8 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

The usual practice for a resale private property transaction is as follows:

1. The buyer pays the property seller the Option Money which is equivalent to 1% of the agreed sale price.

2. Within the stipulated Option Period (usually within 14 days of the Option), the buyer exercises the right by signing the 'acceptance copy' of the Option form, and paying another 4% of the sale price.

In all, Sale By Private Treaty transactions, when the buyer exercises his 'Right to Buy', a binding sale contract is formed.

You may read more about the procedures here: https://www.propertyguru.com.sg/property-guides/what-is-an-option-to-purchase-agreement-15959

With regards to your legal position, it is as follows:

When a property buyer has an Option (the right), he has the right to demand for the seller's title and to demand that the seller goes for legal completion. The seller cannot back out from the contract.

You can take legal action against the seller for failing to do so. The seller has to refund the option fee to the buyer. Additionally, you may have a claim against you for specific performance of the Option to Purchase such as compelling you to honour the contract.

If you need more time, you can request for a longer Option Period until you have sold your flat.

Once you have sold your HDB, you can sign the option to purchase form. IRAS will take into consideration the date of execution of the acceptance to the option to purchase or the date of Sale & Purchase Agreement. For more information, please refer to IRAS's link here: https://www.iras.gov.sg/IRASHome/Other-Taxes/Stamp-Duty-for-Property/Working-out-your-Stamp-Duty/Buying-or-Acquiring-Property/What-is-the-Duty-that-I-Need-to-Pay-as-a-Buyer-or-Transferee-of-Residential-Property/Additional-Buyer-s-Stamp-Duty--ABSD-/

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More

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Ivan Ng
Hi,

In this case usually I would negotiate for a longer option period from the onset and manage the seller's side expectations. This is the allow some time to sell off the current HDB. Essentially the exercise date of your HDB OTP has to be before the private property exercise date. Close coordination of timeline and planning of finances would be crucial to avoid pitfalls and complicate the process.

I have worked on various similar cases and would be happy to share the best approach based on your requirements. May I know which condo you are referring to?

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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-- HDB Jurong West 5-RM Sellers, Exec Apartment Purchasers, Lenz & Michelle --

We would like to thank you for ensuring a smooth and well-explained process throughout the whole selling and buying of our property. We got to know you thru Property Guru, where we are scouting for condo around West area. We remember that we are quite tight in our budget in purchasing the condo unit,but you are still very willingly explaining and calculating our financial liabilities. You are always having your smiles whenever we met for discussion.

We appreciated your process of selling and buying of our property are very systematically and well executed, from financial calculation to the purchase procedure of our new house. We are always being updated thru our group chat during the engagement of your service.

We would never expect such a smooth sailing experience of selling and buying of property. Your professionalism in work will definitely be remembered and rewarded. All the best in your property venture! Read More

0

Aaron Chong
Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead. By the way, there is no ABSD payable in your case even if you chose to do the purchase first.

Regards
Aaron Chong
9730 8455
aaronchong2774@yahoo.com.sg Read More

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Gavin Ng
Hi

There are several ways however each will present a certain level of risks.

You may want to text 9620 0827 for a casual chat.

Warmest regards

Gavin Read More

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Nick Tan
Dear Sir/Mdm,

I personally would not recommend such an arrangement because you will be putting yourself at a disadvantage. This is because in such a scenario, you will need a long option period from the condo seller and because the seller will need to wait for you to sell your HDB, the seller is less willing to negotiate on the price and you are also required to put up a higher option fee to secure the unit.

Moreover, you will be more motivated to sell the HDB and therefore may not be able to get the best price for your HDB as sometimes it require some time to secure a buyer who is able to give you a good price. A longer option period will also comes with risks such as policy risks. If the government were to introduce cooling measures for example, you will be caught in an unfavorable situation.

Please feel free to contact me so that I can explain to you in details the risks involved and assist you further.

Regards,
Nick Tan
(M) +65 9644 4854
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0

Silvia Yang
Hi Sir/Madam

I will need more information to be able to advise you
I will be glad to assist

Appreciate if you can contact me at (65) 96608508 or Silviayang8@gmail.com with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508
Email: Silviayang8@gmail.com Read More

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Geryl Lim
Dear sir/madam,

The solution you are looking at is what we usually term is as to secure a longer option period by putting down a higher than 1% deposit usually to secure an option to purchase, given that most owners have concerns about buyers backing out after a long period of time and they will have missed opportunities by accepting such an offer.

I'd reckon that this is definitely not the best solution for you moving forward, unless of course you have very specific requirements for your purchase where it is difficult to come across a suitable unit for your purchase.

While Nick has mention about the duress to sell existing HDB should you have committed to a purchase first, it will be vice versa if you were to commit to a sale first, where you may make certain compromise on your purchases. There is no 100% fool proof solution to be fair.

I will usually recommend my clients to do the marketing of their existing place concurrently with shopping for your next place. As such, you will be able to keep abreast of the latest units available for sale and will be able to make an informed decision should a right offer to purchase your place comes in as you will be able to determine and plan out the timeline accordingly.

I have done several transactions as such successfully and will be happy to be able to assist you in doing so too.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
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[main] +65 6471 8888 [mob] +65 81577565 [LDA] +65 92787772
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Robbie Chen Chee Howe
Hi,

I can understand your situation, as I am currently working on a similar case right now. My client has already committed to a purchase, and is now looking to sell off her current property to avoid ABSD.

To ensure smooth Timeline planning, it is recommended to engage ONE agent to handle both your sale and purchase process. This way, we can work out the finer details to ensure that everything will fall in place, i.e do not need to pay ABSD, do not need to shift house more than once.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305. I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More

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