Measures to Safeguard Conveyancing Money
The Ministry of Law (MinLaw) implemented new measures on 1 August 2011 to further protect conveyancing money without unduly compromising the efficiency of conveyancing practice. In arriving at this set of proposed measures, the Ministry of Law has consulted the public and the industry extensively through two rounds of public consultations in August 2009 and January 2010, as well as numerous dialogue sessions with lawyers and other stakeholders. In addition, we have incorporated feedback received during two pilot trials, involving almost 700 conveyancing transactions from more than 100 law firms.
Important Update: Amendments to the Conveyancing Rules effective 25 November 2011
The Conveyancing and Law of Property (Conveyancing) Rules 2011 have been amended on 25 November 2011 by the Conveyancing and Law of Property (Conveyancing) (Amendment No. 2) Rules 2011.
These amendments are based on further feedback and suggestions received from the conveyancing community. In particular, the new amendments also provide lawyers with the option to continue to hold any unclaimed conveyancing money in their clients account after the end of the transition period, i.e. from 1 January 2012 onwards.
An overview of the amendments is outlined in the "Brief Overview of the Conveyancing and Law of Property (Conveyancing) (Amendment No. 2) Rules 2011". The Legislative Guide has also been updated.
Links to Additional Information
Lawyers and members of the public who would like to find out more about the new conveyancing measures may find these links helpful:
- Guidebook on Conveyancing Measures [Updated 3 January 2012]
This guidebook is intended to help lawyers understand the operational steps necessary to comply with the new conveyancing regime.
- Legislative Guide [New! Updated 25 November 2011]
This document serves as an accessible guide laying out the structure of the applicable law and explaining the key legislative provisions and their operational effect. (Also available under "Applicable Legislation", below.)
- Frequently Asked Questions (FAQ) [New! Updated 25 November 2011]
Answers to frequently asked questions about the measures can be found here.
- Information Pamphlet for Buyers/Sellers
A pamphlet which summarises the key impacts of the new measures on buyers and sellers of properties can be found here.
- Hotline (68381-CVY)
For additional information, the public may call the automated conveyancing hotline at 6838 1289.
- List of Appointed Banks [Updated 22 December 2011]
This is a listing of banks with which law practices can open Conveyancing or Conveyancing (CPF) Accounts.
- List of Appointed Banks with escrow services
This is a listing of banks which are able to provide escrow services to lawyers.
- Information on Fees Charged by Appointed Entities and SLA [Updated 17 February 2011]
This document provides an overview of the fees that would be charged by Appointed Entities (Appointed Banks and Singapore Academy of Law), and by Singapore Land Authority (for the use of the Electronic Payment Instruction Service), with effect from 1 August 2011.
- Comparison between SAL Conveyancing Money Service and Conveyancing Account
This link to SAL provides information on the operational differences between placing conveyancing money in SAL's Conveyancing Money Service and placing money in a conveyancing account..
- Transitional Framework (Printable PDF version)
This link explains the transitional framework to ensure the smooth implementation of the measures and governs the use of Conveyancing / Conveyancing (CPF) Accounts and client accounts before 1 August 2011, between 1 August 2011 and 31 December 2011, and on or after 1 January 2012.
Links to partner agencies can be found here:
- Law Society
The Law Society's website on the new conveyancing regime provides copies of presentation materials from briefing sessions conducted by the Law Society, as well as details of the Law Society's expedited adjudication scheme. A login with password may be necessary to access some of the information for law firms.
Applicable Legislation
The Ministry of Law has considered and incorporated useful feedback from public consultations, dialogue sessions with the Law Society and stakeholders, and pilot trials. The resultant legislation can be referenced here.
Legislation on New Measures to Safeguard Conveyancing Money
- Conveyancing (Miscellaneous Amendments) Act 2011 (Act 17 of 2011)
- Conveyancing and Law of Property (Conveyancing) Rules 2011 [gazetted 8 July 2011]
- Conveyancing and Law of Property (Conveyancing) (Amendment) Rules 2011 [gazetted 19 August 2011]
- Conveyancing and Law of Property (Conveyancing) (Amendment No. 2) Rules 2011 [gazetted 25 November 2011]
- Conveyancing and Law of Property (Conveyancing) (Amendment No. 3) Rules 2011 [gazetted 22 December 2011]
- Singapore Academy of Law (Conveyancing Money) Rules 2011 [gazetted 8 July 2011]
- Singapore Academy of Law (Conveyancing Money) (Amendment) Rules 2011 [gazetted 25 November 2011]
- Legislative Guide (also available under "Links to Additional Information", above) [updated 19 August 2011]
Consequential Amendments to Subsidiary Legislation under the Legal Profession Act
- Legal Profession (Accountant's Report) (Amendment) Rules 2011 [gazetted 8 July 2011]
- Legal Profession (Deposit Interest) (Amendment) Rules 2011 [gazetted 8 July 2011]
- Legal Profession (Group Practice) (Amendment) Rules 2011 [gazetted 8 July 2011]
- Legal Profession (Professional Conduct) (Amendment) Rules 2011 [gazetted 8 July 2011]
- Legal Profession (Solicitors' Accounts) (Amendment) Rules 2011 [gazetted 8 July 2011]
- Legal Profession (Solicitors' Accounts) (Amendment No. 2) Rules 2011 [gazetted 25 November 2011]
Conveyancing Accounts / Conveyancing (CPF) Accounts
Law firms can download and pre-fill the relevant Microsoft Word forms for the operation of Conveyancing Accounts and Conveyancing (CPF) Accounts here.
Note: The latest version of the manual forms is dated 9 September 2011 (version 1.1). The ePI forms have also been updated. The version 1.2 forms have also been uploaded as of 25 November and, together with their ePI equivalents, will be used beginning 1 January 2012. They are provided here in advance, to facilitate the transition. Lawyers are encouraged to switch to the new version 1.2 forms beginning 1 January 2012, and phase out old versions of the forms, even though the obsolete manual forms will continue to be acceptable for submission to Appointed Entities.
- Pay-In Form [Version 3.0]
This form is to be submitted concurrently with any payment of funds made into a Conveyancing Account.
- Variation Pay-In Form [Version 3.0]
This form is to be submitted to correct any details from a preceding pay-in form.
- Pay-Out Form A (for Category A payees) [Version 3.0]
This form is to be used to instruct appointed banks to prepare bank drafts to Category A payees.
- Variation Pay-Out Form A (for Category A payees) [Version 3.0]
This form is to be used to amend the amounts payable to Category A payees from a preceding pay-out form A.
- Pay-Out Form BC (for Category B & C payees) [Version 3.0]
This form is to be used to instruct appointed banks to prepare bank drafts to Category B and C payees.
- Variation Pay-Out Form BC (for Category B & C payees) [Version 3.0]
This form is to be used to amend the amounts payable to Category B and C payees from a preceding pay-out form BC.
- Change of Counter-Signatory Form [Version 3.0]
This form is to be used to update appointed banks on the appropriate counter-signatory for a particular conveyancing transaction.
Singapore Academy of Law Conveyancing Money Service
More information on the Singapore Academy of Law's Conveyancing Money Service can be found at the Academy's website here.
Previous amendments to the Conveyancing and Law of Property (Conveyancing) Rules
Rule 2(1) of the Conveyancing and Law of Property (Conveyancing) Rules 2011 was amended pursuant to queries about the interaction of Rule 1 of the Conveyancing and Law of Property (Conveyancing) Rules 2011, which brings the Rules into operation on 1 August 2011, and Rule 2(1), which could be interpreted to mean that the Conveyancing and Law of Property (Conveyancing) Rules 2011 only apply to agreements entered into on or after 1 August 2011, and thus, the receipt and holding of conveyancing money from those agreements.
The amendment to Rule 2(1) of the Conveyancing and Law of Property (Conveyancing) Rules 2011 serves to clarify that the Rules also apply to conveyancing money that is received or held on or after 1 August 2011 regardless of whether the agreement in respect of the conveyancing transaction pursuant to which the money is held is entered into before, on or after 1 August 2011.
The amendment was gazetted on 19 August 2011.
First Conveyancing Pilot Trial (April 2010 to August 2010)
The Ministry of Law successfully conducted a first pilot trial from April to August 2010 with almost 50 law firms, the Law Society, banks, the Singapore Academy of Law, CPF Board, and HDB, to test and refine workflows associated with conveyancing under a set of proposed measures to safeguard conveyancing money.
The list of participating banks, law firms, and partner agencies for the First Conveyancing Pilot Trial (April to August 2010) can be found here.
Second Conveyancing Pilot Trial (November 2010 to February 2011)
To ensure that the conveyancing workflows that accompany the proposed measures will work well in practice, MinLaw has conducted a second pilot trial with more than 100 law firms, CPFB, HDB, SAL and three pilot banks (DBS, UOB and OCBC) to test further out these conveyancing workflows. This second pilot trial enabled MinLaw to track the progress of each pilot case and receive feedback on both the manual and newly-developed electronic workflows, and to refine them before implementation. The second pilot trial ran from November 2010 to February 2011.
For more information on the Second Pilot Trial, click here.
The list of participating banks, law firms, and partner agencies for the Second Conveyancing Pilot Trial (November 2010 to February 2011) can be found here.