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The Complete Guide Of Purchasing A Property

Primary Market

Secondary Market

  1. Identify a preferred property.

  2. Visit the developer’s sales gallery to view the show units and sales displays of the particular project.

  3. If the property meets the buyer's requirement, he or she need to select unit and pay booking fee.

  4. Check with banker to determine loan eligibility.

  5. The buyer would need to sign the Sale and Purchase Agreement (SPA) and Memorandum of Transfer (MOT) within a specified period.

  6. Thereafter, the buyer would normally pay a downpayment of 10%. 

  7. Other legal documents that are needed are the developer’s registration form, letter of acceptance by the developer and, if applicable, a deed of mutual covenant.

  8. Submit loan application.

  9. Other expenses would include disbursements and stamping fee on the SPA, stamp duty on transfer, legal fees for preparation of the loan and security documents and stamp duty on the charge document.

Purchasing a property on the primary market is slightly different from buying one on the secondary market.

  • Primary Market – Direct purchase of a new property from developers. Examples are under construction properties or projects off the plan and unsold units from the developers.

  • Secondary Market – Direct purchase of properties from primary buyers or buying it from the auction markets.

Image by Esmonde Yong
Image by Daria Nepriakhina

  1. Select a desired property in the secondary market.

  2. An appointment can be made with an agent to view and assess the actual unit of of the property, as well as to find out more about the property in terms of its history, the general neighbourhood and amenities in the vicinity.

  3. Check with banker to determine loan eligibility.

  4. Pay an earnest deposit (normally 2% to 3% of the agreed price) and sign booking form.

  5. Appoint a lawyer to prepare the SPA. 

  6. Submit loan application form together with personal identification and financial documents to the bank.

  7. After the loan is approved, the buyer has to settle the balance of the purchase price, usually within 3 months of the date of the SPA or after obtaining the state authority’s approval, if required. 

  8. Other expenses would include legal fees for the preparation of the SPA and transfer, disbursement and stamping fee on the SPA, stamp duty on the transfer, legal fees for the preparation of the loan and security documents and stamp duty on the charge document, as well as repair and renovation costs.

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