Resale Condo Payment Timeline: OTP to Completion

A resale condo payment timeline moves faster than a new launch schedule. The buyer pays an option fee, exercises the Option to Purchase (OTP), settles stamp duty and completes on the date written in the contract. CPF and the bank must be ready before that final date.

Many resale contracts use 1% at option and another 4% at exercise. These are commercial conventions, not fixed statutory percentages. Read the actual OTP before transferring money.

Resale condo payments at a glance

Assume a $1.8 million condo, a 75% bank loan and a commonly used 1% plus 4% option structure.

Stage	Illustration	Main funding source
Option fee	1% = $18,000	Cash
Exercise payment	4% = $72,000	Cash
BSD	$59,600	Cash or eligible CPF, subject to timing
ABSD	Depends on buyer profile	Cash or eligible CPF, subject to timing
Balance of 25% downpayment	$360,000	Cash or eligible CPF
Bank loan on completion	$1,350,000	Bank

The first 5% forms part of the 25% downpayment. It is not an extra 5%. Conveyancing, valuation and renovation costs remain outside the table.

If the bank approves less than 75%, the buyer funds the difference. If the valuation falls below $1.8 million, the amount above valuation needs cash. Calculate both cases before exercise.

Our condo downpayment guide works through these funding limits.

Before paying the option fee

Settle the buyer-side checks before asking the seller to issue an OTP:

• obtain an In-Principle Approval from the bank
• check ABSD from every buyer’s citizenship and property count
• appoint a conveyancing lawyer
• review the title, ownership and approved use
• inspect for unauthorised works and material defects
• calculate CPF OA savings that can be used
• agree on the option period and intended completion date

The Council for Estate Agencies (CEA) publishes consumer checklists and standard contract templates for private residential transactions. Parties can negotiate terms, so a lawyer should review changes and special conditions.

The option fee buys the exclusive right to purchase during the stated option period. If the buyer lets the option expire, the contract sets the treatment of that money. Do not pay based on a text message or an unsigned draft.

Our resale condo due-diligence checklist covers title, approved plans, management records and unit condition.

The option period carries the heaviest workload

Once the seller grants the OTP, the buyer has a fixed period to decide whether to exercise it. The contract states the expiry date, time, exercise method and payment.

Use that period to complete four jobs:

1. Obtain the bank’s valuation and formal loan approval.
2. Have the lawyer review title and contract terms.
3. Confirm CPF usage and the completion account.
4. Decide whether the unit still works after valuation and due diligence.

An In-Principle Approval does not reserve a final loan. The bank can change the amount after valuation, document checks and credit assessment.

Suppose the bank values the $1.8 million condo at $1.7 million. A 75% ceiling on valuation gives $1.275 million. The buyer then needs $525,000 between option and completion, not $450,000. The extra $100,000 price gap must use cash.

Do not exercise first and investigate the shortfall later. Exercise creates a binding purchase under the contract.

Exercise fixes the purchase and starts tax work

The buyer exercises the option using the method in the OTP and pays the exercise amount. Under the worked illustration, another 4% brings the deposit to 5%, or $90,000.

The lawyer then coordinates:

• stamping and payment of BSD and ABSD
• caveat lodgment
• title requisitions and completion searches
• CPF withdrawal documents
• bank mortgage documents and drawdown
• apportionment of property tax and maintenance charges

IRAS generally requires a document signed in Singapore to be stamped within 14 days after execution. The lawyer should identify which signed document starts the deadline.

On a $1.8 million purchase, BSD is $59,600 under current residential bands. A Singapore Citizen buying a second residential property also faces 20% ABSD, or $360,000, before any later remission.

Use our Buyer’s Stamp Duty guide for the rate bands and ABSD guide for the ownership test.

CPF and cash must reach the lawyer on time

CPF OA savings can cover eligible parts of the downpayment, stamp duty, legal fees and mortgage. The buyer still needs cash for:

• the option and exercise payments
• at least 5% of the lower of price or valuation under a 75% bank-loan illustration
• any amount above valuation
• items that fall due before CPF reimbursement

For a completed property, CPF Board states that stamp duty reimbursement can be processed on legal completion after the CPF charge can be lodged. The IRAS deadline can arrive earlier, so the buyer may need to advance cash.

Give the lawyer enough time to lodge the CPF charge and arrange the withdrawal. An OA balance shown in the CPF app does not move to the seller without the legal documents.

Our CPF property guide covers housing limits and the refund required on sale.

The bank prepares its completion drawdown

The bank issues a Letter of Offer, instructs its solicitor and sets conditions for disbursement. The buyer usually needs to:

• accept the loan by the stated deadline
• sign mortgage documents
• buy required insurance
• satisfy cash and CPF equity requirements
• give the bank enough notice to release funds

Check whether the bank’s legal subsidy carries a clawback. A sale or refinance within the stated period can require repayment of that subsidy.

The mortgage begins from the disbursed loan on completion. Budget for the full monthly instalment from that point, along with condo maintenance, property tax and insurance.

If the buyer is selling another property, sale proceeds that arrive after the condo completion cannot fund the purchase. Coordinate both lawyers and write the dates on one cash-flow sheet.

Completion transfers the property

On legal completion, the buyer’s lawyer sends the balance purchase money, completes the transfer and accounts for the keys. The bank and CPF Board release approved funds after their conditions are met.

The completion account can include adjustments for:

• property tax paid by the seller
• maintenance contributions and management charges
• rental deposits or tenancy matters, if bought with a tenant
• agreed repairs or retention sums

Inspect the unit near completion where the contract and access allow. Record the condition, meter readings, keys, access cards and items included in the sale.

Ownership costs start even if renovation has not. Arrange insurance, MCST contact details and loan servicing before handover.

Build a timeline from the signed OTP

Use the contract dates instead of a generic calendar:

Contract point	Buyer check
Before option	IPA, lawyer, ABSD, cash and CPF plan
Option granted	Pay stated option fee and record expiry
During option	Valuation, final loan, title and unit checks
Exercise	Follow the stated method and pay exercise amount
Within stamping deadline	Pay BSD and applicable ABSD
Before completion	Fund buyer’s balance, CPF and bank conditions
Completion	Transfer money, title and possession

Allow extra time for a trust, company purchase, foreign buyer approval, tenancy or title issue. Do not copy the seller’s preferred date into the OTP until the bank and lawyer confirm that it works.

Sources: Council for Estate Agencies, buying or selling private residential property, IRAS, when to pay stamp duty, CPF Board, private-property downpayment, CPF Board, property-related fees.