Option To Purchase (OTP)
Granting the OTP
You can only grant an OTP to buyers at least 7 days after registering your Intent to Sell. You should use this cooling-off period wisely and consider the housing options available to you.
If you decide to sell your flat, you may grant an Option to the buyers, to sell the resale flat at the agreed resale price.
When entering the OTP, take note of the following:
- You and the buyers must declare the true resale price of the flat to HDB
The penalty for false declaration includes a fine and/ or up to 3 years' imprisonment.
- You and the buyers must not enter into any of the following:
- Supplementary/ other agreements
- Arrangements that may cause the true resale price as declared to be inflated or understated
The penalty for false information includes a fine of up to $5,000 and/ or up to 6 months’ imprisonment.
Filling in the OTP
Sellers and buyers of resale HDB flats are advised to read these notes and the clauses of the Option to Purchase before completing the form and entering into a contract for the sale and purchase of the flat.
You or the buyers must fill in these sections in the OTP:
- Option date
- Flat address
- Purchase price (resale price of the flat)
- Option fee (between $1 to $1,000)
- Option expiry date (21 calendar days from the option day, [including Saturdays, Sundays and Public Holidays]. For example, if the seller grants an Option to you on 1 April, the Option will expire on 22 April at 4pm)
- Names and NRIC numbers of all the sellers and buyers
Top half of page 8
- Option date
- Flat address
- All sellers must sign on the OTP
- A witness must sign on the OTP (seller's salesperson or any person who is a Singapore Citizen or Singapore Permanent Resident aged 21 years or above and not involved in the resale transaction)
You are required to sign on the OTP, in exchange for an Option Fee from the buyers. The Option Fee should be between the sum of $1 to $1,000, to be negotiated between you and the buyers.
Once you have granted the Option to the buyers, you are not allowed to grant an Option to another buyer until it expires.
Valuation of the Flat
If a valuation of the flat is required, the appointed valuer will contact the Seller to arrange for a flat inspection. Flat sellers are required to allow the appointed valuer to inspect the flat within 3 working days, as stated in the OTP.
Exercising the OTP
The Option period is 21 calendar days (including Saturdays, Sundays and Public Holidays), from the date of granting the OTP (refer to Step 2). It expires at 4pm on the 21st calendar day.
If the flat buyers wish to purchase the flat, they have to exercise the Option within the Option Period. To exercise the Option, you or the buyers must fill in:
- Clause 6.1 (c) on page 2 of the OTP: Option Exercise Fee
- Clause 12 on page 4 of the OTP: Number of days from the date of exercising the Option that you and the buyers have agreed to submit the resale application to HDB
- Bottom half of page 8 of the OTP:
- All buyers must sign on the "ACCEPTANCE" section in the OTP
- A witness must sign on the OTP (their salesperson or any person who is a Singapore Citizen or Singapore Permanent Resident, aged 21 years or above, and not involved in the resale transaction)
When the buyers exercise the OTP, the buyers will need to pay a deposit to you. The deposit, including the Option Fee previously paid in Step 2, must not exceed $5,000 in total. The amount of deposit is negotiated between you and the buyers.
If the buyers do not wish to proceed with the purchase and exercise the OTP, you will need to wait for the Option Expiry Date to lapse. The buyers’ Option Fee, previously paid to you, will be forfeited and you may keep the Option Fee.Download HDB-prescribed
OTP NOW! Procedures to enter into a
contract using the OTP Sample of an