Can you provide a detailed timeline for the payment stages when a PR buys a resale private home priced at $1.4 million?

When buying a resale private home in Singapore, here is a detailed timeline of the payments and stages involved:

Secure Option to Purchase (OTP)

• Timeline: Week 1
• Description: The seller grants you the option to buy the property.
• Payment: 1% of the purchase price, which for a $1.4 million property would be $14,000.

Exercise Option

• Timeline: Within 14 days of receiving the OTP
• Description: You confirm your intention to purchase by signing the OTP.
• Payment: 4% of the purchase price minus the 1% option fee already paid. For a $1.4 million property, this would be $56,000 - $14,000 = $42,000.

Apply for Bank Loan

• Timeline: Within 2-4 weeks
• Description: Submit necessary documents to secure a loan for the property.
• Payment: Loan application fee, which varies by bank.

Pay Stamp Duties

• Timeline: Within 2 weeks from exercising the OTP
• Description: Pay Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD) if applicable.
  • BSD for a $1.4 million property would be around $36,600.
  • ABSD for a Permanent Resident or a Singaporean buying their second property would be 17% of the purchase price, which is $238,000.

Sign Sales and Purchase Agreement

• Timeline: Within 8-10 weeks from receiving the OTP
• Description: A formal contract prepared by lawyers to finalize the purchase.
• Payment: Legal fees, which vary by law firm but are typically around $3,000.

Completion and Key Collection

• Timeline: 10-12 weeks from exercising the OTP
• Description: Final meeting with the seller to transfer ownership and collect the keys.
• Payment: The remaining 20% down payment (if not already paid), which can be $280,000 for a $1.4 million property. This can be paid using cash or CPF funds. The remaining 75% or more is financed through a bank loan.

Here’s a summary of the payments for a $1.4 million property:
- Option Fee: $14,000
- Exercise Fee: $42,000
- BSD and ABSD: $36,600 (BSD) + $238,000 (ABSD) = $274,600
- Legal Fees: Around $3,000
- Down Payment: $280,000
- Bank Loan: $1,050,000

This timeline and payment structure will help you navigate the process of buying a resale private home in Singapore. For more detailed information and tools to assist in your property search, you can use the resources available on EdgeProp Singapore.