Short answer
In a resale purchase the seller grants an Option to Purchase (OTP) for an option fee, commonly 1% of the price. You then have a set period, commonly 14 days, to exercise it by paying a further sum, commonly 4%, bringing the deposit to 5% †. Completion follows in about 8 to 12 weeks.
† marks a figure we have not confirmed yet. Check the official source before relying on it.
The OTP
Negotiate the price, then your agent or lawyer prepares the OTP. Pay the option fee to hold the unit. If you do not exercise within the option period, you lose the fee. If the seller refuses to sell after you exercise, you can sue for specific performance.
Due diligence
- Check the remaining lease and the title (freehold or leasehold).
- Compare with recent URA caveats in the same project.
- Ask for the maintenance fee, sinking fund and any pending special levy.
- Confirm the unit has no major defects or illegal alterations †.
Sources to check
Frequently asked questions
Can I back out after paying the option fee?
Yes, but you forfeit the option fee. Once you exercise the option you are bound to the sale.