Option to purchase – Room for rent in Singapore
Option to Purchase means having the right to buy. When a property buyer has an Option (a right), he has the right to demand for the seller’s title, and to demand that the seller goes for legal completion. If the Option is assigned or transferred, (if assignment of the Option is allowed), the same right is enjoyed by the assignee. Assignment of an option is not allowed in HDB flat transactions and properties under construction purchased directly from licensed developers. Room for rent in Singapore.
In order for the right to arise, the buyer must do the following:
- Pay the seller the option money in exchange for the Option to Purchase. In real estate transactions, the option money is usually equivalent to 1% of the agreed sale price.
- Within the stipulated Option period (usually within 14 days from the date of the Option) exercise the right by signing the ‘acceptance copy’ of the Option to Purchase, and pay the balance deposit of the agreed sale price. In real estate transactions, the balance deposit is usually equivalent to 4% or 9% of the agreed sale price.
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