Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
Unit-Level Checks
Physical Condition and Defects
For a resale condo, the buyer acquires the unit in its current condition — there is no developer's defects liability period. Buyers should conduct a thorough physical inspection before exercising the OTP:
- Inspect all rooms, ceilings, walls, and floors for water damage, cracks, and staining
- Test all electrical fittings, switches, and the fuse box
- Check air-conditioning units — age, service history, and whether they are functioning
- Inspect plumbing (water pressure, drainage speed, signs of leaks under sinks)
- Check window frames and sealants for deterioration (water ingress risk)
- If the unit is on a high floor, check façade and balcony condition
Buyers with concerns should engage an independent property inspector before committing. Unlike HDB transactions, there is no mandatory condition disclosure from the seller.
Permitted Use and Renovation Approvals
Check whether any renovation works in the unit were approved by the MCST and, where required, by the Building and Construction Authority (BCA):
- Major structural changes (removing walls, adding mezzanine floors) require BCA approval
- MCST approval is required for works affecting the building envelope (façade, external windows, balcony modifications)
- Unauthorised works create liability for the current owner — and the buyer inherits this on completion
Request the renovation records from the seller and confirm with the MCST managing agent that no outstanding rectification orders exist.
Parking Entitlement
Not all condo units come with a car park lot — in some older developments, parking is on a first-come, first-served basis with no assigned allocation. In newer developments, parking may be assigned or subject to seasonal licence arrangements.
Confirm from the MCST or reviewing the strata title documents whether the unit has an assigned car park lot — and whether that lot is included in the sale. Some sellers retain or separately sell assigned lots.
MCST and Development-Level Checks
Sinking Fund and Maintenance Fund Balance
Request the MCST's most recent financial statements. Key figures to review:
- Sinking fund balance: This fund covers major capital expenditure (lift replacement, roof waterproofing, M&E overhaul). A low balance relative to the building's age and expected capital needs is a warning sign.
- Maintenance fund balance: Covers day-to-day operating costs. A deficit may indicate that monthly maintenance fees are insufficient and will need to be raised.
- Outstanding fees from current owner: Outstanding maintenance fees are a charge on the property. Confirm the current owner has no arrears before completion.
Age of Major Building Systems
For developments 15+ years old, ask the MCST managing agent about:
- When lifts were last replaced or refurbished (typical lifespan 20–25 years)
- Chiller/cooling system status for central-air developments
- Façade waterproofing history
- Roof condition and last waterproofing works
- Whether the BCA has conducted a structural audit (periodic requirement for buildings over 20 years)
Pending Litigation
Search for any pending MCST litigation — structural defect claims against the developer (if the building is still within limitation period), contractor disputes, or MCST disputes with owners. Ongoing litigation creates uncertainty about costs and can affect the development's reputation.
Existing Tenancy Check
If the unit is tenanted, verify the tenancy terms before the OTP:
- Tenancy end date — does it expire before the buyer's intended occupation date?
- Whether the buyer intends to take over the tenancy (landlord investment) or needs vacant possession
- Security deposit amount held by the seller (transfers to buyer on completion)
- Any outstanding obligations from the tenancy (pending repairs, disputes)
A buyer purchasing a tenanted unit to owner-occupy must wait for the tenancy to expire. If the tenancy has a long unexpired term, the buyer may need to negotiate an early termination with the tenant — which typically requires compensation.
URA Approval and Zoning
For mixed-use or dual-key units, confirm the URA-approved use for the specific unit. Some developments that market serviced apartment-style units have restrictions on short-term rental (under 3 months) that apply regardless of what the marketing material implied. Check the unit's strata title use designation and any covenants in the MCST bylaws.
Q: Should the buyer arrange an independent inspection before the OTP?
A: For resale condos — yes, ideally. Unlike new launch units (which have a defects liability period) or HDB flats (which have HDB's condition requirements), resale private property is sold as-is. An independent professional inspector can identify structural or M&E defects the buyer might miss, and the cost (typically $300–$600) is worthwhile given the transaction size.
Q: What happens to the existing tenant's security deposit at completion?
A: The security deposit held by the seller is transferred to the buyer at completion. This is typically reflected in the completion statement — the buyer receives less cash from the seller, and in return takes on the obligation to refund the deposit to the tenant at the end of the tenancy. The exact mechanics are handled by the conveyancing solicitors.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.