You have selected your unit, paid the booking fee and received the Option to Purchase. The pressure of booking day may be over, but the purchase is not yet complete.
The next few weeks involve some of the most important legal and financial steps in the entire new launch purchase. You will need to appoint a lawyer, finalise your housing loan, prepare for stamp duties, review the Sale and Purchase Agreement and exercise the Option within the required timeline.
This guide continues directly from our new launch show flat and booking-day guide. It follows what typically happens from the moment you receive the OTP until your initial payment reaches 20% of the purchase price.
From booking your unit to reaching the initial 20%
Once the OTP has been issued, several workstreams start moving at the same time. Your lawyer, bank, CPF arrangements and purchase documents all need to come together before the option period expires.
- Receive OTP Your selected unit has been formally booked.
- Appoint Lawyer Start the conveyancing and legal process.
- Finalise Loan Move from indicative financing to the actual facility.
- Receive S&P Review the agreement and title documents.
- Prepare Stamp Duty BSD and any applicable ABSD must be provided for.
- Arrange CPF Complete the necessary CPF legal documentation if used.
- Exercise OTP Sign and return the Sale and Purchase Agreement.
- Reach 20% Pay the required balance down payment.
- Await Construction Progressive payments begin at later milestones.
Stage 1: Check the OTP Details Immediately
Once the developer accepts the booking fee, you receive an Option to Purchase for the specific unit you selected. This document identifies the property, purchase price, intending purchasers and the terms governing how the purchase proceeds from this point.
Check that the names of all intended purchasers are correct before moving further. The OTP granted by a licensed housing developer is not generally assignable or transferable, so this is not the stage to casually decide that a different person should become the purchaser later.
Also record the date of the OTP and keep copies of all booking documents. Several subsequent deadlines are linked either to the OTP date or to the date on which the Sale and Purchase Agreement is delivered to you or your lawyer.
Stage 2: Appoint a Conveyancing Lawyer
You should appoint a conveyancing lawyer promptly after booking the unit if you have not already done so. The lawyer will act for you in the property purchase, review the contractual documents, handle the conveyancing work and help coordinate the legal aspects of financing and stamp duty.
If you intend to use CPF Ordinary Account savings for the purchase, the legal work also becomes important for the CPF application and CPF charge over the property. Your lawyer will guide you through the required authorisations and documentation.
If you are taking a housing loan, check whether the law firm you intend to use is acceptable to your chosen bank. Coordinating this early can reduce unnecessary changes or duplicated legal work later.
Stage 3: Finalise Your Housing Loan
An In-Principle Approval obtained before booking is useful, but it is not the same as completing the actual housing loan for the unit you have now selected. Once the purchase price and property are confirmed, the financing application needs to move towards formal approval and acceptance.
The bank may require updated income documents, CPF information, details of existing loans and other supporting documents. The exact loan available will depend on your financial profile, applicable loan-to-value limits, regulatory requirements and the bank’s own credit assessment.
Do not leave this until the final days of the option period. One reason the post-booking timeline matters is that the buyer has committed a booking fee while the financing, legal and payment arrangements still need to be completed.
An In-Principle Approval helps you estimate borrowing capacity before booking, but the actual loan still needs to be approved for the property you have purchased. Complete the financing process promptly instead of assuming that the earlier IPA means everything is already settled.
Stage 4: The Developer Sends the Sale and Purchase Agreement
After granting the OTP, the licensed housing developer is required to deliver the Sale and Purchase Agreement and the relevant title documents to you or your appointed lawyer within 14 days from the date of the Option. Once your lawyer has been appointed, the documents can be delivered directly to the law firm.
The Sale and Purchase Agreement, commonly shortened to S&P or S&PA, is the main contract governing the purchase. Licensed developers generally use the prescribed form, subject to amendments permitted or approved under the regulatory framework.
Do not treat the agreement as a formality simply because the project is a large development or because many other buyers are signing the same documents. Your lawyer should explain the material provisions and highlight anything relevant to your particular purchase.
What should you pay attention to?
The agreement covers much more than the purchase price. It includes the payment schedule, specifications, obligations of the developer, expected vacant possession arrangements, construction-related provisions and the contractual framework that will continue until legal completion.
You should also understand what is stated in the specifications for your unit and the development. Items shown in marketing materials or the show flat should not automatically be assumed to form part of the contractual specifications unless they are properly reflected in the relevant purchase documents.
Stage 5: Understand the Option Deadline
The standard new launch OTP does not remain open indefinitely. It generally expires three weeks after the Sale and Purchase Agreement and title documents have been delivered to you or, if you have already appointed a lawyer, to your lawyer.
If you intend to proceed, the option must be exercised before it expires. This normally involves signing the required copies of the Sale and Purchase Agreement, returning them to the developer and satisfying the required payment obligations.
Some developers may use an approved arrangement that allows the balance down payment to be paid within eight weeks from the OTP date instead. Always follow the actual OTP and instructions issued for your purchase rather than assuming that every development operates on identical payment timing.
Stage 6: Prepare for Buyer’s Stamp Duty and ABSD
Buyer’s Stamp Duty applies when you acquire residential property in Singapore, and Additional Buyer’s Stamp Duty may apply depending on factors such as your citizenship or residency status and the number of residential properties you already own. These amounts are separate from the purchase price and need to be included in your initial funding plan.
Stamp duty is calculated using the applicable rules on the purchase price or market value where relevant. Your conveyancing lawyer will usually establish the dutiable date, calculate the amount payable and arrange the stamping as part of the transaction.
As a general rule, dutiable documents signed in Singapore need to be stamped within the prescribed 14-day period to avoid late-stamping consequences. Buyers should therefore make sure the necessary funds are available rather than treating BSD or ABSD as expenses that can simply be dealt with much later.
ABSD depends on the buyer’s position at the time of purchase
Whether ABSD applies is determined by the buyer’s profile at the relevant date of purchase or acquisition. For joint purchases involving buyers with different profiles, the applicable treatment can also differ from what either buyer might expect individually.
Because ABSD can represent a substantial amount, clarify your position before booking rather than after receiving the OTP. If your ownership structure, citizenship status or existing property count is unusual, obtain appropriate legal or tax advice before committing.
Stage 7: Arrange Your CPF Usage
CPF Ordinary Account savings can generally be used for eligible private residential property purchases, subject to the applicable CPF rules and housing usage limits. If you intend to use CPF for the initial payment or later loan payments, inform your lawyer early so the required application and legal documentation can be prepared.
CPF savings may also be usable for eligible stamp duty and legal expenses, although the timing of CPF availability can affect whether some amounts first need to be paid in cash and subsequently reimbursed. Your lawyer can advise how the CPF process applies to your specific transaction.
Do not assume that your entire Ordinary Account balance is automatically available for the purchase. CPF usage can be affected by the property, whether this is your first or subsequent property, your age and the applicable housing limits.
Stage 8: Exercise the Option by Signing the S&P Agreement
If you decide to proceed, you exercise the OTP by signing the required copies of the Sale and Purchase Agreement and returning them to the developer before the option expires. This is the point where you move from holding the right to purchase the unit to becoming contractually committed under the Sale and Purchase Agreement.
Your lawyer will normally guide you through the signing process and the associated payments. Make sure you understand the documents and have confirmed your financing before exercising rather than treating the signature as an administrative step.
The 20% initial payment is cumulative; it is not another 20% on top of the booking fee you already paid. If your booking fee was 5% of the purchase price, the remaining amount required to reach 20% would ordinarily be 15%, subject to the payment terms stated in your OTP and Sale and Purchase Agreement.
Stage 9: Pay the Balance Required to Reach 20%
Under the standard progressive payment structure, the first contractual payment stage is 20% of the purchase price inclusive of the booking fee. The exact amount still outstanding therefore depends on how much was paid when the unit was booked.
For the common example of a 5% booking fee, the calculation is straightforward: 5% has already been paid, so another 15% brings the total initial purchase payment to 20%. If the booking fee for a particular transaction is different, the remaining balance changes accordingly.
How a 5% booking fee becomes a 20% initial payment
Using a hypothetical S$2 million purchase purely to illustrate the percentages, the initial payment would work as follows. Stamp duties and other transaction costs are separate and are not included in this 20% illustration.
- Purchase Price S$2,000,000
- 5% Booking Fee S$100,000 already paid
- Balance 15% S$300,000 to reach 20%
- Total Paid S$400,000 or 20%
- Stamp Duties Calculated separately
- Next Stage Progressive construction payments
The source of that balance can involve cash, CPF savings and housing-loan arrangements depending on your particular financing structure and regulatory requirements. Do not use the simple 5% plus 15% illustration to assume that every buyer has exactly the same cash requirement.
For example, the minimum cash contribution for a bank-financed private property purchase can be affected by the applicable loan-to-value position and your existing housing loans. Confirm the actual funding breakdown with your banker and conveyancing lawyer before the payment deadline.
Stage 10: What Happens If You Change Your Mind?
The period between receiving the OTP and exercising it gives the buyer time to complete the legal and financing arrangements, but it should not be treated as a cost-free reservation period. There are financial consequences if you decide not to proceed.
If the OTP is not exercised before it expires, the developer may generally forfeit 25% of the booking fee and refund the remaining 75% to the buyer. The developer can then offer the unit to another purchaser.
For example, if the booking fee was S$100,000, a 25% forfeiture would amount to S$25,000. This is why buyers should establish their financing and overall affordability before booking rather than relying on the option period to determine whether they can afford the property.
What Happens After the Initial 20%?
Once the Sale and Purchase Agreement has been exercised and the required initial payment has been completed, the purchase enters a different phase. Instead of a series of short administrative deadlines, future purchase payments are generally tied to construction milestones.
The developer will issue notices as prescribed stages of construction are completed. These can include foundation work, the reinforced concrete framework, partition walls, roofing, mechanical and internal works, external infrastructure and eventually Temporary Occupation Permit.
You can use our New Launch Progressive Payment Calculator to model the upcoming payment stages and understand how the outstanding loan may progressively be drawn down as construction advances.
Our next guide in this series will explain the progressive payment schedule in detail, including what each construction milestone means, when the bank begins disbursing the housing loan and how your monthly financing commitment can change as more of the loan is drawn down.
A Practical Checklist After Booking Your New Launch Unit
The period after booking can feel paperwork-heavy because several different parties are involved. A simple checklist helps ensure that an important deadline does not get lost between the developer, bank and lawyer.
- Check all purchaser names and unit details on the OTP.
- Record the OTP date and subsequent deadlines.
- Appoint your conveyancing lawyer promptly.
- Complete the formal housing-loan application.
- Arrange CPF usage if applicable.
- Prepare funds for BSD and any applicable ABSD.
- Review the Sale and Purchase Agreement with your lawyer.
- Understand when the option expires.
- Sign and return the S&P Agreement if proceeding.
- Arrange the balance payment required to reach 20%.
- Keep copies of all signed documents and payment records.
- Prepare for the subsequent progressive payment stages.
Final Thoughts
Booking the unit is an important milestone, but it is not the point where the administrative work ends. The weeks immediately after receiving the OTP are when the legal contract, housing loan, CPF arrangements, stamp duties and initial purchase payment all need to come together.
The sequence becomes much easier to manage when you understand what each party is doing. The developer issues the contractual documents, your lawyer manages the conveyancing process, the bank finalises the financing and you make the decisions and payments needed to exercise the purchase properly.
The most important number to remember at this stage is not simply 5% or 15%. It is the cumulative 20% initial purchase payment, together with the separate stamp duties and transaction costs that need to be funded around the same period.
Once that stage is completed, the rhythm changes. The next chapter of the purchase is the progressive payment schedule, where payments follow the physical construction of the development until TOP and key collection.
This article is intended as a general guide to the purchase process and does not constitute legal, tax or financial advice. Transaction timelines, financing requirements and individual circumstances can differ, so buyers should rely on their contractual documents and obtain advice from their lawyer, bank and other relevant professionals where appropriate.
Know the next financial steps before you commit.
If you are considering a new launch and would like help understanding the purchase timeline, initial payments or how a particular project fits into your broader property plans, speak with us before the deadlines begin to stack up.
