{"id":35072,"date":"2023-02-16T16:39:57","date_gmt":"2023-02-16T08:39:57","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=35072"},"modified":"2024-11-19T18:24:59","modified_gmt":"2024-11-19T10:24:59","slug":"offer-to-purchase-vs-option-to-purchase-difference","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/offer-to-purchase-vs-option-to-purchase-difference\/","title":{"rendered":"Offer to Purchase vs Option to Purchase: What’s the difference?"},"content":{"rendered":"
<\/div>\r\n

The Offer to Purchase and Option to Purchase are sometimes both referred to as the OTP. Although these days, we use “Offer” and “Option” to avoid confusion. They also happen close together in the property transaction process, so it’s not surprising that buyers sometimes confuse one for the other.<\/p>\r\n\r\n\r\n\r\n

It’s good to know the difference, not least because the wording in the Offer to Purchase can later affect the Option to Purchase<\/a>. Here’s what you need to know.<\/p>\r\n\r\n\r\n\r\n

What is an Offer to Purchase?<\/h2>\r\n\r\n\r\n\r\n
\"property<\/a>\r\n
If a buyer is interested, their agent will draft an Offer to Purchase for the seller to accept or decline.<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n

The Offer to Purchase is a formal letter from the buyer to the seller, expressing a serious interest in the property. Unlike the Option to Purchase, the Offer is not<\/em> considered legally binding. Details on the Offer to Purchase include:<\/p>\r\n\r\n\r\n\r\n