1) Select an agent
Optional, but recommended. A professional agent will not only help you to find the right property, but also ensure you get the right price, ensure all small details are covered prior to purchase, guide you through the process and make recommendations on financing and legal representation.
2) Find your property and agree a price
When reaching a preliminary agreement to buy, ensure that all important points have been discussed and agreed, including any repairs or changes prior to purchase, what stays and what goes, any special requirements from both side and the anticipated schedule.
3) Sign an Option to Purchase
For Private Property - This is obtained from the seller through their lawyer or agent. At this point you are required to pay a non-refundable option fee (normally 1% of purchase price). The option period is usually 14 days.
For HDB Property - Since 15 April 2003, the HDB standard Option to Purchase has replaced the Sale & Purchase Agreement as the form of contract to be used in resale flat transactions. Buyers and sellers should not enter into any other forms of agreement or supplemental agreements.
4) Appoint a Lawyer
You now need to appoint a lawyer to make legal enquiries on the status of the seller, the title of the property and the terms of the sale.
5) Arranging Financing
Compare interest rates and special terms when choosing your finance scheme. You can apply for withdrawal of CPF savings by completing an application together with a valuation report prepared by a licensed valuer who is on the CPF panel of valuers.
6) Exercise the Option / HDB 1st Appointment
For Private Property - If all is well you now sign the sale contract, and pay 5% of the purchase price (less the option fee). You also need to pay stamp duty within 14 days of the contract.
For HDB Property - The buyer and seller must both attend the Sales Declaration & Registration appointment to seal the closing price. After this appointment, HDB will check eligibility of the transaction and arrange for a 1st Appointment – usually about 4 weeks after the Sales Declaration.
7) Legal Inspection & Completion
Your lawyer will carry out an investigation of title deeds and send requisitions to various government departments. The seller’s lawyer will also prepare the completion statement and send documents for stamping to effect completion.
8) Settle Payment and Handover / HDB 2nd Appointment
For Private Property - You now settle the outstanding balance of the purchase price. This might be 8 to 12 weeks after exercising the option. The seller’s lawyer will then handover the keys and title deed of conveyance, and you become the owner of your new home.
For HDB Property - Completion takes place at the 2nd Appointment, usually about a month after the 1st Appointment. The insurance and mortgage is arranged and stamp duty, legal fees and agent fees are paid. The sale is completed and arrangements are made for moving into your new home.
Please note the entire processing time is usually between 10 to 14 weeks.
Restrictions for Foreigners
Foreigners can rent private apartments and landed properties, as long as they have a valid long-term permit to stay in Singapore. It is illegal for landlords to provide accommodation for illegal immigrants, so a proof of valid stay is required when renting an apartment – typically an employment or student pass. However, renting out a whole HDB apartment is subject to approval from HDB and the tenant is advised to check that the landlord has the permission.
As in many other countries, Singapore has restrictions on foreign ownership of property. The Singapore government has recently relaxed the restrictions in order to attract foreign investment as well as foreign talent as part of a drive to increase Singapore’s population and economy – although few people expect the restrictions on land ownership to be lifted any time soon. There are currently no restrictions for foreigners to buy private apartments. However, foreigners cannot buy landed properties without specific case-by-case approval from the government. And even then there are restrictions on the use of the property e.g. most cannot be rented out unless in a mixed commercial and residential area.
Foreigners holding Singapore 'Permanent Residency' or 'Citizenship' status can also buy HDB apartments directly from the government or through the re-sale market. To qualify for the HDB scheme:
- Applicant must either be a Singapore citizen or PR with at least one other sibling who is a PR.
- Applicants must be at least 21 years old.
- Applicants must form a family nucleus – either married or intending to get married; or with parents, siblings and/or children.
- (Optional) The combined income of all persons in the application must not exceed S$8,000 a month in order to qualify for CPF Housing Grant.
HDB has other schemes for special cases – please check HDB website for details.
