Absolutely, let's clarify the payment schedule for the condo purchase:
1. **Option Fee (1%):** You're right, this is paid directly to the seller to secure the Option to Purchase (OTP).
2. **Exercise Fee (4%):** This is paid to the **seller's lawyer** upon exercising the OTP. It's crucial to pay it to the lawyer's conveyancing account, *not* directly to the seller. This ensures the money is held securely in trust and can be refunded if the deal falls through due to specific reasons outlined in the OTP.
3. **Buyer's Stamp Duty (BSD):** This is paid to **IRAS** (Inland Revenue Authority of Singapore) through your lawyer. Your lawyer will advise you on the exact amount and payment method, usually via cashier's order or e-payment.
**Payment Methods:**
* **Cashier's Order:** This is a secure method for larger payments. It's a cheque issued by the bank, guaranteeing the funds. You can obtain it from your bank and make it payable to the seller's lawyer's conveyancing account (for the exercise fee) or IRAS (for BSD).
* **E-Payment:** Some law firms accept e-payments through their secure online portals.
**Risk Mitigation:**
* **Seller's Lawyer:** Ensure the 4% exercise fee is paid to the seller's lawyer's conveyancing account. This is a standard practice that protects your interest as a buyer.
* **Written Confirmation:** Always obtain written confirmation (email or receipt) for any payment made, clearly stating the purpose (option fee, exercise fee, or BSD) and recipient.
* **Consult Your Lawyer:** Your lawyer will guide you through the payment process and ensure all payments are made securely and correctly.
By following these guidelines and working closely with your lawyer, you can minimize risks and ensure a smooth condo purchase transaction.
Let me know if you have any other questions!
WhatsApp me at: ABLE Toh (65) 98 56 92 55 or through this link.:https://wa.me/6598569255
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(***) You can check out my reviews here:
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*** You can reach me at my Singapore mobile: (65) 98 56 92 55 or email me at Able.selling@gmail.com.
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