Hi

Need some advise here. After all the regulation change, what is the current payment practice for buying a pte resale property.

** Payment by buyer

1% of the purchase price at OTP offer (cash)

4% when OTP is accepted + stamp fee , does this has to be cash or cpf ?

Upon completion, 95%?. Assume that loan amt is 80% and there are sufficient fund in the cpf for 15%+ stamp fee. How much cash do I need to fork out?

Hi

Need some advise here. After all the regulation change, what is the current payment practice for buying a pte resale property.

** Payment by buyer

1% of the purchase price at OTP offer (cash)

4% when OTP is accepted + stamp fee , does this has to be cash or cpf ?

Upon completion, 95%?. Assume that loan amt is 80% and there are sufficient fund in the cpf for 15%+ stamp fee. How much cash do I need to fork out?

I think the rulings changed mostly applied to sale & purchase of HDBs and owning 2nd property.

The 4% when OTP is accepted + stamp fee is in cash. (Normally a cheque would be issued since the amount is quite large. The cheque would be made out in the seller's name and passed on to the seller's lawyers). So your total cash outlay upfront is 5% of purchase price + stamp duty.

You can apply to be reimbursed thru your CPF for the stamp & legal fees - see below.

http://ask-us.cpf.gov.sg/explorefaq.asp?category=23098

Can I use my CPF savings to pay the legal and stamp fees under Residential Properties Scheme (RPS)?

A: Yes, you can use your CPF savings to pay the outstanding legal and stamp fees if you apply to use CPF to buy the property. However, CPF savings cannot be used for the monthly service, conservancy and other charges relating to the use of the property.

With the withdrawal of the stamp duty concession from 15 December 2006, stamp duty is now payable within 14 days from the date of the Sale and Purchase agreement or the date of acceptance of the option to purchase. You will now need to use cash or take up loans to pay the stamp duty first, and subsequently apply for reimbursement from your CPF when your lawyers submit your application to use CPF for the property purchase.

For completed properties, the request for one-time reimbursement of stamp duty from your CPF should be submitted together with the request for CPF lumpsum drawdown on completion. For properties under construction, if you have used cash to pay the stamp fee first, you may apply for one-time reimbursement of stamp duty paid not later than legal completion.

1. For brand new pte properties(EC applicable) that are under construction and bought directly from developer, it will be 5% booking fee (cash), 15% downpayment(5% cash+ 10% cpf/cash) (within 8 wk), then 10% upon completion of ground breaking. Remaining 70% can be by bank loan.

2. For brand new properties (Ec applicable) that have been completed and bought directly from developer, it will be 5% booking fee, 25% (5% cash + 20% cash/cpf) within 8 weeks. 70% bankloan.

3. For private resale(EC applicable)properties, it will be 1% option fee + 9% exercise fee(within 21 or 28 days after option fee, sorry can't recall properly). This is to be settled in cash. The remaining 20% can be cash/cpf. 70% bankloan. These 20% +70% has to be done a a wk or 2 before completion day, so seller can receive cheque from lawyer on completion.

Hope pt 3 answer yr query. Stamp fee can be cpf (new or resale) however, must pay in cash first then reimburse back from cpf board. The worrying part for arranging bankloan is the time limited (21 days or 28 days) + banks' valuation on the property.

Hi

Need some advise here. After all the regulation change, what is the current payment practice for buying a pte resale property.

** Payment by buyer

1% of the purchase price at OTP offer (cash)

4% when OTP is accepted + stamp fee , does this has to be cash or cpf ?

Upon completion, 95%?. Assume that loan amt is 80% and there are sufficient fund in the cpf for 15%+ stamp fee. How much cash do I need to fork out?

Edited March 22, 201115 yr by bepgof

All this can be completed within 6 weeks

hmm.. thanks bepgot.

I am refering to the payment if I dont have any existing loan. I think the one you answer is 70% loan only right ?

14 Jan 2011 new rules, maximum 70% with no current loan, 60% with one or more loan. Read this.

http://www.news.gov.sg/public/sgpc/en/medi...s%20release.pdf

Corrections:

1. Has only 14 days to exercise OTP. Meaning has 14 days to settle valuation + loan amount approval.

2. Start from OTP exercise date, within 14 days must pay stamp duty fee, cash first, can "redeem" from cpf later.

3. Remaining 20% (cash or cpf)(10% +20%+70%)to be paid "upon completion". Bear in mind, cpf usually takes 2 weeks to process. Pte banks to lawyer usually 3 days. Meaning that seller must be able to get 90% (70% from bank loan, 20% from cash/cpf) upon completion date.

4. There are some misc fees as well, ie maintenance fee, property tax,...etc, etc must be paid upon completion. Otherwise "completion" can not be completed.

hmm.. thanks bepgot.

I am refering to the payment if I dont have any existing loan. I think the one you answer is 70% loan only right ?

Edited March 25, 201115 yr by bepgof

Just sold my condo, it's 1 % to obtain option to purchase and 4% to exercise option 14 days later

I guessed the buyer's OTP was signed before 13/1/2011.

Just sold my condo, it's 1 % to obtain option to purchase and 4% to exercise option 14 days later

Edited March 25, 201115 yr by bepgof

I guessed the buyer's OTP was signed before 13/1/2011.

Just signed 2 weeks ago, exercised option yesterday.

OTP exercise fee can be either 4% or 9%, must be in cash. % mentions in OTP doc.

Just signed 2 weeks ago, exercised option yesterday.

Edited March 26, 201115 yr by bepgof

thanks all for your useful information.

I guess for resale pte there is no hard and fuss rules like hdb. Booking is 1% and the rest depends on the deal. And the loan abt 70% of valuation is only payable at completion.

thanks alot again for your kind advises.

14 Jan 2011 new rules, maximum 70% with no current loan, 60% with one or more loan. Read this.

Are you sure? Please look at page 4 of the PDF.

Borrowers without any outstanding housing loans continue to have a

LTV cap of 80%.

Line 11. Seem you're right. Rules keep changing till brain blurr blurr lah.

Are you sure? Please look at page 4 of the PDF.