Joint ownership in Singapore and unequal contributions to purchase price
Whether one lives in a HDB flat or landed property, it is common for joint home owners, most usually husband and wife, to hold property jointly in both of their names. But what happens if one party contributes way more to the purchase price than the other? Would it be fair to adhere strictly to the rules of co-ownership under such circumstances?
In a joint tenancy, co-owners are individually “wholly entitled to the whole” of the property. Strange as it sounds, it means that, for instance, the husband owns 100% and the wife also owns 100%. It also means that, both co-owners possess a right of survivorship. Upon the death of one party, the surviving co-owner inherits the whole of the property.
Things get complicated if co-owners provide unequal contribution to the purchase price of the property. In the event of a dispute over ownership share, can the party who contributed more, claim more?
In Singapore, the highest court of the land has implemented the following two-stage test.
Firstly, the court has to determine if the presumption of resulting trust arose. This means that the party who contributed more would have to adduce evidence, such as transaction records, or CPF payments, that he or she, indeed paid more. If so, a resulting trust would be presumed, whereby the parties would be presumed to hold the property in the ratio corresponding to their contribution.
However, even after the court has ascertained the existence of such a presumption, it can still be rebutted, either by contrary evidence, or the presumption of advancement.
Contrary evidence could include recorded agreements by the co-owners, to hold the property jointly in equal shares, despite unequal contributions. The presumption of advancement (or the presumption of gift) arises when the parties are involved in a familial relationship, and if such relations exist, the law presumes that the parties intended any excess contributions to be a “gift”, and that parties intended to hold the property jointly and equally. Such relationships may include husband and wife, or even parent and child. Much would depend on the strength and nature of the relationship.
As can be seen from the above, just because there are two names on the registry, does not mean that joint ownership will be interpreted inflexibly. Other factors will be taken into consideration. But do note that the law is liable to change, and the above does not constitute legal advice, and may not even be relevant to your specific circumstance.
To make absolutely sure, we suggest that you gather legal advice from a qualified lawyer.
- Conveyancing Lawyers for Singapore Property Transactions
- Legal Issues to Note When Helping Your Child Buy a Property
- Property Title Deeds: How to Amend & Do You Need a Copy?
- Can I Buy an HDB Flat in Singapore For Investment Purposes?
- 6 Highly Rated Conveyancing Lawyers in Singapore (2023)
- The Conveyancing Process in Singapore
- Types of property and home ownership in Singapore
- Option to Purchase: 6 Things to Know Before Exercising It
- Common Terms in Sale & Purchase Agreements
- Why and How to Lodge a Caveat on a Property in Singapore
- Joint ownership in Singapore and unequal contributions to purchase price
- Buying Property in Singapore: How to Pay for Your Property
- Buying Property on "As Is Where Is" Basis: What This Means
- Buying a Property on Trust for Your Child
- What if the seller does not turn up for the First Appointment?
- What are the duties of an estate agent in Singapore?
- HDB Resale Process: Selling Your HDB Flat Without an Agent
- Property Auction: Buying a House in Distressed Sales & More
- Illegal Subletting in Singapore: Laws and Penalties
- What is Wear and Tear? Are Landlords or Tenants Liable For It?
- Evicting Family Members From Your Property in Singapore
- Being Evicted in Singapore: What Happens and Next Steps
- Guide to Letters of Intent for Property Rentals in Singapore
- Tenant-Landlord Rights in Singapore
- 6 Common Terms in Tenancy Agreements & What They Mean
- What If I Have a Tenancy Dispute or Complaint in Singapore?
- Getting a Mortgage Redemption in Singapore
- Landlord Won’t Return Your Security Deposit: What to Do
- Landlord’s Guide to Evicting a Problematic Tenant in Singapore
- Applying for a Writ of Distress When a Singapore Tenant Owes You Rent
- Are Landlords, Tenants, and Agents Liable for Sex Trade in HDB flats/Condominiums?
- Dispute With Your Condo’s Management or MCST: What to Do
- Is Airbnb Illegal in Singapore?
- Community Disputes Resolution Tribunals (CDRT): How to File a Claim
- How to Obtain an Exclusion Order Against a Neighbour in Singapore
- Resolving Disputes with a Neighbour from Hell in Singapore
- Ceiling Leaks: What Can I Do?
- What can I do if a Chinese funeral or a Malay wedding creates a noisy annoyance in the void deck?
- What is the Tort of Interference with Land? What is the rule in Rylands v Fletcher?