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My wife is a SPR who has received her Approval in Principal for her Citizenship Application last month. May I ask if she is able to sign an OTP now but exercise it only after she officially becomes a citizen? If yes, is she still liable for the ABSD for SPR? Thank you.
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7 Answers

Hi,

To be safe it is better to wait until you have gotten the slip for IC collection, or better still once after the pink IC is officially issued to you. Otherwise you may still be considered buying as SPR status which attracts the ABSD, if she is buying as sole name purchase. Are you buying with her on joint name basis?

Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395  for a more in-depth discussion :)

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Hi,

I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Have a good day ahead. By the way, to play safe, it is advisable to wait till she gotten the IC first before she does anything on any legal document.

Regards
Aaron Chong
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aaronchong2774@yahoo.com.sg Read More
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Hi,

1) The IRAS will assess the residential status at the time of the OTP exercised date to determine the type and amount of stamp duty.
2) You didn't mention your residential status, thus I will cover all 3 scenarios:
(a) You are a citizen: No ABSD involved since SC + SPR married couple is not subject to ABSD.
(b) You are an SPR: There will be a 5% ABSD incurred since both of you are SPR. But you have to ensure that both of your SPR status has more than 3 years of validity to be eligible to offer an OTP when buying an HDB flat.
(c) You are a foreigner: Your wife cannot offer an OTP until she receives the physical ID and passport, because she doesn't meet the eligibility criteria when buying an HDB flat.

3) Your wife has to negotiate with the sellers whether they are willing to wait based on the waiting time.
4) My understanding is your wife has to wait for at least 3 months from the date of receiving the Approval in Principal before being sworn to collect the physical ID.
5) However, the sellers can still back out from the agreement since the signed OTP is invalid without the date.
6) You might face difficulties and complications by doing an under-table arrangement.
7) I would discourage you from taking the risk.

Please give me a thumbs-up if the answer provided is relevant to your main concern. Thanks!!!

Hope the above answers your main concerns, but if there are more queries, 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
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Hi, appreciate your sharing. Do check with law firm or HDB on it.
Looking forward to assist you at 9696 4398  or email me at stewartlim96964398@gmail.com

Cheers
Stewart-PropNex (Senior Associate Division Director) Read More
0
In this case, is it a private residential property or HDB that you are purchasing? Is this purchase only under her name? How about yourself? There can be various considerations here. Should your wife just received her SPR and purchasing under her name only, the option period can be negotiated such that she is only exercising the OTP after she officially gotten her pink IC to be very safe.

I have been in the real estate business since 2009, with more than 14 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

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ADVICE:
Wait for IC: It's recommended to wait until you receive your new IC (pink IC) to purchase property.
Avoid ABSD: Buying property before obtaining citizenship can lead to you being considered a Singapore Permanent Resident (SPR), resulting in potential Additional Buyer's Stamp Duty (ABSD) charges.
Confirm Citizenship: Ensure you've officially become a Singapore Citizen before the property purchase to avoid complications and extra costs.
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Mani Subramanian Veeramani
Hi there!

- Yes, your wife can sign an OTP (Option to Purchase) now and exercise it after she officially becomes a citizen.
- However, she will still be liable for the ABSD (Additional Buyer’s Stamp Duty) as an SPR until she officially gains citizenship.
- Once she becomes a citizen, the ABSD rules will change accordingly, and she may be eligible for a refund if the purchase meets the required conditions.

If you need more detailed advice or assistance, feel free to reach out.

Thank you.

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