Should the original copy of the OTP be kept by the seller or the buyer to forward to their lawyers

The seller typically issues the original Option to Purchase (OTP) document and retains the original copy after receiving the option fee from the buyer.

For both HDB flats and private properties in Singapore, the process works as follows: The seller (or their agent/lawyer) prepares and provides the OTP to the buyer, who signs it and pays the option fee (usually 1% of the purchase price). The seller keeps the original signed OTP, while the buyer may receive a copy for their records. When exercising the option, the buyer returns a signed copy of the OTP to the seller along with the option exercise fee (typically 4% of the purchase price), but the original remains with the seller until completion.

The seller then forwards the original OTP to their own lawyer (or coordinates with the buyer's lawyer) to prepare the Sale and Purchase Agreement and handle legal completion, which usually occurs 8-12 weeks later. Buyers should provide their lawyer with a copy of the OTP for due diligence, such as stamp duty calculations or loan applications. This practice ensures the legally binding original document stays with the issuing party (seller) for safekeeping and transaction progression. For HDB resale flats, use only the HDB-prescribed OTP form, available via HDB portals, and follow their specific submission steps on the HDB Flat Portal after exercise. Check EdgeProp Singapore for the latest property transaction guides and listings to stay updated on such processes.