Foreigner's Guide
A typical resale purchase takes 10-12 weeks from offer to keys. Here is what happens in each stage and where things commonly go wrong.
From OTP signing to keys in hand — typical resale, foreign-buyer cash path.
Agree price with the seller. Their agent prepares the Option to Purchase.
Pay the 1% option fee. You get 14–21 days to decide.
Conveyancing lawyer, final loan approval, valuation, ABSD/LDAU clearances.
Pay another 4% (5% to date). Now legally bound to complete.
BSD + ABSD via IRAS e-stamping. Late = up to 4× penalty.
Bank disburses loan, lawyer transfers balance, seller hands over keys.
Sources: CEA — Buying property in Singapore; Law Society of Singapore — Conveyancing
Once you have found the right property and your finances are in order, the Singapore buying process follows a well-defined legal sequence. Here is what happens.
You and your agent submit an offer to the seller (verbally or in writing). The seller may counter. Once you both agree on a price, the seller's agent prepares the Option to Purchase (OTP).
You pay an option fee (typically 1% of the purchase price for private property; S$1,000 for HDB) in exchange for the OTP. The OTP is a contract giving you (the buyer) an exclusive 14-21 day window to decide whether to proceed.
If you walk away during this window, you forfeit the option fee but owe nothing else.
You have ~2 weeks before OTP expiry to:
The lawyer also handles ABSD declarations on your behalf.
To exercise the option, you sign it and pay the exercise fee — typically an additional 4% of purchase price for private property (so 5% total to date). HDB is a flat S$5,000 exercise fee minus the S$1,000 option fee.
Once exercised, you are legally bound to complete the purchase. The seller is legally bound to sell.
Within 14 days of OTP exercise, you must pay:
Your lawyer handles this via the IRAS e-stamping system. Late payment = penalties up to 4× the duty.
In parallel with stamp duty, finalise your mortgage:
If the bank's valuation comes in below the purchase price (a "valuation gap"), you must top up the difference in cash. Foreign buyers see this more often than locals because banks are more conservative on valuations.
On completion day:
The seller's agent represents the seller. Your buyer's agent (if you use one) represents you. Commission is paid by the seller to the seller's agent, who then splits it with your agent — the buyer never pays the agent directly. If a buyer's agent asks you for a commission, that is a red flag worth questioning.
Putting it all together: about 10-12 weeks from a successful OTP signing to keys in hand, for a typical resale purchase. New-launch projects from a developer follow a different schedule (progressive payment over construction, completion at TOP), often 2-5 years.
Editorial note
This article is general information only and is not legal, tax, or financial advice. Singapore property rules change with policy updates, and every buyer's situation is different. Consult a CEA-registered Singapore property agent, qualified tax advisor, and conveyancing lawyer before making any purchase decision.