Timeline and procedure for buying a resale condo in Singapore

The process of buying a resale condo in Singapore generally takes about 8 to 12 weeks to complete from the time you exercise the Option to Purchase (OTP). However, the overall process, including initial planning and property search, can take longer. Below is a guide for buying a resale condo in Singapore.

Phase 1: Planning and Preparation

This phase is about getting your finances in order and understanding your eligibility before you start your property search.

• Financial Planning:

  • Determine your total budget, which should account for the property price, down payment, stamp duties, legal fees, and other miscellaneous costs.

  • Secure an In-Principle Approval (IPA) for a bank loan. This will give you a clear idea of the maximum loan amount you can get, which is typically up to 75% of the property's price for your first home loan.

  • Understand the different costs involved, such as Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD) if applicable, legal fees, and valuation fees.

  • Know your Loan-to-Value (LTV) and Total Debt Servicing Ratio (TDSR) limits.

• Engage a Property Agent (Optional but Recommended):

  • An agent can help you with market analysis, property search, and negotiations.

  • They can also guide you through the process and help you avoid common pitfalls.

Phase 2: Property Search and Securing the Purchase

This is the hands-on part of the process, where you find a property and make an offer.

• Property Search and Viewing:

  • Look for properties that meet your criteria for location, size, and budget.

  • Conduct thorough viewings and inspect the unit for any potential defects.

  • It is also a good idea to check the surrounding area for amenities and future developments.

• Making an Offer and Obtaining the OTP:

  • Once you've found a property you want to buy, you will negotiate the price and terms with the seller.

  • When an agreement is reached, you will pay a booking fee (usually 1% of the purchase price) in cash to the seller in exchange for an Option to Purchase (OTP).

  • The OTP is a legal document that gives you the exclusive right to purchase the property for a specified period, typically two weeks.

Phase 3: Exercising the Option and Legal Completion

This is the period where the bulk of the transaction takes place.

• Engage a Conveyancing Lawyer:

  • A lawyer is essential for the legal transfer of ownership. They will handle the paperwork and legal checks, such as a title search and submitting legal requisitions.

  • It's a good idea to engage a lawyer who is on both your bank's and CPF's panel of law firms to save on legal fees.

• Exercising the OTP:

  • Within the 2-week option period, you must secure a Letter of Offer (LO) from your bank and decide to proceed with the purchase.

  • You will then exercise the OTP by signing the Sales and Purchase (S&P) agreement at your lawyer's office and paying the remaining deposit, which is typically 4% of the purchase price.

• Paying Stamp Duties:

  • You are required to pay the Buyer's Stamp Duty (BSD) and any applicable Additional Buyer's Stamp Duty (ABSD) within 14 days of exercising the OTP. This can be paid in cash or with CPF funds.

• Completion (8 to 12 weeks from OTP):

  • This is the final stage of the process, which usually takes 8 to 12 weeks from the date you exercise the OTP.

  • During this period, your lawyer will handle all the necessary administrative procedures.

  • On the completion date, you will pay the remaining down payment (usually 20%) and the bank will disburse the loan amount (up to 75%).

  • You will then receive the keys to your new home.

Key Payments and Timelines

Here's a simplified breakdown of the payments and when they are typically made:

Disclaimer: This is a general guide. Specific timelines and procedures may vary depending on individual circumstances and the agreement between the buyer and seller. It is always recommended to consult with a property agent, a banker, and a lawyer for personalized advice.