Overview of purchasing resale private residential
What are the timeline for purchasing a resale unit? What to plan for before doing the purchase?
To purchase a private residential, the recommended steps will be as follows:
- Work out on the finances (Speak to a mortgage banker) to determine the purchase value
- Start the viewing process!
- After shortlisting a unit, look out for the indicative by speaking to the mortgage banker or checking SRX’s X-value or URA’s transaction details to have a feel of what are the past transaction prices
- Negotiate the price!
- Before placing the Option fee, get the Proof of Ownership or purchase it from Inlis to show you who the owner(s) are for issuing the cheque to the right recipient. It is also recommended to do a bankruptcy search on the seller(s) as well. This is to further safe guard you from getting involved with any bankrupt proceeding against the property.
- OTP is usually valid for 14 calendar days (Market Practice) to exercise it. During this time, the mortgage banker will prepare the Letter of Offer (LO)
- While the above is on going, look out for a lawyer in the bank’s panel and engage them to assist you with the conveyancing
- Meet the mortgage banker to sign off the LO when its ready and meet up with the lawyer to exercise the OTP.
- Bring along a cheque book to prepare the following payments when meeting the lawyer:
1. Stamp Duty (payable within 14 days from exercising the OTP)
2. Legal fees
3. 4% exercise OTP fee
- The lawyer will do the necessary conveyancing and you will need to prepare any balance cash payment (if any) 1 week before the completion.
- Wait for key collection! (Usually about 10 to 12 weeks from exercise OTP date, subject to buyer(s) and seller(s) agreement