How Decoupling works in Private Resale

How Decoupling works in Private Resale

My team and I was discussing about a question that was posed to us regarding decoupling in private resale and I decided to looked at it in depth before sharing.

Case Study Scenario:
A + B are owners of a property and they want to remove A from the property so that A can purchase the next property without this existing property as a property count.

i.e. If A & B co-own a property, and A is a Singapore Citizen without any other residential property, and A would want to exit from the existing property to buy the next property without ABSD

Step 1

  • A + B to visit the law firm to do up a Sale & Purchase agreement to sell A’s shares to B
  • Concurrently, B is to apply for a housing loan if a loan is required for B to buy over A’s shares and to refinance over the existing loan

Step 2 (Concurrent with Step 1 above)

  • B to pay with the following as listed
  • Exercise money 5% (cash)
  • Buyer Stamp Duty
  • Additional Buyer Stamp Duty (if required)

Step 3

  • Law firm representing B will apply for CPF / apply to the bank to disburse the monies for B to pay A on the completion of the decoupling transaction.


  • Please arrange for at least 3 months from date of Step 1
  • B will complete the purchase with A.
  • Payment by B to A can be by cash and/or loan and/or CPF

If A would like to purchase the next property, A can only exercise the Option to Purchase for the next property after Step 1 & 2 is completed

If A would like to reuse the CPF refunds from the CPF used in the existing property, please time the completion of the next purchase to take place at least 3 weeks after the completion of the decoupling transaction.

All the above information serves as a general guide. Interested clients should arrange for an appointment with us to understand better on the process/ timeline/ finances required to enable a successful transaction.

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