What is the payment timeline when buying resale property?


The process of buying a resale property is less complicated than a new launch property. You can read more about buying a new launch property HERE.


The following chart show the timeline after you have decided and put down a deposit for your new home:

 Resale Property Purchase Payment Timeline


What is an Offer to Purchase?

This is a letter to the seller of the property with an offer price. Usually it is accompanied by a cheque with 1% of the offer price. The amount may be higher if there are special conditions attached to the offer. The seller may accept or decline the offer.


What is an Option to Purchase (OTP)?

The OTP is a right given by a property seller (individual or developer) to a prospective buyer to purchase his property once he accepts the offer. It is a valid and binding real estate contract.


How is the OTP exercised?

The buyer will bring the OTP to his solicitors and pay the remaining 4% of the booking fee.

The solicitors will proceed to transfer the Certificate of Title (CT) to the buyer.


What is the Certificate of Title (CT)?

The Certificate of Title (CT) which is issued by the Singapore Land Authority, is the only legal document that proves property ownership.


What is Stamp Duty?

This is a tax imposed by the IRAS (Inland Revenue Authority of Singapore) for the purchase of property. The Buyer’s Stamp Duty (BSD) is typically calculated using the formula:


For properties above $360,000 but below $1 million:

3% - $5400


For properties $1 million and above:

4% - $15400


There is also Additional Buyer’s Stamp Duty (ABSD) for purchasers of multiple properties or non-Singaporean purchasers. To check if you are liable for ABSD, cllck HERE for our HomeReward calculator.


How much are the conveyancing fee charged by the lawyer?

This ranges between $2000 - $3000. There will be a mortgage stamp duty usually at $500 if you are taking a loan. There are also additional charges if you are using CPF.


Disclaimer : This article serves as a guide only, and you should not make your decision based solely on this article. You are advised to seek professional advice from a licensed real estate salesperson to assist you in planning your real estate portfolio.