Option to Purchase
People also ask
What is an OTP agreement in real estate?
An OTP agreement is a legal contract signed between a buyer and a seller of a residential property, and basically gives the buyer the exclusive rights to purchase a property from the seller in the future. After you and the seller have agreed on the terms and purchase price of the property, the seller will grant you the OTP document.
What is an option to purchase (OTP)?
An Option to Purchase (淥TP? is the first document between the seller and the buyer which stipulates the basic terms and conditions of the sale of a property.
Where can I get a copy of the OTP for private property?
To get a feel of how the document looks like, you can download a copy of the OTP for private property from CEA (Council for Estate Agencies) here. If you檙e buying an HDB resale flat, you and the seller must use the OTP document prescribed by the HDB.
Why should I use an OTP instead of a verbal agreement?
This is because the real estate agents may not be sufficiently trained to advice you about the legal terms involved and thus might not adequately reflect the real intentions of the parties. Unlike verbal agreements, OTP certainly has a higher level of contractual effect which is binding on the parties.