A Step-by-Step Guide to Buying

A condo Under construction

Updated May 2024

Building Under Construction (BUC) - Condos that ​have been launched and are currently under ​construction, with balanced units available for ​sale.


Characteristics:

  • The initial excitement has subsided, allowing ​you to tour the show flat leisurely and make ​a more informed choice.
  • Reduced complexity – No need for balloting.
  • Shorter remaining construction period, ​resulting in a quicker move-in time.
Residential Buildings under Construction

Following is a ste-by-step guide outlining the ​purchasing process to help you understand what ​to anticipate.


If you find yourself confused during your buying ​process, feel free to revisit this guide. ​Remember, stick to the fundamentals! 😊

Step 1: Get an In-Principal Approval (IPA)

from a Bank

An IPA can be easily requested through a ​mortgage broker or a mortgage banker.


With an IPA, you will have a better idea of ​financing the property, for instance, the amount ​of cash outlay and CPF savings needed, as well ​as the subsequent monthly mortgage.

Step 2: Make an Appointment to Visit the

Show Flat


Do engage a reliable real estate agent who can ​guide you around the show flat, provides you ​with comprehensive details about the ​condominium, as well as be unbiased in serving ​your needs, rather than pushing for a sale.


This service is provided at no cost to you.

Step 3: Book Your Unit & Receive the Option ​to Purchase (OTP)

  • When you have settled on your choice, ​pay a booking fee of 5% of the purchase ​price.


Note that this 5% contributes to your ​downpayment, it is not a cost in addition to ​the purchase price.


  • Receive the OTP.

Step 4: Hire a Conveyance Lawyer &

Secure your Home Loan

  • Choose a law firm that is on the panel ​of the bank from which you are ​obtaining your home loan.


  • With a copy of the OTP, you can ​proceed to secure the home loan ​whereby the bank will issue you the ​Letter of Offer.

Step 5: Sign S&P Agreement, Exercise OTP,

Pay Buyer’s Stamp Duty

  • The Sales & Purchase (S&P) agreement ​will be sent to your lawyer’s office by ​the developer.


  • You will have 3 weeks to sign the S&P, ​and exercise your Option to Purchase ​(OTP).


  • Make the payment for the Option ​Exercise Fee ( 15% of the purchase ​price, by cash or CPF ). This also ​contributes to your downpayment.


  • Pay the Buyer’s Stamp Duty (BSD).

Step 6: Progressive Payment Starts

  • The developer will inform your lawyer ​when the payment is due for each ​stage.


  • Your bank will disburse the payment to ​the developer, while you pay the bank ​in instalments.


  • To illustrate, If you purchase the ​property when its construction is ​already at Stage 6, your bank will have ​to consolidate and disburse all the ​payments from Stage 1 to 6 to the ​developer.

Example of a progressive payment schedule

Step 7: TOP & Key Collection

  • When the Temporary Occupation Permit ​(TOP) is obtained, the developer will ​notify you on the the date to collect ​your keys.


  • Make sure to inspect your property and ​promptly report any issues to the ​developer for correction. Typically, ​there is a Defect Liability Period of 12 ​months from the TOP.


Congratulations on your new property!

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