How to Buy an Executive Condo - The Final Steps and Closing

How to Buy an Executive Condo - The Final Steps and Closing

Introduction

Congratulations on reaching the final article of our comprehensive guide on buying an executive condominium (EC). In this closing segment, we will walk you through the remaining steps in the buying process and what to expect during the closing stages of your executive condo purchase.

How to buy an executive condo To guarantee a smooth and legal transaction, hiring a real estate attorney is a crucial step. A competent attorney can examine all legal paperwork, clarify the provisions of the Sales and Purchase Agreement (SPA), and deal with any legal issues that can come up throughout the purchasing process. The appropriate papers, such as proof of citizenship, residency, and family nucleus, as well as evidence of approved home loans or CPF funds, must also be provided by buyers in order to demonstrate their eligibility and financing arrangements.

Securing the Unit and Exercising the OTP

Confirming Your Decision

Before exercising the Option to Purchase (OTP), take some time to reevaluate your choice and ensure you are certain about the unit you've selected. Verify that the executive condo meets your requirements and aligns with your long-term goals.

Exercising the OTP

Once you are ready, proceed to exercise the OTP by signing and returning it to the developer within the specified timeframe. At this point, you will need to pay the remaining portion of the down payment as per the agreed terms.

Appointing a Conveyancing Lawyer

Engaging a Conveyancing Lawyer

After exercising the OTP, it's time to appoint a conveyancing lawyer to handle the legal aspects of the transaction. The lawyer will conduct property searches, verify the ownership details, and ensure that all necessary documents are in order.

Understanding the Sales and Purchase Agreement (SPA)

Work closely with your conveyancing lawyer to understand the Sales and Purchase Agreement (SPA). They will explain the legal terms and conditions, ensuring you are aware of your rights and obligations as a buyer.

Paying the Stamp Duty and Closing Costs

Stamp Duty Payment

Within two weeks of exercising the OTP, you are required to pay the Buyer's Stamp Duty (BSD). The amount depends on the purchase price of the executive condo and must be settled promptly to avoid penalties.

Additional Closing Costs

In addition to the stamp duty, there might be other closing costs such as legal fees, property valuation fees, and registration fees. Your conveyancing lawyer will provide a breakdown of these costs and ensure they are settled before the completion of the purchase.

Collecting the Keys and Taking Possession

Inspecting the Unit

Before collecting the keys, conduct a thorough inspection of the executive condo unit. Check for any defects or discrepancies from what was agreed upon in the SPA. Report any issues to the developer for rectification during the defects liability period.

Taking Possession

Once the defects have been addressed, and all payments are settled, you will receive the keys to your executive condo. Congratulations, you are now officially the owner of an executive condominium!

Conclusion

Buying an executive condo involves several critical steps, from exercising the OTP to the closing process. Engaging a conveyancing lawyer, understanding the Sales and Purchase Agreement, and settling the stamp duty and closing costs are integral parts of the journey. Finally, the joy of collecting the keys and taking possession marks the successful completion of the purchase. By following this guide and being well-informed, you can confidently navigate the process and embark on a fulfilling experience as a proud owner of an executive condo. Best of luck on your new homeownership journey!