Buying a HDB Flat in the Resale Market

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Real Estate Agency
Consumer Guide
Buying a HDB Flat
in the Resale Market
Consumer Guide
Buying a HDB Flat in the
Resale Market
Contents
Resale Checklist
1
Eligibility To Buy
1-4
Financing
4-5
HDB Prescribed Option To Purchase
5
Upgrading Cost (If Applicable)
6
Temporary Extension of Stay By The Sellers
Declaration Of Resale Information
6-8
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Consumer Guide
Buying a HDB Flat in the Resale Market
Resale Checklist
Buyers are required to complete and submit the Resale Checklist
online via HDB e-Service: Resale Checklist for Sellers/Buyers
before they exercise the Option to Purchase (OTP).
The Resale Checklist highlights the key policies and procedures that
Buyers should take note of before you commit to buying a flat in the
resale market.
If you have engaged the services of a salesperson, your salesperson is
required to go through and complete the checklist with all the Buyers.
Eligibility to Buy
Eligibility Schemes
Buyers have to ensure that they are eligible to buy a resale flat under
one of HDB’s Eligibility Schemes.
Buyers can use the HDB e-Service: Eligibility Check for Purchase of
New or Resale HDB Flat to do a quick assessment on their eligibility.
The different eligibility schemes are as follows:
Eligibility Scheme
Situation
Public Scheme
You are buying the resale flat with:
• your husband/wife and children (if any) or
• your parents and siblings (if any) or
• your children under your legal custody,
care and control (if you are a widowed or divorced)
Fiancé/Fiancée Scheme
You are buying the resale flat with your
fiancé/fiancée (intending to get married)
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Consumer Guide
Buying a HDB Flat in the Resale Market
Single Singapore Citizen Scheme
You are buying the resale flat on your own as a
single, that is:
• an unmarried person; or
• a widowed person; or
• an orphan; or
• a divorcée
Joint Singles Scheme
You, and a few others (up to a maximum of 4
applicants), are buying the resale flat as singles,
that is:
• unmarried person/s; or
• orphan/s; or
• widowed person/s; or
• divorcée/s
Non-Citizen Spouse Scheme
You are buying the resale flat with your wife/husband
who is not a Singapore Citizen or a Singapore
Permanent Resident
Non-Citizen Family Scheme
You are buying the resale flat with your family
members, e.g. parents, who are non-citizens and
non-Singapore Permanent Residents
Orphans Scheme
You (an orphan) are buying the resale flat with your
single siblings
Conversion Scheme
You are buying:
• one unit of 3-room or smaller resale flat
(adjoining your current 3-room or smaller flat); or
• two adjoining units of 3-room or smaller resale
flats (if you currently do not own any flat)
with either your
• husband/wife and children (if any); or
• parents and siblings (if any); or
• children under your legal custody, care and
control (if you are widowed or divorced)
Source: HDB
CPF Housing Grant
Buyers who are first-timers and meet the eligibility conditions for the
CPF Housing Grant (including Additional CPF Housing Grant and
higher-tier grant), can apply for the grant to help them finance their
purchase.
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Consumer Guide
Buying a HDB Flat in the Resale Market
Target Recipient
Grant Type
Married couples who are first-timer applicants
Family Grant
Married couples who are
• first-timer applicants and
• buying a resale flat near their parents'/married
child's HDB flat or owner-occupied private
residential property
Higher-tier Family Grant
Family Grant/ Higher-tier Family Grant applicants
Additional CPF Housing Grant (AHG)
Single Singapore Citizen applicants aged 35 or above who
• buy a resale flat on their own under Single
Singapore Citizen (SSC) Scheme, or
• buy a resale flat jointly under Joint Singles Scheme (JSS)
Singles Grant
Married Singapore Citizens aged 21 or above who buy a
resale flat under the Non-Citizen Spouse Scheme
Single citizen applicants aged 35 years or above who
buy a resale flat to live with their parents
Higher-tier Singles Grant
Singles Grant recipients who
• were single and later get married
• bought a resale flat under the Non-Citizen Spouse
Scheme, and whose non-citizen spouse or child later
obtained Singapore Citizenship or permanent
residence status.
Top-up Grant to the Family Grant
First-timer citizen applicants with spouses who had
previously taken a housing subsidy
Half-Housing Grant
Singles Grant/ Higher-tier Singles Grant/Top-Up Grant/
Half-Housing Grant applicants
Additional CPF Housing Grant
(AHG) for Singles
Source: HDB
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Consumer Guide
Buying a HDB Flat in the Resale Market
Ethnic Integration Policy (EIP) &
Singapore Permanent Resident (SPR) Quota
Buyers/Sellers must meet the EIP and SPR Quota requirement on the
date of resale application.
The EIP & SPR Limits are updated on a monthly basis.
Buyers can check the limits via
HDB e-Service: Enquiry on Buyers’ Eligibility under the EIP and SPR Quota.
Financing
Housing Loan from HDB
Buyers who are getting a housing loan from the HDB must:
• Meet the loan eligibility conditions.
• For a second HDB loan, the loan amount will be reduced by the CPF
balance/refund + up to half of the cash proceeds from the sale of the
current or immediate past flat.
• Have a valid HDB Loan Eligibility (HLE) Letter when exercising the
OTP and when submitting the resale application.
Buyers can apply for the HLE Letter via
HDB e-Service: Application for HDB Loan Eligibility (HLE).
Housing Loan from a Bank
Buyers who are getting a bank loan must:
• Have a bank’s Letter of Offer when exercising the OTP.
• Have accepted the Letter of Offer when submitting the resale
application.
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Consumer Guide
Buying a HDB Flat in the Resale Market
Mortgage Servicing Ratio (MSR)
All housing loans to buy HDB flats are subjected to a MSR of 30%.
Use Of CPF (Check remaining lease of flat first)
Buyers will have to check and be aware that there may be limits on the
use of CPF and the taking of a housing loan due to the remaining lease
of the flat (e.g. those that have less than 60 years remaining lease as at
the date of purchase).
Information on the remaining lease of a particular HDB block can be
found on HDB website’s Centralised Map Services under “Flat
Information”.
HDB Prescribed Option To Purchase
The contract to be used in HDB resale transactions is the HDB
Prescribed Option to Purchase (OTP).
Before exercising the OTP, Buyers should read and understand the
Important Notes and provisions enclosed with the OTP. Any deletion,
insertion or alteration to any provision in the prescribed OTP will render
it null and void.
Buyers who are taking a housing loan or using CPF for the flat
purchase will require a valuation report. After the Sellers have granted
the OTP to the Buyers, Buyers have to submit a valuation request by
the next working day.
Buyers are given twenty-one (21) days to exercise the OTP. Upon
exercising the OTP, the Buyers and Sellers will have entered into a
binding contract.
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Consumer Guide
Buying a HDB Flat in the Resale Market
Upgrading Cost (If Applicable)
Buyers will have to check whether the flat is under any upgrading
programme via
HDB e-Service: Enquire Status of HDB’s Upgrading/Estate
Renewal Programmes.
The party liable to pay for the upgrading cost/levy is the flat owner on
the date the bill is issued.
For a flat undergoing a resale transaction, the bill will be issued to the
Buyers (the new owners) if the bill is rendered after the resale
completion.
If the bill had been rendered to the Sellers before the completion of the
resale transaction, the Sellers will have to settle any outstanding
upgrading cost/levy before the completion of resale.
Temporary Extension of Stay By The Sellers
Some flat sellers may not be able to move out immediately, upon the
legal completion of the sale of their flat for various reasons.
To ease their transition to their next home, flat sellers may arrange with
their flat buyers, to extend their stay temporarily in the flat, 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 flat 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.
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Consumer Guide
Buying a HDB Flat in the Resale Market
• 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 flat, flat 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 flat
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 flat
buyers during the resale first 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 flat
sellers to the buyers.
This will be a private arrangement and they do not have to show their
agreement to the HDB.
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Consumer Guide
Buying a HDB Flat in the Resale Market
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 Office if they terminate the extension earlier.
The computation of the MOP for the new owners will commence after
the extension of stay is terminated.
Declaration of Resale Information
Buyers are legally required to give true information (e.g. resale price,
income) to HDB and 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 fine not exceeding $5,000/- or to imprisonment for a term not
exceeding 6 months or both.
NOTES
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