HDB Option to Purchase 2026: Fees, 21 Days, Next Steps

Couple signing a document at a desk — The OTP fixes the price and starts a 21-day clock. Photo: Annika Wischnewsky on Unsplash

At a glance

Option fee: S$1 to S$1,000, agreed with the seller, paid in cash
Option plus exercise fee: No more than S$5,000 in total; neither can be S$0
Option period: 21 calendar days, lapsing at 4pm on the 21st day
Needed first: A valid HFE letter (valid 9 months) when you obtain the OTP
If not exercised: The OTP lapses and the buyer forfeits the option fee

The short answer

The Option to Purchase (OTP) is the HDB form that locks in a resale deal for 21 days. Once you and the seller agree a price, the seller grants you the OTP and you pay an option fee of S$1 to S$1,000. For the next 21 calendar days the seller can’t sell to anyone else, while you get the valuation and confirm your loan. To go ahead, you pay the exercise fee and sign the form. If you don’t, the OTP lapses at 4pm on day 21 and you lose the option fee. We checked these rules against HDB, MyNiceHome and CPF pages on 14 October 2026.

What you need before the seller can grant it

Two things have to be in place before an OTP changes hands.

Your HFE letter. You need a valid HDB Flat Eligibility letter when you obtain the OTP and again when you submit the resale application. It is valid for 9 months from issue. Our HFE letter guide explains how to apply.
The seller’s Intent to Sell. The seller downloads the OTP form after registering an Intent to Sell, and can grant it only from 7 days after registering. Our page on the HDB Intent to Sell covers the seller’s side.

If either is missing, the seller can’t legally grant the OTP, however keen you both are.

The option fee, exercise fee and the S$5,000 cap

The OTP has two payments, both agreed between you and the seller and both part of the resale price.

Payment	When	Amount
Option fee	When the seller grants the OTP	S$1 to S$1,000; can’t be S$0
Option exercise fee	When you exercise the OTP	Agreed; can’t be S$0
Option fee plus exercise fee	Combined	No more than S$5,000

Both must be paid in cash. CPF says option fees can’t come from your CPF savings, so keep up to S$5,000 in the bank for this stage. A S$1,000 option fee with a S$4,000 exercise fee uses the full cap, but any split within it is allowed.

The 21-day option period

The option period runs for 21 calendar days from the date the OTP is granted, counting weekends and public holidays. It ends at 4pm on the 21st day, and the expiry date is printed on page 1 of the form. HDB’s own example: an OTP granted on 1 April expires at 4pm on 22 April.

Most of the work happens inside those 21 days:

Request for Value. If you’re using CPF or a housing loan, submit it on My Flat Dashboard by the next working day after the OTP is granted, with a scan of page 1. HDB charges S$120 including GST, and the result usually comes within 10 working days. Cash buyers with no CPF and no loan don’t need one.
Bank loan. If you’re borrowing from a bank, convert the in-principle approval to a Letter of Offer before you exercise.
Decide on the valuation. The valuation caps what you can borrow and draw from CPF. If it comes in below the price, the gap is cash. Our HDB valuation and COV page explains your options.

What happens if you don’t exercise it

The OTP simply lapses at 4pm on the expiry date. You forfeit the option fee to the seller and owe nothing else. The seller can grant a new OTP to another buyer only after the expiry date has passed.

This is why the option fee matters. It is the price of 21 days to think. A S$1,000 fee is the most you can lose by walking away before exercising.

Exercising is different. Once you pay the exercise fee and return the signed OTP, you have agreed to buy. HDB’s resale terms say it can’t help a buyer recover the deposit if the sale later falls through, and after HDB accepts the resale application it cancels only on written confirmation from both parties. Cancelling also cancels your HFE letter, so you’d have to apply again.

After you exercise: the resale portal steps

Once the OTP is exercised, HDB’s resale process takes over. Our HDB resale process guide covers the full timeline.

Step	Timing
Submit your part of the resale application on the HDB Flat Portal	The other party must submit within 7 calendar days of the first
Both parts in	While the valuation is valid (3 months from its release)
HDB accepts the application	Within 28 working days of a complete application
Endorse resale documents on My Flat Dashboard	About 3 weeks after acceptance
Pay initial payment, stamp duty and legal fees	By HDB’s deadline after endorsing
HDB approval	About 2 weeks after endorsement and payment
Completion appointment	About 8 weeks after acceptance

Your HFE letter has to be valid when you submit the resale application, not only when you got the OTP.

Worked example: a S$650,000 flat

Daniel and Hui Min have an HFE letter issued in May 2026, valid until February 2027. They agree S$650,000 for a 4-room flat in Bukit Batok.

Monday 2 November 2026: the seller grants the OTP. They pay a S$1,000 option fee in cash. The option expires at 4pm on Monday 23 November.
Tuesday 3 November: they file the Request for Value and pay S$120.
Mid-November: the valuation comes back at S$650,000, so there’s no cash over valuation.
Friday 20 November: they pay the S$4,000 exercise fee and return the signed OTP. Their deposit is S$5,000 in all, the maximum.
Week of 23 November: they submit their part of the resale application; the seller must follow within 7 days.

If the valuation had come back at S$620,000 and they couldn’t find S$30,000 in cash, they could have let the OTP lapse on 23 November. They would have lost S$1,000 and nothing more.

Before you sign

Check that your HFE letter will still be valid at the resale application, not just at the OTP.
Keep the option and exercise fees, up to S$5,000, in cash.
Set a reminder for the Request for Value deadline the next working day.
Don’t exercise until the valuation and your loan are settled.

This page is general information from HDB, MyNiceHome and CPF, checked on 14 October 2026. The OTP form and HDB’s terms are the final word on your deal.

Common questions

What is an Option to Purchase for an HDB flat?

It is HDB's prescribed form that a seller grants to a buyer after agreeing a price. In return for the option fee, the seller promises not to sell to anyone else for 21 days while the buyer checks the valuation and financing. The buyer then decides whether to exercise it.

How much is the HDB option fee?

Between S$1 and S$1,000, agreed between buyer and seller. The exercise fee is also agreed, but the two together can't exceed S$5,000. Both count towards the resale price, and CPF says option fees can't be paid with CPF savings.

What happens if I don't exercise the OTP?

It lapses at 4pm on the 21st day and you lose the option fee. You owe nothing more. The seller can grant a new OTP to another buyer only after the expiry date printed on page 1.

Do I need an HFE letter before getting the OTP?

Yes. MyNiceHome says you need a valid HFE letter when you obtain the OTP and again when you submit the resale application. The letter is valid for 9 months, so check its expiry before you start viewing.

Can I back out after exercising the OTP?

Exercising the OTP is a binding agreement to buy, and HDB's resale terms say it can't help a buyer recover the deposit if the deal falls through. Once HDB has accepted the resale application, it cancels only with written confirmation from both sides. Speak to a lawyer before walking away.

Can I pay the option fee with CPF?

No. CPF says option fees cannot be paid with CPF savings. You can use CPF for the rest of the downpayment, stamp duty and legal fees, depending on your loan.

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Sources

Facts on this page were checked against these sources on 14 October 2026.