When you use your CPF savings to purchase a private property, a CPF charge is created and lodged with the Singapore Land Authority (SLA). To discharge this charge, you must first refund the full amount used for your property, plus accrued interest, to your CPF account.
The discharge process depends on your situation:
If you are selling your property
Your lawyers handling the sale will complete the discharge as part of the sale transaction.
If you are not selling your property
After making a full voluntary refund, you will need to engage a lawyer to lift the CPF charge. The lawyer will assist with the legal documentation required by SLA and handle any conveyancing matters involved in the discharge process.
The CPF charge was lodged with the SLA by your lawyer when you first withdrew your CPF towards your property. Similarly, the discharge of this charge, requires careful legal documentation and lodgement of documents with SLA.
Please note that you will incur legal costs for this process, which must be paid in cash. For queries on the discharge process, which is a legal conveyancing procedure, please contact
Ministry of Law or a law firm of your choice.
Important considerations after discharge
Once the CPF charge is discharged, you cannot use further CPF savings for the property. If you are above 55, the property cannot be pledged for withdrawing Retirement Account savings above the Basic Retirement Sum. Should you wish to do so later, you will need to create a new CPF charge which will involve additional legal costs for creation and lodgement of the new CPF charge.
