Things to note when buying a Resale Properties

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If you are buying a resale property or HDB in Singapore, below are some of the things to take note before you issue the cheque and sign on the dotted line.

Verifying the Proof of ownership
Always ensure seller is the legal owner of the property. Your agent will help to request for proof when making the purchase

Eligibility to sell
Ensure that owners had already fullfilled the Minimum Occupation Period (MOP) for HDB seller. Do note that for some, whole unit subletting is not considered into the MOP period. For negative sale, seller must be able to top up the shortfall for his loan.

Ethnic quota
In some area, there are enthnic restriction on the buyer profile. So be sure to ask you agent to check before making the arrangement.

Financial planning
If you are getting a bank loan, please get your agent to help you get an In Principle Approval (IPA) from the bank before you starting your search. It will help you in understanding your financial situtation and have an idea of how much you can afford for your purchase. If you are getting a loan from HDB, you need to apply for Home Loan Eligibility (HLE) from HDB.

Factors when choosing your unit

  • Facing of unit
    If you are into fengshui or particular about door/kitchen/living facing, make sure you let your agent know before he makes the arrangement.
  • Renovation of unit
    Check if renovation or alteration are HDB approved. The seller will be responsible to make good any illegal modification to the unit.
  • Location
    Near MRT, shopping malls, schools, eateries are some of the features which buyer are looking for
  • Size, number of bedrooms
    Talk to your agent on your size requirement and the number of bedrooms which is comfortable for you

Offer
Once you have identified your unit, you can discuss with your agent to check the recent transactions and the market value for this property. Make a reasonable offer and wait for the seller to come back with a Yes or a counter offer.

Deposit
For HDB, deposit of up to 1k will need to place for securing the unit. For private, it will be 1% of the sale price

Exercise OTP
Once buyer confirm his eligbility to buy, buyer will need to pay an exercise fee (up to 4k for HDB, 4% for private)

Completion of sale
For HDB, you need to hand over with vacant pocession, do a final inspection before completion. It is the sellers obligation to hand over the property upon legal completion as agreed in the contract.


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