If you’re considering buying property in Singapore, one of the most important terms you’ll encounter is the Option to Purchase (OTP). It’s a crucial step in securing your dream home, especially in a fast-moving market like Singapore. But what exactly does it mean, how does it work, and why is it so important?
In this guide, we break it down in simple terms to help you make smarter property decisions—whether you're buying your first HDB flat or eyeing a new launch like Boulevard Coast EC Showflat.
An Option to Purchase is a legal agreement between a seller and a buyer. It gives the buyer the exclusive right to purchase the property at an agreed price within a fixed period, usually 14 to 21 days.
During this option period, the seller cannot sell the property to anyone else. In exchange, the buyer pays a small option fee—usually 1% of the purchase price for private properties.
This gives the buyer time to:
Finalize their mortgage
Do legal checks
Consider the purchase seriously without pressure
Here’s a simplified step-by-step overview:
Once you’ve decided on a property—maybe something as exciting as the upcoming Boulevard Coast EC Showflat—you negotiate and agree on the sale price with the seller.
The seller’s lawyer or agent prepares the OTP document. Once issued, the buyer pays the option fee (1%).
This fee is non-refundable if the buyer decides not to proceed.
You typically get 14 calendar days to decide whether to exercise the option.
During this time:
Apply for a home loan
Appoint a conveyancing lawyer
Perform due diligence
Get valuation and legal advice
To confirm your intent to buy, you “exercise the option” by signing the OTP and paying a further 4% of the purchase price, making a total of 5% as deposit.
This deposit will be forfeited if you back out after exercising the OTP.
It removes the property from the market during the option period, so no one else can outbid you.
Buying property is a big decision. The OTP gives you breathing space to finalize loan approval and legal matters.
It protects both parties legally. Sellers are obligated to sell once the buyer exercises the option.
Before committing to an Option to Purchase:
Get your finances in order: Get an in-principle approval from your bank.
Engage a property lawyer: They’ll ensure the OTP clauses protect your interests.
Do valuation checks: Avoid overpaying by checking recent sales in the area.
Read the fine print: Understand the penalties, especially if you’re buying an Executive Condominium like Boulevard Coast EC.
If you’re actively exploring the property market, don’t miss the upcoming Boulevard Coast EC Showflat. This exciting Executive Condominium project combines luxury, smart layouts, and a prime location—all at a more accessible price point.
Strategic location near amenities and MRT
Family-friendly layouts
Designed for future growth and capital appreciation
Booking a showflat viewing early gives you a head start to secure your unit with an OTP.
The Option to Purchase is more than just a formality—it’s a critical part of the home-buying process in Singapore. It gives you legal assurance, time to prepare, and the right to secure the home of your dreams.
If you’re ready to explore new ECs, check out Boulevard Coast EC Showflat today. Understanding the OTP can be your first step to a confident and smooth property journey.