Option to Purchase
After registering your Intent to Buy, you can proceed to look for a suitable flat within your budget and obtain an OTP from the sellers when you have agreed on a price for the flat. If you intend to get an HDB housing loan, you will need a valid HDB Loan Eligibility (HLE) letter from HDB before the sellers can grant you an OTP. If you intend to get a housing loan from a financial institution (FI), you must have a valid Letter of Offer (LO) before you exercise the OTP.
You and the sellers must use HDB’s 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 are not valid under the Housing and Development Act.
You can download a copy of the HDB-prescribed OTP form. Please print only 1 copy of the OTP as each form has a unique serial number.
You will need to read the Important Notes of the OTP and the Terms and Conditions of Resale carefully before entering into a contract. Each OTP has a unique serial number, and you will need to state it when you submit a resale application to HDB. Please ensure the OTP granted to you by the seller is dated on or after 1 January 2018.
For OTPs that have been granted before 1 January 2018, the former Terms & Conditions for Resale applies.
Procedure to enter into a contract using the OTP
Here are the 5 steps to enter into a contract using the OTP.