Option to Purchase Singapore: How the OTP Works for New Launches and Resale Condos
The OTP is the document that turns interest into a deal. On a new launch it comes with a 5% booking fee and a fixed path to the S&P; on a resale condo the terms are negotiated. Here is how both work.
In Singapore, you rarely buy a home by signing one contract on day one. You first get an Option to Purchase (OTP): the seller’s promise to sell you the unit on set terms, for a set period, in return for a fee. Exercise it and you have a deal; let it lapse and you walk away, usually losing some or all of the fee. The mechanics differ between a new launch bought from a developer and a resale condo bought from an owner. This guide explains both, with worked figures for LinkTown Residences (Hougang Central Residences), the new launch planned above Hougang MRT (NE14).
General guide, September 2026. Developer sales follow the Housing Developers Rules, administered by the Controller of Housing at URA. Resale OTPs are private contracts. Confirm the terms of your own OTP with your conveyancing lawyer.
New launch OTP: step by step
- Before booking. The developer must give you prescribed information about the project and unit before accepting your booking fee. Read it; it includes the approved plans and the unit’s details.
- Booking fee and OTP. You pay the booking fee and receive the OTP on the prescribed form. The Housing Developers Rules set the booking fee at not less than 5% and not more than 10% of the price. Under the Normal Payment Scheme it is 5%. The option cannot be assigned to someone else.
- The S&P arrives. The developer sends the standard-form Sale and Purchase Agreement, generally within about two weeks. Its terms can only be changed with the Controller of Housing’s approval.
- You exercise by signing. You then have a fixed period, generally about three weeks from receiving the S&P, to sign and return it. Your lawyer will confirm the exact deadline.
- Stamp duty. Buyer’s Stamp Duty, and ABSD if it applies, are due within 14 days of signing the S&P.
- The next 15%. Under the progressive payment schedule, 15% of the price is paid, making 20% in total, usually within about eight weeks of the OTP date.
If you don’t exercise the option, it lapses. Under the standard form the developer may forfeit part of the booking fee (commonly 25% of it) and refund the rest. Source for booking steps: URA, Buying Property and URA, Housing Developers.
Resale condo OTP: how it differs
| New launch | Resale condo | |
|---|---|---|
| Form | Prescribed by the Housing Developers Rules | Private document, often a standard template drafted by agents or lawyers |
| Upfront fee | Booking fee 5% (5–10% allowed) | Option fee, commonly 1% of the price, negotiable |
| Option period | Linked to delivery of the S&P | Commonly about 2 weeks, negotiable |
| How you exercise | Sign the S&P | Sign the acceptance copy and pay the exercise fee, commonly 4% |
| If you don’t exercise | Part of the booking fee forfeited | Usually the whole option fee forfeited |
| Stamp duty due | Within 14 days of signing the S&P | Within 14 days of exercising the OTP |
| Remaining payments | Progressive, over construction | Balance at completion, commonly 8 to 12 weeks after exercise |
HDB resale flats use HDB’s own OTP form and rules, which differ again. Our HDB resale process guide covers them; for comparing the two routes to a private home, see new launch vs resale condo.
Worked example at LinkTown Residences price points
Illustrative only. No prices have been released. The size is indicative, taken from the developers’ recent project Parktown Residence, not LinkTown’s final plans, and the price uses analysts’ estimates of S$2,500–2,600 psf. Verify stamp duty with IRAS.
Take the indicative 2-bedroom of 678 sq ft at S$2,500 psf: S$1,695,000.
| Step | When (typical) | Amount |
|---|---|---|
| Booking fee (5%) for the OTP | Booking day | S$84,750 |
| Buyer’s Stamp Duty | Within 14 days of signing the S&P | S$54,350 |
| Next 15% of the price | Within about 8 weeks of the OTP date | S$254,250 |
| Total in the first two months | S$393,350, plus ABSD if applicable and legal fees |
The 5% booking fee must be paid in cash. The 15% can be paid with cash and CPF Ordinary Account savings, and the minimum cash rules depend on your loan. Our condo down payment guide breaks this down, and the calculator below shows the full progressive schedule for the same price.
Progressive payment calculator
Estimates for illustration only, based on published IRAS/MAS rules. Rates change; confirm with IRAS, your bank and your lawyer.
If you walked away without signing the S&P, and the developer forfeited 25% of the booking fee, the cost would be S$21,187.50.
Things to get right before you take an OTP
- Loan first. Get an in-principle approval before booking. If the bank lends less than you expected, you may be unable to proceed, and the TDSR limit of 55% caps what any bank can lend.
- Cash ready. The booking fee is due on the day, usually by cheque or cashier’s order; ask what the developer accepts.
- Know your ABSD position before you book, not after.
- Appoint a lawyer early so the S&P is reviewed in time.
- Remember SSD. On a new launch, the holding period for Seller’s Stamp Duty generally starts from the S&P date.
On booking day, the pace is fast. Units can go quickly at popular launches, and you may choose from what is left when your turn comes. Decide your shortlist, budget ceiling and fallback units beforehand. Our guide to what to expect at a new launch preview walks through the day.
What we know about the LinkTown Residences booking
For the full sequence from budget to keys, see our guide to buying a condo in Singapore. The booking process for Hougang Central Residences has not been announced. For popular launches, buyers usually submit an Expression of Interest, a ballot may decide the order of selection, and the OTP is issued on payment of the booking fee. The purchase timeline lays out every step to key collection, and the payment scheme page covers the progressive schedule. Terms such as EOI, ballot and OTP are defined in our Singapore property glossary.
Preview dates, the EOI window, whether there will be a ballot, and prices for LinkTown Residences are to be announced. The launch is expected in early 2027, and UOL’s August 2026 results guide a 2H 2027 launch.
Register to get LinkTown Residences preview and booking details as soon as they’re released.
Frequently asked questions
What is an Option to Purchase in Singapore?
An OTP is a document in which the seller gives a buyer the exclusive right, for a set period and in return for a fee, to buy the property on agreed terms. The buyer exercises it to form a binding contract.
How much is the OTP booking fee for a new launch?
Under the Housing Developers Rules, the booking fee must be at least 5% and not more than 10% of the price. On the Normal Payment Scheme it is 5%.
What happens if I don’t exercise the OTP on a new launch?
The option lapses and, under the standard form, the developer may keep part of the booking fee, commonly 25% of it, and refund the rest. Check the terms of your OTP with your lawyer.
When is stamp duty paid after an OTP?
Within 14 days of the dutiable document being signed. For a resale purchase, that is usually the exercise of the OTP; for a new launch, the Sale and Purchase Agreement. Verify with IRAS or your lawyer.
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