Buying a resale condo: the step-by-step process

A different process from a new launch

A resale condo is a completed unit bought from its current owner. The process differs from a new launch - there is no balloting, no progressive payment, and you can inspect the actual unit. Here is how a resale purchase runs, step by step.

1. Get your financing in order first

Before you shop seriously, get an in-principle loan approval from a bank. It tells you your real budget and lets you act quickly when you find the right unit. Resale transactions move on the seller's timeline; being finance-ready is a genuine advantage.

2. View, shortlist and make an offer

You view units, shortlist, and negotiate a price with the seller, usually through the agents involved. Because a resale unit is complete, use the viewing properly - check the actual condition, layout, light, noise and the surrounding blocks.

3. The Option to Purchase

When the price is agreed, the seller grants you an Option to Purchase (OTP) in exchange for an option fee - a small percentage of the price. The OTP gives you an exclusive window, typically a set number of weeks, to decide whether to proceed.

4. Bank valuation and finalising the loan

During the option period, the bank arranges a valuation of the property to confirm the loan it will extend. The valuation matters: if it comes in below the agreed price, the gap must be covered in cash, because the loan is based on valuation. This is the point at which your financing becomes concrete.

5. Exercising the Option

If you proceed, you "exercise" the OTP within the window - signing it and paying a further deposit, so the option fee plus this sum form part of your down payment. The sale is now firm, and your conveyancing lawyer takes over the legal process.

6. Stamp duties

Buyer's Stamp Duty, and Additional Buyer's Stamp Duty where it applies, generally fall due shortly after the OTP is exercised - typically within 14 days. These are upfront costs, not part of the loan.

7. Conveyancing and completion

Your lawyer carries out the legal searches, prepares the documents, and liaises with the seller's lawyer and your bank towards completion - the day the balance is paid, with the loan drawn down and CPF and cash applied, legal title transfers, and you receive the keys. Completion typically falls a set number of weeks after the option is exercised.

8. Handover

On completion you take possession. Inspect the unit against what was agreed, take meter readings and arrange the transfer of utilities. Unlike a new launch, there is no developer defects period - you buy the unit as it is, so a careful pre-purchase viewing does the job a defects inspection would.

How long does it take?

A resale purchase, from exercising the option to completion, generally runs a couple of months - far faster than waiting years for a new launch to be built. The benefit is speed and certainty: you can move in or rent out soon after completion.

What to line up

• An in-principle loan approval, before you shop.
• Cash for the option fee and deposit, then the stamp duties.
• A conveyancing lawyer.
• A careful viewing - the resale equivalent of due diligence on the unit itself.

The takeaway

A resale purchase is a defined sequence: be finance-ready, make an offer, take the Option to Purchase, get the valuation, exercise, pay stamp duty, complete conveyancing, complete, and take handover. The two things that most often cause stress are not being finance-ready and a valuation that falls short of the agreed price. Sort the financing early, and a licensed salesperson and your lawyer will guide the rest.