What is the timeline for payment for a resale condo?

When purchasing a resale condominium in Singapore, the payment timeline is structured as follows:

Grant of Option

• The seller grants the Option to Purchase (OTP) to the buyer, typically requiring a booking fee of 1% of the purchase price, paid in cash.

Exercise of Option

• The buyer must exercise the OTP within 14 days, paying an additional 4% of the purchase price in cash. This brings the total cash payment to 5% of the purchase price.

Buyer’s Stamp Duty (BSD)

• Within 14 days of exercising the OTP, the buyer must pay the Buyer’s Stamp Duty. The rates are 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, and 4% on the remaining amount.

Legal Fees and Valuation Fee

• The buyer will also need to pay legal fees, which can range from $2,500 to $4,000, and a valuation fee of around $350 to $500. These can be paid using cash or CPF.

Downpayment and Loan

• Within 8 to 12 weeks of exercising the OTP, the buyer will need to complete the sale and purchase transaction. This involves paying the downpayment, which is typically 25% of the purchase price if taking a 75% bank loan. 5% of this must be paid in cash, while the remaining 20% can be paid using cash and/or CPF.

Completion of Sale

• At the completion of the sale, the buyer pays the balance of the purchase price, which can be covered by the bank loan. Additional costs such as outstanding property tax, town council service and conservancy fees, and any mortgage discharge fees (if applicable) will also be settled.

Here is a summary of the key payment stages:
- Booking Fee: 1% of purchase price in cash upon grant of OTP.
- Option Fee: 4% of purchase price in cash within 14 days of grant of OTP.
- Buyer’s Stamp Duty: Within 14 days of exercising OTP.
- Legal and Valuation Fees: Paid around the time of exercising OTP.
- Downpayment: 25% of purchase price (5% cash, 20% cash/CPF) within 8 to 12 weeks.
- Balance of Purchase Price: Paid at completion of sale, typically covered by bank loan.

For more detailed information and tools to help with your property purchase, you can use EdgeProp's resources such as the mortgage calculator and property guides.