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hi.

Normally buyer need to pay 1% to purchase the option from seller.

to exercise the option, 4% to be paid (total 5%) for private properties

HDB resale.
1. up to max $1000
2. exercise max $5000 including otp amt.

hope this helps to clarify.

shawn
 90294371 
shawnchewproperties@gmail.com Read More

Good evening,

The general rule is that buyer will exchange the signed OTP with the Option fee. In order to convince the seller that the buyer is serious, most of them would prefer to receive the Option cheque before they sign the OTP.

Do feel free to contact me for further discussion.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA

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Hi

Are you asking as a Buyer or Seller?

Can I assume that you are asking in purchase of a resale private property?

If you are a buyer, it would be good to engage an agent as generally you do not need to pay for the representation.

Proper documentation and execution is crucial in the property transaction.

Some experience agents may miss a step and new agents do fumble on this and not to mention that you are totally unfamiliar with the process. Given the scenario, an experience agent will definitely help to smooth the process.

You may write to gavin.ng@orangetee.com.

Regards

Gavin Read More

Hi,

Option to purchase is most common during a resale process
Offer to purchase is most common during a new development.

Both are the very first stage where both parties (Seller & Buyer) come into legal contract.
Thus it is necessary to understand how a contract law works.

If you understand contract law, then you will know there is an offer & acceptance condition under contract law.

In a property purchase:
(1) Buyer is the offerer, offer the seller to enter into a contract law with a cheque.
(2) Seller is the accepter, so they have the choice of whether want to enter into a contract.
(3) Once the seller accept the offer, they will in return issue an OTP.
(4) Buyer now will decide whether to continue in the contract by deciding whether to exercise the contract.
If buyer decide not to proceed, then buyer can allow the OTP to expire, and contract will stop at this stage.
Seller will keep the deposit cheque as the compensation.
(5) Once buyer exercise the contract, seller must honour the contract.

Once enter into a contract, do note that the accepter party cannot back out from the agreement otherwise the offerer will has the right to sue for breaching contract and vice versa. Unless there is an escape clause that allow any party to leave the contract.

Also note that this is a legal process, thus every action done is recognise in court, breaching of it has a consequence of compensation for damages, and this will be enforce by court.

Whereas signing of Offer to purchase is often happened when dealing with developer.
Developer will issue a standard Offer to purchase so as to secure buyer into contract stage, and follow by signing of Sales & Purchase agreement.

Hope the above answer to 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
Ling CK
 90110636 
ling.ck7@gmail.com

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In a typical process, the purchaser will issue a cheque addressed to the seller with the amount of 1% of intended offer price, together with the Offer to Purchase, stating out the purchasing terms in black and white, before this offer is being presented to the seller.

Should seller accept this offer, they will keep the cheque and issue the Option To Purchase in exchange to the Purchaser.

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Geryl LIM
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