Marketing Residential
HDB vs Private · CEA Forms · Material Facts · OTP Process · Foreign Buyer Rules · HDB Resale Portal
1CEA Prescribed Forms
CEA Prescribed Forms are mandatory for completed residential properties in Singapore. Understand which form applies to which role.
| Form | Used When | Signed By |
|---|---|---|
| Form 1 | Estate Agency Agreement for the Sale of Residential Property (non-exclusive) | Seller + seller's agent |
| Form 2 | Estate Agency Agreement for the Purchase of Residential Property (non-exclusive) | Buyer + buyer's agent |
| Form 3 | Estate Agency Agreement for the Lease of Residential Property by a Landlord (non-exclusive) | Landlord + agent |
| Form 4 | Estate Agency Agreement for the Lease of Residential Property by a Tenant (non-exclusive) | Tenant + agent |
| Form 5 | Exclusive Estate Agency Agreement for the Sale of Residential Property | Seller + seller's agent |
| Form 6 | Exclusive Estate Agency Agreement for the Purchase of Residential Property | Buyer + buyer's agent |
| Form 7 | Exclusive Estate Agency Agreement for the Lease of Residential Property by a Landlord | Landlord + agent |
| Form 8 | Exclusive Estate Agency Agreement for the Lease of Residential Property by a Tenant | Tenant + agent |
⚠ Key Rules for Prescribed Forms
- ·Must be signed BEFORE commencing estate agency work
- ·All owners/tenants must sign (not just one)
- ·Give client a copy immediately after signing
- ·Commission amount must be stated — cannot leave blank
2Duty to Disclose Material Facts
An RES has a duty to disclose all material facts to clients — information that a reasonable person would consider relevant to their buying, selling, or leasing decision.
✗ Must Disclose (Material Facts)
- ·History of death or violent crime in the unit
- ·Unit was previously used for illegal activity
- ·Planned infrastructure (highway, MRT, industrial zone) nearby
- ·Structural defects or renovation issues
- ·Significant MCST arrears in the development
- ·Any factor materially affecting value or livability
✓ NOT Required to Disclose
- ·Seller's personal reason for selling (divorce, financial stress)
- ·Seller's minimum acceptable price
- ·Information subject to client confidentiality
3OTP Process — Private Resale
Grant OTP
Seller grants OTP to buyer. Buyer pays Option Fee — typically 1% of purchase price. Seller is bound; cannot revoke until option expires.
Option Period (14 days)
Buyer has 14 calendar days to exercise the option. Buyer conducts due diligence: caveat search, title check, CPF check, loan application.
Exercise OTP
Buyer signs and returns OTP + pays the balance deposit. Standard structure: 1% option fee + 4% on exercise = 5% total. Some higher-value transactions use 1% + 9% = 10% total.
Legal Completion
Typically 8–10 weeks after option exercise. Lawyers handle conveyancing. Balance purchase price paid. Keys transferred.
4Foreign Buyer Rules
| Buyer Type | HDB Flat | Non-Landed Private (Condo) | Landed Residential |
|---|---|---|---|
| Singapore Citizen (SC) | ✓ Eligible | ✓ Eligible | ✓ Eligible |
| Singapore PR (SPR) | ✓ Resale only (not BTO, unless SC spouse) | ✓ Eligible | ✗ Need SLA approval |
| SC + SPR couple | ✓ BTO (2-room flexi+) & resale | ✓ Eligible | ✓ SC can own; SPR needs SLA |
| SPR + SPR couple | ✓ Resale only | ✓ Eligible | ✗ Both need SLA approval |
| Foreigner (non-PR) | ✗ Not eligible | ✓ Eligible (ABSD applies) | ✗ Need SLA approval |
⚠ Sentosa Cove Exception
Foreigners may purchase approved condominium units AND strata landed homes in Sentosa Cove without SLA approval. Sentosa Cove is a designated area under the Residential Property Act allowing foreign landed purchase.
5HDB Resale Transaction Process
Register Intent to Buy / Intent to Sell
Both buyer and seller independently register their intent on the HDB Resale Portal. Sellers must wait out a 7-day cooling-off period after Intent to Sell BEFORE they may grant an OTP. Intent is valid for 12 months.
HDB Flat Eligibility (HFE) Letter
Buyer must obtain an HFE Letter from HDB confirming eligibility to buy, grants available, and CPF limits. Must be obtained before granting OTP.
Grant OTP
Seller grants OTP. Buyer pays Option Fee (not more than $1,000 for HDB). Option period: 21 calendar days.
Exercise OTP
Buyer exercises within 21 days. Pays balance deposit (usually up to 9% of agreed purchase price, depending on financing).
Submit Resale Application
Both buyer and seller submit their respective portions via HDB Resale Portal within 7 days of OTP exercise. HDB processes and approves.
HDB Resale Completion
Typically 8–10 weeks after submission. HDB issues Letter of Approval (LOA). Completion appointment at HDB Hub.
⚠ Key Differences: HDB vs Private OTP
| Item | HDB Resale | Private Resale |
|---|---|---|
| Option Fee | Max $1,000 | Typically 1% (~no cap set by law) |
| Option Period | 21 days | 14 days |
| HFE Letter required? | Yes (before OTP) | No |
| Who completes legal work? | HDB processes; lawyers for CPF/mortgage | Lawyers for both parties |
Section Quiz
3.7 — Marketing Residential Property
9 questions · 90 seconds each · exam-style difficulty