Filter By Categories

Latest Stories

    Featured Stories

    Filter By Categories
    sale-of-private-property-singapore-procedure

    Congratulations!

    You’ve managed to find a buyer for your resale HDB or private property. You’ve gotten through the hardest part – but until the sale has been officially completed, you can’t rest easy just yet.

    Now that you’ve gotten to this point, you may be wondering: “what else do I need to do in the meantime? How long does the whole process take?”

    We’re here to give you the rundown of the private property or HDB resale process so you know exactly what to expect.

    Click here to skip ahead to the relevant section: HDB Resale Transactions or Sale of Private Property

    HDB Resale Transactions

    If you’re selling an HDB flat, you’ll have to do everything by the book.

    We’ve got an in-depth guide on everything you need to know about selling an HDB flat, but here’s a quick recap of the timeline in an infographic:

     

    HDB Resale Procedure Timeline

    Sale of Private Property

    For condominiums, landed property, and so on, it typically takes 3 months to complete the entire sale once you’ve secured a buyer.

    In that time, you’ll have to engage a solicitor and clear a few other tasks.

    The breakdown of the steps are as follows:

    1. Draft the Option to Purchase (OTP) for Review
    2. Sign the OTP & Collect a 1% Option Fee / Booking Fee
    3. Wait for Buyer to Exercise OTP & Collect Option Exercise Fee
    4. Engage a Solicitor
    5. Pay the Seller’s Stamp Duty (if needed)
    6. Finalize the Sale

    Here’s an infographic charting out the timeline:

    Sale of Private Property Singapore Procedure

     

    1. Draft the Option to Purchase (OTP) for Review

    You can actually engage a solicitor for this, but it’s not the cheapest route.

    The lawyer would (ideally) specialize in conveyancing, which is the legal term to describe the transfer of property. He’ll settle everything from drafting the legal documents, registering them with the Singapore Land Authority, and coordinating with CPF/banks/the buyer’s lawyer.

    But if you want to save the extra dough, the alternative would be to have your agent settle this for you. Bluenest’s property sale services include templates for the Option to Purchase. You can download them, tweak them, and then send it over to your buyer / buyer’s lawyer once you’re happy.

    There may be some negotiation and amendments here, but eventually there should be an agreement on the terms of the sale.

    Back to Table of Contents

     

    2. Sign the OTP & Collect the 1% Booking Fee

    Once the OTP document has been finalized, you’ll have to sign it so you (or your agent) can send it over to the buyer.

    You’ll then collect 1% of the sale price as the Option Fee / Booking Fee.

    Back to Table of Contents

     

    3. Wait for Buyer to Exercise OTP & Collect Option Exercise Fee

    You’ll now have to wait for the buyer to exercise the OTP – or let it lapse. The time frame for this is negotiable, but the industry standard is 14 days.

    One of two things will happen:

    1. The buyer exercises the OTP and pays you another 4% of the sale price as the Option Exercise Fee
    2. The buyer decides not to proceed and you get to keep the 1% Option Fee

    If they proceed with the sale, yay! If not, you’ll have to put your place back on the market and look for another buyer.

    Back to Table of Contents

     

    4. Engage a Solicitor

    If your buyer chose to exercise the OTP, it’s now time to engage that solicitor (if you haven’t already). Only the lawyer can register the official documents with the Singapore Land Authority and make sure the transfer goes over smoothly.

    On your buyer’s end, they’ll lodge a caveat after the conclusion of the contract. Also, if they got a bank loan for the purchase, their bank may also send a professional valuer down to formally evaluate your property.

    During the 8-10 weeks following this, you’ll have to maintain the house in the same condition and move all your stuff out entirely. The buyer will also inspect your soon-to-be-former property to verify that it’s empty and intact.

    Back to Table of Contents

     

    5. Pay the Seller’s Stamp Duty (if needed)

    Almost there!

    Once the Sale & Purchase Agreement has been signed, you now have to pay stamp duty – but only if you haven’t had the property for very long.

    How much you’ll pay depends on when you bought the property. The table below details the rates:

    Seller Stamp Duty Payable, Singapore

    Source: IRAS

    Back to Table of Contents

     

    6. Finalize the Sale

    You’re done! All that’s left is to head over to the lawyer’s office, collect the other 95% of the payment balance, and hand over the keys.

    Meanwhile, the lawyers will handle the official transfer of the title deeds.

    Back to Table of Contents

     

    Was this article helpful? Good things must share!

    Book an appointment with a Bluenest agent to get the biggest bang for your buck in the sale of your property.

    Subscribe Email

    Popular Tags

    Buying Guide Selling Guide Tips & Advice hdb resale process Renting Guide hdb for sale hdb rental private property rental property for sale sale of private property procedure buying property property valuation report upgrading to a condo bankruptcy divorce how to increase property value how to price property upgrading my property