land for three
years and above the land reverts to the State although the land may be in the
actual occupation of some individual.
4) Where land has been granted free from rent or at a nominal rent for religious or
charitable purposes, it shall be forfeited and vest in the State should it be used
for another other purposes.
5) Where a person dies intestate his land together with all his other property will
go to the State where no one is entitled to his estate.
6. Land Acquisition
Aside from land reverting to the State in the circumstances given above all land is
susceptible to compulsory acquisition by the State under the Land Acquisition Act
when it is required for a public purpose or for a public authority.
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Competency Unit 1.7: Rights in Another’s Land

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1. Encumbrances on Land 02
2. Lease 02
3. Licence 03
3.1 Types of Licences 03
4. Easement 04
5. Creation and Extinguishment of Easement 05
5.1 Creation of Easement 05
5.2 Termination of Easement 06
6. Implied easement under Land Titles Act and Land Titles (Strata) Act 07
7. Types of Covenants 08
7.1 Creation of covenants 08
7.2 Types of covenants 09
8. What is Restrictive Covenant 09
9. Discharging a Restrictive Covenant 09
Ver. 17.1
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1. Encumbrances on land
An encumbrance is some sort of burden, obligation, and claim against a property by
another party or liability on real property. Encumbrance usually impacts the
transferability of the property and can restrict its free use until the encumbrance is
removed. Encumbrances take a number of forms and are attached to the title of the
property.
The most common instances of an encumbrance that occurs in real estate are an
outstanding mortgage or unpaid property taxes.
Another example of an encumbrance is an easement. A common easement is a right
of way of the dominant tenement to walk or drive over the property belonging to the
servient tenement. A right of light easement will prevent the servient tenement from
building something that will block the light to the dominant tenement.
An encumbrance may take the form of a restrictive covenant. Developers typically use
restrictive covenants when they subdivide property for residential developments. A
land developer, after the subdivision into lots, may impose certain limitations on the
use of the lots in the development. These may include a restrictive covenant not to
build any fence outside each house. There may be a variety of other restrictive
covenants that seek to control the way the development looks and is maintained. A
person who purchases a lot in a development with restrictive covenants must honour
the limitations. When the purchaser resells the lot to a buyer, the new owner will take
the property subject to the restrictive covenants, because the restrictive covenants are
said to “run with the land.”
2. Lease
A Lease is a deed and a conveyance that grant to the lessee an estate in land. It also
operates as a contract between the lessor (landlord) and lessee (tenant) so that any
covenants it contains, either expressly or by implication, can be enforced by action.
Essential elements of a valid lease:
 Lessee owns the right to exclusive possession
 The length of the term is certain
 Lessee’s interest in land capable of binding third parties.
 Lessor retaining a reversionary interest
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3. Licence
Unlike lease, a licence is not an estate in land thus has no interest in land. A licence
merely is a permission given by the occupier (licensor) of land which allows the
licensee to use, possess or enter such land. The general rules of a licence are as
follow:
 The licensor remains in general control of the land.
 The licence cannot be transferred or assigned.
 Public places access by payment
Difference between Lease and Licence
Distinctive Elements Lease Licence
Exclusive Possession Yes No
Interest in Land/Pty Yes No
Assignment of contract Yes No
3.1 Types of Licences

 Bare Licence
This is the most classical form of licence where the licensee is granted a
privilege/permission to be on the land of the licensor. For example, a guest
being invited to a condominium for a party. A bare licence can be revoked any
time upon giving reasonable notice. The licensee has no right to assign or
transfer his “privilege” to other people without the permission of the licensor.
 Licence couple with a grant
The right given to enter upon the licensor’s land to carry out some activity like
cutting of grass requested by the licensor.
 Contractual Licence
This is contract signed between two parties for the use of premises with
valuable consideration, for example the renting of a spare seminar room from a
training institute on an ad-hoc basis, where the licensee holds a personal right
against the licensor.
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4. Easement
An easement is the legal interest that allows the owner of the easement (dominant
tenement) a right or rights over the land of another (servient tenement).
 There are Four basic conditions of an easement:
1. There must be a dominant tenement and a servient tenement.
2. Easement must improve the enjoyment of land of the dominant
tenement, and not merely for the convenience of the dominant
tenement.
3. The two tenements must be owned by two different persons.
4. Easement must be capable of being the subject matter of a grant. i.e.
granting the right of way or right of light.
 Functions of Easement:
 Non-physical
The rights that the person enjoys are non-physical incorporeal
hereditaments. i.e an intangible right which is attached to property and
which is inheritable.
 Enjoyment but not possession of land
It gives the holder the right to enjoy or use the property but not to
possess it.
 Encumbrances
It affects both the title and physical condition of the property by means
of a charge, a claim or liability on real estate. (Only State’s easement is
recorded in the title and forms part of the Restrictive covenants listed in
the certificate of title.)
 Right of way
Known as a positive easement, it gives the right of way over another
person’s land. In the case of Cheng-Wong Mei Ling Theresa v Oei
Hong Leong [2006] SGCA 12, [2006] 2 SLR 637, Gynaecologist Dr
Theresa Cheng-Wong won an appeal against business tycoon Mr Oei
Hong Leong to have an 'implied easement' or right of way to use his
driveway which he had built a security barrier across, so that she can
access a $11.9million house she wanted to buy at Dalvey Road next to
Mr Oei’s residence.
 Right of light
This is restrictive covenant and a negative easement that prohibits the
servient tenement (the burdened land) from building anything in
obstruction of light to the dominant tenement. Such easement is also
known as Height Restriction.
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5. Creation and termination of Easement

5.1 Creation of Easement
 By Act of Parliament
Parliament has the power to create any easements that is necessary. For
example, the Land Titles (Strata) Act provides for easements in the form of
passage of water pipes, sewerage pipes, drainage pipes, gas pipes, electrical
power cables, etc through adjoining units in a condominium.
 By express or implied reservation

One party expressly granting the easement to another party or reserving the
right to retain an easement in property that is being transferred.
 By necessity
A property without access to a public way may have an easement of access
over adjacent land if crossing that land is absolutely necessary to reach the
landlocked property and there has been some original intent to provide the
property with access, but somehow was never completed. A court order may
be necessary to determine the existence of an easement by necessity.
 By prescription
Implied easements granted after the dominant estate has used the property in
a continuous and open manner for a long period of time.
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5.2 Termination of Easement:

 By statute
Under Land Titles Act, Cap 157, Sec 106(2), Where an application is made to
the Registrar in the approved form and evidence is furnished to the Registrar of
non-user of an easement for a period exceeding 12 years, he may, without
further evidence of abandonment, give notice to the proprietor of the dominant
tenement and, in the absence of objection by that proprietor within one month
from the service of the notice, treat the easement as abandoned.
 By express release
When the party benefiting from the easement (the dominant tenement owner)
and the party subject to it (the servient tenement owner) agree to a release,
they should enter into a deed.
 By implied release
The conduct of the dominant tenement owner shows his intention to release
the easement by way of non-usage over a long period of time.
 By unification of ownership
The two adjoining lands are now owned by the same person.
NOTE : Easement ‘Runs with the land’ and ‘does not run with the person’
because the subject matter is land and the enjoyment is the usage of the
land and not benefit granted to a specific person.
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6. Implied easement under Land Titles Act and Land Titles (Strata) Act
The Land Titles Act implies certain easements that are necessary where land is
subdivided and developed into housing estates. These include the passage of water,
electricity, gas, sewerage, drainage, and support in respect of a “party-wall’ (ie, a wall
built between two adjacent parcels of land) together with all ancillary rights and
obligations necessary to make the above easements effective.
The list of implied easements is extended by the Land Titles (Strata) Act necessary for
the proximate and high-rise living in modern Singapore. These easements include the
rights to lateral and subjacent support, shelter, passage of water, electricity, gas,
sewerage and drainage, artificially cooled air and other services. All ancillary rights and
obligations necessary to make the above easements effective are also implied.
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7. Covenant
A covenant may be defined as an “agreement creating an obligation in a deed or a
“legally binding promise”. The person making the promise in the contract is the
covenantor and the person to whom the contract is made is the covenantee. The
covenantor will be the owner of the servient tenement and the covenatee will be the
dominant tenement.
7.1 Creation of covenants

 Privity of contract
Exists between parties to any contract.
Covenants arise from a contract, e.g. a tenancy agreement, lease or Sales &
Purchase Agreement (S&P), parties are bound by contractual relationship.
Also exists between original Landlord and original Tenant. All Covenants, rights
and obligations in the Tenancy are binding on original parties to the Tenancy
contract.
 Privity of estate
Exists in Landlord and Tenant relationship.
Covenants in the Tenancy which touch and concern land binding on
subsequent parties who were not parties to original Tenancy contract.
 Covenants between freeholders,

Covenants that are enforceable against successors-in-title in the absence of
either privity of contract or privity of estate is deemed to “run with the land”. As
stated in Section 57 of the Conveyancing and Law of Property Act (CLPA), Cap
61, covenants that relate to land are deemed not merely personal to the
covenantee but also to successors-in-title as well.
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7.2 Types of Covenants

All covenants can be categorized as either positive or negative in nature:
 Positive covenant:
This covenant requires the covenantor (the person making the promise) to take
some positive action in order to comply with the covenant. For example: to
maintain the fence separating the two properties.
 Negative covenants:
A negative covenant is also known as a restrictive covenant restricts or
prevents the covenantor from doing something for the benefit or enjoyment of
the covenantee. For example: not to build a house exceeding two storeys.
Negative covenants oblige the covenantor to refrain from doing something are
either implied by the law, or privately negotiated. (known as private restrictive
covenants)
 State Covenants:
They are restrictive covenants that cannot be removed by court order but may
be removed by payment of Differential Premium (DP). These covenants are
registered against land titles under the Torrens System. Examples of state
covenants are zoning of land use; gross plot ratio; setback; height restriction;
tenure of land etc.
NOTE : Restrictive covenants ‘run with the land’.
8. Lapse of Restrictive Covenants

Restrictive covenants lapse after 20 years unless it is extended by 10 years at a time.
Land Titles Act, Cap 157, Sec 141
9. Restrictive covenants can be discharged by:

 Deed of Release or Court Declaration for private covenants,
 State covenant cannot be extinguished by the Court.
 Application to ‘competent authority’ [e.g. URA and SLA] for extension of state
leases and re-zoning [Differential Premium payable] Land Titles Act, Cap157,
Sec 140
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Competency Unit 1.8: Registration of Titles

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1. Understanding Different types of Property Titles 02
2. Interpretation of Notices in the Title Document 02
3. Effect of Registration and the priority of Registered Interests 05
4. Caveat 07
Ver. 17.1
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1. Understanding Different types of Property Titles

The Registrar of Titles at the Singapore Land Authority is empowered to issue a
Certificate of Title for land comprised in a Folio. The Certificate of Title is a copy of the
Folio of the Register for the land concerned.
For a manual Folio, the Certificate of Title is the Duplicate Certificate of Title. For a
computer Folio, the Certificate of Title is a print out of that Folio with a facsimile of the
Registrar’s Seal.
The Registrar issues Certificates of Title for land lots (for landed properties as well as
the land comprising the common property in a strata-subdivided estate).
Strata Lots are issued with Subsidiary Strata Certificates of Title (for private strata-
subdivided properties) and Leases (for HDB properties).
Subsidiary Certificates of Title are issued for private Leasehold estates which are not
strata-subdivided as well as in replacement of HDB Leases which have been cancelled
(where the Duplicate Lease was lost or misplaced).
2. Dealings in Land notified in the Title Document
➢ Caution (Notification of Prior Encumbrances)

When converting land title from the Common Law system to the Torrens
system, the Registrar of Titles may endorse a title Caution on the Folio of the
land register upon issuing the Certificate of Title for the relevant land.
This Title Caution is a notification that the land title is still subject to all interests
subsisting at the time of title conversion and renders the land title a qualified
title.
A qualified title can become an unqualified title when the title Caution
notification is cancelled by the Registrar in two ways.
1. Where a period of 5 years has expired from the date of the last
conveyance which was cancelled by the Registrar upon the creation of
the qualified title Folio.
2. Upon the application by the Registered Proprietor of the land to have
the title Caution cancelled upon the expiration of 10 years after the
creation of the qualified folio or on the expiration of 24 months after 20th
August 2001, whichever is the later. [Section 25(2)(b) Land Titles Act]
➢ Transfer
The transfer and conveyance of interest in land are registered and notified on
the title document. Interests in land are commonly transferred by way of a sale
and purchase, gift, and trust settlement.
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➢ Mortgage
This is an interest in land created when the property is pledged as security for
repayment of a loan.
➢ Charge
There are 2 common types of charges on property.
a. CPF charge
This is a charge registered by the CPF Board either when the CPF
Board has released money from the account of the owner to assist in
the purchase of the property or when the CPF has allowed a withdrawal
of funds from the CPF account of the land owner pursuant to the
Minimum Sum Scheme under Section 15(9) of the CPF Act.
b. Charge by Management Corporation
A management corporation may lodge a charge against the interest of a
flat, office or other unit in a strata development, where the owner fails to
pay his contribution to the management fund or other fund.
➢ Caveat
This is a notice of a claim lodged by a person who claims an interest in the land
eg. an intending purchaser who has paid a certain percentage of the purchase
price to the land owner can lodge a caveat to indicate that he has an interest in
the land.
➢ Easement
This is a right relating to the use of the property which one land owner grants in
favour of the other land owner eg. one land owner grants to a neighbouring
land owner the right of way to access part of the first owner's land.
➢ Restriction
An agreement by 2 parties (land owners) in which one party pledges to the
other to refrain from conducting certain acts on his land which acts may
adversely affect the other's enjoyment of his land.
➢ Leases
Leases include any agreement for a lease exceeding 7 years must be
registered with the Registry of Titles.
➢ Order of Court
Means any judgment, decree, writ of execution or sequestration, adjudication in
bankruptcy or other order or process of or issuing from that court or other court
of competent jurisdiction whereby any interest in any land is or may be affected;
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Other information that can be found in the title document is a follows:
➢ Registered Proprietor/ Subsidiary Proprietor

The identity and other particulars such as their nationality and corresponding
address of the registered owner(s) of the property are shown on the title
document.
➢ Manner of Holding
Where the property is owned by more than one person, this shows whether the
property is held by the co-owners as joint tenants or tenants in common and
their respective share in the property as tenants in common.
➢ Land tenure
This refers to the duration of the ownership of the land. There are 2 types of
land tenure; namely, leasehold and freehold land.
➢ Area
The area of the property is also shown on the title document and this is often
expressed in square metres. For landed properties (land lots), this refers to the
land area and not the built up area of the property.
➢ Memorial
Documents which accompany all submission of deeds and documents filed
with the Registration of Deeds.
For strata properties (strata lots), the strata title plan number and the subsidiary
proprietor’s share value in the common property will be indicated here.
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3. Effect of Registration and the priority of Registered Interests

3.1 Land Registration
Land registration refers to the lodgment of the title of a property on the land register
with the Singapore Land Authority (SLA).
There are two co-existing systems of land registration in Singapore:
1. The common law system under the Registration of Deeds Act, cap. 269, 1989
Ed (ROD system); and
2. The Torrens system under the Land Titles Act, Cap. 157, 1994 Ed (LTA)
3.2 Registration of Deeds

Under the old common law system of land registration governed by Registration of
Deeds Act (RODA) and its rules, records of deeds lodged against lands are kept in
The Registry of Deeds. Presently there are hardly any deeds lodged at the Registry of
Deeds.
Under common law, interest in land is passed by the act of the parties, that is, when a
deed is signed, sealed and delivered. Under the Registration of Deeds Act (RODA), it
is not compulsory for owners of land to register the deeds at the Registry of Deeds.
However, registration offers priority to a claimant under a deed as against other
potential claimants to the land. Failure to register a deed under the Registry of Deeds
means that it cannot be produced in a court of law as evidence of title to the land.
Deeds can be lodged at the Singapore Land Authority.
The form a deed may vary according to individual circumstances. The three formal
requirements for all deeds are that they must be signed, sealed and delivered. Deeds
are finally registered within a few days from lodgment. Images of the deeds are then
made.
The RODA system is not satisfactory as registration of land transactions is not
compulsory and therefore the records in the Register of Deeds may not show all the
relevant transactions affecting the lands, a 15-year search is required to be made to
establish a “good root of title” or “clean title” .
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3.3 The Torrens System

On 1 December 1960, the Land Titles Act came into operation with the aim of
simplifying the transfer of lands as well as other dealings affecting lands. Since then,
lands under the 'old' RODA system were gradually brought under the 'new' system
known as the Torrens System.
Under the Torrens System, a certificate of title is issued to replace the old deed as the
legal document evidencing ownership of the land. A Land Titles Register is maintained
under this system that register each parcel of land with description of the land, the
nature of the estate, i.e. freehold or leasehold and the proprietor of the estate.
It also details particulars of other interests affecting the land, including mortgages,
charges and restrictive covenants. Registration is mandatory to effect the transfer of
an estate or interest in land under Land Titles Act, Cap 157. Sec 45.
To be registrable, all documents must be lodged in approved forms either manually at
the counter of the Registry together with a lodgment form, or electronically via
the STARS eLodgment system.
Upon lodgment, the documents are given a priority number. The date and time of
lodgment are shown on the lodgment form. Instruments lodged are provisionally
accepted and particulars of the lodgments are reflected on the land register.
If an instrument is not in order for registration, the Registry will inform the solicitors of
the grounds of objection of the instrument. The respective solicitors may be requested
to:
✓ amend the instrument
✓ forward the requisite supporting documents or duplicate documents; or
✓ withdraw the instrument from registration.
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4. Caveats
The land registration system has a mechanism for the protection of interests in land
which is unregistrable. These interests are usually those of a transitional or temporary
nature.
A legal notification or entry known as caveat which will last for 5 years will be entered
in the land register to prevent the registration of land title until the claim of the person
who entered the notification is determined. Such caveat provides a form of temporary
protection for person (the caveator) who has an unregistrable interest of a land which
has a similar effect to an injunction.
Where a person has an unregistrable interest in the land, he can protect his interest by
lodging a caveat with the Registry of Titles to prevent the transfer of any interest which
may be detrimental to him (the caveator).
For example, a purchaser with a contract of sale with the owner would not be able to
enter his name on the Certificate of Title (as he is not yet the owner pending
completion of the sale), but would be able to protect his interest by lodging a caveat.
The purpose of the caveat is therefore to prohibit the defeat of the caveator’s interest
by the registration of dealing without the caveator having had an opportunity to invoke
the assistance of the court to give effect to his interest.
4.1 Interests that can be registered in a caveat:
 Legal interests – such as leases exceeding seven years.
 Registrable interests – interests pending for registrations like property bought
pending for legal completion.
 Beneficial interests – interests under a settlement or trust or any kind of
equitable interests.
 Agreements of charges – charges which claim against the sale proceeds to
be returned with accrued interests, e.g. the mortgage redemption or CPF
refund of fund used for property.
 Liens – any unpaid vendor’s liens, e.g. outstanding property tax.
4.2 The following are not allowed to be registered as caveat:
 Licensed Money Lenders are not allowed to lodge caveat on HDB flats.
 Creditors are not allowed to lodge caveat on property unless court order is
obtained.
 Licensee who has only a licence to use premises is not allowed to lodge caveat
NOTE: Caveats lodged are encumbrance (claim of interest) against real
properties.
Properties are to be sold “free from encumbrances”.
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Competency Unit 2.6: Mortgage

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1. What is a Mortgage 02
2. Legal Mortgage Vs Equitable Mortgage 02
2.1 Legal Mortgage 02
2.2 Equitable Mortgage 02
3. Mortgagor’s Right Vs Mortgagee’s Right 03
3.1 Rights of the Mortgagor 03
3.2 Rights of Mortgagee 04
4. What is a Charge 04
5. Priority of Mortgages and Charges 05
6. Fixed Rate Vs Floating Rate Mortgages 07
6.1 Floating rate mortgages 07
6.2 Fixed rate mortgages 07
Ver. 17.1
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1. What is a Mortgage?
A mortgage is a disposition or conveyance of a legal or equitable interest in land as
security for the payment of a debt or the discharge of some other obligation on the
condition that upon the repayment of the debt or discharge of the obligation, the
interest conveyed will be reconveyed to the grantor.
A mortgage of real estate property is therefore a security transaction where someone
(ie, the mortgagor) conveys the title of the property he owns to the creditor (ie, the
mortgagee) to secure a debt owed by the mortgagor and/or another (ie, the debtor or
borrower) with a promise by such mortgagee to return the property to him when the
debt is fully repaid.
The property conveyed acts as a collateral or security for the mortgagor and/or debtor
to perform his obligation to repay. It offers some protection to the mortgagee should
the mortgagor default the mortgage.
2. Legal Mortgage Vs Equitable Mortgage

2.1 Legal Mortgage
Under Land Titles Act, Cap 157, Sec 68(1) a mortgage must be created in an
approved standard form and registered with the Singapore Land Authority before it is
considered a legal mortgage.
When an owner of a property signs a mortgage in favour of the bank in order to obtain
a loan, he is not transferring legal title to the bank but merely giving the bank a
security. – Land Title Act, Cap 157, Sec 68(3).
2.2 Equitable mortgages

The formalities necessary to create a legal mortgage have not been fully complied
with; For example, someone pledge the title of his property to a moneylender for loan
with the intention of creating a Mortgage.
Another scenario where an equitable mortgage is created is when the mortgagor’s
interest in the asset being mortgaged is itself an equitable interest; (e.g. a purchaser of
a condo under construction seeking a mortgage) or
The parties have entered into an agreement to create a legal mortgage in the future
over the asset in question. (e.g. a purchaser of a house in the resale market.)
The mortgagee will lodge a caveat as a form of protection of its interest.
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3. Rights of the Mortgagor Vs Rights of Mortgagee

3.1 Rights of the Mortgagor
 The mortgagor continues to remain the registered owner of the property.
 The mortgagor has the right to possession (subject to the mortgagee’s right to
possession on default).
 The mortgagor has the right to lease the property subject to Section 89 of the
LTA, Cap 157, (i.e. the lease must be authorised by the mortgage or the
mortgagee has consented to the lease.
 Section 77 of the LTA, cap 157 provides the mortgagor the equity of
redemption, (i.e. the rights given to the true owner of the property to recover
the title of his property upon full settlement of his debt with the mortgagee.)
 Where the mortgagor has paid up the debt, he is entitled to a discharge from
the mortgage. No mortgagee is allowed to prevent the mortgagor’s right to
redeem by inserting a term in the mortgage to block the mortgagor’s right.
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3.2 Rights of Mortgagee

 Personal action to enforce the debt
When a mortgagor (the borrower) takes up a loan, he covenants with the
mortgagee (the bank or financial institution) that he will repay the loan on time.
If he defaults, the mortgagee may sue him based on his personal covenant
(promise) to repay the debt as provided in the mortgage.
 Entry into possession
Under the Land Title Act (LTA), Cap 157 Sec 75, the registered mortgagee has
the right to enter into possession by giving one month’s notice to the mortgagor
where default is made in payment of principal, interest or other money and to
receive the rents and profits from the property.
 Right of Foreclosure
Section 76 of the LTA, Cap 157 provides mortgagee the right of foreclosure
(i.e. the right of mortgagee to bring an action in court for payment of the debt
on a fixed date failing which an order is made for the land to vest on the
mortgagee.) With the foreclosure, the mortgagee then steps into the shoes of
the mortgagor as the legal owner of the property.
 Right to sell
The mortgagee is empowered to sell the property without a court order, by
public auction or private treaty to recover the outstanding loan. This power is
available to all mortgagees and charges where the mortgage or charge is by
deed, such power is usually inserted into the instrument of mortgage. This right
is conferred by Conveyancing and Law of Property Act (CLPA), Cap 61, Sec 24
and arises when the mortgage money becomes due.
 Appointment of Receiver
A receiver is a person appointed by the court to receive the rents and profits for
a property and generally, to manage the property.
Under Section 24 of CLPA, Cap 61, the mortgagee has the power to appoint a
receiver when the mortgage money is due.
4. What is a Charge?
Unlike mortgage, a charge refers to an agreement between the parties that certain
specific properties belonging to the borrower will be available to the lender for sale in
the event the former is unable to repay the debt owed. The chargor (borrower) need
not transfer his title of the property to the chargee (lender).
The charge agreement may be signed voluntarily by parties concerned or may be
imposed on the debtor by statute (for example, Central Provident Fund Act).
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5. Priority of Mortgages and Charges

Generally, it is possible for a single property to be mortgaged and/or charged to more
than one party in Singapore. As such, it is important to determine the priority of each
of the mortgagees and/or chargees since all of them would have a competing claim on
the same property against the other in the event of a default in the repayment of the
loan or obligation under the mortgage and/or charge.
Under the Registration of Deeds Act, questions of priority are settled on the basis of
the time of registration, i.e. the mortgagee who registers first has the priority over
subsequent mortgages.
Under the Land Titles Act, priority between registered mortgages and charges is
dependent on the date of registration. Where they are unregistered, in the absence of
fraud, the first to lodge a caveat shall have priority.
Further, a legal mortgage which is registered will obtain priority over an equitable
mortgage.
Where CPF are withdrawn to finance a property purchase, the CPF Board usually
requires that any mortgagee that has priority must agree to a postponement of the
mortgage so that the Board becomes the first chargee over the mortgage.
5.1 Priority between banks/financial institutions and Central Provident Fund Board.
Under the Central Provident Fund Act, anyone who utilised his CPF savings to finance
the purchase of property will have to refund to his own CPF account the amount of
funds withdrawn to finance the purchase together with accrued interest if he sells the
property.
In the case when one has used his CPF as well as housing loan from a bank, both the
bank and the CPF Board will have a mortgage/charge on his property in their favour.
When he sells his property, it is a straightforward matter if the sale proceeds are
sufficient to repay both the outstanding housing loan as well as the CPF refunds
required.
However, in the event that the sale proceeds are insufficient for all repayments,
commonly known as a “negative sale” situation, the repayment priorities between
banks and CPF Board will be as follows:
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For properties bought before 1 September 2002 and not refinanced after 1
September 2002:
The selling price would be distributed in accordance with the Deed of Arrangement
which was signed by the members, the bank/financial institution and the CPF Board
when the property was purchased, namely:-
Selling price less:
1st - CPF principal amount up to 80% of the valuation of the property plus
CPF used to pay the legal & stamp fees incurred in the purchase of the
property;
2nd - CPF principal amount for the additional 20% of the valuation of the
property and outstanding Housing Loan (Housing Loan here refers to
the housing loan which was taken towards the purchase of the subject
property and accorded second ranking. Other loans like renovation
loans and loans taken towards personal use cannot be considered in
this distribution of proceeds);
3rd - CPF principal amount in excess of the 100% valuation limit, CPF
accrued interest and bank's interest (calculated from the date of
disposal of property).
For properties bought on or after 1 September 2002 or refinanced on or after 1

September 2002
The sales proceeds would be distributed in accordance with the Memorandum of
Mortgage filed with the Singapore Land Authority and the terms of the Confirmation of
Priority Arrangement which was signed by the members, the bank/financial institution
and the CPF Board or the Letter of Loan Confirmation from CPF Board, namely:-
1st - Outstanding Housing Loan (Housing Loan here refers to the housing
loan which was taken towards the purchase of the subject property.
Other loans like renovation loans and loans taken towards personal use
cannot be considered in this distribution of proceeds);
2nd - CPF principal amount up to 100% of the valuation of the Property plus
CPF used to pay the legal & stamp fees incurred in the purchase of the
property;
3rd - CPF principal amount in excess of the 100% valuation limit, CPF
accrued interest and bank interest (calculated from the date of disposal
of property).
4th - CPF legal costs and expenses and financier’s legal costs and expenses
ranking equal.
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6. Floating and fixed-rate mortgages

6.1 Floating rate mortgages
 Interest rate varied from time to time on written notice given to the mortgagors.
 The advantage of this arrangement is for both mortgagee and mortgagor to
share the economic risk of fluctuation of interest rates.
 Financial institutions generally peg the interest rate charged in variable to some
index such as the SIBOR (Singapore Inter Bank Offer Rate) or the prime rate.
6.2 Fixed rate mortgages

 Interest rate remains unchanged throughout the entire term of loan.
 Mortgagors know exactly how much to pay monthly and repayment will not be
affected by the fluctuation of interest rates.
 It is uncommon for financial institution to fix interest rate for the entire loan term
nowadays.
 Most financial institutions will offer fixed rate for a specified period e.g. at the
beginning year of the mortgage, and revert the loan back to variable rates after
such period.
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Competency Unit 2.7: Gift of Property

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1. What is a Gift 02
2. The formalities and effects of a gift of property 02
3. Gift of Property being voided or voidable under the Bankruptcy Act 02
Ver. 17.2
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Competency Unit 2.7: Gift of Property

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1. What is a Gift ?
When a person (“Donor”) transfers his property to another person (“Donee”) during his
lifetime without any monetary consideration in return, this is said to be a Gift of
Property. A Gift of property is a voluntary conveyance of property without any
monetary consideration.
A Gift of property is different from a Will. A Will has no legal effect during the lifetime of
the original owner of the property (Testator) and only effective after his death. The
person entitled to the property under the Will (Beneficiary) has no right to claim the
property at all before the Testator’s death.
2. The formalities and effects of a gift of property

Like all conveyance of land, a gift must be in writing in the English Language under
Deed. Such a gift is valid and irrevocable, but subject to challenges under the
Bankruptcy Act.
Stamp duty is payable based on the market value of the property as at the date of
execution or signing of the document.
A Gift of Property is also subject to estate duty unless it was done more than five years
before the death of the donor. Estate Duty Act, Cap 96, Sec 8(1). This Act applies to
person died before 15th February 2008.
3. Can a Gift of property be voided?

Under the Bankruptcy Act, Cap 20, Sec 98, a gift of property is voidable if it were
transferred within 5 years prior to the date of bankruptcy made by or against the
Transferor. The property can be repossessed and be distributed to satisfy any
creditors’ claims if it is shown that at the point of the gift the Transferor was insolvent
or becomes insolvent as a result of that gift.
Further, the Donor’s capacity and intention to grant a gift of property to the Donee
must be beyond doubt. This is because a gift can be set aside if it can be shown that
the Donor did not act out of his own free will e.g. duress, undue influence, insanity, or if
there is an element of fraud, mistake or misrepresentation.
In view of the above, buyers of property subject of a gift should exercise caution. For
the same reason, most if not all banks and financial institutions in Singapore would not
want to lend money on a mortgage of such a property as it is considered an unreliable
security.
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Competency Unit 2.8: Trust

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1. Trust 02
2. Types of Trust 03
3. Implication in dealing of property held on trust 04
Ver. 17.1
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1. Trust
A trust is a legal arrangement whereby the ownership of a property is divided between
two parties, such that one party (up to a maximum of 4 persons or companies) is
entrusted with the legal title to the property (the trustee) whilst another person (the
beneficiary) retains the beneficial (or equitable) ownership of the property.
The original owner of the property who creates the trust arrangement (the
trustor/settlor) would enter into this arrangement in order to allow the trustee the
control to manage and administer the property, whilst being assured the economic
benefits from the property will accrue to the beneficiary.
In short, a trust refers to a legal arrangement by which a person or a company (the
trustee) is appointed to hold and administer property for the benefit of someone else
(the beneficiary). Real property is transferred to trustee by a trust deed that has to be
registered with the Land Register. A trust can be created by means of:
 A trust deed (Express declaration) (normally last for 20 years)
 By will (Testamentary trust)
 Implied by law (Constructive Trust, Resulting Trust, Intestate succession, OA or
public trustee)
1.1 There are three parties to a trust:

1) The trustor / settlor – the party who transfer the property to a trust
2) The trustee – anyone capable of owning land can be trustee, and has to act at
the best interest of the beneficiary. Maximum of 4 trustees to one land -
Trustees Act, Cap 337, Sec 36(1) (a) & (b)
3) The beneficiary – the party who benefits from the trust. The benefits include
possession of the property and any income generated from it.
NOTE :
 Trustee holds legal interest to land.
 Beneficiary owns equitable interest.
 Under the Trustees Act, the trustees cannot profit from the trust,
must abide by the terms of trust and can only invest trust assets in
authorised investment.
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2. Types of Implied Trust:

 Resulting Trust
A resulting trust arises from the operation of law. It happens when the true
purchase paid the price of the property and registered it under another person’s
name, the person who has not contributed to the acquisition and maintenance
of the property is said to be holding the property in resulting trust as a trustee to
the actual owner (trustor). To ascertain as to whether a resulting trust exists will
depend on the following analysis:
 First, one has to find out the transferor's actual intention. If the actual
intention can be determined, e.g. that a gift or an express trust or sale
was intended, then no question of a resulting trust arises.
 Secondly, the law presumes a resulting trust if the transaction cannot be
explained as a gift or sale of property.
In a recent case Neo Hui Ling v Ang Ah Sew ([2012] SGHC 65) where a house
was in the joint names of a mother and daughter as joint tenants. There was no
clear indication as to the equitable ownership of the property. The house had
been paid for by the daughter and she did not intend to make a gift of any part
of the beneficial ownership to her mother. The joint tenancy had been chosen
purely for the benefits of the right of survivorship; the daughter intended to
remain sole beneficial owner but that, should she predecease her mother, the
mother would be the beneficial owner.
The court held that where the joint tenancy had been chosen for this motive, it
did not lead to the conclusion that a severance gave rise to equal beneficial
ownership.
In the absence of any clear indication as to the parties’ intentions, the usual
presumed resulting trust approach would apply and the beneficial ownership
would reflect the parties’ direct contributions to the purchase price. Thus, the
daughter was the sole beneficial owner.
 Constructive Trust
A constructive trust is a trust which is imposed by operation of law on a
defendant in certain circumstances according to equitable principles, e.g.
where a fiduciary in breach of his duties accepts bribes, the court will declare
that the fiduciary holds the bribes on constructive trust for the benefit of the
principal. Or, someone misappropriated his company’s fund for the purchase of
a property, if found guilty, his ownership the property purchased under his
name is held under constructive trust to the company where the funds
belonged.
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 Unregistered Trust
When a property is sold, the vendor is said to be holding such property under
unregistered trust of the purchaser during the transitional period before the
completion of the sale transaction.
3. Implication in dealing of property held on trust

When a property is held on trust, consent/approval of the Beneficiaries of the trust
must be obtained before the property can be transacted by the Trustee.
Trustee must act within the powers allowed under the terms of the trust and provisions
of the Trustees Act.
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Competency Unit 2.9: Succession

____________________________________________________________________
1. What is Succession 02
2. Testate Succession Vs Intestate Succession 02
3. Difference between Civil Law and Syariah Law on Inheritance and the
rights of disposal 04
Ver. 17.1
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1. What is Succession?
Succession deals with how and to whom the assets (also known as the “estate”) of a
deceased person are distributed. How the estate is distributed and who is entitled to
the estate is dependent on whether the deceased person dies leaving a valid Will.
2. The differences between Testate Succession and Intestate Succession

2.1 Testate Succession
When a person passes away (the “Deceased”) and leaves behind an executed valid
Will, he is said to have died “testate”. In this situation, the Deceased has signed a valid
Will and stated who he has given all his assets to (ie also known as the “beneficiaries”)
and in what proportion each of the beneficiaries is entitled to.
However, before the assets of the Deceased person can be distributed, it is necessary
for another person to apply to court for authority to deal with the deceased’s assets.
This process is commonly known as a “probate proceeding”.
On the successful conclusion of a probate proceeding the court will issue a document
called the Grant of Representation bearing the court’s seal and giving authority to the
person named in the Grant of Representation to deal with the Deceased’s estate. In
testate cases, the Grant of Representation is called a Grant of Probate and it is
issued to the person named and appointed under the Will to deal with the
Deceased’s estate (known as the “Executor”).
Upon the issuance of the Grant of Probate, the Executor will then administer and deal
with the Deceased’s assets according to the terms of the Deceased’s Will.
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2.2 Intestate Succession

When the Deceased passes away without executing valid Will, he is said to have died
“intestate”. In this situation, the Intestate Succession Act, Cap. 146. will apply to
determine who the beneficiaries who will inherit the Deceased’s assets and in what
proportion.
Generally, the Deceased’s estate will be distributed to his family members and
descendants in the following priority and manner:
In intestate cases, the Grant of Representation is known as the Grant of Letters

of Administration. The Grant of Letters of Administration is usually issued to the
Administrator who is appointed by the court in its discretion, to administer the
Deceased’s estate. The Administrator is usually the Deceased’s spouse or the
next-of-kin.
Upon the issuance of the Grant of Letters of Administration, the Administrator will then
have the authority to administer and distribute the Deceased’s assets according to the
rules of distribution under the Intestate Succession Act, Cap 146 as set out in the table
above.
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____________________________________________________________________
3. Difference between Civil Law and Syariah Law on Inheritance and the rights of
disposal
3.1 Civil laws on inheritance

The executor will apply to Court for a Grant of Probate upon death if a Will was made.
The court will issue the Grant subjected to requirements met including estate duty
payable if any.
After Grant of Probate was successfully issued, the executor will be responsible for the
administering and distributing the estate according to the instructions in the Will.
If the person passes away without making a Will, then the assets will be distributed
according to the rules of intestacy as laid down in the Intestate Succession Act, Cap
146.
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____________________________________________________________________
3.2 Syariah laws on inheritance

 Intestate Muslims
In Singapore, the estate of a Muslim must be distributed in accordance with
Islamic inheritance laws. Islamic laws are also known as Syariah Laws.
It is important to realise that the 'halal'('permissible') instruments available
under Islamic law in Singapore are not restricted to distribution purely under
what is called the 'Faraid'. Faraid stipulates how the estate of a Muslim is to be
dealt with and distributed after his or her death in the event he/she passes
away intestate.
The first step is for a beneficiary to apply to the Syariah Court for a Certification
of Inheritance ('Sijil Warisan') to be issued. The Certificate will identify the
surviving Lawful Heirs, states their relationships to the deceased, and specify
their precise shares to the estate (e.g. one eighth portion).
The Certificate of Inheritance must be for purposes of the administration or
distribution proceedings of the said estate in accordance with the Syariah Law.
The applicant must be one of the following parties:
 Potential lawful beneficiary to the estate of the deceased (a Muslim);
 Islamic Religious Council of Singapore ('MUIS');
 Law firm on behalf of a beneficiary;
 Public Trustee; or
 Court
 Wills Executed by Muslims

A Muslim can only dispose of his estate by Will in accordance with the
provisions and restrictions of the school of Muslim law professed by him. The
common provisions/restrictions include the following:
a) a Muslim testator can only dispose of up to one-third of his estate; and
b) the beneficiaries named in his Will must not be a person who is a
Faraid beneficiary (ie, a beneficiary named under the Certification of
Inheritance).
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Competency Unit 2.10: Future Interests in Land

____________________________________________________________________
1. Future Interest 02
2. Reversionary Interest 02
3. Life Estate 03
4. Remainder Interest of a Life Estate 03
Ver. 17.1
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____________________________________________________________________
1. Future interest in land

As mentioned, land is not only confined to the physical land which are bought and sold
in the real estate market, but also includes “interests” or “rights” in land. Not all interest
are current, some of them may be for the future.
When the holder of the interest is entitled to take possession of the interest, he has a
present interest that is vested in possession. When the holder is only entitled to
gaining possession upon the determination of a prior preceding estate, then his
interest is a future interest.
A future interest can be known as a right to enjoyment of the property in the future.
The doctrine of estates in real property makes it possible for the enjoyment of the
property by different persons at different times.
2. Reversionary interest
This concept is found in leasehold estate and refers to the rights to reoccupy and use
the land when the lease expires in the future.
Example 2A:
Upon HDB flats’ lessees have to return their flats to the State (land owner) upon the
expiration of the 99 years lease from HDB. The HDB is said to have the reversionary
interest.
Example 2B:
A Landlord who owns fee simple estate land grants a 99 years lease to his lessee will
also enjoys the same “reversionary interest”. He has the right to reoccupy and use the
land when such lease expires at the end of the 99 years.
Similarly, two other private residential estates, the freehold landowners of The
Chancery Residences and The Shore Residence, both granted shorter estates of 99
years and 104 years to individual purchasers, and retain their reversionary interest.
In another case, the grantor of a life estate reserve the same reversionary interest and
claim back the ownership of the subject property upon the death of his life tenant (the
person granted the life estate who can occupy and use the land in his lifetime).
A reversionary interest can also be conveyed to a third party like any other interest.
Example 2C:
A condo sold “subject to tenancy” conveys to the purchaser all the interest of the
property which also includes the reversionary interest. Upon completion of the sale
transaction, the tenant continues to occupy the property and pay rent to the new
landlord (new owner) for the remaining term. When the tenancy comes to an end, the
new owner will also enjoy possession of the property from then onwards.
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3. Life Estate
An express agreement between two parties where the owner of land transfer the right
of the property to someone for his remaining life, and upon the death of such person,
the ownership reverts back to the original owner.
Example 3A:
John (owner of a fee simple estate condo) grant his condo to Mary for life estate, in
this case, Mary has the right to occupy the condo during her lifetime and when she
dies, the ownership of the condo will go back to John who owns the reversionary
interest.
4. Remainder of a life estate

A Remainder Interest is for someone else to take over the remaining estate of a
property at the end of the life estate of another person and nothing “goes back” or
reverts to the original owner.
From the earlier example 3A, a Remainder Interest would arise if John granted a life
estate to Mary and also specified that at the end of Mary’s life estate, the remaining
estate of the condo will go to Simon entirely and absolutely. In such a scenario, Simon
has a Remainder Interest.
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Competency Unit 2.11: Co-ownership of Land

____________________________________________________________________
1. Types of Co-ownership of Land 02
1.1 Joint tenancy 02
1.2 Tenancy in common 03
2. The difference between Joint Tenancy and Tenancy-in-common 04
Ver. 17.1
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____________________________________________________________________
1. Co-ownership of land
A number of persons may co-own a piece of land; they are deemed co-owners of the
land. There are two manners of co-ownership in Singapore. i.e. Joint tenancy and
tenancy in common.
1.1 Joint tenancy

Under joint tenancy, two or more persons have rights to a property as if they are a
single owner. They must hold the property under grant that has no “words of
severance” to indicate separate shares in the property.
Joint tenancy also implies the “right of survivorship”, i.e. when one party dies, his
interest in land will automatically be passed to other surviving party. The right of
survivorship is the main distinctive feature of joint tenancy that the estate of deceased
cannot be willed.
In order for joint tenancy to be created, the Courts have the following “four unities” test:
 Unity of possession
This means that each party must have equal entitlement to the possession of
the whole land, and neither party can exclude the other.
 Unity of interest
The interest of all owners must be equal in quality (tenure) and quantity
(estate). For example: one party cannot hold a freehold and the other a
leasehold interest.
 Unity of title
All parties must derive interest under the same title document. i.e. no separate
title for each party.
 Unity of time
All the joint tenants must acquire their interests at the same time.
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____________________________________________________________________
 Joint tenancy may be terminated (severed) in the following manners:

 By Alienation
When one joint tenant transfers his “share” in the land to the other party
(parties) resulting into sole proprietorship or tenancy-in-common.
 By partitioning
All the joint tenants agree to break up the joint tenancy and convert the
ownership to tenancy in common.
 By partitioning via Court Order
This happen when court award a different proportion of sales proceeds
to respective joint tenants breaking the joint tenancy into tenancy in
common. e.g. divorce cases
 Unilateral declaration
A person who co-owns property as a joint tenant is able to sever the
joint tenancy by a simple unilateral notice in writing. Under the Land
Title Act, Cap 157, unilateral severance of a joint tenancy can only be in
equal shares.
1.2 Tenancy in common

Tenants in common each have an “undivided share” in the land, where the piece of
land remains undivided physically; each owner can in fact identify his own individual
but undivided share in the land.
The land will be held with “words of severance” by all parties indicating their separate
interest and shares in the property, the distribution of share can be of any ratio agreed
by all parties, e.g. 50/50, 30/30/40.
There is no unity of interest, title and time in tenancy in common. Individual
shareholders are free to will or sell his share to another person who will assume the
undivided interest with the rest of the shareholders.
Lastly, there is no right of survivorship, upon the death of a co-owner; the deceased’s
share passes to the person(s) named in his will.
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2. The difference between Joint Tenancy and Tenancy-in-common

Joint Tenancy Tenancy-in-common
Upon severance, each owner is The land will be held with “words of
presumed to have an equal share severance” by all owners indicating
unless otherwise by court decision. their separate interest and shares in
any agreed ratio.
The “rule of survivorship” applies. Upon the death of an owner, his
Upon the death of an owner, his entitlement in the property passes to
entitlement in the property passes to his estate.
the survivor(s).
Can be converted to a tenancy-in- Where the shareholding is equal, it
common in equal shares by can be converted to a joint tenancy
registering a declaration in the by registering a declaration in the
prescribed form at the Singapore prescribed form at the Singapore
Land Registry. Land Registry.
Upon death of a co-owner, the Upon death of a co-owner, the
surviving co-owner(s) can deal with property cannot be dealt with until
the property. the personal representative of the
deceased co-owner has been
appointed.
Contains 4 Unities namely: Only Unity of Possession is
observed
 Unity of Possession
 Unity of Interest
 Unity of Title
 Unity of Time
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Competency Unit 1.3: Introduction to Basic Land Law Concepts

Competency Unit 1.3: Introduction to Basic Land Law Concepts

1. Proprietary Rights Vs Personal Rights

Competency Unit 1.3: Introduction to Basic Land Law Concepts

2. Ownership Vs Lesser Interest

Competency Unit 1.3: Introduction to Basic Land Law Concepts

2.2 Lesser Interests

Competency Unit 1.3: Introduction to Basic Land Law Concepts

3. Real property vs Personal property

Competency Unit 1.3: Introduction to Basic Land Law Concepts

4. Legal Interests Vs Equitable Interests

Competency Unit 1.4: Legal Meaning of Land

Competency Unit 1.4: Legal Meaning of Land

But, what is “land”?

Competency Unit 1.4: Legal Meaning of Land

2.4 Trade fittings (also known as trade fixtures)

Competency Unit 1.4: Legal Meaning of Land

3. Legal description of Land

3.2 The Lot Base System

3.3 Lot Numbering System

Competency Unit 1.5: Estates in Land

Competency Unit 1.5: Estates in Land

1. Tenure and estate in land

Competency Unit 1.5: Estates in Land

2. Freehold Vs Leasehold Estates

2.1 Freehold estates

 Estate Fee Simple (Fee simple absolute) – Grant / Indenture

 Estate in Perpetuity (Statutory Land Grant)

Competency Unit 1.5: Estates in Land

2.2 Leasehold estates –

Competency Unit 1.6: State Lands Act

Competency Unit 1.6: State Lands Act

Competency Unit 1.6: State Lands Act

4. Temporary Occupation Licence (TOL)

Competency Unit 1.6: State Lands Act

5. Reversionary interest in State lease

Competency Unit 1.7: Rights in Another’s Land

Competency Unit 1.7: Rights in Another’s Land

Competency Unit 1.7: Rights in Another’s Land

Difference between Lease and Licence

Distinctive Elements Lease Licence

Exclusive Possession Yes No

Interest in Land/Pty Yes No

Assignment of contract Yes No

3.1 Types of Licences

Competency Unit 1.7: Rights in Another’s Land

Competency Unit 1.7: Rights in Another’s Land

5. Creation and termination of Easement

 By express or implied reservation

Competency Unit 1.7: Rights in Another’s Land

5.2 Termination of Easement:

Competency Unit 1.7: Rights in Another’s Land

Competency Unit 1.7: Rights in Another’s Land

7.1 Creation of covenants

 Covenants between freeholders,

Competency Unit 1.7: Rights in Another’s Land

7.2 Types of Covenants

8. Lapse of Restrictive Covenants

9. Restrictive covenants can be discharged by:

Competency Unit 1.8: Registration of Titles

Competency Unit 1.8: Registration of Titles

1. Understanding Different types of Property Titles