Decoupling, or a part sale, is when one co-owner of a private property transfers their share to the other, leaving a single sole owner. Here is how the process actually runs, in order. Note: this works for private property only. HDB flats cannot be decoupled, except in narrow cases such as divorce or death of an owner.
Step 1: Confirm the remaining owner can carry the loan alone
This is the first thing to check, not the last. Once the property sits in one name, the existing mortgage has to be restructured into that person's sole name, and they must qualify for the full loan on their own income under TDSR (total monthly debt capped at 55% of gross income). If they cannot, the whole plan stalls after you have already spent on legal and stamp duty costs. Get this pressure-tested upfront.
Step 2: Get a market valuation
The transfer must be done at market value, not a nominal or discounted figure. A formal valuation establishes the value of the share being transferred, which is what BSD is calculated on.
Step 3: Engage lawyers
Both parties need separate legal representation. The transferring party's lawyer prepares the transfer documents, and the conveyancing process runs much like a normal sale of a part-share.
Step 4: Restructure the mortgage into one name
The bank must approve the existing loan being held by the sole owner. This is where Step 1 either pays off or trips you up. It often makes sense to compare lenders at this stage rather than defaulting to your current bank, since terms vary.
Step 5: Pay Buyer's Stamp Duty on the transferred share
BSD is payable by the owner acquiring the share, calculated on the share's market value using the standard tiered rates (1% to 6%). It is due within 14 days of the transfer document being signed.
Step 6: Refund CPF for the exiting owner
If the exiting owner used CPF to fund their share, they must refund the CPF principal plus accrued interest back into their CPF account on completion. Budget for this early, as accrued interest on a long-held property can be substantial.
Step 7: Complete the transfer
On completion, one party becomes the sole legal and beneficial owner, and the other holds no further interest in the property. The exiting owner, now counted as owning no residential property, is positioned to buy their next home.
Costs at a glance
| Cost item | Typical range |
|---|
| Buyer's Stamp Duty on the transferred share | 1% to 6%, tiered on the share's value |
| Legal fees, both parties separately represented | S$5,000 to S$8,000 |
| Refinancing or loan restructuring fees | S$2,000 to S$4,000 |
| Valuation fee | S$500 to S$1,000 |
| CPF refund, principal plus accrued interest | Varies, can be significant |
Two things to watch
Seller's Stamp Duty: if the property is still within its holding window (four years for properties bought on or after 4 July 2025), SSD applies to the transferred share.
A genuine transfer: the exiting owner must truly give up their interest. A paper-only transfer where they secretly keep a stake is treated as tax avoidance, with serious consequences.
Want to know if it works for you?
The make-or-break question is almost always Step 1: does the remaining owner clear TDSR on the full loan, and which lender will approve the restructuring on the best terms? As a digital mortgage platform working in partnership with all major banks and lenders, Cashew can model this before you instruct a lawyer. Run your numbers with us or speak to a Cashew advisor.
Sarah Chen
