URA issues circular on updates to pre-approved amendments to OTP to comply with prevention of money laundering, proliferation financing, and terrorism financing requirements

28 August 2025

The Urban Redevelopment Authority (“URA”) has issued a circular on updates to pre-approved amendments to the option to purchase (“OTP”) to comply with prevention of money laundering, proliferation financing, and terrorism financing requirements (“Circular”). The Circular took effect from 6 August 2025.

The Circular supersedes the URA circular dated 28 June 2023.

Developers are required to use the standard OTP under the Housing Developers Rules and Sale of Commercial Properties Rules for the sale of uncompleted properties. The approval of the Controller of Housing (“Controller”) is required for any amendments to the standard OTP.

Under the Housing Developers (Prevention of Money Laundering, Proliferation Financing and Terrorism Financing) Rules 2023 and Sale of Commercial Properties (Prevention of Money Laundering, Proliferation Financing and Terrorism Financing) Rules 2023 (together, “Rules”), developers are required to perform customer due diligence (“CDD”) measures under certain circumstances, including before granting an OTP.

Under the Rules, where the developer is unable or chooses not to complete performing any of the CDD measures due to suspicion that the transaction involves money laundering, proliferation financing, or terrorism financing and that performing the CDD measures would tip off the purchaser, the developer must not:

  • grant to the purchaser an OTP for a housing unit or a commercial property; or
  • accept any sum of money (including any booking fee) from the purchaser in relation to the intended purchase of any such unit; or
  • enter into a sale and purchase agreement with the purchaser for a housing unit or a commercial property.

To facilitate developers in complying with the aforesaid requirements under the Rules, the Controller has pre-approved amendments to the standard OTP as set out in Annex A to the Circular. Developers may adopt the pre-approved amendments for all OTPs to be issued without having to seek further approval from the Controller.

For OTPs that have been issued, the OTP may also be amended to incorporate the pre-approved amendments if both developers and purchasers agree, e.g. by way of a side letter or supplemental agreement. If the side letter or supplemental agreement is solely to effect the pre-approved amendments, without any other changes, written approval of the Controller for the side letter or supplemental agreement is not required.

Reference materials

The URA Circular and Annex A are available from the URA website www.ura.gov.sg.