What Happens After You Sign the OTP in Singapore?

The Option to Purchase (OTP) is one of the most important documents in a Singapore property transaction, and yet many buyers and sellers are not sure what happens after it's signed. Here's a clear walkthrough for both HDB resale and private property.

For HDB resale transactions

When a seller grants the OTP to a buyer, the buyer pays the Option Fee (up to $1,000 for HDB resale). The buyer then has 21 calendar days to decide whether to proceed.

If the buyer proceeds, they pay the Exercise Fee (so that the total Option Fee plus Exercise Fee equals $5,000 for most transactions) and both parties submit their resale applications to HDB simultaneously through the HDB Resale Portal.

HDB will then assess both applications, check eligibility, and schedule a First Appointment. At the First Appointment (usually 6 to 8 weeks after submission), HDB confirms the transaction details, the buyer arranges their CPF and loan funding, and the legal paperwork is initiated. The Completion Appointment follows 2 to 3 weeks later, where ownership transfers, the remaining purchase price is paid, and the keys are handed over.

For private property transactions

For private residential property (condos, landed homes, ECs after MOP), the process follows a slightly different path.

The seller grants the OTP, the buyer pays 1 percent of the purchase price as the Option Fee. The buyer has 14 calendar days (though this can be extended by mutual agreement) to exercise the option by paying a further 4 percent, bringing the total deposit to 5 percent.

Once the option is exercised, both parties appoint lawyers who handle the conveyancing. The standard completion period is 8 to 12 weeks, during which the remaining purchase price is paid, CPF is withdrawn if applicable, and the bank loan is disbursed. On completion, the seller receives the sale proceeds and the buyer receives the keys.

What buyers should do immediately after exercising

Confirm your financing is in place: your bank's Letter of Offer should already be issued or in progress. Instruct your lawyer promptly so they can begin the legal process without delay. Arrange for a building inspection if you haven't done one. And start planning your renovation timeline, especially for private property where contractors book up months ahead.

What sellers should do immediately after OTP is exercised

Ensure you are clear on your own timeline for vacating. If you are simultaneously purchasing another property, coordinate the completion dates with your agent and lawyer to avoid gaps or overlaps. Begin planning your move.

If there are any issues with the property that the buyer should be aware of (maintenance problems, disputes, outstanding works), your lawyer needs to know.

The period between OTP and completion moves quickly. Good communication between all parties, especially between the agents on both sides, makes a significant difference to how smoothly it goes.

If you have questions about where you are in the process, WhatsApp me and I'll give you a straight answer.