Residential Property Act 1976 · 2020 Revised Edition · Part 2 · Prohibition on Purchase or Acquisition of Residential Property by Foreign Persons
22. Sale of residential property by mortgagee or chargee
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A mortgagee or chargee, when exercising the mortgagee’s or chargee’s power of sale in respect of any estate or interest in any residential property that is not non‑restricted residential property, must not transfer the estate or interest to a foreign person.
residential property
“residential property” includes —(a)any vacant land upon which no building or other structure exists or any land upon which exists any building or other structure which is constructed or used contrary to any written law;(b)any house, building or other premises or any part thereof which is permitted to be used pursuant to the Planning Act 1998 or any other written law as a dwelling house or which is lawfully so used;(c)any land zoned for residential purposes in the Master Plan; and(d)such other land or building, in whatever manner zoned in the Master Plan, as the Minister may, by notification in the Gazette, declare to be residential property for the purposes of this Act,but does not include —(e)any land, whether or not vacant, which is zoned for industrial or commercial purposes or both such purposes in the Master Plan or which is permitted to be used pursuant to the Planning Act 1998 or any other written law solely for industrial or commercial purposes or both such purposes;(f)any house, building or other premises, or any part thereof, which is permitted to be used pursuant to the Planning Act 1998 or any other written law solely for industrial or commercial purposes or both such purposes or which is lawfully so used;(g)any hotel registered under the provisions of the Hotels Act 1954; and(h)such other land or building, in whatever manner zoned in the Master Plan, as the Minister may, by notification in the Gazette, declare to be industrial, commercial or non‑residential property for the purposes of this Act;
Every mortgagee who, in relation to an estate or interest in any residential property that is not non‑restricted residential property, has obtained an order for foreclosure or who becomes vested by an instrument or otherwise with the entirety of that estate or interest, must sell to a citizen or an approved purchaser that estate or interest within a period of 3 years of the date of such order or of the date of the vesting of such estate or interest in the mortgagee; but the Minister has power to extend the period, from time to time, for such cause as appears to the Minister to be just and reasonable.
non‑restricted residential property
“non‑restricted residential property” means any residential property described in section 4(1) but not in section 4(2);
The Minister may, when extending the period under subsection (2), impose such conditions as he or she thinks fit, including a condition that the mortgagee must provide such security as the Minister may determine for the purposes of complying with any condition imposed by the Minister.
If a mortgagee fails to comply with any of the conditions imposed by the Minister under this section, the Controller may forfeit (in part or whole) the security provided by the mortgagee under this section, after giving 21 days’ notice in writing to the mortgagee of the Controller’s intention to forfeit the security and the grounds thereof.
Controller
“Controller” means the Controller of Residential Property and includes a Deputy and an Assistant Controller of Residential Property appointed under section 29;
A mortgagee may, upon receipt of the notice under subsection (2B), appeal to the Minister within 3 months from the date of that notice.
The Minister may determine an appeal under subsection (2C) by confirming or varying the Controller’s decision to forfeit the security, or by ordering the refund (in part or whole) of any security forfeited under subsection (2B); and the decision of the Minister on any such appeal is final and shall not be called in question in any court.
Where such mortgagee does not sell the estate or interest in the residential property that is not non‑restricted residential property within the period specified in subsection (2) (including any extension thereof), the Minister may issue to the Controller a notice to attach and sell the mortgagee’s estate or interest in that residential property.
notice to attach and sell
“notice to attach and sell” means any notice issued by the Minister under section 3(6), 3A(3), 4(8), 5(7), 9(11), 22(3), 27(3) or 32(2A) directing the Controller to attach and sell in accordance with this Act such estate or interest in such residential property or land as is specified in the notice;
Subsections (2), (2A), (2B), (2C), (2D) and (3) apply only to mortgagees who are foreign persons.