Continuing from where we left, we’ll now can up the process of acquiring a piece of real estate in Singapore. There are generally two ways of purchasing a private residential property in Singapore.

1. By way of an Option to Purchase
2. By entering into a Sales and Purchase Agreement

By Way of an Option to Purchase

This is the more common way of transacting. You will have to come up with an initial 1% of the purchase price (we call it the “option money”) in exchange for the Option to Purchase.

Your are usually given 14 days to decide whether to proceed with the purchase. If you decide to proceed, exercise the option by signing and forward it to the seller’s solicitor together with another 4% of the purchase price.

Note if you think you would want to abandon your intention to purchase, the seller (vendor) will be entitled to forfeit your option money.

Completion of sale will usually be 8 – 12 weeks after exercising the option. This period allows both solicitors to seek relevant authority permissions, lodging a caveat and check whether the property title is make good.

By Sales and Purchase Agreement

Less common way to transact (example: developer sale). You usually pay a deposit of 5% to 10% usually of the purchase price. There’s no backing out upon signing a Sales and Purchase Agreement unless the seller (vendor) is unable to fulfill certain conditions in the agreement.

But Before Purchasing..

Before signing any Option to Purchase or Sales & Purchase agreement, always be prudent and ask your Realtor to vet the clauses properly for you. And to be on an even safer side, you can always forward the copy of Option to Purchase for your solicitor to vet everything is A-okay.

Your Realtor can always use an Offer to Purchase with the words ‘Subject to Contract’ added to be on tbe safe side in your favor pending on situations. Remember to add these words at the back of your cheque as well.

Related posts:

1. Singapore Real Estate for Investment – The Requirements

The Law Paper

CEHA’s Paper 1 (Law of Real Property) was just a couple of hours ago. The venue for this paper in this intake was in Anglo Chinese JC (ACJC). I had my first go (and hopefully last on it)

It wasn’t exactly too tough.

My advice: Don’t always assume that the multiple choice questions (MCQs) would be any easier than those essay questions. You have two MCQ questions and 6 essay questions. Go through all of them and scribble some notes with a pencil on the question paper before deciding on which to start.

I’ve chose 1 MCQ and 4 Essay Questions. It’s easy to attempt the calculation questions; You write lesser on explanations too. lol. We’re allowed to bring the question papers home, and if anyone wants a copy of it, you can give me a buzz anytime.

It’s sad to know that with such an accredition being made compulsory by 2009, older generation agents might have problems or even wouldn’t be able to get this papers without minimum Ordinary Level credits. Well this is Singapore, high service standards after all.

About CEHA

In 1995, Inland Revenue Authority of Singapore (IRAS), the authority body of Singapore taxation, decided to implement a Common Examination for House Agents (CEHA) with the aim of raising the standard of practice in estate agency business in Singapore.

It is conducted by a Board of Examiners, which comprises of officials from the IRAS and representatives from Singapore Institute of Surveyors and Valuers (SISV) and Institute of Estate Agents (IEA)

Related posts:

1. Jan 2008 CEHA Results Out
2. Alas, The First CEHA Batch for 2008 is Done!
3. January 2008 CEHA Papers for Download
4. SISV CEHA Course – April 2008 Intake
5. A Helping Hand to 2008 July CEHA Intake