Key Documents You Need Before Buying Property in Singapore

Posted 2025-07-14 09:51:17 · 28 Views

Buying a property is one of the biggest financial decisions you'll make, and in Singapore, the process is regulated and document-heavy. Whether you're purchasing an HDB flat or private condominium, having your paperwork in order is crucial for a smooth transaction. This guide outlines the essential documents every buyer should have ready before committing to a property purchase in Singapore.

1. HDB Flat Eligibility (HFE) Letter

Applies to: Buyers of HDB flats and Executive Condominiums (ECs)

Since 2023, the HFE letter is the most critical starting document for HDB buyers. It replaces multiple earlier forms and provides a comprehensive assessment of:

Your eligibility to buy an HDB flat
Your loan options (HDB loan or bank loan)
Grant eligibility

Why it’s important:
You cannot proceed with booking a flat or applying for a resale transaction without this letter.

2. Proof of Identity and Citizenship

You must provide valid proof of your identity and citizenship or residency status.

Accepted Documents:

NRIC (for Singapore Citizens and PRs)
Passport and FIN (for foreigners)
Marriage certificate (if buying under Fiancé/Fiancée Scheme)

Why it’s important:
It helps verify your eligibility under HDB schemes or for private property purchases. It also affects Additional Buyer’s Stamp Duty (ABSD) rates.

3. Option to Purchase (OTP)

Applies to: All property buyers (HDB and private)

This is a legal contract between the buyer and seller. When you pay the option fee (typically 1% of the property price for private properties or $1,000 for HDB), the seller grants you the exclusive right to buy the property within a specific timeframe (usually 21 days).

Details included:

Agreed price
Timeline to exercise
Terms of sale
Parties involved

Why it’s important:
Without this, the sale is not considered legally binding.

4. Letter of Offer (LO) from Bank or HDB Loan Approval

If you're taking a mortgage, you need to secure a loan offer before committing to a purchase.

Types:

Bank Loan: Letter of Offer (LO) states loan amount, interest rate, tenure, and repayment details.
HDB Loan: The HDB Loan Eligibility (HLE) letter or financing section of the HFE letter will serve the same purpose.

Why it’s important:
You must show proof of financing when you exercise the OTP and submit your purchase application.

5. CPF Statement

Applies to: Buyers using CPF for down payment or monthly instalments

You’ll need to download a CPF statement showing your Ordinary Account (OA) balance. If using CPF for stamp duties or housing payments, approval must be obtained from CPF.

Why it’s important:
It proves you have sufficient funds in your CPF to cover part of the property purchase.

6. IRAS Notice of Assessment (NOA)

This document provides proof of your income and is often required during:

Housing grant applications
Loan eligibility checks
Verification for TDSR/MSR calculations

You can retrieve it from the IRAS myTax Portal.

7. Payslips or Employment Letter

Most banks require 3 to 6 months of payslips, or an employment letter stating your position, income, and duration of service.

Self-employed buyers will need:

Income tax NOA for the last 2 years
Bank statements showing business income

Why it’s important:
It verifies your financial stability and supports loan applications.

8. Sale & Purchase Agreement (S&P)

After exercising the OTP, both parties will sign a Sale and Purchase Agreement to formalize the transaction.

Details include:

Final purchase price
Payment schedule
Legal and completion clauses
Dispute resolution terms

Why it’s important:
It’s a legally binding contract that outlines all obligations for both buyer and seller.

9. Valuation Report (for Bank Loan or CPF Usage)

After the OTP is signed, buyers must get the property professionally valued. For HDB flats, the valuation is done through the HDB portal. For private properties, banks will appoint their own valuer.

Why it’s important:
The valuation affects your loan amount, CPF usage, and whether you need to pay Cash Over Valuation (COV).

10. Proof of Funds for Down Payment

You may need to provide documentation that shows you can cover:

Minimum 5% (cash) down payment
Any shortfall not covered by loan or CPF
Stamp duty (BSD + ABSD if applicable)
Legal fees

Bank statements or fixed deposit certificates are commonly accepted.

11. Tenancy Agreement (If There’s a Tenant)

If you're buying a tenanted property, the seller must provide the tenancy agreement. It outlines:

Rent amount
Duration of lease
Terms and handover conditions

Why it’s important:
The buyer must honour the tenancy until it expires unless otherwise agreed.

12. Strata Title Plan or Site Plan (for Condos)

While not always required upfront, these documents can help you understand:

Actual floor plan and unit boundaries
Common property locations
Maintenance fees

Your lawyer or property agent can request them from the managing agent.

Conclusion

Buying a property in Singapore involves many steps—and just as many documents. Being well-prepared ensures that the process goes smoothly, from securing a loan to transferring ownership. Whether you're buying a resale HDB or a private condo, collecting and reviewing the right documents can save you time, reduce risks, and give you peace of mind as you make one of the most important investments of your life.