Buying a Resale Condo in Singapore: The Complete Step-by-Step Process
The resale condo purchase process in Singapore has clear stages, but first-time private property buyers often don't know what to expect at each step. Here's the full process.
Buying a resale condo in Singapore isn't complicated, but it is sequential, and missing a step or a deadline carries real financial consequences. Here's the complete process, stage by stage.
Step 1: Get Your Finances in Order First
Before you start viewing, confirm:
- Your maximum loan amount (run an In-Principle Approval or IPA with a bank, takes 1 to 3 business days)
- Your available CPF OA balance
- Your cash position for downpayment and stamp duties
- Your BSD and ABSD liability (if applicable)
Viewing without knowing your numbers is how buyers fall in love with properties they can't afford, or miss out on deals because they're not ready to move.
Step 2: Find the Property and Negotiate
Once you identify a unit, make an offer through your agent. The seller's agent will negotiate on their client's behalf. This is typically verbal or via email before any paperwork is signed.
When both parties agree on price, proceed to the OTP.
Step 3: Option to Purchase (OTP)
The seller's lawyer (or the seller) issues an Option to Purchase. You pay the Option Fee, typically 1% of the agreed purchase price, to secure the option.
The OTP gives you (the buyer) a window, typically 14 days, to decide whether to proceed. During this time, finalise your mortgage, instruct your lawyer, and verify the property has no encumbrances.
If you don't exercise within 14 days, you forfeit the 1% option fee.
Step 4: Exercise the OTP
To exercise the OTP, you sign the Sale and Purchase Agreement (S&P) and pay an additional 4% of the purchase price (bringing total paid to 5%). BSD and ABSD (if applicable) are payable within 14 days of exercising the OTP.
Your lawyer will handle the S&P, review the title search, and ensure no outstanding encumbrances or issues with the property.
Step 5: Completion (Typically 8 to 12 Weeks)
After exercising the OTP, the standard completion period is 8 to 12 weeks. During this time:
- Your bank prepares the mortgage documentation
- CPF board releases approved CPF funds to your lawyer
- Your lawyer prepares for completion
At completion, the seller receives the full balance of the purchase price (minus option fee and exercise fee already paid). Legal ownership transfers to you.
Step 6: Key Collection and Handover
Keys are handed over at completion. You can request a pre-handover inspection with your agent to document the condition of the unit (fixtures, fittings, any agreed inclusions).
Check that items agreed in the negotiation (appliances, furniture, fixtures) are present and in working order before completion.
Total Costs to Budget For
- 5% downpayment (Option Fee 1% + Exercise 4%), paid in cash or CPF
- Remaining 20% downpayment (if on bank loan with 25% LTV requirement)
- BSD: About 1% to 4% on the first $1.5M depending on price band
- ABSD: If applicable (0% for SC first property, 20% for SC second property, etc.)
- Legal fees: Typically $2,500 to $4,000 for the buyer's lawyer
- Agent commission: Typically 1% of purchase price (seller usually pays buyer agent commission in resale transactions, confirm with your agent)
Our Take
The biggest mistakes buyers make are: not having the IPA in place before viewing, missing the OTP exercise deadline, and underestimating stamp duty in their cash budget. Plan for all three before you start.
At which stage are you currently in your condo purchase journey?
Frequently Asked Questions
How long does a resale condo purchase take in Singapore from offer to keys?
From the time you pay the option fee to completion, a typical resale condo purchase takes 10 to 14 weeks. The OTP period is about 2 weeks, and completion is typically 8 to 12 weeks from the S&P.
Can I use CPF to pay the 1% option fee for a resale condo?
No. The 1% option fee must be paid in cash. The subsequent 4% exercise fee can be paid via CPF if you have sufficient OA balance and the CPF withdrawal has been approved.
What happens if I change my mind after paying the option fee?
If you decide not to exercise the OTP within the option period, you forfeit the 1% option fee. The seller can then re-market the property.
Do I need a lawyer to buy a resale condo in Singapore?
Yes. A conveyancing lawyer is required to handle the title search, prepare the S&P, coordinate with CPF and the bank, and complete the transfer of ownership. Using the same lawyer as the seller is possible but creates a conflict of interest, most buyers engage their own lawyer.
Is agent commission included in the purchase price for resale condos?
In most resale transactions, the seller pays both their own agent's commission and a co-broking fee to the buyer's agent. This means the buyer effectively does not pay agent commission directly. Confirm this arrangement with your agent before engaging them.
Buying a Resale Condo and Want Guidance Through the Process?
From offer to completion, having an experienced agent means you don't miss deadlines, overpay, or inherit someone else's problems. Serene & Mei can walk you through every stage.
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