Private Resale Condo Timeline
| TimeFrame | Stage | Payment |
|---|---|---|
| Before Deciging | Apply for In Principal Approval (IPA) from bank | |
|
Day 1
|
Present Offer to Purchase in exchange for an Option | 1% Booking Fee |
| Engagement of Legal Conveyancing | ||
| Decide on which bank for Home Loan | ||
| Within 2 weeks | Buyer to exercise “Option” & sign Sales & Purchase at solicitor’s law firm | 4% Exercise Fee |
|
Within 2 weeks from Exercising Option
|
Pay Stamp Duty (Buyer) | Formula for quick BSD calculationLess than $1 million (3% x purchase price or market value) – $5,400 = BSD you have to pay Between $1 million to less than $1.5 million (4% x purchase price or market value) – $15,400 = BSD you have to pay Between $1.5 million to less than $3 million (5% x purchase price or market value) – $30,400 = BSD you have to pay More than $3 million (6% x purchase price or market value) – $60,400 = BSD you have to pay |
| Pay Additional Buyer Stamp Duty if applicable | Singapore Citizen 2nd Property – 20% , 3rd onwards- 30% Singapore PR 1st Property – 5%, 2nd –30%, 3rd – 35% Foreigners – 60% |
|
| Within 10-12 weeks from Exercising Option | Completion of Sales & Purchase at Law Firm | 20% Remaining Payment (Cash/CPF) 75% Cash / Bank Loan if Applicable |
Discover the world of private resale timeline in Singapore and dive into the exciting realm of buying and selling residential properties.
Whether you’re interested in a resale HDB flat or a private condo, this blog will guide you through the process from understanding the roles of buyers and sellers to exploring the payment schedule and stamp duty requirements, and we’ll provide you with valuable insights and expert tips for a successful transaction.
Get ready to embark on your property journey with confidence and make informed decisions every step of the way.
Key Takeaways
| Topic | Key Takeaway |
|---|---|
| Private Resale Transaction in Singapore | Private resale transactions involve purchasing a residential property that has been previously owned and lived in by someone else. Buyers have the advantage of viewing the actual unit before making a decision. Roles and responsibilities are defined by the government. |
| Resale Market in Singapore | Resale transactions make up a significant portion of Singapore’s housing market, with buyers choosing between resale HDB flats and resale private residential properties. The median cash-over-valuation (COV) for HDB flats was SGD 0 in 2020, while the median resale price for private properties was SGD 1.48 million. |
| Private Resale Condo vs. New Launch Property | Private resale condos are completed and lived-in properties sold by previous owners, while new launch properties are units sold by developers that have never been occupied. Buyers of resale condos can view the actual unit before purchasing. |
| Roles and Responsibilities in Resale Transaction | Buyers are responsible for paying the purchase price, exercising the Option to Purchase (OTP) within three weeks, and completing the purchase within 10 weeks. Sellers must provide accurate property information, transfer ownership, and vacate the property on the completion date. |
| Key Steps in Resale Condo Transaction | The key steps in a resale condo transaction include resale application, OTP exercise, payment timeline, and completion date. Buyers and sellers complete the sale on the completion date. |
| Option to Purchase (OTP) in Resale Transactions | The OTP gives the buyer the exclusive right to purchase the property. It must be exercised within three weeks by paying a fee (typically 1% of the purchase price). |
| Payment Schedule in Private Resale Transaction | The payment schedule is agreed upon by the buyer and seller and includes the down payment (within two weeks of exercising the OTP) and the remaining balance of the purchase price (on the completion date). |
| Buyer Stamp Duty (BSD) and Additional Buyer Stamp Duty (ABSD) | BSD is a tax paid by buyers calculated as a percentage of the purchase price. ABSD is an additional tax paid by non-Singaporeans or Permanent Residents on private residential property purchases. |
| Seller’s Stamp Duty (SSD) in Resale Condo Sales | SSD is a tax payable by sellers if the property is sold within a certain period from the date of purchase. The rates range from 4% to 12% of the purchase price. |
What is a Private Resale Transaction in Singapore, and How Does it Work?
What is co-ownership?
Co-ownership is when two or more persons jointly own a property.
In co-ownership, multiple people are interested in the property and share the rights and responsibilities of owning the property.
What types of properties can be co-owned?
A wide range of properties, such as residential, commercial, land, or businesses, can be co-owned.
Co-ownership arrangements are commonly used among family members, business partners, or friends.
What are the benefits of co-ownership?
Co-ownership can provide several benefits to the co-owners.
It can allow for shared expenses such as mortgages or maintenance costs, increase purchasing power, and provide access to a larger pool of resources.
Additionally, it can limit liability for each owner, as each owner is only responsible for their share of the property.
Key Steps in a Resale Condo Transaction
Step-by-Step Process of a Resale Condo Transaction
The key steps in a resale condo transaction can be summarized as follows:
- Resale application: The buyer and seller enter into a resale application agreement and submit it to the developer.
- OTP exercise: The buyer exercises the Option to Purchase (OTP) by paying the Option Fee.
- Payment timeline: The buyer pays the down payment, and the seller pays the property tax and other fees.
- Completion date: The buyer and seller complete the sale on the completion date.
Exploring the Option to Purchase (OTP) in Resale Transactions
The Option to Purchase (OTP) is a legal document that gives the buyer the exclusive right to purchase the property from the seller.
The buyer must exercise the OTP within three weeks of the resale application date by paying a fee, typically 1% of the purchase price.
Understanding the Exercise of OTP and the Payment Schedule
After exercising the OTP, the buyer must pay the down payment within two weeks.
The down payment is usually 5–10% of the purchase price and is paid using cash or a bank loan.
The seller must pay the property tax and other fees, such as the legal fees for conveyancing.
The buyer must then pay the remaining balance of the purchase price on the completion date.
Timeline and Process for Selling an HDB Flat in the Resale Market
Overview of the HDB Resale Market in Singapore
The Housing Development Board (HDB) is a government agency developing and managing Singapore’s public housing.
HDB flats are popular among Singaporeans due to their affordability and location.
Step-by-Step Process for Selling an HDB Flat in the Resale Market
The key steps involved in selling an HDB flat in the resale market are as follows:
1. Engage a property agent: The owner engages a property agent to market the flat and find a buyer.
2. Valuation: The owner and the buyer agree on the price, and a valuation is done to determine the COV.
3. OTP exercise: The buyer exercises the OTP within 21 days of the HDB’s acceptance of the resale application and pays a fee.
4. Payment timeline: The buyer secures the necessary loan for the purchase and pays the down payment.
5. Completion date: The buyer and seller complete the sale on the completion date.
Understanding the CPF and Mortgage Loan Eligibility for Buying a Resale HDB Flat
Eligible Singaporeans can use their Central Provident Fund (CPF) savings to purchase an HDB flat.
The amount of CPF savings that can be used depends on the buyer’s age and the type of loan taken.
Buyers can also take a home loan from a financial institution such as a bank to finance the purchase of the HDB flat.
Payment Schedule for a Private Resale Transaction
How is the Payment Schedule Determined in a Private Resale Transaction?
The payment schedule in a private resale transaction is agreed upon by the buyer and seller and is typically based on the completion date.
The payment timeline includes the down payment, which is usually paid within two weeks of exercising the OTP, and the remaining balance of the purchase price, which is paid on the completion date.
Understanding the Buyer Stamp Duty (BSD) and Additional Buyer Stamp Duty (ABSD) in Resale Condo Purchases
The Buyer Stamp Duty (BSD) is a tax that buyers must pay when purchasing a property in Singapore.
The BSD is calculated as a percentage of the purchase price and is payable within 14 days of the exercise of the OTP.
Additionally, buyers who are not Singaporeans or Permanent Residents must pay an Additional Buyer Stamp Duty (ABSD) on the purchase of a private residential property.
The ABSD rates range from 5% to 20% of the purchase price.
Insight into the Stamp Duty Requirements for Resale Condo Purchases
The seller is responsible for paying the Seller’s Stamp Duty (SSD) on the sale of residential property in Singapore.
The SSD is a tax that is payable if the residential property is sold within a certain period from the date of purchase.
The SSD rates range from 4% to 12% of the purchase price and are payable within 14 days of the completion of the sale.
Upgrade from an HDB Flat to a Private Residential Property: Process and Timeline
Considerations Before Upgrading from an HDB Flat to a Private Residential Property
Before upgrading from an HDB flat to a private residential property, buyers should consider factors such as the location, cost, and financing options available.
Buyers should also ensure that they are eligible to purchase private residential property and have sufficient funds for the purchase.
Step-by-Step Process and Timeline for Upgrading to a Private Condo
The key steps in upgrading from an HDB flat to a private condo can be summarized as follows:
- Engage a property agent: The owner engages a property agent to assist with the sale of the HDB flat and purchase of the private condo.
- Valuation: The HDB flat is valued, and the owner finds a buyer who agrees on the price and COV.
- CPF and loan eligibility: The owner checks their CPF eligibility and applies for a bank loan to finance the purchase of the private condo.
- Payment timeline: The buyer pays the down payment and secures the necessary loan.
- Exercise the OTP and payment timeline: The buyer exercises the OTP and pays the remaining balance of the purchase price on the completion date.
Understanding the Role of a Law Firm and Conveyancing in the Upgrading Process
A law firm plays an essential role in the upgrading process by providing legal advice and assistance in conveyancing matters.
Conveyancing is the legal process of transferring ownership of a property from one owner to another.
It involves preparing legal documents, registering the property, and handling the payment of stamp duties and fees.
Overall, understanding the private resale timeline is crucial for anyone interested in buying or selling residential property in Singapore.
By following the key steps and proper procedures, buyers and sellers can ultimately exercise option benefit from a successful and smooth transaction.
Subscribing to Newsletters and Contacting Property Consultants for Resale Information
When planning a private resale condo purchase, one of the first steps to take is subscribing to newsletters and contacting property consultants.
These steps can help you get the latest updates on launches, property prices, and potential buyers.
Benefits of Subscribing to Newsletters
By subscribing to newsletters, you can be the first to know about the latest condo launches and property prices.
You can also get updates on the different stages of payment, cash portions, and staggered payments.
This way, you can plan your finances more effectively.
How Property Consultants Can Help in Resale Transaction
Property consultants are experts who can advise you on the property market, assess the value of your property, and help you find the best resale property that fits your needs and budget.
They can guide you through the different stages of payment, from the downpayment to the completion of sale and the payment of sale proceeds.
Considerations When Choosing a Property Consultant
When choosing a property consultant, it’s important to look for someone who is experienced, knowledgeable, and reputable.
Make sure they are registered with the Council for Estate Agencies (CEA) and have a good track record of helping clients buy and sell properties.
Important Considerations for Resale Applications for Private Condos
If you’re planning to apply for a resale private condo, there are several important considerations you need to keep in mind.
Understanding the Approval Process
The approval process for a private resale condo can take anywhere from 10-12 weeks.
During this time, you need to prepare the necessary documents and submit them to the relevant authorities.
The approval process involves getting the principal approval, paying the ABSD, and getting the grant of the option.
Roles of Buyer & Seller in the Application Process
The buyer and seller have important roles in the application process.
The buyer needs to make the payment for a resale transaction, and the seller needs to pay the conveyancing fee.
Both parties also need to sign the legal documents, including the Option to Purchase (OTP), the Agreement for Lease (AFL), and the Deed of Assignment (DOA).
Time Frame for Approval
The time frame for approval varies depending on the complexity of the transaction and the availability of the necessary documents.
However, most transactions can be completed within 10-12 weeks.
During this time, you need to make sure that you have enough cash on hand to pay for the property purchase price and other related expenses.
HDB Acceptance and Conveyancing in Resale Transactions
When it comes to resale transactions, HDB acceptance and conveyancing are essential considerations.
Understanding HDB’s Role in Resale Transactions
HDB’s role in resale transactions is to verify the eligibility of the buyer and seller and to confirm that the necessary documents are in order.
The buyer also needs to apply for an HDB loan if necessary.
Conveyancing Process and Fees
The conveyancing process involves transferring the ownership of the property from the seller to the buyer.
The conveyancing fees are paid by the seller and cover the legal fees, stamp duties, and valuation fees.
Considerations for Private Residential Property Transactions
When it comes to private residential property transactions, it’s important to be aware of the different fees and charges that may apply.
These include the ABSD, valuation fee, renovation costs, and cash portion.
You also need to make sure that you have enough income to qualify for the property and to pay the various fees and charges.
Understanding the Option Fee in Resale Condo Transactions
The option fee is an important consideration in resale condo transactions.
Meaning and Purpose of Option Fee
The option fee is a small fee that is paid by the buyer to the seller when they exercise their option to purchase the condo unit.
The purpose of the fee is to show the seller that the buyer is serious about buying the property and to give the buyer some time to arrange for the purchase.
Amount and Payment Schedule of Option Fee
The amount of the option fee varies depending on the property price and the terms of the sale.
Typically, the fee is around 1% of the property price and is payable within 14 days of the grant of option.
Considerations Before Exercising the Option to Purchase
Before exercising your option to purchase, it’s important to consider the valuation report, the condition of the property, and any other relevant factors.
You also need to make sure that you have the financial means to complete the sale and pay the different stages of payment.
The Role of Financial Planning in Private Resale Condo Purchases
Proper financial planning is essential when it comes to private resale condo purchases.
Stages of Payment for Resale Condo Transactions
The stages of payment for a resale condo transaction typically include the downpayment, the exercise of the option, and the completion of the sale.
Some transactions may involve staggered payments, which can be more complicated than non-staggered payments.
How Financial Planning Can Help Buyers Save on Interest
Financial planning can help buyers save on interest by providing them with advice on the different financing options available.
Some financing options may be more suitable for buyers with a high-income level, while others may be more suitable for those with a low-income level.
Considerations When Upgrading from HDB to Private Condo
When upgrading from an HDB flat to a private condo, it’s important to consider the potential increase in expenses, including the ABSD, valuation fees, renovation costs, and property prices.
You also need to ensure you have enough income to qualify for the property and pay the different fees and charges.
Time Taken for Consultation and Eligibility Assessment in Resale Transactions
The time taken for consultation and eligibility assessment in resale transactions can vary depending on several factors.
Factors Affecting Time Taken for Consultation
The factors that affect the time taken for consultation include the complexity of the transaction, the availability of the necessary documents, and the number of parties involved.
You may also need to pay your real estate agent or property consultant consultation fees.
Eligibility Criteria for Private Residential Property Transactions
The eligibility criteria for private residential property transactions include the buyer’s income, the ABSD, and the type of property being purchased.
You also need to ensure you have enough cash to pay for the different fees and charges.
Consultation Process and Fees
The consultation process involves assessing your property eligibility and advising you on the different financing options available.
The consultation fees may vary depending on the complexity of the transaction and the expertise of the consultant.
Overall, planning your private resale condo purchase requires careful planning, consideration of the different fees and charges, consultation with property consultants, and financial planning.
Make sure you have enough cash on hand to pay for the different payment stages and understand the process involved in the property’s approval, conveyancing, and acceptance.
Benefits of Seeking Consultation from Property Consultants in Resale Deals
One significant advantage of consulting property consultants is their experience in the real estate industry.
These consultants can provide valuable insights to help you make informed decisions about your property.
Why Should You Seek Consultation from Property Consultants?
Property consultants have an in-depth understanding of the property market and can provide you with accurate information about the current market conditions.
They can also help you identify the most appropriate properties that meet your needs and budget.
How Can Property Consultants Help You in Resale Deals?
Property consultants can handle all the legal procedures, including the valuation of the property, negotiation with the seller, and drafting of agreements.
This can save you a lot of time and effort, as it can be a tedious and complicated process.
What Are the Benefits of Consulting Property Consultants?
Consulting a property consultant can help you make an informed decision that will save you money and time.
They can advise you on the legal requirements, tax implications, and financing options that you need to consider before purchasing or selling a property.
Minimizing the Time Taken for Resale Transactions: Tips and Insights
The resale transaction process can be a time-consuming process, but there are ways to minimize the time it takes.
Below are some of the insights and tips to keep in mind when navigating the timeline:
What Is the Average Waiting Time for Resale Transactions?
The average waiting time for a resale transaction can vary based on different factors, such as location, the size of the property, and the behavior of other owners in the building.
In general, it can take between 8-12 weeks for the HDB transaction and up to 16 weeks for private residential property.
When Is the Busy Time for Resale Transactions?
Many sellers prefer to sell their units at the end of the year, which can result in a higher demand for properties during this period.
As a result, it might take longer to find the right property or sell your unit if you’re doing it during the peak season.
What Is the Application Process for Resale Properties?
The application process for resale properties may differ based on several factors, such as whether you’re buying an HDB or private property.
However, in most cases, the process involves submitting a request for valuation, agreeing on a price, and submitting the application to HDB or relevant authorities.
The Importance of Proper Financial Planning in Private Resale Condo Purchases
One of the significant advantages of owning a private resale condo is the potential rental income and the opportunity to upgrade your lifestyle.
However, planning your finances before making any buying decisions is crucial.
What Are the Financial Costs Involved in Private Resale Condo Purchases?
The financial costs involved when purchasing a private resale condo include the purchase price, loan amount, maintenance fees, and stamp duties.
It’s essential to consider these costs when budgeting for your private resale condo purchase.
How to Plan Your Finances for a Private Resale Condo Purchase
Before purchasing a private resale condo, you may need to apply for a bank loan to finance part of the purchase price.
It’s crucial to consider the bank interest rates and choose a loan package that suits your needs.
You should also factor in the potential rental income when planning your finances.
What Are the Major Decisions You Need to Make Before Purchasing a Private Resale Condo?
Before purchasing a private resale condo, you need to consider factors such as the location, the unit size, and the amenities in the building.
The ceiling height of the unit can also affect its resale value, so it’s crucial to factor this in when making your buying decision.
Conclusion
In conclusion, understanding Singapore’s private resale transaction process is crucial for buyers and sellers in the real estate market.
Whether you’re considering purchasing a private resale condo or selling an HDB flat, being familiar with the key steps, roles, and responsibilities can help ensure a smooth and successful transaction.
It’s important to engage the services of experienced property consultants who can provide valuable insights, assist with legal procedures, and guide you through the process.
To further enhance your knowledge and stay informed about the latest developments in the real estate market, we encourage you to explore our other blog articles.
Frequently Asked Questions
What is a private resale timeline?
How long does it take to complete a resale transaction?
The timeline for completing a private resale transaction can vary, with the average duration being around 12 weeks. However, this can depend on factors such as the payment schedule, HDB acceptance, conveyancing, and stamp duty payment, amongst others.
What is an Option to Purchase (OTP)?
An Option to Purchase (OTP) is a legal document that gives a buyer the exclusive right to purchase a property within a certain timeframe at a pre-agreed price.
Can I exercise the option even before the completion of my HDB flat?
Yes, you can exercise the option to purchase even before the completion of your HDB flat. However, you must ensure that you have the necessary funds, including CPF funds and a housing loan, to complete the purchase within the timeline stated in the OTP.
Are the payment schedules for private resale properties the same as that for new launches?
No, the payment schedules for private resale properties are different from that for new launches. Private resale properties usually require a lump sum payment, while new launches may offer staggered payments.
What is the Option Fee?
The Option Fee is a sum of money paid by the buyer to the seller as consideration for the Option to Purchase. The Option Fee can range from $1 to 1% of the purchase price, depending on the agreement between the buyer and the seller.
Do I need to pay ABSD for a private resale property?
Yes, you will need to pay Additional Buyer’s Stamp Duty (ABSD) for a private resale property. However, if you are a Singaporean first-time home buyer or an existing HDB flat owner, you may be eligible for ABSD remission.
Is buying a private resale condo a good property investment?
Buying a private resale condo can be a good property investment, as it is a type of private property that has already been completed, occupied, and has a track record. However, as with any property investment, it is important to conduct thorough research and seek advice from a property consultant and financial planning professional before making any decisions.
Can I rent out a private resale property?
Yes, you can rent out a private resale property once you have obtained vacant possession and completed the necessary paperwork. However, it is important to note that rental yields can vary and are affected by factors such as location and market demand.
How do I apply for a private resale property as an HDB owner?
To apply for a private resale property as an HDB owner, you can visit the HDB InfoWEB or obtain the application form from the HDB Branch or Customer Service Centre. In addition, you can also subscribe to HDB’s eAlert Service to receive updated information on new sale launches and resale flats via SMS.
