The normal perception of property investment involves the acquiring of ownership to a property through the conveyance of the title deed from the property owner to the buyer.
Typically the process encompasses entering into a sales and purchase agreement (SPA) and transfer instrument between the property owner with the buyer. In the case of a property with an individual or strata title, the parties will execute a Memorandum of Transfer where the title deed will be conveyed or transferred to the buyer.
In the case of a property under the master title (where individual or strata title is yet to be issued), the conveyance of property is done through a Deed of Assignment, where all the owner’s rights, title, benefits, interest, obligations, and liabilities are assigned absolutely to the buyer.
Some of the normal or conventional ways where one could acquire property:-
(i) the easiest (but not common) of all, through inheritance;
(ii) buying an off-the-plan property (be it residential, commercial or industrial properties) from a developer or builder. This is generally known as primary market purchases. Purchase is done while construction is ongoing or in most cases prior to commencement of construction;
(iii) buying a completed property from a developer or builder. This may be referred to as a built-then-sell project, where a developer actually completes construction of the project and obtain a certificate of completion and compliance, before offering the project for sale to the public;
(iv) buy from an existing owner a completed property or a property due for completion soon. This is generally known as the secondary market purchase or sub-sale. One may buy from an existing owner of a property, enter into sale and purchase agreement and instrument of transfer. Upon completion of the sale and purchase transaction, ownership of the property will be conveyed or transferred to the buyer; or
(v) buy through an auction. It could be a public auction or private auction, where one will bid for the property. Upon successful bidding and payment of full auction price, the auctioning party (more often than not, will be a financial institution) will affect the transfer of ownership to the successful bidder.
