Clarification of Process to Change Names in the Option to Purchase

  Published: 15 May 2017
Circular No : URA/COH/Circular-2017-01
Our Ref : COH/CIRCULAR

CIRCULAR TO PROFESSIONAL INSTITUTES

Who Should Know:
Developers and solicitors

Effective Date:
With effect from 15 May 2017

  1. This circular clarifies the process for developers and purchasers in instances where purchasers wish to make changes to the names in the Option to Purchase (OTP) issued.
  2. Under the Housing Developers Rules (HDR) and Sale of Commercial Properties Rules (SCPR), an option issued is not assignable or transferable, i.e. the persons signing the Sale and Purchase Agreement (S&PA) must be the same persons named in the OTP.

Name change in OTP for residential properties

  1. Under clause 3.2 in the standard OTP, the OTP shall lapse immediately upon the developer’s receipt of a written notice from the purchaser stating that the intending purchaser does not wish to exercise the OTP.
  2. This includes instances when, after the issue of OTP, the purchaser wishes to make changes to the parties who will be signing the S&PA, e.g.: 
    a. OTP issued to a person and the person wishes to include his/her spouse as a co-purchaser;
    b. OTP issued to 3 persons and one of them wishes to withdraw from the purchase of the property.
  3. In such situations, the purchaser should, in accordance to clause 3.2, notify the developer in writing of the proposed changes and that the purchaser named in the OTP does not wish to exercise the OTP. Upon the developer’s receipt of the written notice, the existing OTP shall lapse immediately. If the developer is agreeable, a new OTP with the amended names may be issued. Developers are not allowed to backdate the new OTP.
  4. There is no need to seek the Controller’s approval to terminate the existing OTP, if there are no changes to the terms and conditions of the new OTP. 

Pre-approved new clause for early termination of OTP under the SCPR

  1. For the sale and purchase of non-residential properties, the Controller has pre-approved a new clause in the OTP for the option to lapse immediately upon the developer’s receipt of the purchaser’s written notice stating that he does not wish to proceed to exercise the OTP. Please refer to Appendix 1 for the new pre-approved clause 3.2 in the OTP and updated list of pre-approved amendments to the OTP and S&PA under the SCPR.
  2. If the developer has inserted the new pre-approved clause 3.2 in the OTP for the purchase of non-residential properties, the same procedure outlined in paragraph 5 above for proposed change of names in the OTP can be adopted for non-residential properties.
  3. If the OTP for the purchase of non-residential properties did not contain the new pre-approved clause 3.2, the Controller’s approval in writing has to be obtained for any early termination of the OTP. Once approved, and if the developer is agreeable, a new OTP with the amended names may be issued upon the expiry of the existing OTP.

Follow up action

  1. I would appreciate it if you could convey the contents of this circular to the relevant members of your organisation. If you or your members have any queries concerning this circular, please email us at ura_coh_registry@ura.gov.sg
Thank You.

LING HUI LIN (MS)
CONTROLLER OF HOUSING
URBAN REDEVELOPMENT AUTHORITY


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