Terms and Conditions
The proposed assignment or transfer should be completed within 3 months from the date of JTC’s consent if the Environmental Baseline Study (EBS) is not stipulated as a requirement in the consent. For cases where EBS is required prior to legal completion, the proposed assignment or transfer should be completed within 6 months from the date of JTC’s consent. Any extension of the completion date is subject to JTC’s assessment and approval, at JTC's discretion.
You shall pay a non-refundable administrative fee prescribed by JTC of up to $500 (subject to prevailing GST) per allocation. If there is a change or extension of use arising from the assignment or transfer of lease, an additional administrative fee of up to $500 (for non-amenity) or $100 (for amenity) will be charged.
Online payment is available on Krypton.
All property tax, outstanding rent (subject to prevailing GST) and interest accrued therein and all other outstanding charges plus GST must be settled before completion of assignment or transfer of lease. The Seller’s solicitor will have to provide a letter of undertaking that they will deduct and pay to JTC direct from the proceeds of sale such sums plus GST owing to JTC upon completion.
Rent can be revised upon assignment or transfer of lease. The shareholding relationship between the assignor or transferor (Seller) and the assignee or transferee (Buyer) will be considered in the calculation of the revised rent.
The Assignor or Transferor shall continue paying the annual Land Rent and any revisions thereto until the date of completion of the Assignment. We will continue to bill the Assignor or Transferor until and including the month of completion of the Assignment. The Assignor's or Assignor’s solicitor shall notify us of the completion date of the Assignment immediately upon such completion to enable us to bill the Assignee with effect from the first of the month following the month of completion of the Assignment. The Assignor's or Transferor’s solicitor shall make the necessary adjustments with the Assignee or the Assignee’s solicitor as regards the payment of the Land Rent billed by us before, on or after completion of the Assignment.
General illustration only:
If the consent to assign letter is dated 5 January 2006 and the assignment is completed on 15 March 2006, billing will be addressed to the Assignee with effect from 1 April 2006 (ie, the first of the month following our receipt of the notification of the completion date of the Assignment).
Both Seller and proposed buyer are required to submit to JTC a copy of their resolutions for the sale of the property. JTC will provide a standard format for the buyer’s resolution. Resolutions are only required in the case of private limited companies.
- Rectification of Breaches
It is the lessee’s responsibility to ensure that he does not breach any of the lease terms, covenants or conditions, and observes and performs all his obligations. Please refer to List of common breaches.
The proposed Buyer is advised to check with the Seller whether there are any breaches, and whether all breaches have been rectified. If, before or after completion of the assignment or transfer, JTC finds any breach which has not been rectified or discovers any breach, JTC reserves the right to require the lessee to rectify and remedy the breaches.
Thus, JTC will look to the Seller to rectify if it is before completion of the assignment or transfer. But once completion of the assignment or transfer takes place, JTC will look to the assignee or transferee (Buyer) to remedy all breaches which have either yet to be rectified or are discovered after completion of assignment or transfer.
All ancillary facilities (eg cooling tower, condenser unit, store room) tied to the industrial unit and serving that industrial unit will also be assigned or transferred.
Any wayleave on the property given by the Seller (assignor or transferor) will be terminated upon assignment or transfer. Please inform JTC should the Buyer (assignee or transferee) wish to retain the wayleave. The necessary reinstatement works relating to the termination of the wayleave must be completed before completion of assignment or transfer.
If the property is still mortgaged by the assignor or transferor (Seller), then Seller is required to discharge his mortgage before completion of the assignment or transfer.
If the assignee or transferee (Buyer) intends to take a loan from a bank or financial institution by way of a mortgage or charge of the property, the Buyer can do so after due acceptance by the Buyer and Seller of the terms and conditions of the assignment or transfer of lease (see Step 4 of the Step-by-Step Guide). Under current procedure, in lieu of writing in to obtain JTC’s consent, the Buyer may give JTC Notice of Mortgage or Charge in accordance with JTC’s Practice Circular dated 30 October 1999 issued to The Law Society of Singapore as amended by Practice Circulars dated 1 June 2001 and 24 April 2002 (please click Practice Circular to view the circulars mentioned).
The Buyer’s lawyer may also submit the Notice of Mortgage or Charge on behalf of the Buyer.
For queries on the Practice Circulars, you may call the following persons from our Legal Department :
- Rani Hubert - 68833181
- Yeo Poh Lay - 68833190
- Tong Meow Hoon - 68833196
- Deed of Assignment or Instrument of Transfer
JTC no longer requires the submission of assignment or transfer document to JTC for vetting and approval. Instead, assignor’s or transferor’s (seller’s) solicitor must obtain written confirmation from JTC (PRIOR to the execution of the Deed of Assignment or the execution and registration of the Transfer Instrument) that JTC has no objections to the signing of the Deed of Assignment or the execution and registration of the Transfer Instrument.
The assignor's or transferor's solicitors shall notify JTC of the date of completion assignment or transfer immediately upon such completion. A copy of the duly signed Deed of Assignment or duly executed, stamped and registered Transfer Instrument should be given to JTC within 14 days from the date of legal completion of assignment or transfer.