Are you in the market for a resale condo in Singapore? Buying a condo that has already been lived in can be a great option for those looking to avoid the long wait times typically associated with new developments. However, it’s important to understand the resale condo timeline in Singapore to ensure you make informed decisions throughout the process.
In this blog, we’ll take a closer look at the various stages of the resale condo timeline, from listing to completion, and provide insights into what you can expect along the way. So whether you’re a first-time buyer or an experienced investor, read on to learn more about navigating the resale condo market in Singapore.
What is resale condo timeline?
The process of procuring a resale condominium in Singapore is contingent upon the accord struck between the purchaser and the vendor. Usually, the buyer will be required to remit a deposit, which amounts to 1% to 5% of the purchase price, upon executing the Option to Purchase (OTP). The residual sum will be paid in increments, with the ultimate installment being due upon conclusion of the transaction.
Upon completion, the vendor will hand over the keys to the purchaser, who will be given a period of 8 to 10 weeks to settle the outstanding balance. It is worth noting that the payment timeline is open to discussion between the parties, and it is advisable to seek counsel from a real estate agent or financial consultant to establish the best course of action for your individual needs.
Furthermore, the purchase of a resale condominium permits the purchaser to relocate immediately, without having to wait for the construction of the development. It is prudent to conduct a comprehensive inspection of the property prior to finalizing the acquisition.
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Private Resale Condo Timeline
The timeline for purchasing a private resale condo in Singapore can be quite straightforward, but it’s important to understand the various stages and timeframes involved to avoid any unnecessary complications. The process begins with the exercise of the Option to Purchase (OTP), typically within 14 days of the initial transaction.
From there, completion of the purchase can take anywhere from 8-12 weeks, depending on the agreement with the seller. Stamp duty payments must also be made within the specified timeframes, and buyers should be aware of any additional fees that may apply based on their citizenship status. Inspection of the unit is allowed prior to purchase, and careful financial and timeline planning is necessary for a smooth transaction.
Stamp Duty Payment Requirements for Buyers
When purchasing a private resale condo in Singapore, buyers must be aware of the various stamp duty payment requirements. Within 14 days of signing the Sales and Purchase agreement, buyers must pay the Buyer’s Stamp Duty (BSD), which is 1% of the first S$180,000. Additionally, if applicable, buyers must pay the Additional Buyer Stamp Duty (ABSD).
For Singapore citizens purchasing their second property, the ABSD is 17%, while for the third and subsequent properties, the ABSD is higher. It’s important to note that the buyer’s lawyer may collect the down payment, stamp duty, and ABSD payments in advance. Timely payments are crucial, as any late payments may result in penalties. Buyers should carefully plan out their finances and timeline to avoid any potential issues during the transaction process.
Additional Buyer Stamp Duty for Singapore Citizens
For Singapore citizens, there are different scenarios when it comes to the Additional Buyer Stamp Duty (ABSD). For instance, if you are buying your first residential property, then there is no ABSD to pay. However, if you are buying a third and subsequent residential property, then 17% ABSD is applicable. Meanwhile, if you are in the process of obtaining Singapore citizenship, you may be classified as a Permanent Resident (PR) and therefore subject to a different rate.
In any case, it is important for buyers to be aware of their ABSD obligations in order to properly budget and plan for their property transactions. Remember that ABSD payment is required upfront and must be refunded within six months of the sale of the property, if eligible.
After the confirmation of the sale, it typically takes around eight weeks before the completion date for private resale condos in Singapore. During this time, the buyer can make any necessary arrangements and prepare for the move-in process.
It’s important to ensure that all payment requirements, such as stamp duty and additional buyer stamp duty (if applicable), have been fulfilled before the completion date, as failure to do so may result in penalties or legal complications.
With proper planning, buyers can ensure a smooth and stress-free process leading up to the completion date of their private resale condo.
Exercise of Option and Sale Completion Timeline
To complete the private resale condo transaction, buyers need to exercise the Option to Purchase within three weeks from booking. After that, there’s an average waiting time of about eight to ten weeks before the completion of sales and purchase at the law firm. During this process, buyers need to pay 20% of the remaining payment through cash or CPF and 75% through bank loans, if applicable.
Once the completion date is confirmed, the transaction is usually completed within 8-12 weeks, depending on the agreement made with the seller. Buyers also need to pay for the valuation fee, which typically ranges from $350 to $500. It’s essential to stay on top of these timelines and processes to ensure a smooth transaction. Therefore, potential buyers need to plan their finances and timeline accordingly while factoring in stamp duty requirements, inspection processes, and other vital condo payment schedules.
Payment for Completed/Resale Developments
Once the option to purchase has been exercised, buyers of completed or resale developments in Singapore are required to make payment within two weeks from Day 1. This includes signing Sales and Purchase agreements at a solicitor’s law firm. On the completion date, buyers will have to pay the balance of the purchase price, minus the home loan amount, and if applicable, the Buyers Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD).
The remaining payment of 20% (in cash or CPF) and 75% bank loan (if applicable) must be made within 10-12 weeks from Exercising Option, with completion of the Sales and Purchase at the law firm. To ensure a smooth transaction, it’s important for buyers to work closely with their lawyers and financial advisors to plan for both the financial and timeline aspects of their property purchase.
New Condo Payment Requirements
If you’re planning to buy a newly launched private condo in Singapore, it’s important to know the payment requirements. After the foundation work is completed, you’ll have to pay 10% of the purchase price within 14 days, and the remaining 90% can be funded by either cash or CPF. The downpayment for the condo would be 25% of the purchase price, of which 5% will have to be paid in cash.
The Buyers Stamp Duty (BSD) and Additional Buyers Stamp Duty (ABSD), if applicable, must be paid within 14 days of completing the Sales & Purchase agreement. Completion of the sales and purchase transaction usually takes about 10-12 weeks from the date of exercise of the option to buy. Therefore, it’s crucial to plan both financially and timeline-wise for property transactions, especially when buying newly launched private condos.
When buying a private resale condo in Singapore, it’s important to conduct a thorough inspection of the property before completing the sale. This is typically done during the final stages of the transaction, and involves checking for any defects or issues that may need to be addressed before taking ownership of the property.
This inspection is usually done by a professional inspector or engineer, and it’s important to schedule it well in advance of the completion date to ensure that any necessary repairs can be made in a timely manner. By taking the time to conduct a comprehensive inspection, buyers can ensure that they are making a sound investment in their new home.
Financial and Timeline Planning
When it comes to buying a resale condo in Singapore, financial and timeline planning should be at the top of your list. With an average timeline of about 10-12 weeks, it’s important to have your finances in order and your timelines set.
This includes planning for stamp duty payments, additional buyer stamp duty for Singapore citizens, and scheduled payments for completed developments. It’s also essential to factor in the inspection process to ensure that any necessary repairs or changes can be addressed before moving in. By carefully planning your finances and timelines, you can confidently navigate the resale condo market and find your dream home in Singapore.
Condo Payment Schedule for Completed Developments
In Singapore, the payment schedule for completed condo developments is made up of two parts: the grant of option (booking fee) and the exercise of option (option fee). The booking fee is typically 1%, while the option fee must be paid within 14 days of obtaining the Option to Purchase. Once the option is exercised, payment for the remaining balance of the purchase must be made within 8 to 10 weeks.
In addition, buyers must pay the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD), if applicable, within 14 days of completing the Sales and Purchase agreement. It’s important for buyers to carefully plan out their financial commitments to ensure a smooth and stress-free property transaction. By following the payment schedule and complying with the stamp duty payment requirements, buyers can smoothly complete their condo purchase and enjoy their new home.