To a lot of buyers, the process of buying a new launch condo can be rather confusing or complicated. Refer to the table below for a summary of the procedure and timeline for purchasing an uncompleted project (Building Under Construction) from the developer.
| Timeframe | Stage | Payment |
|---|---|---|
| Day 1 | Signing of Option to Purchase (OTP) (Meanwhile selection of Mortgage loan & Engagement of Lawfirm) |
5% Booking Fee |
| Within 2 weeks | Sales & Purchase Agreement (S&P) sent to Lawfirm, or sent to Buyer if no Lawfirm is appointed | – |
| Within 3 weeks from delivery of S&P | Buyer to sign and exercise S&P at Law firm | – |
| Within 2 weeks of Signing S&P | Buyer to pay Stamp Duty | Buyer Stamp Duty (BSD) & Additional Buyer Stamp Duty (ABSD) |
| Within 8 weeks from Day 1 | Buyer to pay remaining downpayment (Cash/ CPF / Both) |
15% Downpayment |
| Thereafter | Progressive Payments | 80% Progressive Payment Breakdown |
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.
