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Property Buying Tip #6: Option Fees
By Singapore Property Blog  •  February 27, 2013
Property Buying Tip #6: Option Fees

When buying from the Open or Resale market, a 1% Booking or Option Fee is required upfront and you are given a period of time, usually 14 days, to pay the balance 4% to exercise the Option to Purchase (OTP). In other words, you will need a minimum of 5% cash to pay the option fees, with the remaining 15% to be paid in cash and/or CPF (Ordinary Account) to complete the Option.

In the event you decide not to proceed with the purchase and do not exercise the Option, your 1% Option Fee will be forfeited by the Seller. The Seller is free to sell the property to another party when the Option expires.

When buying direct from the Developer, typically for a New Launch or Under-Construction Property, the booking fee to issue the Option to Purchase (OTP) is 5% to 10% (typically 5%). Upon signing the ...

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By Singapore Property Blog
Propwise.sg is a Singapore property blog dedicated to helping you understand the real estate market and make better buying, selling, renting and investing decisions – minus all the hype and misinformation ...
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