Sub-sale properties
Written by Sophiyanah David · Updated on 2 Aug 2023
What are sub-sale properties?
According to the Urban Redevelopment Authority (URA), a sub-sale refers to the sale of a unit by an individual who has agreed to purchase it from a developer or a subsequent buyer before the property’s official completion and the issuance of all necessary certificates.
These certificates include the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title or the Certificates of Title for all units in the development.
To put it simply, a sub-sale property occurs when the initial buyer of a new launch property opts to sell it to another buyer before the construction of the unit is completed.
Recommended article: Sub-sale: What property sellers and buyers need to know
What is the difference between sub-sale properties and resale properties?
As mentioned previously, sub-sale properties involve transactions where a buyer of a new development chooses to sell the unit to another buyer before the development is completed or before the issuance of all necessary certificates.
In contrast to resale properties, sub-sales also entail the participation of three parties:
The original buyer (or seller).
The buyer of the sub-sale property (or sub-purchaser).
The developer.
This three-party involvement sets sub-sales apart from the more straightforward resale property transactions where the seller simply puts a completed unit up for sale.
Additionally, it’s important to note that the original buyer may be required to pay Seller’s Stamp Duty (SSD) since they haven’t owned the property for at least 4 years, which might lead to an increased price to cover costs and break-even.
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