In Singapore, there is **no mandatory cooling-off period** for private property buyers and sellers **after the Option to Purchase (OTP) is signed**. The OTP itself serves as a legally binding agreement between the buyer and seller.
Here's a breakdown of the consequences if a seller decides to quit the sale after the OTP is signed:
**Consequences for Seller:**
* **Forfeiture of Option Fee:** The seller **must forfeit the option fee** (typically 1% of the purchase price) to the buyer. This acts as compensation for the buyer's time and effort invested in considering the property.
* **Potential Legal Action:** In extreme cases, the buyer **could potentially take legal action** against the seller for breach of contract. This could involve suing for **specific performance** (forcing the seller to complete the sale) or **damages** (compensation for any losses incurred by the buyer due to the seller's withdrawal). However, legal action is a complex and expensive route, and pursuing it would depend on the specific circumstances of the case.
**Important Note:**
* The OTP **can include additional clauses** specifying further consequences for the seller if they back out of the sale.
* These clauses could involve **higher penalties** beyond the option fee forfeiture.
* It's crucial for both **buyer and seller to carefully review the OTP** before signing to understand their respective obligations and potential consequences.
**Here are some resources for more information:**
* **Singapore Land Authority (SLA) - Sale and Purchase Agreement:** [https://www.sla.gov.sg/](https://www.sla.gov.sg/)
* **Singapore Estate Agents' Association (SEAA):** [https://www.seaa.org.sg/](https://www.seaa.org.sg/)
**Overall, while there's no cooling-off period, the OTP serves as a binding agreement with consequences for breaching it.** It's important for both buyers and sellers to carefully consider their options and potential risks before signing an OTP.
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