Upon agreement of price, it is common for purchaser to pay 1% of the purchase price to the seller. It is commonly known in the market as Option Fee. This amount will ensure that the price has been fixed and that the buyer has an option to purchase the property at the agreed price provided the option to do so is exercised prior to the maturity date of the option. If exercised, the 1% figure is to be counted as part of the payment to settle the property.

Upon exercise of the option stated above, the buyer is to pay further 9% of the total purchase price, hence making a total payment of 10%.

On settlement day, the remaining 90% of the purchase price and various fees, including stamp duty will be payable.

Stamp duty for purchase of property is calculated as 3% of purchase price less SGD 5,400. For example, stamp duty payable for purchasing SGD 1 million property is 3% times SGD 1,000,000 = SGD 30,000 less SGD 5,400 = SGD 24,600.

In some cases where the purchase price is relatively small, buyers may be asked to contribute to the housing agent’s commission.