Buying a new launch
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You need to bring:
3. Signed offer letter (if applicable).
4. CPF statement (if applicable).
5. Marriage cert (if you are married) /Birth Cert (if parents and child purchase)
Building of wiring, piping, windows and door.
Law firm will exercise the S&P
for you by sending it to the
What are Progressive Payments?
15% due on the 8th week
can be paid using cash
Shortlisted the projects that you like, you can visit the developer’s show flat to have a look at the mock-up unit and the project model. For new condo launches, usually there will be a preview day usually 1 to 2 weeks before actual launch day. Potential buyers can submit their interest by filling up the Expression of Interest (EOI) form, together with a blank cheque issued to the developer’s project account.
The cheque allows the potential buyer a chance to obtain a balloting queue number on the launch day. The cheque will be returned to the buyer without any penalty eventually if the buyer does not wish to proceed with the purchase.
On launch day, the potential buyer will be given a ballot number. The buyer has to be present once the number is called or else the opportunity to select the units will be forfeited. Once the number is called, the buyer has to select a few units based on the preferred choice. Usually, there will be a queue before the selection, it is advisable to have a few choices in case the first choice is the taken up by other buyer ahead of the queue.
Once the unit is booked, the buyer will have to fill up the blank cheque the amount which is equivalent to 5 percent of the purchase price of the property. After that, the buyer will be given a set of Property Details Information (or ‘PDI)’ documents – this is a set of all the floor plans, rules and regulations, offered items and other documents related to the unit has booked. At this point in time, the buyer will be issued with the corresponding Option To Purchase (OTP) for the unit.
With the OTP, you are now ready to secure the bank loan for your property. Go to the bank with the OTP and the bank will issue you a Letter of Offer, do take note of the interest rates and the lock in period.
If you currently own a HDB you may opt for a deferred payment scheme and utilized a bridging loan.
It is a temporary loan to help EC buyers to tide over their short term financial needs. The bridging loan amount is the difference between the purchase price or valuation of the new EC, whichever is lower, and the applied home loan amount.
You’ll also have to engage a lawyer to do the conveyancing work for you, it is advisable to engage a lawyer that is in the bank’s panel of lawyers. Legal fee for conveyancing is around $2000 to $3000.
After HDB has approved your application to purchase the EC, which takes about a month, you’ll receive a Sales and Purchase (S&P) Agreement from the developer. You’ll have 21 days to exercise by signing and mailing back the S&P Agreement.
Upon exercising the S&P, you’ll need to pay the Buyer’s Stamp Duty (and ABSD if applicable) within 2 weeks of signing it.
Subsequently, within 8 weeks from the date of OTP, you’ll have to pay the 15 percent of the purchase price (which is the remainder of the downpayment) in cash or CPF monies or a combination of both.
The remaining price of your condo will be made progressively, each time the developer completes a certain stage in construction:
|Progress Payment||Percentage Of Purchase Price|
|Upon the grant of Option to Purchase||5% (Booking Fee)|
|Upon signing of the Sale & Purchase Agreement or within 8 weeks from the Option date||15%|
|Completion of foundation work||10%|
|Completion of reinforced concrete framework of unit||10%|
|Completion of partition walls of unit||5%|
|Completion of roofing/ceiling of unit||5%|
|Completion of door sub-frames/ door frames, window frames, electrical wiring, internal plastering and plumbing of unit||5%|
|Completion of car park, roads and drains serving the housing project||5%|
|Notice of Vacant Possession (TOP)||25%|
|On Completion date||15%|
And finally, after the condo TOP, it is time to collect the keys.
You will have 12 months of defects liability period to check for all kinds of defects in your condo unit.