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For Resale / old properties, please use latest IEA Option to Purchase. From1 Sep 2010 it is 10% Cash again! (1%+ 9%) where buyers have to actually come out with 10% cash (instead of 5% cash + CPF).
Because CPF can only release money after completion of all legal documents. This will take about 6 to 8 weeks. Therefore using the 10% to be paid within 2 to 3 weeks is not possible!  It means buyers will need 10% cash (not 5%) as the other 5% cannot be met or released to the sellers within 2 to 3 weeks! (The old Option to Purchase is a 10% cash option)
This problem can only be resolved if the sellers are the honest and sincere type and not the opportunistic ones who will take advantage.
But Remember: "a man will do wrong for a piece of bread"
Proverbs:28:5 " Evil men do not understand justice, but those who seek the Lord understand it fully."
 Like the  NKF saga
"For with what judgement you judge, you will be judged; and with the measure you use, it will be measured back to you"

Checklist Pte Owner

Checkliksts HDB Resale

[Read the New Ruling on Cash Down payment and Maximum Bank Loan wef  19 July 2005]

When buying or selling property, always remember that no matter how experienced we are, we are not selling clothing or shoes. Never just rely on memory. Never assume. Drop your EGO even if you are considered as an EXPERT. Always verify  facts. The consequences are serious if we failed to do so. Go through a comprehensive checklist with your sellers and buyers and verify immediately with the relevant authority if material facts are ringing in your ears. If not, ask your seniors. It helps.  Go through my checklist and see if you dare claim to be an EXPERT! (Hey, it is not exhaustive or complete. Help me improve on it lah!)

Using a Checklist is a fundamental system . No guarantee too! You may score a distinction (95 out of 100 questions) in your CEHA exam. But for one mistake you make in your property transaction it can lead you into litigation and suffered great losses. Yeh, may be you are lucky! So far for the past ten years you are GREAT!  What about Tomorrow ?

Warning!!! There is serious mistake deliberately made in the checklist to ensure that you verify and update all items before using it! So I am not responsible for your lazines and mistake. Take it as a TEST lah! (Help us update the checklist. Find one mistake, you get one cup of tea!)


Developers Have Right to Forfeit 20% of the Purchase Price Though Purchaser Had Only Paid 5%!!!

(See Circular regarding Deferred Payment below and Case under "Bounced Cheque")

Warning! Pay 5% but 20% Forfeiture

Read the Law cases on Duty of Care of Lawyers and Agents(GST, Tax, Road Line Interpretation Cat 5,etc)

Laws & Acts

The  contents in this website and all other links are not meant to be legal or professional advice. They are meant for us to be more careful and to double check with the relevant authorities if readers find them useful. We do not accept any responsibilty for any loss or damage out of any reliance on the material in my website. Checklists not updated. Arhlim

HDB Owner click here to check requirements

Stamp fees are payable (by the buyer) on the sale and purchase agreement

and the mortgage.  A simple way of calculating the stamp fees on a sale and purchase agreement is to multiply the purchase price by 3% less $5,400.00

EXAMPLE: Purchase Price = $500,000.00

1 st  $180,000  x 1%  = $1,800

2 nd $180,00   x 2%   = $3,600

     Thereafter 3% x  $140,000 ($500,000 - $360,000) = $4,200

Total ($1,800 + $3,600 + $4,200)   = $9,600

or 3% x $500,000 = $15,000 - $5,400 = $9,600

The CPF Scheme applies only to properties in Singapore which are on freehold land or have remaining leases of less than 60 years but at least 30 years.
Can I use my CPF savings to pay the downpayment for the property?
For properties bought on or after 19 July 2005, you may use your CPF to pay the purchase price of the property after you have paid the first 5% of the purchase price in cash.

If you are buying an Executive Condominium and are eligible for the Housing Grant, you can use the grant to pay the downpayment at the time of signing the Sale and Purchase Agreement and after you have paid the 5% cash payment. However, further CPF, if any, can only be released after you have paid all the cash difference.

How and when will the CPF savings be released?

The Board will release the CPF savings only on completion of all legal documentation, and after you have paid the 5% cash payment. You would also need to settle the cash difference between the purchase price and your CPF lumpsum and the loan. The Board must also be able to lodge a charge on the property.

Can I use my CPF savings to pay the legal and stamp fees?

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.


 Can I use my CPF to purchase second and subsequent properties?

Yes, you may use your CPF to purchase second and subsequent properties. However, for properties purchased on or after 1 July 2006, we would require you to set aside the Minimum Sum cash component first before you can use your CPF to buy the second and subsequent properties.

If I purchase my second and subsequent properties after 1 July 2006, how much of my CPF can I withdraw for my second and subsequent properties?

The CPF withdrawal would be capped at 100% of the Valuation Limit (VL) of the property (for properties with at least 60 years of lease). VL is the lower of the purchase price or valuation price of the property at the time of the purchase. For properties with more than 30 years but less than 60 years of lease, the withdrawal limit would be determined based on the age of the co-owners and remaining lease of the property. Please refer to Annex B for the details.

I owned a HDB flat and intend to purchase a private property after 1 July 2006. Do I also need to set aside the Minimum Sum cash component before I can use my CPF?

Yes. However, the Board will allow a grace period for you to sell off your HDB flat. The grace period is as follows

{i) If you are buying a completed property - you will be given a grace period of six months to sell off one of the properties; or

ii) If you are buying a property still under construction – you will be given a grace period of 6 months from the issuance of Temporary Occupation Permit (TOP) to sell off one of the properties. After the grace period, CPF withdrawals will be stopped for the newest property purchased, if you do not meet the Minimum Sum cash component requirement.


How do I apply to use my CPF savings to buy a residential property?

You need to complete an application via “my cpf Online Services” for the withdrawal of your CPF savings. Alternatively, you can authorise your lawyer to submit it on your behalf.

Your application should be accompanied by a valuation report prepared by a licensed valuer. If your application is approved, the Board will send you a Letter of Approval 8-10 days after receiving your application form giving in-principle approval for the use of your CPF savings. Your case will then be referred to the Board's solicitors to prepare the legal documents.

You should instruct your solicitors to provide the Board's solicitors with all the necessary information and documents to complete the legal documentation. Your CPF savings will be released through the Board's solicitors after all documentation have been completed. Legal documentation normally takes 6 to 8 weeks.

CPF Loan Affordability Calculator

If you are buying a property for the first time, you may wish to consider the following before committing yourself to the purchase.

 1. Check your eligibility

Make sure you are permitted by law to buy the property you want. Non-Singaporeans are only allowed to buy properties classified as condominiums or apartments that are at least six storeys high. If they wish to buy landed property, they must apply to the Controller of Residential Property for permission.

2. Check your financing

a. Cost of property

The total cost of purchasing a property is approximately 105% of the purchase price, including the stamp and legal fees.

b. Getting a financier

Decide on your financier. It could be a bank or a finance company. Ask the loan officer to advise you on the alternative funding arrangements you can have. Most CPF members fund their purchase as follows:

Member's CPF savings + Housing Loan + Own Cash = Purchase Price

Once you have decided on your funding arrangements, discuss with the loan officer the amount of CPF savings you would like to use for the property, the amount you need to borrow from the financier, and the amount of cash you have to use.

c. Quantum of loan

Currently, the maximum housing loan should not exceed 80% of the purchase price or valuation of the property, whichever is lower. This 80% includes the CPF savings used to pay for the property but not the CPF used to pay the second 10% downpayment, stamp duty and other related legal fees. You would therefore need to ensure that you have enough cash to meet the balance of the purchase price.

3. Buying a property

It would be good to know the range of property you can afford after checking with your financier. Next, you need to engage a lawyer to advise you on the process of buying a property and later, to handle the legal documentation.

a. For a completed property

Once you have made an offer to the developer or seller to buy the property, you would be asked to make a downpayment (usually 1% of the purchase price) and sign an Option to Purchase. The Option gives you the exclusive right to buy the property for a limited period. During this time, your lawyer will do a preliminary search on the property.

If you decide to proceed to buy the property, you must exercise (accept) the Option by paying the balance of the downpayment (usually 10% of the purchase price including the 1% paid earlier when you signed the Option) within the period stipulated in the Option. This is to confirm your intention to buy the property.

Your lawyer will advise you on the legal procedures and follow up with the developer's or seller's lawyer on the Sale & Purchase Agreement, legal documentation for the use of your CPF savings and housing loan, payment of the balance of the purchase price, etc.

b. For a property which is still under construction

Upon selection of the property, you will usually have to pay 5-10% of the purchase price for the Option to Purchase from the developer. The balance of the purchase price will be paid according to the schedule of progress payments set out in the Sale & Purchase Agreement.

As in the case of buying a completed property, your lawyer will advise you on the legal procedures, payments and documentation.

The information in this Annex serves as a guide only. Members should seek advice from their lawyers, financiers or housing agents if they need further clarification.

[Read "New Rules" on changes to 5% Cash Down payment and Ninety %Loan  - wef  July 5]
The Available Housing Withdrawal Limit (AHWL) is 80% of the gross CPF savings in your Ordinary and Special Accounts in excess of the prevailing Minimum Sum (currently $84,500) or the available Ordinary Account balance after setting aside the Minimum Sum cash component, whichever is lesser. Gross savings include savings already withdrawn for housing, education and investments.
The following examples show how the additional CPF amount is computed when the 100% Valuation Limit is reached. The computation is based on 144% Valuation Limit and the current Minimum Sum of $84,500 (of which the cash component is $42,250.)
Purchase Price = $570,000
Value of property = $550,000

Valuation Limit = $550,000

Example (1)


Example (2)


Ordinary Account balance (a)
Special Account balance (b)
Amount withdrawn for housing (c)
Investment (OA) (d)
Education (e)
Gross savings [(a)+(b)+(c)+(d)+(e)]  
Less Minimum Sum  
80% x (f) (g)
Available Ordinary Account savings(after setting aside Minimum Sum cash component of $42,250 in Special and Ordinary Account) (h)
AHWL [lower of (g) or (h)] (A)
CPF Withdrawal Limit
(i.e. 144% Valuation Limit)
Amount already withdrawn for housing  
Balance CPF Withdrawal Limit (B)
Additional CPF that can be withdrawn to pay the loan - lower of (A) or (B)
With effect from 1 September 2002, you may use your CPF to pay the second 10% down payment of the private property at the time of signing the Sale and Purchase Agreement The first 10% down payment, however, has to be paid in cash.
If you are buying an Executive Condominium and are eligible for the Housing Grant, you can use the grant to pay the second 10% down payment on completion of all legal documentation. Please check with HDB on the Housing Grant eligibility.

Housing & Developers Control & Licensing Act here

Amendments to standard Option & S&P

Regarding Bridging Loan