You and the buyers must use the HDB prescribed Option to Purchase (OTP) as the form of contract in the transaction, any other agreements and supplementary agreements relating to the sale or purchase of the flat is not valid under the Housing and Development Act.
You are advised to read carefully the Important Notes of the OTP
(PDF 63KB) and the Terms and Conditions of resale
(PDF 115KB) before entering into a contract. Below are the steps to enter into a contract using the OTP.
The steps involved to enter into a contract using the OTP are:
Step 1: Negotiate and agree on the resale price
You and the buyers have
to negotiate on the resale price of the flat. The resale price of the flat is agreed
based on a willing-buyer and willing-seller negotiation, that is,
both you and the buyers decide on the price of the resale flat willingly.
You can make use of the eService Resale Flat Prices
e-Service to check the resale transacted prices for the past two years to assist you in making an informed decision on the resale price of the flat. From 10 March 2014, the resale transacted prices will be updated daily based on HDB’s registration of the resale applications received.
When entering the OTP,
- You and the buyers must declare to the HDB the true resale price of the flat.
- Salespersons must also declare all relevant information relating to the resale transaction in the Salesperson Statutory Declaration(PDF 20KB).
he penalty for false declaration includes
a fine and/or up to 3 years' imprisonment.
You and the buyers must not enter into any:
- supplementary/ other agreements, or
- arrangements that may cause the true resale price as declared to be inflated or understated.
The penalty for false information includes
a fine of up to $5,000 and/or up to 6 months’ imprisonment.
Step 2: You grant the OTP to the buyers
You can only grant an OTP to buyers at least 7 days after going through the Resale Checklist. You should use this cooling-off period wisely and consider what are the housing options available to you.
If you decide to sell your flat, you may
grant an Option to the buyers, to sell the resale flat at the agreed resale price.
You or the buyers must fill in
- on Page 1 of the OTP:
- Option Date
- Flat Address
- Purchase Price (resale price of the flat)
- Option Fee (between $1 to $1,000)
- Option Expiry Date (21 calendar days from the Option Date [including Saturday, Sunday and public holidays]. e.g. if seller grants Option to you on 1 Apr, the Option will expire on 22 Apr at 4pm)
- Names and NRIC numbers of all the sellers and buyers
- the top half of page 8 of the OTP:
- Option Date
- Flat Address
- you and all the co-owners of your flat must sign on the OTP
- a witness must sign on the OTP (your salesperson or any person who is a Singapore Citizen or Singapore Permanent Resident aged 21 years or above and not involved in the resale transaction)
You are required to sign on the OTP in exchange for an Option Fee from the buyers. The Option Fee could be a sum between $1 to a maximum of $1,000, to be negotiated between you and the buyers.
Once you have granted the Option to the buyers, you cannot grant another Option to another buyer until the Option granted
- From 10 March 2014 5pm onwards, only flat buyers or their salespersons can submit a request for valuation. The request can only be submitted after the sellers have granted the buyers an Option to Purchase.
- More details in the Press Release dated 10 March 2014
Step 3a : Buyers exercise the OTP if they wish to proceed with the purchase
The Option period is 21 calendar days (
including Saturday, Sunday and public holidays),
given to the flat buyers, from the date of granting the OTP (refer to Step 2). It expires at 4pm on the 21st calendar day.
If the flat buyers wish to buy the flat, they have to exercise the Option within the Option Period. To exercise the Option, you or the buyers must fill in:
- Clause 6.1 (c) on page 2 of the OTP:
- Clause 12 on page 4 of the OTP:
- number of days from the date of exercising the Option that you and the buyers have agreed to submit the resale application to the HDB
- the bottom half of page 8 of the OTP:
- all buyers must sign on the "ACCEPTANCE" section in the OTP
- a witness must sign on the OTP (their salesperson or any person who is a Singapore Citizen or Singapore Permanent Resident aged 21 years or above and not involved in the resale transaction)
When the buyers exercise the Option to Purchase, the buyers will need to pay a deposit to you. The deposit, including the Option Fee previously paid in Step 2, must not exceed $5,000 in total. The amount of deposit is negotiated between the you and buyers.
Step 3b: Let the Option to Purchase expire if the buyers do not wish to proceed with the purchase
If the buyers do not wish to proceed with the purchase, that is, exercise the Option to Purchase, you need not do anything but wait for Option Expiry Date to lapse. The buyers will forfeit the Option Fee previously paid in Step 2; you may keep the Option Fee.
Step 4: Decide when to submit the resale application
After the buyers have exercised the Option,
you and the buyers
have to decide when both of you
wish to submit a resale application to the
HDB. Your portion of the resale application and the buyer's portion of the resale application must be submitted within 7 days of each other. Besides that, both portions must be submitted within the previously agreed number of days on page 4 of the OTP.
You and buyers (or their salesperson) will have to submit the respective portions of the resale application separately. A resale application is deemed complete only when the HDB receives both portions of the resale application. You and the buyers should ensure that they meet all the prevailing eligibility conditions and resale requirements on the date the second party submits his portion of the resale application. More on submission of resale application.