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After you have registered an Intent to Buy, considered your mode of financing and worked out your budget, you may proceed to look for a suitable flat that meets your budget. Once you have decided on a flat and agreed on a price for it, you may proceed to obtain an Option to Purchase (OTP) from the sellers.
If you intend to get an HDB housing loan, you need to have a valid HDB Loan Eligibility (HLE) letter from HDB before the sellers may grant you an OTP. If you intend to get a housing loan from a financial institution, you must have a valid Letter of Offer (LO) before you exercise the OTP.
You and the sellers must use the HDB-prescribed OTP for the resale transaction. Any other agreements and/ or supplementary agreements relating to the sale or purchase of the flat are not valid under the Housing and Development Act.
Print only 1 copy of the OTP as each form has a unique serial number. You must state the serial number of the OTP when you submit a resale application to HDB.
The OTP is a legally binding contract between you and the flat sellers. Read the Important Notes of the OTP and the Terms and Conditions of Resale carefully before entering into a contract.
You have to pay a deposit to the sellers, comprising the Option Fee and Option Exercise Fee, which are payable at different points during the OTP process. You may negotiate the amount for the Option Fee and the Option Exercise Fee with the sellers, and it will form part of the resale price.
Read the steps below for more details.
You and the sellers must mutually agree on the resale price of the flat.
You may use the resale flat prices e-service to check the transacted resale flat prices to help you make an informed decision on how much to pay for the flat. The figures are updated daily based on HDB’s registration of the resale applications received.
Ensure that you have:
You and the sellers must declare the true resale price of the flat to HDB, and must not enter into any supplementary/ other agreements or arrangements that may cause the resale price as declared to be inflated or understated.
Note: It is an offence to give false information relating to the resale application - HDB may take the necessary action(s) as stated in the Terms & Conditions, Option to Purchase and Application Form(s).
The sellers will grant you the OTP to buy the resale flat at the agreed resale price.
If you are taking a housing loan from HDB, please ensure that you have a valid HLE letter. You must have a valid HLE letter when the sellers grant you the OTP.
The sellers must fill in these sections in the OTP:
At this stage, you do not have to sign on the OTP. However, you have to pay an Option Fee to the sellers. The Option Fee should be a sum between $1 and $1,000, to be mutually agreed between you and the sellers.
Once the sellers have granted the OTP to you, they cannot grant another OTP to other buyers until the OTP granted to you has expired.
The OTP is valid for 21 calendar days from the date the OTP is granted.
The Option Period is 21 calendar days (including Saturdays, Sundays, and Public Holidays). It is given to you by the sellers, from the date of granting the OTP (refer to Step 2).
You should use the Option Period wisely and not rush into exercising the OTP. During this period, you must log in to the HDB Resale Portal to:
You must submit a Request for Value for the flat if you are using your CPF savings and/ or taking up a housing loan to finance your flat purchase. You may submit the request via the HDB Resale Portal after the sellers have granted you the OTP.
Once you have made the request, you can log in to the HDB Resale Portal to view the progress and outcome.
To proceed with the flat purchase, you must exercise the OTP within the Option Period. Otherwise, you have to wait for the OTP to expire.
To proceed with the flat purchase, you must exercise the OTP during the Option Period. If you are taking a housing loan or using your CPF savings to pay for the flat, ensure that the flat value* is available before you exercise the OTP.
* Read request for value for more information.
If you are taking a housing loan from HDB, ensure that you have a valid HDB Loan Eligibility (HLE) letter.
If you are taking a housing loan from a FI, ensure that you have a valid Letter of Offer (LO). The date of issue of the LO must be on or before you exercise the OTP.
To exercise the Option, you must sign on the OTP and return it to the sellers:
When you exercise the OTP, you need to pay an Option Exercise Fee to the sellers. The amount, as stated in Step 2, is to be mutually agreed upon between you and the sellers.
If you do not wish to proceed with the purchase, you need not take any further action. Upon expiry of the OTP, you will forfeit the Option Fee and you do not need to continue with Step 5.
After you have exercised the OTP, you and the sellers must decide when to submit the respective portions of the resale application to HDB.
You and the sellers must both submit the respective portions of the resale application separately within both timeframes:
A resale application is only complete when HDB has received both you and the seller’s respective portions of the resale application and the necessary supporting documents.
Read about submitting a resale application and what you need to do before the application is accepted and approved.
Obtain information on submitting a request for value.
Learn about the details and documents required when buyers submit a resale application.
Obtain details on the resale completion appointment and the actions to take before and during the appointment.
Learn about the conditions that flat buyers have to follow after moving into their flat.