Timeline Of a New Launch Sales Transaction

To a lot of buyers, the process of buying a new launch condo can be rather confusing or complicated. Below are 2 tables that summarise the procedure of purchasing an uncompleted project (under construction) from the developer.

Payment of the First 20% Downpayment

TimeframeStagePayment
Day 1Signing of Option to Purchase (OTP)
(Meanwhile selection of Mortgage loan & Engagement of Lawyer)
5% Booking Fee
Within 2 weeks Sales & Purchase Agreement (S & P) sent to Lawyer/ Buyer if no lawyer appointed
Within 3 weeks
from delivery of S & P
Buyer to sign and exercise S & P @ Law firm **
Within 2 weeks of
Signing S & P
Buyer to pay Stamp Duty BSD (3% - $5,400) + ABSD
Within 8 weeks
from Day 1
Buyer to pay remaining downpayment
(Cash/ CPF / Both)
15% Downpayment

 

The S & P must be exercised within 3 weeks upon delivery of the documents. If the option expires, 25% of the booking fee (which amounts to 1.25% of the purchase price) will be kept by the developer.

The duration of each stage can be earlier than stated, however the completion date for the entire procedure must be within  8 weeks from the Date of Option. If there is any delay, a request in writing must be submitted to the developer and is subjected to approval.

 

 

 

Progressive payment for the remaining 80%.

Estimated TimeframeStagesPayment
Est 6 – 9 monthsCompletion of Foundation Work10%
Est 6 – 9 monthsCompletion of Reinforces Concrete Framework10%
Est 3 – 6 monthsCompletion of brick walls 5%
Est 3 – 6 monthsCompletion of roofing / ceilings5%
Est 3 – 6 monthsCompletion of electrical wiring, internal plastering, plumbing & installation of door & window frames
5%
Est 3 – 6 monthsCompletion of carparks, roads, & drains serving the development 5%
Notice of Vacant Possession
(Temporary Occupation of Permit - TOP)
25%
Legal Completion date (Certification of Statutory Completion - CSC) 15%

 

The estimated timeframe might vary between different projects.

 

 

If there is any confusion with any of the stages, never hesitate to clarify with your real estate salesperson, banker or lawyer. It is very important to clear your doubts before making any financial commitment. Bear in mind that other than the Buyer Stamp Duty (BSD), there are also the Additional Buyer Stamp Duty  (ABSD), Seller Stamp Duty (SSD) and Total Debt Service Ratio (TDSR) that need to be taken into serious consideration before buying a new home. For buyers who are currently staying in a HDB flat, they will need to meet the Minimum Occupation Period (MOP) of 5 years before being eligible to buy their second residential property.

 

 

Can’t seem to find the perfect house? Give us a call / drop us a text @ +65 9137 4668 today . We have information on many of the existing and upcoming developments in Singapore, let us bring you closer to your desired dream home.

 

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