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Doctrine of Tenure & Estates, Concurrent Interest, Effect of…
Doctrine of Tenure & Estates
Freehold
Estate in perpetuity
Known as
Statutory Land Grant Or Statutory Grant (SLG/SG)
Owner
usually needs to pay a nominal ground or quit rent of $12 per annum
without demand to the state (subjected to revision every 30 years)
payment of $12 or less was waived since 1992
ALSO has to pay statutory charges
(i.e. property tax, income tax, stamp duty)
only found in Singapore
(created by a local act of parliament
Estate in Fee Simple
known as
Grant-In-Fee-Simple (GFS)
or a Grant
owner
DOES NOT
have to pay ground & quit rent BUT NEEDS to pay statutory charges (i.e. property tax, income tax GST)
Depending on the
date of the grant
, it may be subjected to implied covenants under the
State Lands Act
or private restrictive covenants
State Lands Act
Right of entry by the State to take mineral oil
• Making road over the land
• Not to dig for oil, mines, minerals, etc
• Royalty of 10% to the State of mines and minerals
• Earth, sand, etc, required for roads or other public purposes to be removed from land
• Free access for making drains, pipes, etc.
• Free access by the Collector of Land Revenue
• Quit rent
• Maintenance of boundary landmarks
• Land not to be used as burial ground
• Not to assign or demise land in parcels other than the entirety, except for a lease not exceeding 7 years
"Absolute freehold" =
NOT SUBJECTED TO ANY RESTRICTIONS IMPOSED BY THE STATE
Leasehold
999- Year Lease
Introduced during the
colonial times
may or may not contain
restrictive covenants in the title
attracts ground/ quit rent
(revised every 30 years)
Only found in flats built before introduction of LT Strata Act (1968)
Usually the developer still owns the freehold interest
owner of the individual unit owns interest in the "Air Space"
99- Year Lease
introduced during the colonial times and till today
Types:
Sites for Private Development sold by URA and HDB for and on behalf of the State
new grants upon the surrender of 999 year agriculture lease to remove the restrictive covenant
new grants usually contain restrictive covenants and special conditions
Examples of Special Conditions:
Lessee shall develop land in with
accordance with plans approved by the Planning Authority
Lessee shall maintain land and buildings in a
good state of repair
Largely governed by HDB rules and policies
[Common Examples: HDB Flats and shops]
60- Year Lease
Typically
industrial sites
sold by the State through URA/HDB in the
1980s
30- Year Lease
Typically
industrial sites
sold by the State through URA/HDB in the
1990s
Each title has specific covenants
, (
differing ground rents
depending on date of lease grant) + revision varies
15- Year Lease
Used for land with no determined long term plan yet
Example:
Reclaimed land like East Coast Parkway, Marina South
Act as a buffer period for the planning
Characteristics:
Definite duration of time
measured by of years the owner can have a right to use the land
Subjected to many restrictions imposed by the State
(incorporated as covenants in the lease documents)
Subjected to statutory charges
(i.e. property tax, estate duty)
Lesser Estate
It is essentially
leasing of the leasehold/freehold to other individuals
Concurrent Interest
land can have many different types of interest and exist simultaneously
Effect of Tenure/Estate on Values
Tenures like GFS/ 999 year lease has virtually no effect on value changes, whereas 99 years differ a lot depending on years of tenure left