Private Properties Sale are transacted by way of Option To Purchase granted by Seller to Purchaser giving the Purchaser the right to purchase the property within a certain time frame and that such an Option to Purchase shall lapse should the Purchaser not proceed to place more money to exercise the Option to Purchase.

The Option Fee is normally 1% of the Sale Price.

The Option Period is usually 14 days from date of Purchase.

The Amount to exercise the Option to Purchase is usually 9% of the Sale Price.

Purchaser needs to sign on Acceptance Copy of the Option to Purchase & hand over 9% of the Sale Price to exercise the Option to Purchase.

Completion of Sale usually take 10 weeks.

Commission payable by Seller is 2% of the Sale Price.

Commission payable by Purchaser is 1% of the Sale Price as finding fee.

However, No commission can be collected by 1 Agency from both Vendor & Purchaser in the same transaction without prior knowledge or written consent of the Vendor & Purchaser. This is to prevent a conflict of interest if the Agency is both the Sole Agent for the Vendor and Finder of properties for the Purchaser.

Payment of Seller's Commission :- By deducting off the sale proceeds at completion of sale.

Payment of Purchaser's Commission : - 50% payable at placement of Option Fee & 50% at completion of sale.

In the event, that the Purchaser does not proceed to place more money to exercise the Option to Purchase, the Seller has the right to forfeit the 1% Option Fee and that 50% of the Option Fee can be given to the Agent (s) transacting the deal as marketing fee or work done.

At any period in time, the Seller can only grant 1 Option to Purchase.
In a co-broke Sale transaction by 2 agents, the Seller's Agent shall pay half the commission from Seller to the co-broking Agent.

Fixtures & fittings are included in the Sale of any property. Eg : - air-conditioning, lights, toilets bowls, shower heads etc.. An inventory attached to the Option to Purchase is usually included.

The services of an Agent is to bring a Tenant to rent your property. His services end when the Tenant has settled into the apartment. He is not expected to look after the apartment or the Tenant on Owner's behalf throughout the lease period. That will be under property management for which there will be a property management monthly fee of 5-10% of the gross rental. (The Agent's service is just like a Doctor that helps bring a baby into the world but not look after your baby forever).

The Tenant has to present actual & photocopies of passport, employment pass or any other documents to the Owner for verification under immigration law.

There are 2 main documents when renting private properties :- Letter of Intent & Tenancy Agreement.

Letter of Intent will state the intention of the intending Tenant to rent the private properties subject to some terms and conditions to be negotiated and accepted by the Landlord.

1 month gross rental needs to be paid to the Landlord as goodfaith deposit when presenting the Letter of Intent for the Landlord to sign acceptance.

The security deposit is usually 2 months gross rental. The security deposit is to hold the Tenant to the terms and conditions of the lease and can be forfeited in view of any breach of the terms and conditions of the lease by the Tenant. It is not simply that by way of forfeiture of 2 months security deposit, any Tenant can simply walk out of the the lease contract. A lease contract of 2 years is binding on the Tenant and Landlord for 2 years and if the Tenant cannot fulfill the 2 years lease due to reasons other than diplomatic clause postings out of Singapore, the Tenant is still liable to compensate the Landlord till end of lease.

The standard lease of private properties is 2 years with possible extension of 1-2 years lease at a mutually agreed rental later.

The Tenant if a foreigner can request for a diplomatic clause whereby the Tenant is allowed early termination or expiry of the lease in the event that the Tenant is posted overseas. Such diplomatic clause have a minimum stay period of 1 year with 2 months prior notice or 2 months rental in lieu of no notice given i.e. the Tenant has to stay a minimum of 14 months.

Maintenance of air-conditioning system in private properties is usually the Tenant's responsibility for which Tenant usually sign either a bimonthly or quarterly air-conditioning servicing contract with qualified air-conditioning contractor.

The Landlord shall be responsible for repairs & replacement of parts or any of the air-conditioning system provided the Tenant has taken good care of the normal routine maintenance with a service contract.

Under the law, the Lessee meaning the Tenant is required to pay Stamp Duty for stamping of the Tenancy Agreement. Cheque payment for stamp duties are to be paid to "Commissioner of Stamp Duties".

Power supply, gas, telephone, TV license, SCV cable, Fax or Internet services are not included in the rental and is the Tenant's responsibility.

The Landlord take care of the monthly maintenance charges by Mgt Corporation for the Condo, property taxes, income taxes, assessments and insurance premiums applicable to the Property.

The Landlord is also to maintain the structural condition, concealed wirings & pipings, electrical, plumbing, fixtures and fittings of the demised premises in tenable conditions.

The Tenant is to maintain the overall general condition of the premises in tenable livable condition and make sure everything are in neat useable order.

The Tenant shall be responsible and shall pay for minor repairs, replacement of light bulbs, changing of fuses, clearing of basin and sink blockages etc i.e. items that are less than S$100-200/- per item per job.

In cases where there is early expiry or termination of the lease due to whatever reasons, the Tenant has to refund back in pro-rata proportion the commission paid by the Landlord. It is entirely reasonable as the Tenant has full control of the situation and any early expiry or termination has to come from the Tenant.

Commission payable by Landlord is 1 - 1.5 month gross rental for lease between 12 month to 24 months, with an additional half month gross rental for every subsequent 12 months lease or less.

Commission (as service fee) payable by Tenant is 1 month gross rental for lease between 12 month to 24 months, with an additional half month gross rental for every subsequent 12 months lease or less. This commission as service fee is only applicable when gross rental is S$2500 or less.

In a direct transaction (S$2500 & below) by Landlord's Agent with Direct Tenant, Landlord's Agent will collect both the commission and service fee payable by Landlord & Tenant.

In a co-broke transaction (S$2500 & above) by 2 agents, the Landlord's Agent shall pay half the commission from Landlord to the co-broking Agent.

In a co-broke transaction (S$2500 & below) by 2 agents, the Landlord's Agent shall collect commission from Landlord.

Commission payable by Vendor is 2% of the Sale Price

Commission payable by Purchaser is 1% of the Sale Price as Service Fee

In a direct transaction by Vendor's Agent with Direct Buyer, Vendor's Agent will collect both the commission and 1% service fee.

In a co-broke transactions by 2 agents, the Vendor's Agent shall collect commission from Vendor while Purchaser's Agent shall collect from the Purchaser the 1% service fee.

Payment of Commission : - 50% of the total commission at point of placing deposit for purchase of property and the remaining 50% of the total commission at completion of sale documentations.