**Until money changes hands on an Option to Purchase (OTP), a buyer owes you nothing and can walk away at any time.** In Singapore real estate, verbal promises or multiple viewings hold zero legal weight.
Here is what happens depending on where the transaction stands:
### 1. Before an OTP is Signed (Viewing Stage)
If the buyer viewed multiple times, praised the place, but hasn't signed an OTP:
* **Zero Recourse:** There is no contract. Buyers often view repeatedly to compare layouts, negotiate with spouses, or test your price tolerance.
* **Never Halt Marketing:** Never reserve a unit or cancel other viewings based on verbal interest. The rule is simple: **the property remains actively on the market until a cheque clears.**
### 2. If You Granted an OTP and the Buyer Backs Out
Once price is agreed and you issue the standard private property OTP:
* **The 1% Option Fee is Forfeited:** The buyer pays a standard **1% Option Fee** (e.g., $12,000 on a $1.2M Punggol condo). They typically get 14 days to secure bank financing and exercise.
* **If they let the OTP lapse without exercising:** You **keep the entire 1% Option Fee** as liquidated damages for reserving the property. You do not return a single cent, and you immediately re-open viewings.
### 3. If They Back Out After Exercising (Rare Default)
If the buyer already exercised the OTP (paying the remaining 4% to make a 5% total deposit) but fails to complete legal completion:
* You forfeit the **full 5% deposit** (e.g., $60,000 on a $1.2M property).
* Your conveyancing lawyer can sue for breach of contract, damages, or force specific performance.
### Protecting Yourself in Punggol
Punggol resale condos face active competition from nearby clusters. To weed out window-shoppers:
1. **Require In-Principle Approval (IPA):** Have your agent verify that serious buyers have pre-approved bank loans before entertaining repeated private viewings.
2. **Strict 14-Day Option Window:** Never grant extended option periods (e.g., 3 to 4 weeks) unless compensated with a higher option fee (e.g., 2%–3%).
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile:
(+65) 88899918
Email: onassis@sgagent.com
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