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
|Day 1||Signing 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)
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%.
|Est 6 – 9 months||Completion of Foundation Work||10%|
|Est 6 – 9 months||Completion of Reinforces Concrete Framework||10%|
|Est 3 – 6 months||Completion of brick walls||5%|
|Est 3 – 6 months||Completion of roofing / ceilings||5%|
|Est 3 – 6 months||Completion of electrical wiring, internal plastering, plumbing & installation of door & window frames||5%|
|Est 3 – 6 months||Completion of carparks, roads, & drains serving the development||5%|
|Notice of Vacant Possession |
(Temporary Occupation of Permit - TOP)
|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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