Option To Purchase - HDB

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To grant an Option to Purchase (OTP) to a potential flat buyer, you need to have a valid Intent to Sell registered on My Flat Dashboard and meet the 7-day cooling-off period after registration.

After you have registered your Intent to Sell, you will be prompted to download a copy of the HDB-prescribed OTP. You and the flat buyers must use the prescribed OTP for the resale transaction. Any other agreements and/or supplementary agreements relating to the sale or purchase of the flat are not valid under the Housing and Development Act.

Print only 1 copy of the OTP as each form has a unique serial number. You must state the serial number of the OTP when you submit a resale application to HDB.

The OTP is a legally binding contract between you and the flat buyers. Read the Important Notes of the OTP and the Terms and Conditions of Resale carefully before entering into it.

Deposit to sellers

Flat buyers must pay you an Option Fee when you grant them an OTP, and an Option Exercise Fee when they exercise the OTP.

You may negotiate the amount for the Option Fee and the Option Exercise Fee with the flat buyers, which will form part of the resale price.

Payment by flat buyers to sellers Stage of OTP Amount to pay
Option Fee Granting of OTP Between $1 and $1,000
Option Exercise Fee Exercising of OTP An amount, which when including the Option Fee, will not exceed $5,000

You are encouraged to make payment using digital payment modes to secure independent proof of payment.

Procedure to enter into a contract using the OTP

OTP process Jul 2023

Read the steps below for more details.

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