s 21C Continued relevant charge or relevant undertaking after relevant transaction
21C.—(1) Subject to subsection (3), where —(a) there is a relevant charge on any immovable property (called in this subsection the original property) which secures a corresponding payment; (b) the original property is disposed of in a relevant transaction; and (c) the relevant owner acquires an interest or estate in a replacement property as a result of the relevant transaction, then, subject to any regulations made under section 77(1), the following provisions apply: (d) a charge (called in this subsection a continued charge) is constituted on the replacement property to continue to secure the corresponding payment; (e) the continued charge extends to all the rights, benefits and interests, in relation to the replacement property, of the relevant owner and all other persons who jointly own the replacement property; (f) despite anything in the Land Titles Act 1993 or the Registration of Deeds Act 1988, the continued charge is deemed to have the same order of priority as the relevant charge, as if the continued charge had been constituted when the relevant charge was constituted; (g) the applicable provisions apply to the continued charge and the replacement property, as they would have applied to the relevant charge and the original property mentioned in paragraph (a) if the relevant transaction had not occurred, with the modifications (if any) prescribed by regulations made under section 77(1). (2) Subject to subsection (3), where —(a) there is a relevant undertaking given by the relevant owner in respect of any immovable property (called in this subsection the original property) for the refund or payment of an amount mentioned in paragraph (a), (b), (c) or (d) of the definition of “relevant undertaking” in section 21E(1) (called in this section a corresponding payment); (b) the original property is disposed of in a relevant transaction; and (c) the relevant owner acquires an interest or estate in a replacement property as a result of the relevant transaction, then, subject to any regulations made under section 77(1), the relevant owner and every other person who acquires an interest or estate in the replacement property as a result of the relevant transaction is deemed to have given an undertaking for the corresponding payment to be made, in the event that the replacement property is subsequently disposed of, from the proceeds of the disposal of the replacement property. (3) Subsections (1) and (2) do not apply if, before the relevant owner acquires an interest or estate in the replacement property, the corresponding payments secured by the relevant charge or the subject of the relevant undertaking (as the case may be) —(a) have been paid to the Board; or (b) by virtue of any regulations made under section 77(1), are no longer required to be paid. (4) The applicable provisions apply to the deemed undertaking under subsection (2) and the replacement property, as they would have applied to the relevant undertaking and the original property if the relevant transaction had not occurred, with the modifications (if any) prescribed by regulations made under section 77(1). (5) Where, before the date of commencement of section 29 of the Central Provident Fund (Amendment) Act 2024 —(a) an original property was disposed of in a relevant transaction which resulted in a relevant owner acquiring a replacement property; (b) on the subsequent disposal of the replacement property, a corresponding payment (purported to be secured by a relevant charge on, or payable under a relevant undertaking in respect of, the original property) was paid from any person’s share of the proceeds of the disposal of the replacement property; and (c) that payment would have been valid if this section had been in force when the relevant transaction occurred, then the following apply: (d) that payment is taken to be and always to have been validly made; (e) no legal proceedings lie, or may be instituted or maintained, in any court of law on account of or in respect of that payment. (6) To avoid doubt —(a) where the relevant undertaking is an undertaking mentioned in paragraph (c) or (d) of the definition of “relevant undertaking” in section 21E(1), references in this section to immovable property and original property in relation to the relevant undertaking refer to the replacement property the proceeds of disposal from which the corresponding payment is undertaken to be paid under the relevant undertaking; and (b) where the relevant charge is a charge mentioned in paragraph (g) of the definition of “relevant charge” in section 21E(1), references in this section to immovable property and original property in relation to the relevant charge refer to the replacement property on which the relevant charge was constituted.[Act 33 of 2024 wef 01/04/2026]