When the offer is accepted, pay the seller the Option fee to receive the OTP.
Option To Purchase
Find out how to fill up the OTP here.
When the sale price of the property is agreed, you need to pay 1% of the sale price (in cheque) as Option Fee to the seller, in exchange for the Option To Purchase (OTP) to be signed by the sellers.
At this stage, you are not required to sign (i.e. exercise) the OTP.
Once the seller have granted the Option to you, he cannot grant another Option to another buyer until the Option granted expires.
The Option period is usually 14 calendar days (including Saturday, Sunday and public holidays) from the date of granting the OTP. It expires at 4pm on the 14th calendar day.
Within these 14 days, if you wish to proceed with the purchase of the property, you have to appoint a law firm to act in your purchase and get your bank loan signed. See the next step for further details.
Exercise the OTP if you wish to proceed with the purchase, within the Option Period at your law firm.
To exercise the Option, you and your co-buyers must sign on the "ACCEPTANCE" section in the OTP.
When you exercise the OTP at your appointed law firm, you have to pay the Option Exercise Fee (4% of sale price) in cheque, written to the seller's law firm -CVY.
The Option Fee (1%) and Option Exercise Fee (4%) forms the deposit (5%).
Let the OTP expire if you do not wish to proceed with the purchase. Your 1% Option Fee will be forfeited.
If you do not wish to proceed with the purchase, that is, exercise the Option To Purchase, you only need to wait for the Option Expiry Date to pass. The seller keeps the Option Fee.
When you have accepted the bank loan, the bank will assign a valuer to visit your purchase property. This is part of the formality of the bank when disbursing loan to buyer. This valuation cost is borne by the buyer.