how to enter into a contract using the otp

Buyers and sellers are to negotiate and agree on the resale price of the flat.

The resale price of the flat is based on a willing-seller and wiling-buyer negotiation.


When entering the OTP:

Buyer and seller must declare to HDB the true resale price of flat.

Housing agents must also declare all relevant information relating to the resale transaction.


Under the Oaths and Declaration Act, the penalty for false declaration:

Fine and/or… Up to 3 years’ imprisonment.


Buyer and seller should ensure that they do not enter into any:

Supplementary/other agreements, or

Arrangements that may cause the true resale price to be inflated or understated.


Under the Housing & Development Act, the penalty for false information:

Fine up to $5,000 and/or… Up to 6 months’ imprisonment.


Seller will grant an Option to the buyer to buy the flat at the agreed resale price.

This is done by filling up the Option to Purchase (OTP) form.


At this stage, only the seller and the resale agent are required to fill up the OTP form.


In exchange for the Option, you need to pay an Option Fee to the sellers.

The fee is negotiated between you and the seller.

The fee is between $1 to a maximum of $1,000.


Seller CANNOT grant another option to another buyer until the option granted earlier expires.


Option Period is 14 days, including Saturday and Sunday. It is from the date of granting the OTP.

It expires at 4pm(1600hrs) on the 14th calendar day.

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• Confirm your eligibility

• Make sure you are sufficiently equipped financially to purchase the flat

• Check whether the flat is free from loans and vested interests

• Think and decide whether you really want to buy the flat

As a buyer, you should use the Option Period wisely and not rush into exercising the OTP.

During this period, you can do the following:


If you wish to buy the flat, you have to exercise the Option within the Option Period.


To exercise the Option, you have to:

1. Sign the “Acceptance” section in the OTP form(at the bottom half of Page 8)


2. Pay the seller a deposit amount not exceeding $5,000 which includes the Option Fee.

Deposit(Max. $5,000

Includes Option Fee)


3. Deliver the signed OTP to the seller within the Option Period


If you are intending to take a loan from HDB or a bank to buy the resale flat, you must have the following before exercising the Option:


Note: the Date of Issue on the HLE or the Letter of Offer must be BEFORE the Date of Acceptance of the OTP.

This is to inculcate financial planning and prudence amongst flat buyers.


If the buyer do not wish to proceed with the purchase, both buyer and seller need not do anything, but wait for the Option Period to expire.

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Buyer and seller have to decide when they wish to submit a resale application to HDB.(i.e. within how many days after buyer have exercise the OTP)


There are 3 modes of submitting your resale application.

1

2

3


• Online application

• buyer/seller conduct their own resale transaction without engaging the services of a housing agent

1


Buyer and seller each must pay a non-refundable administrative fee

1

Type of Flat By e-Resale

1- & 2-room $303-room & above $60

Fee payable is inclusive of 7% GST.

Payment by either: or


2• Online application

• housing agents from accredited agencies

• they help to submit the resale applications electronically on behalf of their buyer/seller


2Buyer and seller each must pay a non-refundable administrative fee

Type of Flat By e-Resale1- & 2-room $30

3-room & above $60


Payment by GIRO


For application submitted electronically via

It is not necessary for buyer and seller to submit any documents to HDB for verification before First Appointment.


They are required to bring along the relevant documents when they attend the First Appointment at the HDB Resale Office.


The documents are stated in the First Appointment Letter.

Bring all these!


3Buyer and seller need to submit the completed Resale Application together with OTP, by hand/post to:

ResaleApplication

+OTP

or


3The Resale Application can be obtained from the Reception Counter at HDB Resale Office.


3Both the buyer and seller must sign on the Resale Application.


3HDB will send both the buyer and seller an acknowledgement card to notify them of the receipt of their application.


3Buyer and seller each must pay a non-refundable administrative fee

Type of Flat By e-Resale

1- & 2-room $503-room & above $80


Payment by either: or


3

• Buyer must submit the following photocopied documents of all persons listed in the Application form.

• The original documents must be brought along for verification during Resale First Appointment.


3

Documents to submit:

Identity Card(s) of all persons listed

Birth Certificate(s) of all persons listed

Passport and Entry/Re-Entry Permit or Singapore Blue Identity Card (applicable for persons who are Singapore Permanent Residents) – verification of residential status


3 Marriage Certificate,

Deed of Separation, Divorce Certificate, Decree Nisi, Decree Nisi Absolute, Death Certificate (whichever is applicable) – verification of marital status

Valuation Report of resale flat (if applicable)


3 Grant of Letters of Administration with its

Petition and Estates Duty Schedule, ora copy of the Last Will (if applicable),the Order of Court to sanction the sale (if applicable) – proof of the right of representation or inherited interest in an HDB flat or private property

Letter of consent from the Official Assignee for buyer buying Executive Flat, Multi-Generation Flat or HUDC Flat (applicable of buyer is an undischarged bankrupt)


3

• Buyer must submit the following original documents of all persons listed in the Application form together with the application.


letterhead

companystamp

signature,

name,

designation of certifying

officer

3

Payslip / Certificate of Income from employer(note: Income certification must include these)

Employed Persons:


3

Income Certificate from Managing Director of the Company(for employee of a family-run business)

Employed Persons:


3

Latest Tax Assessment

Statement of Annual Accounts (certified by audit firm to confirm income for the past 12 months)

Self-Employed Persons/Odd Job Workers:


letterhead

companystamp

signature,

name,

designation of certifying

officer

3

Letter from employer(applicable only to odd job workers, must include:)

Self-Employed Persons/Odd Job Workers:


3

Student pass or letter from schools.

Unemployed persons will have to execute a Statutory Declaration to confirm that they have no source of income.

Students/Unemployed Persons:


3

Power of Attorney (if buyer is away during the resale transaction period)Certified true copy of the Power of Attorney by the solicitor or the original copy


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