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June 28, 2023
The question we got today that is relatively frequent is “Why is it that CPF can be used for stamp duty payment for newly launched condominium purchase, but not able to use for completed resale property? “Can I use CPF to pay for stamp duty to pay for a completed property?”
Answer:
- This is a limitation by CPF.
- For newly launched projects, law firms will be required to lodge an Application to Notify Charge (ANC) on the strata title that is under the developers’ name. Therefore, any CPF monies can be used to pay for the stamp duties directly.
- For Resale property however, the ANC can only be lodged upon the completion of the transfer process and mortgage loan process. Therefore, the client would eb required to pay for Stamp Duty in Cash first but apply for reimbursement only on the completion date itself.
PropertyWiki Tip: In order to use CPF for your purchase matter, do send the law firm a copy of your CPF Statement that showcases your overview figures (OA, SA, Medisave). This will enable your lawyer to note on how much exactly you can use for your property and act accordingly.