BACKGROUND
This page applies only for new launch private houses (especially condos). For HDBs, check out our respective guides for buying a BTO, SBF, New EC Flat or Resale HDB / DBSS / EC Flat. For resale private properties, see our guide for buying a Resale Private Property.
ARRANGE FINANCING
You need to secure a bank loan for your property (unless paying full in cash). See our Mortgage & Financing Guide for important info and calculations for your housing loan.
I recommend Redbrick (and specifically Daniel) for their mortgage advisory services. They will provide you an optimal loan package and a conveyancing law firm at an attractive rate. Also, they cost you nothing as they take their fees from the banks.
I recommend Redbrick (and specifically Daniel) for their mortgage advisory services. They will provide you an optimal loan package and a conveyancing law firm at an attractive rate. Also, they cost you nothing as they take their fees from the banks.
- Redbrick Mortgage Advisory — Daniel Ong (+65 9875 4262)
SELECTION & BOOKING
- Check online property websites (mainly Property Guru, SRX, 99.co) for new private launches.
- Walk-in or arrange an appointment with the developer or sales representative to view the new launch condo you are interested in (See: Finding Your Perfect Home).
- Once you have made your decision, make a price offer to the developer or sales rep.
SUCCESS > RECEIVE OTP & COMPLETE FINANCING
- If your offer is accepted, pay the Option Fee (5% of purchase price) to the developer who will grant you an Option to Purchase (OTP).
- Discuss with your bank representative/mortgage advisor to secure a Mortgage Package, Conveyancing Law Firm (Property Lawyer), and Letter of Offer (LO).
EXERCISE OTP & SIGN S&P
- Within 2 weeks of receiving the OTP, sign the OTP and return it to the developer to "exercise" the OTP (details may differ according to developer).
- Also sign the Letter of Offer and return it to the mortgage bank.
- Your lawyer will receive the Sales & Purchase Agreement (S&P) from the developer and will arrange an appointment for you to sign the S&P at the law firm office.
- If you decide not to purchase the property, you will forfeit 25% of the Option Fee.
COMPLETE PAYMENT
- Within 2 weeks of signing the S&P, pay the Buyer's Stamp Duty (BSD) and any Additional Buyer's Stamp Duty (ABSD) to the developer.
- Within 8 weeks of exercising the OTP, pay the downpayment (15% of purchase price).
PROGRESSIVE PAYMENTS
- You will now pay the developer according to certain construction milestones:
- First 6-9 months: Foundation Work — 10% (5% Cash or CPF, 5% Bank Loan)
- Subsequent 6-9 months: Reinforced Concrete Framework — 10%
- Subsequent 3-6 months: Partition Walls — 5%
- Subsequent 3-6 months: Roof — 5%
- Subsequent 3-6 months: Doors, Windows, Plastering, Electrical Wiring, Piping — 5%
- Subsequent 3-6 months: Car Park, Roads, Drains — 5%
- Subsequent 3-6 months: Building, Roads, Drainage, Sewerage, Water, Gas, Electricity — 25% (Usually also TOP Date)
- Subsequent 1-12 months: Final Payment Date — 15% (Usually also Certificate of Statutory Completion (CSC) Date)
TOP & KEY COLLECTION
- After 3-4 years (as above timeline), your new house is complete and will have the Temporary Occupation Permit (TOP). You can then collect your keys from the developer and move-in.
RESTRICTIONS
- For condos and apartments, check with your Estate Management on pet restrictions.
0 Comments