If you are venturing into purchasing a Private Resale Condo for the first time, you will find the following overview of the process useful.
- Once the property of choice has been found, you’ll want to negotiate with the seller for the right price.
- To order to receive the Signed Option to Purchase, an option fee of 1% of the purchase price is required to be issued by Cheque/Bank transfer to the Vendor(Seller).
The seller now has to honor your option for the agreed time frame (usually two weeks) before being able to
accept another offer.
- You should be looking for a home loan at this point. Do discuss with the property agent; they will have a handful of bankers of different company.
- Should you decide to exercise the OTP, you will be required to pay the remaining 4% of the downpayment as well as the Buyers Stamp Duty and Additional Buyers Stamp Duty (if applicable) within 2 weeks upon exercise.
For the Buyer Stamp Duty and or Additional Buyer Stamp Duty, If you intend to you use CPF you have to pay in cheque/Cashier Order first and the appointed lawyer shall apply to get reimbursed later from CPF board.
- Again, the time frame between this point and the completion of the purchase varies in accordance to what you agree on with you seller although usually its about 10-12 weeks from the time you exercise the OTP.
- Pay the balance of the downpayment (20%) and get your keys!
Private Resale Condo Timeline
|Day 1||Present Offer to Purchase in exchange for an Option||1% Booking Fee|
|Engagement of Solicitors|
|Select Home Loan (Buyer)|
|Within 2 weeks||Buyer to exercise “Option” & sign Sales & Purchase at solicitor’s law firm||4 Exercise Fee|
|Within 2 weeks from Exercising Option||Pay Stamp Duty (Buyer)
Pay Additional Buyer Stamp Duty if applicable
|4% of Purchse Price – $15,400|
|Within 10-12 weeks from Exercising Option||Completion of Sales & Purchase at Law Firm||20% Remaining Payment (Cash/CPF)
75% Bank Loan if Applicable
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