Consumer Guide

Selling a HDB Flatin the Resale Market

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Consumer Guide

Contents

Resale Checklist

Eligibility To Sell

Next Housing Plan

Financial Plan

HDB Prescribed Option To Purchase

Resale Levy (If Applicable)

Upgrading Cost (If Applicable)

Temporary Extension of Stay By The Sellers

Declaration Of Resale Information

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1-2

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3-4

4-5

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6

6-7

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Selling a HDB Flat in theResale Market

If you intend to sell your �at, you are required to go through the Resale Checklist even before you start to market your �at for sale.

The Resale Checklist highlights the key policies and procedures that you should take note of before you commit to selling your �at (i.e. before you grant the Option to Purchase).

If you have engaged the services of a salesperson, your salesperson is required to go through and complete the checklist with all sellers.

The Resale Checklist must be completed and submitted online via HDB e-Service: Resale Checklist for Sellers/Buyers to the HDB at least SEVEN (7) days before you grant the Option to Purchase (OTP) to the �at buyer.

Sellers must have met the Minimum Occupation Period (MOP) before granting the OTP to Buyers.

The MOP is calculated from the date you collect the keys to the �at. It excludes any period that the �at is not occupied by the �at owners, such as when the whole �at is rented out or when there is any infringement of the �at lease.

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Resale Checklist

Minimum Occupation Period (MOP)

Eligibility to Sell

Consumer Guide

Selling a HDB Flat in the Resale Market

Source: HDB

Sellers/Buyers must meet the EIP and SPR Quota requirement on the date of resale application.

The EIP & SPR Limits are updated on a monthly basis.

You can check the limits viaHDB e-Service: Enquiry on Buyers’ Eligibility under the EIP and SPR Quota.

To ascertain if you have met the MOP, Sellers may submit an e-Request online viaHDB e-Service: Computation of Occupation Period for Purpose of Resale

1-room flat No MOP

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Ethnic Integration Policy (EIP) &Singapore Permanent Resident (SPR) Quota

Flat bought under the SERS with portable SERSrehousing benefits

5 years

Resale Flat bought from the open market with theCPF Housing Grant

5 years

Purchase Mode MOP

Flat bought from the HDB 5 years

DBSS flat bought from a developer

Flat bought under the Selective En blocRedevelopment Scheme (SERS)

5 years; or7 years from the date ofselection of the replacementflat, whichever is earlier.

5 years

Resale Flat bought from the open market without the CPF Housing Grant:

2½ years if you took anHDB loan; or1 year if you did not takean HDB loan

on or after 30 Aug 10

before 5 Mar 10

bet. 5 Mar - 29 Aug 102-room or bigger flatwith date of flat application:

5 years

3 years

Consumer Guide

Selling a HDB Flat in the Resale Market

Before selling the �at, Sellers must consider their next housing plans and any interim housing (if necessary).

If Sellers are planning to buy another HDB �at, they have to check the following:

• Their Eligibility to Buy• Their Eligibility for Housing Loan from HDB / Banks• Whether the remaining lease of the flat they intend to buy (especially those that have less than 60 years of remaining lease) would affect their use of CPF and the taking up of a housing loan

Sellers are not eligible for any HDB rental �at for thirty (30) months after the sale of their existing �at.

After 30 months, they must comply with all prevailing eligibility conditions before applying to HDB for a rental �at.

Outstanding Housing Loan

Sellers are to check with the HDB / Bank on the outstanding housing loan that has to be discharged.

If they have obtained an HDB loan, they can check the outstanding loan via the My HDBPage (select “My Flat”; then “Financial Info” under “Purchased Flat”).

CPF (Plus Accrued Interest) to be Refunded

Sellers are to check with the CPF Board on the amount of CPF (plus accrued interest) to be refunded by logging on to My CPF Online Services.

If the sales proceeds are insuf�cient, the cash deposit received from the Buyers will have to be used to reduce any shortfall in the required amount of CPF refund.

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Next Housing Plan

Financial Plan

Consumer Guide

Selling a HDB Flat in the Resale Market

HDB’s Sales Proceeds Calculator

Sellers should use the HDB Sales Proceeds Calculator to work out the estimated sales proceeds for the sale of the �at.

For an estimation of the resale price, Sellers may refer to the Resale Flat Prices provided on HDB’s website. HDB updates these on a daily basis.

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HDB Prescribed Option To Purchase

The contract to be used in HDB resale transactions is the HDB Prescribed Option to Purchase (OTP).

Before granting the OTP, Sellers should read and understand the Important Notes and provisions enclosed with the OTP.

Consumer Guide

Selling a HDB Flat in the Resale Market

Source: HDB

Source: HDB

First Subsidised Flat Type

* only applicable for those who submit their resale application and book a 2nd subsidised �at on/after 3 March 2006.

Amount of Resale Levy Payable underthe Revised Policy (From 3 Mar 2006*)

2-room

3-room

$15,000

$30,000

4-room $40,000

5-room $45,000

Executive Flat $50,000

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Any deletion, insertion or alteration to any provision in the prescribed OTP will render it null and void.

Sellers can only grant the OTP at least seven (7) days after the Resale Checklist has been completed and submitted online to HDB.

Buyers are given twenty-one (21) days to exercise the OTP.

Buyers who are taking a housing loan or using CPF for the �at purchase will require a valuation report.

Upon granting the OTP, Sellers have to allow the appointed valuer to inspect the �at within four (4) working days after the Buyers have submitted a valuation request.

Sellers of subsidised �ats will have to pay a resale levy based on the sale of their current �at before they buy or take over the ownership of another subsidised �at.

Those who have previously bought a �at from the HDB or taken a CPF Housing Grant will have to pay a resale levy when they next buy a �at from the HDB.

Resale Levy (If Applicable)

Consumer Guide

Selling a HDB Flat in the Resale Market

For a �at undergoing a resale transaction, the bill will be issued to the Buyers (the new owners) if the bill is rendered after the resale completion.

You can check on the upgrading programme details and billing via HDB e-Service: Enquire Status of HDB’s Upgrading/Estate Renewal Programmes.

Sellers have to settle any outstanding upgrading cost/levy before the completion of resale.

The party liable to pay for the upgrading cost/levy is the �at owner on the date the bill is issued.

Upgrading Cost (If Applicable)

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Consumer Guide

Selling a HDB Flat in the Resale Market

Temporary Extension of Stay

Some �at sellers may not be able to move out immediately, upon the legal completion of the sale of their �at for various reasons.

To ease their transition to their next home, �at sellers may arrange with their �at buyers, to extend their stay temporarily in the �at, for a period of up to 3 months after the legal completion.

Conditions Affecting Sellers

• Must have committed to buy a completed housing unit (can be another HDB �at or private residential property) in Singapore at the time of the resale application, i.e. they must have exercised an Option To Purchase or signed a Sale and Purchase Agreement.

• Must not be subletting the whole flat at the time of resale application.

• Must be the contra party if the transactions are under the Enhanced Contra Facility.

Conditions Affecting Buyers

The start point for the computation of MOP will be set back by the period of the Temporary Extension of Stay.

As legal owners of the �at, �at buyers must pay the following during the period of extension (the list may not be exhaustive):

• Monthly instalments for housing loan

• Service & Conservancy Charges (without rebates)

Administrative Fee & Submission Procedure

The temporary extension of stay is subject to the agreement of the �at buyers and the request is to be submitted to HDB at the time of the resale application.

An administrative fee of $20 (inclusive of GST) is payable by the �at buyers during the resale �rst appointment.

Buyers and sellers may formalise their agreement on the terms of the extension of stay (the period of stay must not be more than 3 months after legal completion) and any monetary compensation by the �at sellers to the buyers.

This will be a private arrangement and they do not have to show their agreement to the HDB.

Expiry and Termination of Extension of Stay

The extension of stay will automatically be terminated at the end of three months.

Flat buyers must inform HDB via My HDBPage or contact the HDB Branch Of�ce if they terminate the extension earlier.

The computation of the MOP for the new owners will commence after the extension of stay is terminated.

Consumer Guide

Selling a HDB Flat in the Resale Market

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Declaration of Resale Information

Sellers are legally required to give true information (e.g. resale price, income) to HDB.

Sellers must not enter into any supplementary agreement or cashback arrangement, etc.

In addition to other remedies, the Housing & Development Act (Chapter 129) provides that any person who makes a false statement is liable to a �ne not exceeding $5,000/- or to imprisonment for a term not exceeding 6 months or both.

Consumer Guide

Selling a HDB Flat in the Resale Market

NOTES

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