Buying Your First Home: The Steps Between Option and Completion
A walk through the conveyancing process from the option to purchase to handover of keys.
Purchasing your first home is exciting, but the process can feel overwhelming. In Singapore, the journey begins with signing an Option to Purchase (OTP) and ends with Completion, when ownership officially transfers. Understanding the steps in between helps you stay prepared and avoid surprises.
1. Exercise the Option
After receiving the OTP from the seller, you’ll need to exercise it within the stipulated period (often 14–21 days). This involves signing the document and paying the option fee or deposit.
2. Secure Financing
Apply for your mortgage promptly. Banks will assess your eligibility, issue a Letter of Offer, and lock in your loan terms. Ensure you’ve budgeted for stamp duties, legal fees, and other costs.
3. Engage a Conveyancing Lawyer
Your lawyer will handle due diligence, check the property title, and prepare the Sale & Purchase Agreement. They’ll also liaise with the bank and seller’s lawyer to ensure all legal requirements are met.
4. Pay Stamp Duty
Stamp duty is a mandatory tax on property transactions. Payment deadlines are strict, so make sure this is settled early to avoid penalties.
5. Final Checks and Completion
Before completion, your lawyer will confirm that all conditions are satisfied, funds are ready, and documents are in order. On completion day, payment is made, and the property title is transferred to you. You’ll then receive the keys to your new home.
