SPA, Loan Agreement & MOT — Explained Simply
Three documents turn a deal into your home. Know what each one does, and you will never sign in the dark.
Buyers often blur these three together. They happen close in time, but they do very different jobs — and understanding them tells you exactly when the property truly becomes yours.
1. Sale & Purchase Agreement (SPA)
The SPA is the master contract between you and the seller (or developer). It records the price, the property details, the payment timeline, and both parties’ obligations — including what happens if either side defaults. Once signed and the deposit paid, you are legally committed to buy. For new projects the SPA also carries the Defect Liability Period and delivery date.
2. Loan / Facility Agreement
This is a separate contract, between you and your bank. It sets your loan amount, interest rate, tenure, monthly instalment and the lock-in terms. The property is charged to the bank as security until you finish paying. You sign this after your loan is approved — which is why getting your documents and approval ready early matters so much.
3. Memorandum of Transfer (MOT / Form 14A)
The MOT is what actually transfers ownership of the title into your name, registered at the land office. It is the document on which you pay the transfer stamp duty (the tiered 1%–4%, or the first-time-buyer exemption). For properties with an individual / strata title already issued, the MOT is done around completion; for new projects where the master title has not been split yet, it happens later, once the separate title is issued.
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Frequently asked questions
What is the difference between SPA and MOT?
The SPA is the contract to buy the property between you and the seller; the MOT is the land-office document that transfers the title into your name. You sign the SPA first; the MOT completes ownership.
Do I pay stamp duty on the SPA or the MOT?
The main transfer stamp duty (1%–4% tiered) is paid on the MOT. The loan agreement carries its own 0.5% stamp duty. The SPA itself attracts only nominal stamp duty.
When does the property legally become mine?
Ownership is complete once the MOT is registered and the title is in your name. For new projects without a separate title yet, this happens after the title is issued.
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