Buying a property is a familiar process for many. However, before purchasing a property in Singapore, it’s necessary to understand many different concepts, as some of these specialized terms do not exist in other countries. Terms like Temporary Occupation Permit (TOP) and Additional Buyer’s Stamp Duty (ABSD) are unique to the Singaporean property purchasing context. Therefore, if you are considering buying a property in Singapore, it’s best to first familiarize yourself with some of the professional vocabulary in the Singapore real estate industry. In this article, we will provide a detailed explanation of the Temporary Occupation Permit and how to check the handover date for a condominium.
1. What is a Temporary Occupation Permit (TOP)?
In Singapore, the Temporary Occupation Permit usually refers to the date when you can move into a newly completed property. Seeing this explanation, you might wonder why you need a TOP just to move into a house you’ve purchased. The reason is simple: in Singapore, all buildings require government authorization before they can be occupied. From this perspective, the TOP is a legal document signifying that the government has permitted the buyer to move into their purchased property. It’s worth noting that the application for a TOP is typically handled by the developer, and buyers are not involved in the process.
So, how is the usefulness of a TOP demonstrated? For example, in a development project, the residential units may be completed, but some common facilities like the swimming pool are still under construction. In such cases, as long as the completed residential units meet a series of building standards set by the Building and Construction Authority (BCA), the developer can apply for a TOP to allow buyers to move into their purchased homes early. At the same time, this also allows developers to meet the demand from potential buyers who prefer to purchase move-in ready properties.
From the buyer’s perspective, you can get a clear idea of what the property looks like, which is different from off-plan projects. If you are buying for investment purposes, you can rent out the unit immediately after receiving the keys. Another significant benefit is that since you are purchasing a brand-new home, the developer will provide a one-year Defects Liability Period, so you don’t have to worry about unexpected issues with the property. However, it is important to note that when purchasing a property that has already obtained its TOP, you must pay for it in full. If you wish to learn more about purchasing a condominium that has already received its TOP, feel free to contact us.
2. How to Check the Handover Date for a Condominium?
As we mentioned earlier, the developer is responsible for applying for the TOP. However, understanding the application process for the TOP can, to some extent, help you find the answer to this question.
First, the developer will appoint a qualified person (usually a registered architect or professional engineer) to arrange and manage the site inspection and submit a request for inspection to the Building and Construction Authority (BCA). Next, the BCA will propose an inspection date within two working days, and the qualified person must confirm this date one week before the actual inspection. After the inspection is successfully passed, the developer will submit all necessary documents and approvals from other relevant technical departments and await approval.
For a standard TOP application, it generally takes about four weeks after the developer completes the submission. If time is critical, the developer can also use an express system to obtain it within one working day.
Finally, when the developer informs you that the TOP has been approved, they may also inform you of the key collection time. For condominium buyers, the process of collecting the keys is very straightforward: you just need to bring your identification card to collect them. Of course, you can also authorize someone else to collect the keys on your behalf, but the authorized person must bring a letter of authorization and your original identification card.
Of course, if you have developed an interest in buying property after gaining a basic understanding of the Singapore property market and wish to delve deeper into the entire purchasing process and its key considerations, you can also contact our senior local property agent, Leo Kwek (郭耀阳), for inquiries. We will provide you with more professional and detailed answers.
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