1. Engage an exclusive realtor (agent)
A professional realtor will help you market your property, as well as ensure that you get the best possible price based on current market conditions, check that all small details are covered prior to sale, guide you through the process and make recommendations on financing and legal representation.
A competent realtor will be able to assist you in pricing your property appropriately. He/she will also be able to provide a comparable market analysis report to you to support the price recommendation.
Once all terms and conditions related to commission and exclusive representation period are agreed upon, your realtor will market the property.
It is important that you feel comfortable with your realtor as he/she will be working closely with you to arrange viewings for prospective buyers.
3. Completion
Once the buyer has exercised the OTP, the seller's lawyer will prepare all legal documentation and make all outstanding payments to the bank (if a mortgage loan was taken up). At this point, the realtor's commission must be paid.
If seller stamp duties are payable, the amount will be deducted from the sales proceeds.
If there are no outstanding loans, the seller must hand over the title deed to his/her lawyer. The keys to the property must also be handed over to the lawyer.
If the property is sold with tenancy, the tenancy agreement must be handed over to the lawyer.
The whole process usually takes about 10 to 12 weeks to complete from the time the buyer exercises the OTP.
2. Accept an offer and issue an Option to Purchase (OTP)
Once you accept an offer (usually 1% of agreed price), your realtor will draft the OTP for your signature. The signed OTP will then be presented to the buyer or the buyer's realtor.
The OTP is usually valid for 2 weeks. In cases where exceptions are made, the buyer and seller must agree on the new terms prior to signing of the OTP.
Once the OTP is issued, the seller cannot issue another OTP to any other buyer.
If the buyer does not exercise the OTP, the downpayment of 1% of the purchase price may be forfeited and retained by the seller.
SELLING GUIDE
for private residential properties
Selling Procedures for Private Residential Properties
(Under Construction / Completed)
Checklist when your property is sold
> Pay all your Outstanding Property Tax
> Terminate GIRO Payment Arrangement (if any)
> Submit Claims for Property Tax Refund (if any)
> Notify IRAS of the Property Transfer
> Pay Seller’s Stamp Duty (if applicable)
