Answer
Private Condo Resale Process — Step-by-Step Buyer Guide
Unlike buying an HDB, there's no government approval for private condo resale. It's a direct contract between buyer and seller. Faster — but more things can go wrong if you don't know the process.
Answer: Buying a resale condo takes 8–12 weeks from exercising the OTP to completion. The process: viewing → negotiate → OTP (1% option fee, 14-day window) → exercise OTP (4% exercise fee) → engage lawyer → bank valuation & loan → pay stamp duty → completion (balance payment + keys). Total upfront costs for a $1,500,000 condo: about $75,000 cash + $225,000 CPF + $31,100 stamp duty.
The 7 Steps
Step 1: Viewings & Research
View units, check recent transacted prices on URA, and compare maintenance fees. Get an In-Principle Approval (IPA) from a bank before you start — this confirms your borrowing power and shows sellers you're serious.
| What to Check | Where |
|---|---|
| Recent transacted prices | URA REALIS, PropertyGuru, 99.co |
| Remaining lease | SLA INLIS or condo management |
| Maintenance fees | Ask the seller/agent directly |
| Outstanding sinking fund / legal issues | MCST minutes (request from management) |
| En bloc potential | Check condo age, plot ratio, land value |
Step 2: Negotiate & Issue OTP
Make your offer. If accepted, the seller issues an Option to Purchase (OTP). You pay a 1% option fee ($15,000 on a $1,500,000 condo). This gives you 14 calendar days to decide whether to proceed.
Step 3: Exercise the OTP
Within 14 days, sign the OTP to exercise it and pay the 4% exercise fee ($60,000 on a $1,500,000 condo). This forms a binding Sale & Purchase Agreement. If you don't exercise within 14 days, the OTP expires and you forfeit only the 1% option fee.
Step 4: Engage a Conveyancing Lawyer
Your lawyer handles title searches (check for caveats, encumbrances, outstanding charges), prepares transfer documents, and coordinates with the seller's lawyer. Engage one immediately after exercising — don't wait. Legal fees: $2,500–$3,500.
Step 5: Bank Valuation & Loan Approval
The bank orders a valuation of the property. The loan amount is based on the lower of the purchase price or bank valuation. If there's a shortfall, you cover the gap in cash. Loan processing takes 2–3 weeks. Valuation fee: $300–$500.
Step 6: Pay Stamp Duty
BSD (and ABSD if applicable) must be paid within 14 days of exercising the OTP. Your lawyer computes the amount and submits to IRAS. BSD on $1,500,000: $39,600. BSD can be paid from CPF OA; ABSD must be cash.
Step 7: Completion
Typically 8–12 weeks after exercising the OTP. Your lawyer releases the balance purchase price (via your bank loan + remaining down payment) to the seller's lawyer. Title transfers to you. You receive the keys.
Costs at Each Stage — $1,500,000 Condo
SC first property, 75% LTV bank loan
| Stage | What You Pay | Amount | Source |
|---|---|---|---|
| OTP | Option fee (1%) | $15,000 | Cash / cheque |
| Exercise OTP | Exercise fee (4%) | $60,000 | Cash or CPF OA |
| After exercise | BSD (stamp duty) | $39,600 | CPF OA or cash |
| After exercise | Conveyancing lawyer | $3,000 | Cash |
| After exercise | Bank valuation fee | $400 | Cash |
| Completion | Remaining down payment (20%) | $225,000 | CPF OA (15%) + cash (5%) |
| Completion | Bank loan disbursement (75%) | $1,125,000 | Bank |
| Total cash outlay | $93,000 | Cash (5% + fees) | |
| Total CPF OA used | $264,600 | 15% down + BSD | |
Option fee (1%) + exercise fee (4%) form the 5% deposit, which is part of the 25% down payment. The remaining 20% is paid at completion.
Documents You Need
| Document | When | Where to Get |
|---|---|---|
| NRIC / passport | OTP stage | Existing ID |
| In-Principle Approval (IPA) | Before viewing | Bank (free, valid 30 days) |
| Income documents (payslips, NOA, IR8A) | Loan application | Employer / IRAS |
| CPF statement | Loan application | CPF website / app |
| Proof of address | Lawyer engagement | Utility bill / bank statement |
| Option to Purchase (OTP) | Signing | Seller's agent prepares |
| Sale & Purchase Agreement | Exercise OTP | Seller's lawyer prepares |
Common Pitfalls
Not getting IPA before viewing
Without IPA, you don't know your real budget. You might issue an OTP, then discover the bank won't lend you enough — forfeiting 1%.
Valuation shortfall surprise
If the bank values the property lower than your purchase price, you cover the gap in cash. On a $1,500,000 purchase valued at $1,400,000, that's an extra $100,000 out of pocket.
Ignoring remaining lease
CPF cannot be used if the remaining lease doesn't cover the youngest buyer to age 95. Banks may also cap the loan tenure, reducing your borrowing power. Always check remaining lease before making an offer.
Not checking MCST issues
Ask for recent MCST meeting minutes. Look for: upcoming special levies, sinking fund adequacy, pending lawsuits, and major repair works. A $500/month maintenance fee can jump to $800 if the condo needs major repairs.
Rushing the 14-day OTP window
14 calendar days is short. You need to: confirm financing, engage a lawyer, do final checks, and arrange the exercise fee. Start the moment you receive the OTP, not a few days later.
Timeline Summary
| Week | What Happens | Your Action |
|---|---|---|
| Week 0 | Offer accepted, OTP issued | Pay 1% option fee |
| Week 1–2 | Due diligence, confirm loan | Engage lawyer, submit loan application |
| Week 2 | Exercise OTP | Pay 4% exercise fee, sign S&P |
| Week 3–4 | Stamp duty, title searches | Pay BSD to IRAS via lawyer |
| Week 4–6 | Bank processes loan, valuation | Provide documents, attend valuation |
| Week 8–12 | Completion | Pay balance, collect keys |
Timeline can be shorter (8 weeks) if the buyer is a cash buyer or loan is pre-approved. Delays usually come from bank valuation or document issues.
Know exactly what you'll pay
Use the stamp duty calculator to get the exact BSD and ABSD for your purchase price and buyer profile.
FAQ
How long does it take to buy a resale condo in Singapore?
About 10–14 weeks from signing the OTP to collecting keys. Add 2–8 weeks of viewings before that. The 14-day OTP window, loan processing (2–3 weeks), and conveyancing (6–8 weeks) run partly in parallel. Completion is typically 8–12 weeks from exercising the OTP.
What is the difference between option fee and exercise fee?
The option fee (1% of purchase price) secures the OTP and gives you 14 days to decide. If you exercise, you pay the exercise fee (typically 4%). If you walk away, you forfeit only the 1%. Both amounts count towards your 25% down payment.
Do I need a lawyer to buy a resale condo?
Yes. A conveyancing lawyer is mandatory for private property transactions in Singapore. They handle title searches, check for encumbrances, prepare transfer documents, coordinate with the bank, and manage completion. Expect $2,500–$3,500 in legal fees.
What if the bank valuation is lower than the purchase price?
You pay the difference in cash. The bank lends up to 75% of the valuation or purchase price, whichever is lower. If you buy at $1.5M but the bank values it at $1.4M, the bank lends 75% of $1.4M ($1.05M), and you cover the extra $100K shortfall in cash or CPF.
Can I back out after exercising the OTP?
Technically yes, but it is extremely costly. After exercising the OTP, you have signed a binding Sale & Purchase Agreement. Walking away means forfeiting the 5% deposit (option fee + exercise fee) and potentially facing legal action for breach of contract. The seller can sue for damages.
When do I pay stamp duty on a resale condo?
Within 14 days of exercising the OTP. Your conveyancing lawyer will compute BSD (and ABSD if applicable), prepare the stamp duty forms, and arrange payment to IRAS. You can pay BSD from CPF OA. ABSD must be paid in cash.
Related
Last updated Feb 2026. Process based on standard private property transactions in Singapore. Timelines are estimates and may vary. This is general information, not legal or financial advice.