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Hi, I would like to clarify a couple of things and would greatly appreciate your input:

1) is the option to purchase of HDB a standard document? (Any specific clause to take note as I do not have a rep, I’m liaising with seller’s agent)

2) Seller drafted and sign a separate letter to include a few additional terms. One of which stated : “The buyers will bear the property tax and all other costs that owner have to pay”- is this standard? as I read on IRAS that seller must pay for the property tax in advance before selling the property. Please advise

3) HDB website stated that the sale of completion will take up to 8 weeks after submission. Is it usually 8 weeks or may be sooner than that? (Based on 2021 til recent transaction)

Thank you
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1 Answer

Ling CK
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Hi,

1) The Option to Purchase (OTP) is a standard document from the HDB with a unique serial number. It is important you read through the whole document to understand both seller and your responsibility and all consequence if anything hiccups are raised during the transaction process.
Sometimes it is too late to raise certain concerns after you had offered for the OTP and exercised the OTP. You will be legally bound once exercised, and you might entangle in a situation where you don't want to waste your time.
You may download a copy to read up even before you go out for any viewing:
https://www.hdb.gov.sg/cs/infoweb/search-result?q=OTP#gsc.tab=0&gsc.q=OTP&gsc.page=1

2) Under a normal completion without extension, then you should not sign anything like this. It definitely sounds funny. Because the seller must pay the IRAS by end of Jan of every year. And the transaction cannot process if the seller didn't pay up the IRAS by the due date.
As a buyer, you only need to reimburse the seller the balance of the property tax from the completion date till the end of the year.
Not sure what other costs are that the owners had own; HDB, town council, IRAS, police, upgrading cost, or any illegal fines. As a buyer, you should not expose yourself in an open-end clause.

3) Actually it is not 8 weeks after submission. It is 8 weeks upon acceptance by the HDB. It can be up to 21 working days from submission to acceptance.
Usually, it is either 8 weeks or later, cannot be earlier because there is a standard legal process from acceptance to completion which cannot be shortened.

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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