Sale and Purchase Agreement (S&PA)

How the S&P agreement works

When you buy an uncompleted home from a licensed developer, the purchase happens in two steps:

1. Option to Purchase. You pay a booking fee and receive the developer’s standard Option to Purchase (OTP).
2. S&P agreement. The developer sends you the S&P agreement. You exercise the OTP by signing and returning it within 3 weeks of receiving the agreement and title documents.

The agreement fixes the price, the unit, the specifications, the vacant possession date and the payment schedule. Because the form is prescribed by law, every buyer of a new launch gets the same core protections, whichever developer they buy from.

Payment schedule for uncompleted homes

You pay in stages as the building goes up. This is often called the progressive payment scheme.

Stage	Share of price
Booking fee and first payment (within 8 weeks of the OTP date)	20% (including the booking fee)
Foundation work completed	10%
Reinforced concrete framework completed	10%
Partition walls completed	5%
Roofing completed	5%
Door and window frames, wiring, plastering and plumbing completed	5%
Car park, roads and drains completed	5%
Temporary Occupation Permit (TOP) issued	25%
Certificate of Statutory Completion (CSC) issued	15%

Each construction payment is due within 14 days of the developer’s notice that the stage is complete.

Example

You buy a new-launch condo for $2,000,000 with a 5% booking fee.

Stage	Amount
Booking fee (5%)	$100,000
Balance of first 20%, within 8 weeks	$300,000
BSD, within 14 days of signing	$69,600
Five construction stages (35% in total)	$700,000
On TOP (25%)	$500,000
On CSC (15%)	$300,000

Because most of the price is paid in stages, a loan for an uncompleted home is drawn down gradually rather than all at once.

Common mistakes

• Missing the 3-week exercise window. If you don’t sign and return the agreement in time, the OTP lapses and the developer may keep 25% of the booking fee.
• Budgeting only for the downpayment. BSD and any ABSD are due within 14 days of signing, in cash or CPF.
• Ignoring the defects period. Report defects within the 12-month defects liability period. The developer must fix them within one month of your notice.

Frequently asked questions

Can the developer change the terms of the S&P agreement?

Not freely. Licensed housing developers must use the standard form, and no amendment can be made without the prior approval of URA's Controller of Housing.

When is stamp duty due on a new launch?

Buyer's Stamp Duty and any Additional Buyer's Stamp Duty are due within 14 days of signing the S&P agreement.

Is there an S&P agreement when I buy a resale condo?

There is no prescribed form for private resale homes. The Option to Purchase, once exercised, usually forms the binding contract, and its terms are agreed between buyer and seller.

What happens to the last 15% if I complete before the CSC is issued?

Under the standard form, you pay 2% to the developer and 13% to the Singapore Academy of Law as stakeholder. It releases 8% to the developer when the CSC is issued and the remaining 5%, less any authorised deductions for defects, on the final payment date.

Related terms

• Option to Purchase (OTP)
• Temporary Occupation Permit (TOP)
• Certificate of Statutory Completion (CSC)
• Buyer's Stamp Duty (BSD)
• Caveat
• Sub-sale

Sources

1. Housing Developers Rules (standard Option to Purchase and Sale and Purchase Agreement forms) (Singapore Statutes Online)
2. Buying property (URA)
3. Buyer's Stamp Duty (BSD) (IRAS)