12 Common Property Buying Mistakes in Singapore Should Avoid

Buying activity has picked up across the market, with both new launches and resale homes attracting strong interest. For many buyers buying property in Singapore, well-priced units are moving quickly, creating pressure to act fast. In this environment, it’s easy to overlook details and that’s where property buying mistakes often happen.

Whether you’re monitoring new project launches through Property Launcher or navigating competition in the resale market, moving too quickly can leave buyers exposed to financial, legal, and timing risks.

Below, we outline commonly overlooked property buying mistakes in Singapore that can emerge at different stages of the property purchase process, so you can approach each decision with greater clarity and confidence.

1. Plan your credit position early

Credit doesn’t improve overnight. Banks look at how you’ve managed repayments over time, so trying to clear debts just before applying for a home loan rarely makes much difference. What matters more is a steady track record consistent income, manageable commitments, and no recent red flags.

If a property purchase is on the horizon, it’s worth reviewing your credit position early rather than leaving it to the last minute. This gives you time to make adjustments properly and reduces the chance of unpleasant surprises during loan assessment.

For buyers with a past bankruptcy, most lenders only consider applications several years after discharge and alternative options, where available, usually come with higher costs.

2. An IPA helps — but it’s not the final green light

Before paying any booking or option fees, line up your preferred bank and get an In-Principle Approval (IPA) first. An IPA is only a preliminary estimate of what you may borrow (based on income, debts, and credit profile) and is typically valid for around 30 days.

Importantly, final approval can still be reduced or rejected after deeper checks, such as full credit review, income verification (especially variable income or job changes), updated debt assessment, and—often for resale—property valuation.

Most buyers have just 14 to 21 days to exercise the Option to Purchase (OTP). If financing falls through during this window, you could lose part or all of the deposit or feel forced to take a last-minute loan on less favourable terms to meet the deadline.

3. Final loan approval can still fail — even after an IPA

An IPA is not a binding approval. If your financial profile changes after you receive it, the bank can still reduce the loan amount or reject the application during the final assessment.

Common triggers include:

• a change in income (lower pay, unpaid leave, commission drops)
• a job switch, probation period, or unstable employment record
• taking on new debt (car loan, personal loan, higher credit card utilisation)
• discrepancies found during document verification or credit checks

If anything material changes, it’s safer to refresh or re-apply for your IPA early, instead of assuming the earlier figure still holds.

Also, avoid “polishing” your numbers. If the bank later detects inconsistencies (e.g., inflated income or incomplete disclosures), you may still receive an IPA initially—but face a surprise rejection at final approval, when timelines are tighter and the risk to your deposit is higher.

4. Be prepared to top up cash if the bank’s valuation comes in lower

This usually isn’t an issue for new launches, because the developer’s price is generally treated as the reference point. With resale homes, the bank bases your mortgage on its own valuation, and that figure can be lower than the price you agreed with the seller.

For example, if the purchase price is $1.8 million but the bank values the unit at $1.76 million, the $40,000 gap must be covered upfront. This shortfall is commonly known as cash-over-valuation, and it cannot be added to your loan amount. Depending on your financing structure, CPF may not cover this difference fully either, so buyers should keep a cash buffer ready.

The risk becomes more serious when the price is above recent comparable transactions, or when the market turns softer and banks adopt more conservative valuation benchmarks. It can also be challenging if most of your funds are locked in CPF and you don’t have enough liquid cash for a sudden top-up.

A mortgage broker can help you compare options quickly, and in some cases identify a bank that may be more supportive on valuation. Just note that the “easier” option may come with trade-offs such as a higher interest rate or stricter loan terms.

5. If your OTP expires, you could lose thousands in fees

An Option to Purchase (OTP) usually comes with a strict timeline of 14 to 21 days. If you miss the deadline, the cost can be painful.

For new launches, an expired OTP typically means you forfeit the full booking fee. For resale properties, the option fee is usually lost once the OTP lapses.

This often happens when financing isn’t ready in time—such as delays in loan processing, missing documents, or waiting too long to complete the bank’s requirements. Even small admin slip-ups can create real risk, including late cheque submission, leaving signing to the last day, or miscounting working days.

One more thing buyers overlook: banks don’t process on public holidays, and some steps require banking clearance time. Build in buffer days, not just the minimum timeline.

6. If the seller backs out, know what you can do legally

It’s more common for buyers to withdraw during the OTP period, especially if financing or personal circumstances change. But in rare cases, the seller may attempt to walk away either by refusing to proceed or, in the worst scenario, accepting another offer despite the agreement.

If this happens, involve your conveyancing lawyer immediately. Depending on the facts and the documents signed, legal remedies may be available. In some situations, the court can order the seller to complete the transaction (often referred to as specific performance), or the buyer may pursue damages for losses caused by the breach.

That said, legal action is rarely quick. It can involve additional costs, time, and stress, and outcomes depend heavily on evidence and the contract terms. This is why choosing a responsive law firm and keeping a clear paper trail (messages, receipts, timelines) matters.

If your agent or your own interactions—suggest the seller is hesitant, inconsistent, or difficult to pin down, treat it as a warning sign. Sometimes the smartest move is to step back early and avoid a deal that may turn messy later.

7. Unexpected events can happen after OTP — plan for “what if” situations

Sometimes, issues arise that no one can predict. We’ve seen cases where a co-buyer passed away shortly after the OTP was exercised. We’ve also encountered situations where a property was damaged (for example, a kitchen fire) after the OTP was granted but before it was exercised.

This is why it helps when the agent is careful and continues to do last-minute checks, even after the Option is secured. A quick follow-up visit before exercising the OTP can catch problems early and give you a chance to address them properly.

Not every scenario has a clean solution, and outcomes often depend on how experienced your agent and conveyancing lawyer are, as well as what the contract allows. Still, you can reduce stress by preparing a basic safety net before buying:

Have sufficient insurance coverage where relevant (especially life coverage for co-buyers), keep some emergency cash aside, and avoid overstretching your finances right at the start of the purchase.

8. A high queue number can limit your choices at a new launch

For many new launches, buyers are given a queue number that affects when they can enter the selection process. In high-demand projects, popular stacks and better-facing units can be taken quickly, so a higher number often means fewer options by the time it’s your turn.

If your queue number is high, go in with the right expectations: your first-choice unit may already be gone. The best way to avoid panic decisions is to prepare a shortlist in advance. Work with your agent to identify second and third choices that still meet your key priorities—such as layout, facing, floor level, and budget—so you’re not forced into a unit you’re unsure about.

Preparation also helps you move decisively when your turn arrives. Do your research early, compare available stacks and price ranges, and have your financing ready (including an IPA), so you can commit confidently instead of rushing into a choice you later regret.

9. Title issues can disrupt a purchase if you miss the warning signs

Title defects aren’t common, but when they happen, they can seriously delay or even stop a transaction. Examples include situations where a family member later disputes the seller’s right to sell, or where a seller’s legal/financial status changes mid-process (such as insolvency or bankruptcy) before completion.

This is where your conveyancing lawyer’s checks matter. They’re there to confirm the seller has proper legal authority to transfer the property and to flag any risks tied to ownership, competing claims, or legal restrictions.

A “good deal” can sometimes come with hidden complications. If the seller appears rushed, pressured, or legally vulnerable, don’t focus only on the discount. In cases where there may be conflicting interests or financial instability, the safer move may be to walk away rather than risk a transaction that becomes costly and messy to resolve.

10. Confirm repairs are done before you sign

If the seller agreed to fix anything (leaks, fixtures, appliances), inspect and verify it’s completed before you sign the Sale & Purchase Agreement.

Watch for “as is, where is” (caveat emptor) clauses in the OTP—this can mean you’re buying the unit in its current condition, even if there were verbal promises.

You can take legal action later, but it’s slow, costly, and harder to prove once you start renovations. Best practice: get the repair list in writing and do a final (or even second) walk-through before committing.

11. Check for unpaid fees and taxes before completion

Some sellers leave behind outstanding payments—most commonly condo maintenance fees (often billed quarterly) or property tax. Even if you won’t be the one paying for these arrears, they can still slow down the transaction, especially if the seller delays settling them.

Utilities like water and electricity are tied to the account holder, not the property, so you’re not liable for old bills. But if services get cut off due to non-payment, it becomes an unnecessary headache—you may need to contact the relevant provider (e.g., PUB) to restore supply.

Best practice: ask your lawyer/agent to confirm that key charges are cleared and accounted for before handover.

12. If the seller doesn’t vacate on time, your next steps

Occasionally, sellers fail to hand over the unit by the agreed vacant possession date. This can disrupt renovation plans, move-in timelines, and even financing arrangements.

What happens next is usually set out in the Sale & Purchase Agreement. Many contracts include a Late Completion Interest (LCI) clause, where the seller compensates the buyer for delays—often stated as around 8% to 10% per annum of the purchase price, calculated daily until vacant possession is delivered.

If the seller still refuses to leave, you’ll need your conveyancing lawyer to advise on escalation. In severe cases, it may require court action to enforce vacant possession.

For developer delays (new launches), your options are more limited you typically rely on the contractual compensation and wait for completion.

Next Steps: Get Help to Avoid Property Buying Mistakes

Even if your conveyancing lawyer is handling the legal side, delays can still leave you without a place to stay—and in some cases, paying for temporary accommodation. That’s why it’s smart to plan ahead and keep a backup option in mind, especially if your timeline is tight.

At PropertyLauncher, we focus on what matters beyond the headlines how the process works in real life, where issues can appear, and what you can do to protect yourself before committing.

If you’d like advice tailored to your situation, reach out to PropertyLauncher for a one-to-one consultation.