Selling a Private Property in Singapore: What Happens After You Accept an Offer?
Selling a private property in Singapore involves more than finding a buyer and agreeing on a price.
Once you decide to sell your condominium or landed property, there are several legal and financial matters to deal with, including the Option to Purchase (“OTP”), Seller's Stamp Duty (“SSD”), redemption of your existing housing loan, CPF refunds, property tax, conveyancing documentation and completion of the sale.
One of the most important calculations should actually be done before you accept an offer:
How much money will you actually receive after the property is sold?
The sale price is not necessarily the amount you will receive in cash.
This guide explains the typical conveyancing process when selling a completed private residential property in Singapore.
Step 1: Work Out Your Estimated Sale Proceeds
Before deciding whether to accept an offer, calculate your estimated net sale proceeds.
A simplified calculation is:
Sale Price
– Outstanding Housing Loan
– CPF Refund
– Seller's Stamp Duty (if applicable)
– Legal and Other Sale Expenses
= Estimated Net Sale Proceeds
For example, suppose your property is sold for $2 million.
You may still have:
$700,000 outstanding on your housing loan;
$500,000 to refund to CPF;
legal and conveyancing expenses; and
other applicable costs.
Your actual cash proceeds will therefore be considerably less than $2 million.
This calculation becomes particularly important if you intend to use the proceeds to purchase another property.
Step 2: Check Your Outstanding Housing Loan
If the property is mortgaged to a bank, the outstanding housing loan will generally have to be redeemed when the property is sold.
Your conveyancing lawyer will liaise with the bank to obtain the necessary redemption information and arrange for the mortgage to be discharged as part of the sale.
Before selling, it is also sensible to check whether your housing loan is still within a lock-in period.
Depending on your loan package, early redemption may result in a prepayment or redemption charge.
You should therefore check with your bank before committing to the sale.
Step 3: Check How Much CPF You Need to Refund
If you used CPF savings to purchase the property or service the housing loan, CPF monies will generally have to be refunded when the property is sold.
The required CPF housing refund generally comprises:
the CPF principal amount withdrawn for the property; and
the accrued interest.
If you are aged 55 or above and have pledged the property towards your retirement sum, additional refund requirements may apply.
What Is Accrued Interest?
Accrued interest is the interest that your CPF savings would have earned if those monies had remained in your CPF account instead of being withdrawn for the property.
This means that the amount you have to refund to CPF may be considerably higher than the amount you originally withdrew.
You can check your estimated required housing refund through your CPF Home Ownership dashboard.
Step 4: What If Your Sale Proceeds Are Not Enough to Make the Full CPF Refund?
This is a common concern.
Suppose you sell your property and, after paying off the outstanding housing loan, there is insufficient money remaining to refund the entire CPF principal and accrued interest.
If the property is sold at market value, you generally do not have to top up the CPF shortfall in cash.
Instead, the available sale proceeds after paying the outstanding housing loan will be applied towards the required CPF refund.
However, different considerations can arise if the property is sold below market value.
You should therefore obtain advice before agreeing to sell a property substantially below its market value where CPF monies have been used.
Step 5: Check Whether Seller's Stamp Duty Applies
Before granting an OTP, check when you acquired the property.
You may have to pay Seller's Stamp Duty (“SSD”) if you sell residential property within the applicable holding period.
The SSD regime changed for residential properties purchased on or after 4 July 2025.
For residential properties acquired on or after that date, the applicable holding period is generally four years, with the applicable SSD rate depending on how long the property has been held.
Properties acquired earlier may be subject to different SSD holding periods and rates.
The date on which a property is regarded as acquired or disposed of for SSD purposes can also be legally significant.
Accordingly, do not assume that you are outside the SSD period simply because completion will occur after a particular anniversary.
Your lawyer should check the relevant acquisition and disposal dates before you commit to the sale.
Step 6: Accepting an Offer
Once you find a buyer and agree on the commercial terms, the transaction will ordinarily proceed towards the grant of an Option to Purchase.
The agreed terms may include:
purchase price;
option fee;
option period;
completion date;
whether vacant possession will be provided;
whether the property is sold subject to an existing tenancy;
agreed fixtures or items to remain in the property; and
any special conditions.
Do not focus only on the price.
The completion date and other contractual terms can be equally important, particularly if you are simultaneously purchasing another property.
Step 7: Granting the Option to Purchase
The OTP is an important legal document setting out the terms on which the buyer may purchase your property.
Once the OTP is granted, the buyer ordinarily has a specified period within which to exercise the option.
If the buyer does not validly exercise the OTP within the stipulated period, the option will generally lapse in accordance with its terms.
If the buyer exercises the OTP correctly and within time, a binding contract for the sale and purchase of the property is generally formed.
This is why sellers should ensure that the terms of the OTP are correct before it is issued.
Step 8: Appoint a Conveyancing Lawyer
You should appoint a conveyancing lawyer early in the process.
Your lawyer will handle the legal aspects of the sale, which may include:
reviewing or preparing the OTP;
checking the title to the property;
liaising with the buyer's solicitors;
dealing with CPF Board;
redeeming your existing housing loan;
preparing the necessary conveyancing documents;
calculating completion monies;
dealing with property tax adjustments;
completing the sale; and
attending to the necessary post-completion notifications.
If you are simultaneously buying another property, tell your lawyer from the outset.
The timing of the two transactions may need to be coordinated carefully.
Step 9: The Buyer Exercises the OTP
If the buyer decides to proceed, the buyer will exercise the OTP in accordance with its terms and pay the required exercise monies.
Once the OTP is validly exercised, both parties are generally contractually bound to complete the transaction.
The seller cannot ordinarily decide afterwards:
“I have changed my mind. I don't want to sell anymore.”
Likewise, the buyer generally cannot simply walk away after exercising the OTP without potentially facing contractual consequences.
This is why the contractual terms should be carefully considered before the transaction becomes binding.
Step 10: Your Lawyer Deals With Your Existing Mortgage
Where there is an outstanding housing loan, your lawyer will obtain the redemption information from your bank.
Part of the sale proceeds will ordinarily be used to pay off the outstanding mortgage.
Once the bank has been paid the required redemption amount, the existing mortgage can be discharged.
This allows the property to be transferred to the buyer free from your existing mortgage, subject to the contractual terms of the transaction.
Step 11: Your Lawyer Deals With the CPF Refund
If CPF savings were used for the property, the required CPF refund must also be dealt with as part of the completion process.
As a general sequence, the sale proceeds are applied towards:
repayment of the outstanding housing loan;
the required CPF housing refund; and
other applicable sale expenses.
The remaining balance represents the seller's cash proceeds, subject to the precise completion account and transaction.
What Happens to the Money Refunded to CPF?
If you are below 55, your housing refund is generally credited back to your Ordinary Account.
If you are aged 55 or above, the refund may first be used to top up your Retirement Account to the required retirement sum, with the balance remaining in your Ordinary Account.
Depending on your circumstances and the applicable CPF rules, the refunded OA monies may subsequently be available for another property purchase.
Step 12: Property Tax Must Be Dealt With
Property tax is payable yearly in advance.
If you sell your property during the year, you are still required to pay the property tax due for that year. The property tax liability is ordinarily apportioned between seller and buyer on completion in accordance with the transaction.
For example, if you have already paid the entire year's property tax but sell the property halfway through the year, an appropriate adjustment may be made between you and the buyer on completion.
This does not mean IRAS divides the annual bill between the parties. Rather, the apportionment is dealt with between buyer and seller as part of the conveyancing completion account.
Step 13: Prepare the Property for Completion
The seller must comply with the terms of the sale contract.
If the property is being sold with vacant possession, you should ensure that you are ready to move out and hand over possession by the agreed completion date.
Depending on the OTP, this may involve:
removing personal belongings;
arranging your move;
ensuring agreed fixtures remain;
dealing with keys and access cards;
settling matters with the management corporation or managing agent where applicable; and
complying with any specific contractual obligations.
Do not remove fixtures which form part of the property unless the sale agreement permits you to do so.
If you have specifically agreed to leave certain furniture, appliances or other items behind, ensure those arrangements are clearly recorded.
Step 14: What If the Property Is Tenanted?
If there is an existing tenant, establish at the outset whether the property is being sold:
with vacant possession, or
subject to the existing tenancy.
This distinction is important.
If the buyer is purchasing subject to tenancy, the existing tenancy documentation should be disclosed and reviewed.
There may also need to be adjustments or arrangements concerning:
rent;
security deposits;
utilities;
maintenance obligations; and
handover of the tenancy documentation.
If vacant possession has been promised, you must ensure that you are legally able to deliver vacant possession by the completion date.
Do not promise vacant possession without first checking the terms of an existing tenancy.
Step 15: Completion Day
Completion is the day on which the sale transaction is legally completed.
On completion, the buyer provides the balance purchase monies in accordance with the contractual arrangements.
Your lawyer will use the relevant monies to deal with matters such as:
redemption of your outstanding mortgage;
CPF refunds;
agreed adjustments; and
other completion payments.
The necessary transfer documentation is completed and the buyer becomes the new owner.
Where vacant possession is required, the keys will ordinarily be released to the buyer in accordance with the completion arrangements.
When Do I Receive My Cash Sale Proceeds?
The sale price does not simply enter your bank account on completion.
The completion monies first have to be applied towards the relevant obligations associated with the property and transaction.
A simplified illustration is:
Sale Price: $2,500,000
Less:
Outstanding Mortgage: $800,000
CPF Refund: $600,000
Legal and Other Applicable Expenses: $10,000
Estimated Cash Proceeds: $1,090,000
This is only an illustration. Actual figures will depend on the particular transaction.
This is why sellers should calculate their net proceeds, rather than simply looking at the property's selling price.
What If I Am Selling and Buying Another Property at the Same Time?
This requires careful planning.
You may be relying on the proceeds from your existing property to:
pay the purchase price of the new property;
fund the downpayment;
make CPF monies available again;
repay an existing housing loan; or
satisfy your new bank's financing requirements.
There can also be ABSD implications depending on your property ownership profile and the timing of the transactions.
The dates of sale and purchase therefore matter.
Ideally, tell your conveyancing lawyer and banker about both transactions from the beginning so that the financing and completion timelines can be considered together.
Do I Have to Pay Tax on the Profit From Selling My Property?
Singapore generally does not impose capital gains tax.
Accordingly, gains from the sale of a property are generally not taxable where they are capital in nature.
However, IRAS may treat gains as taxable income where the circumstances indicate that the person is trading in properties rather than merely realising a capital investment.
Whether a gain is capital or income depends on the circumstances.
What Happens After Completion?
After the sale is completed, your conveyancing lawyer will attend to the necessary post-completion matters.
For private property, your lawyer would ordinarily notify IRAS of the sale or transfer by filing the required Notice of Transfer.
IRAS states that the conveyancing lawyer would usually file the Notice of Transfer within one month of the sale or transfer.
You should also attend to practical matters such as terminating or transferring utilities, cancelling relevant GIRO arrangements and updating your correspondence address where necessary.
Common Mistakes Sellers Should Avoid
1. Looking Only at the Sale Price
A $2 million sale does not mean you receive $2 million in cash.
Check your mortgage, CPF refund and transaction expenses first.
2. Forgetting About CPF Accrued Interest
The amount to be refunded is not necessarily limited to the CPF principal originally withdrawn.
Accrued interest can substantially increase the refund.
3. Forgetting to Check SSD Before Granting an OTP
SSD can be substantial.
Check the applicable holding period before legally committing to the sale.
4. Ignoring Your Mortgage Lock-In Period
Your bank may impose charges for early redemption.
Check your loan package before selling.
5. Promising Vacant Possession When There Is a Tenant
Always check the tenancy agreement before agreeing on the completion and possession terms.
6. Assuming You Can Change Your Mind After the OTP Is Exercised
Once a binding sale contract has been formed, simply refusing to complete may expose you to legal consequences.
7. Failing to Coordinate Your Sale With Your Next Purchase
If your next purchase depends on cash or CPF being released from the existing property, the timing needs to be planned carefully.
What Does a Conveyancing Lawyer Do for the Seller?
In a typical private property sale, the seller's conveyancing lawyer may:
advise on the legal aspects of the sale;
review or prepare the OTP;
check the property's title;
liaise with the buyer's solicitors;
obtain mortgage redemption information;
liaise with CPF Board;
calculate the completion account;
prepare the necessary transfer and conveyancing documentation;
arrange repayment of the existing mortgage;
arrange the required CPF refund;
deal with property tax and other agreed adjustments;
complete the sale; and
attend to the necessary post-completion notifications.
The lawyer's role therefore begins well before completion day.
Planning to Sell Your Private Property?
Before accepting an offer, it is useful to know three figures:
1. How much is your outstanding housing loan?
2. How much must be refunded to CPF?
3. Will Seller's Stamp Duty apply?
Once those figures are known, you will have a much clearer picture of your likely net sale proceeds and whether the proposed transaction works for you.
At YY Lee & Associates LLC, our conveyancing team assists property owners with the sale of private residential properties in Singapore, including mortgage redemption, CPF refunds and completion of the conveyancing transaction.
If you are planning to sell a condominium or landed property, contact YY Lee & Associates LLC to speak with our conveyancing team.
Frequently Asked Questions
How much CPF do I have to refund when I sell my property?
Generally, you must refund the CPF principal amount used for the property together with accrued interest. Additional requirements may apply in certain circumstances, including for some members aged 55 and above.
Do I have to top up my CPF refund in cash if my sale proceeds are insufficient?
If the property is sold at market value and the sale proceeds after repayment of the outstanding housing loan are insufficient to make the full required CPF housing refund, CPF Board generally does not require you to top up the shortfall in cash.
What happens to my CPF after I sell?
For members below age 55, the housing refund is generally credited to the Ordinary Account. For members aged 55 and above, the refund may first be used to top up the Retirement Account to the applicable retirement sum, with the balance remaining in the OA.
Do I have to pay Seller's Stamp Duty?
It depends on when you acquired the residential property and when you dispose of it. The SSD holding period was increased to four years for residential properties acquired on or after 4 July 2025.
Do I pay property tax for the whole year if I sell halfway through the year?
Property tax is payable yearly in advance. The seller must pay the tax due, but the tax liability is ordinarily apportioned between seller and buyer as part of the conveyancing completion account.
Do I pay tax on the profit from selling my property?
Gains from selling property in Singapore are generally not taxable where they are capital gains. However, gains may be taxable as income where the circumstances indicate property trading.