BUYING GUIDE
for private residential properties
1. Engage a competent realtor (agent)
This is highly recommended because a professional realtor will not only help you find the right property, but also ensure that you get the right price, that all small details are covered prior to purchase, guide you through the process and make recommendations on financing and legal representation.
It is important that you feel comfortable with your realtor t as he/she will be working closely with you and taking you for viewings.
2. Arrange financing
For first time buyers, it is important to establish the amount you can borrow as that would determine your budget. Your realtor should be able to assist you in applying for an In-Principle Approval (IPA). This usually involves filling in the application forms from your bank(s) of choice, followed by a submission of personal documentation including your identification and recent payslips or Notice of Assessments from IRAS (Inland Revenue Authority of Singapore).
The IPA application process usually takes about 1 week. You may begin the search for your home while waiting for approval.
3. Find your property and agree on a price
When reaching a preliminary agreement to purchase, ensure that all important points have been discussed and agreed, including any repairs or changes prior to purchase, what stays and what goes, any special requirements from both sides and the anticipated schedule.
4. Obtain the Option to Purchase (OTP)
The OTP is obtained from the seller through their lawyer or realtor. At this point you are required to pay a non-refundable option fee (usually 1% of purchase price). The option period is usually 14 days.
5. Appoint a lawyer
At this stage, you will need to appoint a lawyer to make legal enquiries on the status of the seller, the title of the property and the terms of the sale. If you do not already have a lawyer, your agent will be able to recommend one.
6. Exercise the Option to Purchase (OTP)
To exercise the OTP, you will be required to sign the OTP and pay 5% of the purchase price (less the option fee). The stamp duty must also be paid within 14 days of the contract. All payments will be arranged by your lawyer.
7. Legal Inspection
Your lawyer will carry out an investigation of title deeds and submit the necessary requisitions to the relevant government departments. The seller’s lawyer will also prepare the completion statement and submit documents for stamping to effect completion.
8. Payment and handover
To conclude the transaction, the outstanding balance of the purchase price must be paid. This payment is usually disbursed by the bank, or made in cash if a loan is not taken. This stage may take 10 to 12 weeks after the option is exercised.
Once payment is received by the seller's lawyer, the keys and/or title deed will be handed over to the buyer.
The entire purchase process usually takes between 12 to 14 weeks.
Buying Procedures for Private Residential Properties
(Under Construction / Completed)
General Information for Buyers
Tax Matters
