Option Agreement Property Template for Singapore

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Key Requirements PROMPT example:

Option Agreement Property

"Need to draft an Option Agreement Property for a Singapore commercial property at 123 Orchard Road, with an option period of 21 days and purchase price of SGD 5.2 million, to be completed by March 2025."

Document background
The Option Agreement Property is a crucial document in Singapore real estate transactions, serving as the preliminary binding agreement between property sellers and potential buyers. It is typically used when a buyer expresses serious interest in purchasing a property but requires time to arrange financing or conduct due diligence. The agreement provides the buyer exclusive rights to purchase the property within a specified period (usually 14 days in Singapore) in exchange for an option fee (typically 1% of the purchase price). This document must comply with Singapore's property laws and regulations, including specific requirements for different property types (HDB, private residential, commercial) and buyer categories (local, foreign).
Suggested Sections

1. Parties: Identification of Option Grantor (seller) and Grantee (potential buyer)

2. Background: Context of the option agreement and property details

3. Definitions: Key terms used throughout the agreement

4. Grant of Option: Terms of the option, including duration and exercise conditions

5. Option Fee: Amount, payment terms, and status of option fee

6. Exercise of Option: Process and requirements for exercising the option

7. Purchase Price: Total consideration and payment terms

8. Property Details: Specific description and details of the property

9. Completion: Terms and timing of completion upon exercise

Optional Sections

1. CPF Usage: Terms relating to Central Provident Fund usage for property purchase

2. Bank Financing: Conditions related to mortgage financing and bank loan requirements

3. HDB Approval: Conditions subject to Housing Development Board approval for HDB properties

4. Foreign Ownership: Additional requirements and conditions for foreign buyers under the Residential Property Act

Suggested Schedules

1. Schedule 1 - Property Details: Detailed property description, boundaries, and floor plans

2. Schedule 2 - Payment Schedule: Breakdown of payment terms and timelines

3. Schedule 3 - Title Documents: List of title documents and encumbrances

4. Appendix A - Property Photos: Current photographs of the property

5. Appendix B - Inventory List: List of fixtures and fittings included in sale

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Civil Law Act (Cap. 43): Primary legislation governing general contract law principles and civil obligations in Singapore

Conveyancing and Law of Property Act (Cap. 61): Fundamental legislation governing property transactions and real estate conveyancing in Singapore

Land Titles Act (Cap. 157): Legislation governing the registration and transfer of land titles in Singapore's land registry system

Housing and Development Act (Cap. 129): Legislation governing public housing (HDB) properties, their sale, and transfer requirements

Residential Property Act (Cap. 274): Controls and restricts foreign ownership of residential property in Singapore

Planning Act (Cap. 232): Regulates land use and development in Singapore

Singapore Law Society's Conditions of Sale: Standard terms and conditions for property sales as prescribed by the Law Society of Singapore

Housing Developers Rules: Regulations governing private housing development and sales

Executive Condominium Housing Scheme Act: Specific legislation governing Executive Condominiums, a hybrid of public and private housing

Stamp Duties Act: Legislation governing stamp duty payments including Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD), and Seller's Stamp Duty (SSD)

CPF Rules: Regulations governing the use of Central Provident Fund savings for property purchases

MAS Guidelines: Monetary Authority of Singapore guidelines relating to property financing and loans

Real Estate Developers' Rules: Regulations governing property developers and their obligations in property development and sales

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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