Sale Procedure for Industrial Property Purchase in Singapore.

Here’s a clear, step-by-step guide on the sale procedure for industrial real estate (e.g., factory or B2 property) in Singapore, applicable to both sellers and buyers:

🏭 1. Pre-Sale Preparation

(Seller’s side)

• Confirm ownership – Ensure the title deed and property are under your name or your company’s name.

• Check property type – Verify if it’s leasehold or freehold, and note the remaining lease term (industrial typically 30–60 years).

• Set your price – Usually based on market comparables or professional valuation.

• Engage an agent (optional) – Appoint a licensed real estate agent experienced in B1/B2 industrial properties to market the unit.

  
  

📝 2. Offer to Purchase (LOO) and Letter of Intent (LOI)

(Buyer’s side)

• The buyer submits a Letter of Intent (LOI) or Offer to Purchase, stating:

  • Purchase price

  • Option fee (usually 1%)

  • Completion period (typically 8–12 weeks)

  • Any special requests (e.g. early possession, inclusion of fixtures)

(Seller’s side)

• Seller reviews and signs the LOI to indicate acceptance.

• Once both parties agree, the seller issues the Option to Purchase (OTP).

  
  

💰 3. Option to Purchase (OTP)

Standard flow:

• Option fee: Buyer pays 1% of the purchase price when the OTP is granted.

• Validity: The buyer usually has 14 days to exercise the OTP.

• Exercising: Buyer pays a further 9% deposit (making 10% in total) and signs acceptance through their lawyer.

Once exercised, both parties are legally bound to complete the sale.

⚖️ 4. Legal Conveyancing Process

(Handled by both parties’ lawyers) Typical tasks:

• Conduct title search and verify encumbrances (mortgage, caveats, etc.).

• Prepare and exchange Sale & Purchase Agreement.

• Handle Stamp Duty payment (by buyer).

• Prepare completion documents and liaise with bank/lender (if financing is used).

Buyer’s Stamp Duty (BSD) applies:

• 1% on first $180,000

• 2% on next $180,000

• 3% on next $640,000

• 4% on remaining amount (Additional conveyance duties may apply for companies buying shares in property-holding entities.)

  
  

🏦 5. Financing and Valuation (if applicable)

If buyer takes a loan:

• Bank will conduct its own valuation of the factory.

• Loan offer is based on whichever is lower — valuation or purchase price.

• Bank lawyers coordinate with the buyer’s conveyancing lawyer for disbursement at completion.

  
  

📅 6. Completion

Timeline: Usually 8 to 12 weeks after OTP exercise (but can be shortened if both parties agree). At completion:

• Buyer pays the balance 90% (less any deposit).

• Seller delivers vacant possession (or tenanted, if agreed).

• Title and keys are handed over.

• Lawyers lodge transfer documents with SLA and IRAS.

  
  

📑 7. Post-Completion

• Buyer receives title deed after registration.

• Seller receives sale proceeds after legal/mortgage deductions.

• Update of property ownership in Singapore Land Authority (SLA) records.

⚙️ Typical Timeline Summary

Step	Description	Duration
Marketing & offer	Finding buyer	Varies
LOI & OTP	Agreement stage	1–2 weeks
Exercise OTP	Buyer pays 9%	14 days
Completion	Legal transfer	8–12 weeks (or earlier if agreed)

Shortest possible completion (with cash buyer and ready title):

👉 As fast as 4–6 weeks.