By The Address desk · Last verified 4 October 2026
Buying a resale private condo in Singapore usually runs in three steps. First, you pay the seller an option fee, typically 1% of the price, for an Option to Purchase (OTP), which reserves the unit for you. Second, you exercise the option within the period stated, commonly 14 days, by signing it and paying a further 4% exercise fee, which makes the sale binding. Buyer’s stamp duty (and any ABSD) is due within 14 days of exercising. Third, on the completion date set in the contract, your lawyer pays the balance from your loan, CPF and cash, and you collect the keys. If you do not exercise in time, the seller normally keeps the option fee.
The money moves fast in the first month, so it pays to have your loan approval and cash lined up before you sign anything. Here is the whole journey.
Quick facts
- Option fee: commonly 1% of the purchase price, paid when the seller grants the OTP.
- Exercise period: commonly 14 days; the OTP itself states the deadline.
- Exercise fee: commonly 4%, bringing your total deposit to 5%.
- Stamp duty: due within 14 days of exercising the option.
- Get an in-principle approval for your home loan before you take the option.
- New launches from developers follow different rules: the OTP is valid for three weeks after the sale and purchase agreement is delivered, and 25% of the booking fee can be forfeited if you do not exercise.
From option to keys: the stages
| Stage | What you pay | Deadline |
|---|---|---|
| Seller grants the OTP | Option fee, commonly 1%, in cash | On signing |
| You exercise the OTP | Exercise fee, commonly 4% | Within the option period, commonly 14 days |
| Stamp duty | Buyer’s stamp duty, plus ABSD if it applies | Within 14 days of exercise |
| Completion | The balance, from your loan, CPF and cash | The completion date in the contract |
A worked example: a S$1.5 million condo
A Singapore citizen buying a first home at S$1,500,000 with a bank loan of 75%. Dates are illustrative; your OTP and contract set the real ones.
- Monday 5 October 2026: seller grants the OTP; you pay the 1% option fee, S$15,000.
- By Monday 19 October 2026: you exercise and pay the 4% exercise fee, S$60,000. Total paid so far: S$75,000 (5%), which must be in cash under the bank loan rules.
- Within 14 days of exercise, by about Monday 2 November 2026: buyer’s stamp duty of S$44,600 (1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000 and 4% on the remaining S$500,000). No ABSD on a citizen’s first home.
- Completion, say Monday 11 January 2027 (12 weeks after exercise in this example): the remaining 20% downpayment, S$300,000, from CPF and cash, plus the S$1,125,000 loan, go to the seller.
Check the sums: S$75,000 + S$300,000 + S$1,125,000 = S$1,500,000. Add legal fees, valuation and any renovation on top.
Before you take the option, step by step
- Get an in-principle approval for your loan and work out how much CPF and cash you can use.
- Check your stamp duty, including ABSD if this is not your only home.
- View the unit carefully and ask about the condo’s maintenance fees and sinking fund.
- Appoint a conveyancing lawyer; they will check the title and lodge a caveat to protect your interest.
- Read the OTP’s terms: the exercise deadline, the completion period and what stays in the unit.
- Exercise only when your loan offer is signed and the money is ready.
The WahLiao Verdict
Treat the 1% option fee as a deposit you will lose if your finances are not ready, and get the loan approval first, not after. Use the 14 days to have your lawyer and bank confirm everything, then exercise with confidence. Mark three dates in your calendar on day one: the exercise deadline, the stamp duty deadline and completion. Miss none of them and the rest is paperwork.
Questions people ask
What happens if I do not exercise the option?
The option lapses and, for a resale purchase, the seller normally keeps the option fee. For a developer sale, the developer may forfeit 25% of the booking fee.
Can I use CPF for the 1% and 4%?
With a bank loan, at least 5% of the price must be paid in cash, so the option and exercise fees normally come from cash. CPF can be used for the rest of the downpayment, subject to CPF rules.
How long is completion?
It is set in the contract and agreed with the seller. Late completion can mean paying interest to the other side, so plan your move and your current home’s sale carefully.
Is buying a new launch the same?
No. Developer sales follow URA’s rules: the OTP stays valid for three weeks after you receive the sale and purchase agreement, and you pay in stages as the building is constructed.
Sources: Council for Estate Agencies, buying or selling a private residential property; URA, circular on developers’ Options to Purchase; EdgeProp, guide to buying resale residential property; IRAS, buyer’s stamp duty. The Address explains; it does not advise.
Read next: Buyer’s Stamp Duty and ABSD · Home Loans: Fixed or Floating, SORA and Lock-In Periods · Back to The Address
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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