Home Buyers’ Guide

This guide provides basic information on the process of buying uncompleted private residential properties and considerations to take before committing to a purchase.

 

Eligibility

If you own a HDB flat, a DBSS flat or an Executive Condominium (EC), you have to fulfil the Minimum Occupation Period (MOP) set by HDB before you can purchase any private residential properties.

If you are not a Singapore citizen, you have to obtain approval from the Controller of Residential Property, before you can buy landed houses including but not limited to strata landed houses.

 

Finances

Before buying a property, you should check the property prices in the areas of interest and compute your finances and fees payable. You should buy within your financial means.

 

Property Prices and Available Units

We provides free information on the property market, such as prices and available units of private residential, for you to do your research before purchasing your unit.

 

Using your CPF

You may use your CPF Ordinary Account (OA) savings to purchase your private residential property under the Private Properties Scheme.

 

Bank loan

You should enquire with the bank on your eligibility for housing loan as early as possible, preferably before you pay the booking fee or commit yourself to the purchase. Click here for a guide on housing loan and other important information.

 

Stamp duty

Here are some stamp duty types related to property purchase:

Buyer’s Stamp Duty
You are required to pay Buyers’ Stamp Duty (BSD) after signing the S&PA.

Additional Buyer’s Stamp Duty
You may also need to pay Additional Buyer’s Stamp Duty (ABSD) after signing the S&PA depending on your profile:
1. Whether you are buying as an individual or as an entity
2. Your residency status e.g. Singaporean
3. Number of residential properties owned

 

Legal fees

In general, when you purchase a property, the services that a lawyer can provide you would include:
• Advising you on the transaction documents i.e. terms and conditions in your OTP and/or S&PA.
• Conducting title searches to verify the title of the property identified in the contract matches with the title record in the Land Titles Registry.
• Providing property law, regulatory and financing advice.
• Checking if there are any regulatory notices or government schemes that will affect the property you intend to purchase.
• Lodging a caveat against the title to the property on your behalf pending completion of your purchase. This serves to notify the public and third parties also interested in this property of your valid interest or claim.
• Liaising with your bank’s lawyer who will prepare the mortgage for the bank.
• Liaising with the bank and CPF Board to ensure that your housing loan and CPF funds are in place and ready for drawdown.
• Completing the conveyance by exchanging your payment for the executed instrument of transfer.

 

Option to Purchase (OTP)

If you decide to proceed with the purchase after reviewing the information, you will have to pay a booking fee of 5% of the unit’s purchase price to the developer. The developer will then grant an OTP to you, which is a right or option given to you to buy the unit.

 

Exercising the Option

If you are granted an OTP, the developer is required to deliver the S&PA and the original or copies of the title deeds to you or your lawyer for review within 14 days from the date of the Option.

If you decide to proceed to purchase the property, you need to exercise the Option by doing all of the following before the Option expires, i.e. 3 weeks after the date of delivery of the S&PA and title deeds to you:
• Sign all the copies of the S&PA
• Return all copies of the signed Agreement to the developer
• Pay to the developer the balance down payment, which is 15% of the purchase price.

The developer may allow you to pay the balance down payment within 8 weeks from the Option date instead of the 3 weeks mentioned above.

 

Non-Exercise of Option

If the OTP is not exercised before its expiry, the developer may forfeit 25% of the booking fee and refund 75% of the booking fee to you. The developer can then proceed to sell the unit to any other interested party.

 

Progress payment

You must ensure that all payments due to the developer are made promptly according to the payment schedule.

Buyer's Stamp Duty (BSD)

You are required to pay BSD for documents executed for the sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount).

On or after 20 Feb 2018 
Purchase Price or Market Value of the Property BSD Rates for residential properties Purchase Price
First $180,000 1% $180,000 or less
Next $180,000 2% $180,001 to $360,000
Next $640,000 3% $360,001 to $1,000,000
Remaining Amount 4% More than $1,000,000
BSD is rounded down to the nearest dollar.

Progress Payment

Progress Of Work Percentage of purchase price
On obtaining Option To Purchase (Booking Fee) 5%
Within 8 week from the date of the Option To Purchase 15%
Notice that the foundation works of the Unit has been completed 10%
Notice that the reinforced Concrete framework of the Unit has been completed 10%
Notice that the brick walls of the Unit has been completed 5%
Notice that the roofing, of the Unit has been completed 5%
Notice that the door and window frames are in position and that the electrical wiring (without fittings), the internal plastering and the plumbing of the unit have been completed 5%
Notice that the car park, roads and drains serving the Housing project have been completed 5%
Notice of the Vacant Possession and the Temporary Occupation Permit (TOP). 25%
On completion of the Sales and Purchase. 15%

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