Buying Process · 2026

What happens after you exercise the OTP? The next 8 weeks

By Winfred Quek · 10-minute read · Last reviewed May 2026

Quick answer: Once you exercise the Option to Purchase on a Singapore resale property, the next eight or so weeks run on a fixed sequence: appoint a conveyancing lawyer, pay Buyer's Stamp Duty and any ABSD within 14 days, finalise your bank loan and CPF withdrawal, let your lawyer complete title searches and requisitions, and then complete the purchase. Completion is typically set 8 to 12 weeks after you exercise. The deposit you have paid by exercising is usually 5% of the price, made up of the 1% option fee and roughly 4% on exercise.

Facts verified: May 2026 · Sources linked below

Key Takeaways

• Exercising the OTP makes the contract binding; by then you have usually paid the 1% option fee plus about 4% on exercise.
• Buyer's Stamp Duty and any ABSD fall due within 14 days of exercising, in cash or CPF, never financed by the loan.
• Your conveyancing lawyer runs title searches, raises legal requisitions, and lodges a caveat to protect your interest.
• The bank's loan documentation and your CPF withdrawal must be finalised before completion, which is typically 8 to 12 weeks out.
• The most common cause of a stalled completion is a CPF shortfall or slow return of signed loan documents.

Exercising the OTP is the moment the purchase becomes real and binding. A lot of buyers feel a sudden quiet panic afterwards, what now? The answer is reassuringly mechanical. The post-OTP phase is the most predictable part of buying property in Singapore. Here is the eight-week run, step by step.

What Are the First Things to Do After Exercising the OTP?

Two things happen immediately, and both have deadlines.

Appoint your conveyancing lawyer. If you have not already done this, do it now. The lawyer cannot start title searches and requisitions until instructed, and the clock to completion is running. The bank financing your purchase will also need to know who your lawyer is.

Pay your stamp duty. Buyer's Stamp Duty, and Additional Buyer's Stamp Duty if it applies to your profile, must be paid within 14 days of exercising the OTP. According to IRAS, this deadline applies where the document is signed in Singapore, and late payment attracts penalties. Stamp duty is a cash or CPF outflow; the bank loan does not cover it. Your lawyer usually arranges the payment, but the funds must be yours and ready.

Buyer's Stamp Duty itself is tiered: 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000, 5% on the next $1.5M, and 6% above that. On a $1.5M purchase, BSD comes to $44,600. On a $2M purchase it is $69,600.

The Week-by-Week Sequence to Completion

Here is the realistic timeline once you have exercised, for a private resale.

Week 1 -- Lawyer engaged, stamp duty paid: Conveyancing lawyer appointed and instructed. Buyer's Stamp Duty and any ABSD paid within the 14-day window.

Weeks 1 to 2 -- Loan documentation: The bank issues the formal Letter of Offer. You sign and return the mortgage documents. Sign promptly, this is a common point of delay.

Weeks 2 to 3 -- Valuation and CPF: The bank's valuation is finalised. Your lawyer arranges the CPF withdrawal, liaising with the CPF Board so funds are available for completion.

Weeks 3 to 6 -- Title searches and requisitions: The lawyer conducts the title search, raises legal requisitions to government departments (covering road lines, drainage, and similar), and lodges a caveat to protect your interest.

Weeks 6 to 8 -- Pre-completion checks: The lawyer reconciles all funds, the bank loan, CPF, and your cash balance, and confirms the seller's outstanding mortgage will be discharged on completion.

Weeks 8 to 12 -- Completion: On the completion date set in the contract, the balance of the purchase price is paid, legal title transfers, and you collect the keys.

Completion is typically scheduled 8 to 12 weeks after exercising the OTP. Within that, every step has a minimum runway, so eight weeks is brisk and twelve is comfortable.

Who Does What in the Post-OTP Phase?

Party	Responsibility after OTP exercise
Buyer	Sign loan documents, ensure cash and CPF funds are ready, pay stamp duty on time
Conveyancing lawyer	Title search, legal requisitions, caveat lodgement, fund reconciliation, completion
Bank	Issue Letter of Offer, arrange valuation, disburse the loan at completion
CPF Board	Process the CPF withdrawal for the purchase via the buyer's lawyer
Seller	Discharge any existing mortgage, deliver vacant possession (or the property subject to tenancy)

Indicative for a 2026 private resale. Confirm specifics with your conveyancing lawyer.

According to the CPF Board, where CPF is used for a property purchase the withdrawal is processed through the conveyancing lawyer, who coordinates with the CPF Board and the financing bank. This is why getting your lawyer engaged early matters, the CPF leg cannot start without them.

What Can Go Wrong Between OTP and Completion?

The post-OTP phase rarely collapses, but it can drag. The usual culprits:

CPF shortfall. Buyers overestimate how much CPF is available. If the CPF leg falls short, the gap must be covered in cash. Have this confirmed in week two, not week eight.
Slow loan documents. The bank cannot disburse until you have signed and returned the mortgage paperwork. A week lost here pushes completion.
Title or requisition issue. A government requisition flagging a road-widening line, or an undischarged charge on the seller's side, needs resolving before completion.
Funds not ready. Your cash balance for completion needs to be liquid and in the right account when the lawyer calls for it.

Hard deadline: The 14-day stamp duty window after exercising the OTP is not negotiable. According to IRAS, late payment of stamp duty incurs penalties. Treat the BSD and any ABSD as a cash sum that must be ready the day you exercise, not something to organise later.

Winfred's Take

The post-OTP phase rewards one habit above all others: returning documents the day you receive them. Banks and lawyers move at the speed of the slowest party, and on most transactions the slowest party is the buyer sitting on a Letter of Offer for a fortnight. If you sign promptly, confirm your CPF position early, and keep your completion cash liquid, the eight weeks pass without drama. The buyers who treat it as a paperwork chore to do later are the ones who end up scrambling.

Frequently Asked Questions

Can I still back out after exercising the OTP?

Exercising the OTP creates a binding contract. Backing out after that point typically means forfeiting your deposit and may expose you to a claim for the seller's losses. Treat exercising as a final commitment.

When exactly is the completion date?

It is set in the contract, usually 8 to 12 weeks after the OTP is exercised. The exact date is negotiable between buyer and seller.

Do I pay the rest of the purchase price all at once?

For a resale, the balance of the purchase price, after the 5% deposit, is paid at completion, drawn from your bank loan, CPF, and cash as applicable.

Do I have to use a lawyer?

There is no legal requirement to engage a licensed estate agent, but a conveyancing lawyer is effectively essential. The financing bank requires legal representation, and the lawyer handles searches, requisitions, the caveat, CPF coordination and completion.

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