Lesson 16 - HDB Eligibility to Sell

Lesson 16
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Unit 4 –
Property Transactions, Laws and Practices
4.5 Sale
of 
HDB flats 





Ascertain the seller’s eligibility to sell HDB flat/DBSS flat/EC in the open market.
Check whether the ethnic integration policy (EIP) and Singapore Permanent
Resident (SPR) quota, if applicable, have been met.
Execute the resale checklist for buyer or seller, and observe the procedure for
entering into a binding contract using the OTP, including the cooling-off period for
seller, the prescribed option fee and deposit, and the option period.
Submit the resale application for the buyer or seller, observing the requirements
on timeframe and information to be provided; and assist client from the first
appointment to resale completion.
Execute the above agency work using HDB e-Services across available media
platforms.
Understand S51 of H&D Act against pledging an HDB flat as security or collateral
for any debt.
Keep abreast of policy and procedural changes relating to buying and selling of
HDB flats.
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4.5.5 Ascertain
Seller/s’ Eligibility
to Sell
Unit 4 Page 86
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4.5.5 Ascertain Seller/s’ Eligibility to Sell
1. Verify rightful seller through IRAS Valuation List or
INLIS.
2. Check that Minimum Occupation Period (MOP) is
fulfilled by seller. This is calculated from the date
whereby keys to the flat are collected. MOP is also
dependent on the purchase mode, flat type and date of
flat application. E-service available at HDB site. (Refer
to next slide for MOP)
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Minimum Occupation Period
Purchase Mode
Flat bought from the HDB
DBSS flat bought from a developer
Flat bought under the Selective En bloc Redevelopment
Scheme (SERS)
MOP
5 years
5 years

5 years; or

7 years from the date of selection
of the replacement flat, whichever
is earlier.
Flat bought under the SERS with portable SERS rehousing
benefits
Resale Flat bought from the open market with the CPF
Housing Grant
Resale Flat bought from the open market without the CPF
Housing Grant:

1-room flat

2-room or bigger flat
on or after 30 Aug 10
with date of flat
between 5 Mar - 29 Aug 10
application:
before 5 Mar 10
5 years
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5 years
No MOP
5 years
3 years

2½ years if you took an HDB
loan; or

1 year if you did not take an HDB
loan
4.5.5 Ascertain Seller/s’ Eligibility to Sell
3. Ethnicity eligibility (as covered earlier)
4. Special cases
a. Bankruptcy
Under the Housing & Development Act, so long as one of the flat owners of the HDB flat
is a Singapore citizen, the HDB flat (of any type) will not vest in the Official Assignee
("OA") in the event of bankruptcy of any or all of the flat owners; i.e. the flat owners would
not be compelled to dispose of their flat. However, notwithstanding the above, if the
purchase of the flat has been financed with a mortgage loan from a bank or the HDB,
then the flat may be sold by the bank through a mortgagee sale, or compulsorily acquired
by the HDB in the event the owners default in the mortgage repayment and run up
mortgage arrears.
The Official Assignee's consent is not required if a bankrupt flat owner wishes to sell
his/her HDB flat which does not vest in the Official Assignee. This applies to bankrupt flat
owners who belong to Singapore citizen households.
For bankrupt flat owners of Singapore Permanent Resident Households ("SPR
households"), it is a requirement that they get the Official Assignee's consent before they
can sell their flat. The letter of consent must be obtained from the OA before the owners
grant an Option to Purchase to the prospective buyers.
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4.5.5 Ascertain Seller/s’ Eligibility to Sell
4. Special cases (Cont’d)
b. Divorce
If the divorce occurs after the requisite minimum occupation period
has been fulfilled, the flat owner may be allowed to sell the flat
provided he/she meets all eligibility conditions for resale.
The seller must produce the following documents:
Deed of Separation; or
Decree Nisi and Certificate of Making the Decree Nisi Absolute/Divorce
Certificate; and
Court Order (if any)
An official English translation of the above documents by a sworn
interpreter of the Supreme Court or Subordinate Courts is required if
the documents are not in any of the four official languages.
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4.5.5 Ascertain Seller/s’ Eligibility to Sell
4. Special cases (Cont’d)
b. Divorce (Cont’d)
Under the HDB's prevailing policy for divorce (not due to nonconsummation of marriage or annulment or break-up of Fiancé /
Fiancée relationship), a divorced party who has the custody of the
child (including care and control) is allowed to retain the flat subject to
the eligibility conditions.
If there are no children from the marriage, the divorced party (flat
owner) may retain the flat under the Single Singapore Citizen (SSC)
Scheme, provided:
he / she is a Singapore citizen
he / she is at least 35 years old
the matrimonial flat must be a resale flat purchased from the
open market without the CPF Housing Grant for Family.
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4.5.5 Ascertain Seller/s’ Eligibility to Sell
4. Special cases (Cont’d)
b. Divorce (Cont’d)
If the matrimonial flat is bought directly from HDB (including resale
flats bought with the CPF Housing Grant for Family), the 5-year
minimum occupation period (MOP) must be satisfied before the
divorced party is allowed to take over the flat under the SSC Scheme.
Alternatively, the divorced party may include another person to retain
the flat, subject to the prevailing eligibility criteria and eligibility scheme
regardless of the occupation period.
If the divorced owners wish to resell their flat in the open market, they
must have completed the MOP for the flat, as at the date of divorce
completion. If the divorce is within the MOP and none of the owners is
eligible to retain the flat, the owners may have to return the flat to
HDB, subject to HDB's approval. The compensation for the return of
flat will be determined by HDB
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4.5.5 Ascertain Seller/s’ Eligibility to Sell
4. Special cases (Cont’d)
c. Deceased
The Administrator/Executor must produce the following
documents:
Death Certificate (original and 3 photocopies);
Grant of Letters of Administration/Probate (if applicable);
The Last Will/Inheritance Certificate (if applicable);
Court Order to sanction the sale (if applicable)
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4.5.6 Resale Checklist Unit 4 Page 88
• Introduced to provide RES with a standard list of important
items to highlight to their clients before they commit to buy or
sell their flat.
• To assist sellers and buyers in making prudent decisions, HDB
has enhanced the Resale Checklist for the sale and purchase
of resale HDB flats as well as the submission procedures.
• Starting from 1 November 2010, all resale flat buyers
(previously, only sellers are required) have to go through the
Resale Checklist. All RES engaged by the buyers will have to
go through the Resale Checklist for Housing Agent engaged by
Buyers with the buyers. The checklist:
• Comprises of the list of important items for HDB transaction
• Helps prevent resale transaction from cancellation or delay by
ensuring that all necessary documents are available for
checking and processing
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Resale Checklist for Buyers
For buyers who have not engaged the services
of a RES
Step 1
Log In
Buyer is to log in to Resale Checklist for Sellers/Buyers e-Service
using SingPass and click on the ‘Submit New Checklist’ button.
Step 2
Provide Personal
Particulars
Particulars of all the buyers and email address must be provided
Step 3
Complete Checklist
Buyer must go through each and every item in the checklist with all
co-buyers (if any).
Step 4
Review Data and
Submit Checklist
Buyer is to review information entered before clicking on the ‘Submit’
button to submit the checklist to the HDB.
An acknowledgement page with a checklist serial number will be
displayed upon successful submission of the checklist. The
acknowledgement page will also be sent to e-mail address provided in
step 2.
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Resale Checklist for Buyers
For buyers who have engaged the services of
a RES
Completion of Resale Checklist by Salesperson
Step 1
RES is required to go through and complete the checklist with buyer/s.
Salesperson Log In
The salesperson logs in to the Resale Checklist for Sellers/Buyers eService using his SingPass and clicks on the ‘Submit New Checklist’
button.
Step 2
The salesperson provides his personal particulars, the particulars of all
Provide Personal
the buyers and the email address of one of the buyers (endorser).
Particulars
Step 3
The salesperson goes through each and every item in the checklist with
Complete Checklist all the buyers.
Step 4
Review Data and
Submit Checklist
for Buyer
Endorsement
The salesperson may review the information entered before he clicks on
the ‘Submit’ button to enable one of the buyers to endorse the checklist.
An acknowledgement page with a checklist serial number will be
displayed upon successful submission of the checklist. The
acknowledgement page will also be sent to the buyer’s e-mail address.
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Resale Checklist for Buyers
For buyers who have engaged the services of
a RES
Endorsement of Resale Checklist by Buyer
(Must be done by one of the buyers by the next day from the date the salesperson completes the checklist)
Step 5
Buyer Log In
Step 6
Review Data and
Submit Checklist
The buyer, who is endorsing the checklist, is required to log in to the Resale Checklist
for Sellers/Buyers e-Service using SingPass and click on the ‘Retrieve Completed
Checklist’ button with the serial number of the checklist that the salesperson had
completed (step 4).
Buyer is required to review the information in the resale checklist completed by the
salesperson, confirm that the salesperson has gone through the checklist all your
buyer/s before clicking on the ‘Submit’ button to submit the checklist to the HDB.
An acknowledgement page with the same checklist serial number will be displayed
upon successful submission of the checklist. The acknowledgement page will also be
sent to buyer’s e-mail address.
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Important Notes for Buyers and RES:
• Buyers can only exercise the Option to Purchase after
completing and submitting the checklist to the HDB.
• The checklist serial number is required when submitting the
resale application.
• If buyer/s is not able to submit the resale application within six
months after the date the checklist is completed, a
resubmission of a new checklist is required. This is to ensure
that buyers are aware of the latest policies on buying an HDB
flat.
• All buyers and their salesperson, if any, are required to sign on
the completed checklist during the First Appointment. The
completed checklist will be printed by the HDB for signing.
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Resale Checklist for Sellers
For sellers who have not engaged the services
of a RES
Step 1
Log In
Step 2
Provide Personal Particulars
Step 3
Complete Checklist
All the sellers are required to go through the checklist.
One of the sellers must log in to Resale Checklist for Sellers/Buyers e-Service using SingPass
and click on the ‘Submit New Checklist’ button.
Particulars of all the sellers, and email address must be provided
Review each and every item in the checklist with all co-sellers (if any).
Address of your next housing must be provided.
If seller/s is planning to buy another HDB flat, seller is required to work out the estimated Sale
Proceeds from selling current flat and the estimated financial plan for the next flat purchase.
Seller may use the following e-Services to do the calculations:
Sale Proceeds Calculator(e-Service) (Proceeds from the sale of your flat)

Sales Financial Plan(e-Service) (To buy a flat from the HDB)

DBSS Financial Plan(e-Service) (To buy a DBSS flatt)

Step 4
Review Data and Submit
Checklist
Resale Financial Plan(e-Service) (To buy a resale flat)
Seller may review information entered before clicking on the ‘Submit’ button to submit the
checklist to the HDB.
An acknowledgement page with a checklist serial number will be displayed upon successful
submission of the checklist. The acknowledgement page will also be sent to indicated e-mail
address.
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Resale Checklist for Sellers
For buyers who have engaged the services of
a RES
Step 1
Salesperson Log In
Step 2
Provide Personal Particulars
Step 3
Complete Checklist
Completion of Resale Checklist by Salesperson
If seller has engaged the services of a RES, RES required to go through and complete the
checklist with all sellers (if any).
The salesperson logs in to the Resale Checklist for Sellers/Buyers e-Service using his
SingPass and clicks on the ‘Submit New Checklist’ button.
The salesperson provides his particulars, the particulars of all the sellers and the email
address of one of the sellers (endorser).
The salesperson goes through each and every item in the checklist with all the sellers.
RES need to provide the address of Seller’s next housing.
If seller/s is planning to buy another HDB flat, the salesperson will also have to work out the
estimated Sale Proceeds from selling current flat and the estimated financial plan for next
flat purchase. The salesperson may use the following e-Services to do the calculations:
Sale Proceeds Calculator(e-Service) (Proceeds from the sale of your flat)

Sales Financial Plan(e-Service) (To buy a flat from the HDB)

DBSS Financial Plan(e-Service) (To buy a DBSS flatt)

Step 4
Review Data and
Submit Checklist
for Seller
Endorsement
Resale Financial Plan(e-Service) (To buy a resale flat)
The salesperson may review the information entered before he clicks on the ‘Submit’ button
to enable one of the sellers to endorse the checklist.
An acknowledgement page with a checklist serial number will be displayed upon successful
submission of the checklist. The acknowledgement page will also be sent to the seller’s
(endorser) e-mail address.
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Resale Checklist for Sellers
For buyers who have engaged the services of
a RES (Cont’d)
Endorsement of Resale Checklist by Seller
(Must be done by one of the sellers by the next day from the date the salesperson
completes the checklist)
Step 5
Endorsing seller is to log in to the Resale Checklist for
Seller Log In
Sellers/Buyers e-Service using SingPass and click on the
‘Retrieve Completed Checklist’ button. Serial number of the
checklist that the salesperson had completed is required
(Step 4).
Step 6
Seller may review the information in the resale checklist
Review Data and Submit completed by the salesperson, confirm that the salesperson
Checklist
has gone through the checklist with all sellers before clicking
on the ‘Submit’ button to submit the checklist to the HDB.
An acknowledgement page with the same checklist serial
number will be displayed upon successful submission of the
checklist. The acknowledgement page will also be sent to
endorser e-mail address.
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Important Notes for Sellers and RES
• Sellers can only grant the Option to Purchase at least 7 days
after completing and submitting the checklist to the HDB.
• The checklist serial number is required when submitting the
resale application.
• If you are not able to submit your resale application within 6
months after the date the checklist is completed, you will need
to resubmit a new checklist. This is to ensure that sellers are
aware of the latest policies on selling an HDB flat.
• All sellers and their salesperson, if any, are required to sign on
the completed checklist during the First Appointment. The
completed checklist will be printed by the HDB for your signing.
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The steps to access Resale Checklist, Sales Proceed
Calculator and Financial Plan Calculator is provided in
your manual. For your future practical work, do run
through them.
Unit 4 Page 96
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4.5.6 HDB’s prescribed option to purchase
Unit 4 Page 99
• Resale transaction for HDB flats is not a Sale By Private
Treaty. RES must note the following important points
when filling up the HDB Prescribed OTP:
• If it important to fill in all necessary information accurately
• Any missing/inaccurate information will result in HDB resale
application to be rejected
• Each Prescribed OTP comes with a unique serial number
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Procedure to enter into a contract using the
OTP
Step 1: Buyer and Seller to negotiate and agree on the resale price
(either directly or through RES). The process of negotiating on
resale price is summarised in the next diagram.
• When entering the OTP,
• True resale price of the flat must be declared to HDB
• Salespersons must also declare all relevant information relating to
the resale transaction in the Salesperson Statutory Declaration.
• The penalty for false declaration includes a fine and/or up to 3
years' imprisonment.
Seller, Buyer and RES must not enter into any:
• supplementary/ other agreements (i.e. Cashback, Rent Free
period) or
• arrangements that may cause the true resale price as declared to
be inflated or understated.
• The penalty for false information includes a fine of up to $5,000
and/or up to 6 months’ imprisonment.
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Valuation Request (Past and Present)
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Procedure to enter into a contract using the
OTP
Step 2: Seller grant the OTP to the buyers at least 7 days after
going through Resale Checklist.
• In the OTP, the following must be accurately filled:
•
•
•
•
•
•
•
•
•
Option Date
Flat Address
Purchase Price (resale price of the flat)
Option Fee (between $1 to $1,000)
Option Expiry Date (21 calendar days from the Option Date [including
Saturday, Sunday and public holidays]. e.g. if seller grants Option to
you on 1 Feb, the Option will expire on 15 Feb at 4pm)
Names and NRIC numbers of all the sellers and buyers
All owners and co-owners of flat must sign on the OTP
A witness must sign on the OTP (RES or any person who is a
Singapore Citizen or Singapore Permanent Resident aged 21 years or
above and not involved in the resale transaction)
OTP must be signed by seller/s in exchange for an Option Fee from
the buyers. The Option Fee could be a sum between $1 to a maximum
of $1,000, to be negotiated between seller and the buyers.
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Procedure to enter into a contract using the
OTP
Step 3a : Buyers exercise the OTP (21 days) if they wish to proceed
with the purchase
• Following information must be accurately filled in the OTP to effect
the exercise.
• Option Exercise Fee
• Number of days from the date of exercising the Option that sellers
and the buyers have agreed to submit the resale application to the
HDB
• All buyers must sign on the "ACCEPTANCE" section in the OTP
• A witness must sign on the OTP (their salesperson or any person
who is a Singapore Citizen or Singapore Permanent Resident
aged 21 years or above and not involved in the resale transaction)
• When the buyers exercise the Option to Purchase, the buyers will
need to pay a deposit to seller, which including the Option Fee
must not exceed $5,000 in total. The amount of deposit is
negotiated between the you and buyers.
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Procedure to enter into a contract using the
OTP
Step 3b: Let the Option to Purchase lapse if the buyers do
not wish to proceed with the purchase.
• The buyers will forfeit the Option Fee and seller may
keep the Option Fee.
Step 4: Submit the resale application within 7 days
between Seller and Buyer (vice versa).Both portions must
be submitted within the previously agreed number in the
OTP.
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Important Note
• Usual OTP rights/liabilities apply.
• Sellers and buyers (or RES) will have to submit the
respective portions of the resale application separately. A
resale application is deemed complete only when the
HDB receives both portions of the resale application.
• Sellers and buyers (or RES) may also use different
translated version of the OTP should the situation
requires. Prescribed OTP also comes in Chinese, Malay
and Tamil.
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4.5.7 Resale Application Process
Decide Sell/Buy
with/without Agent
Buyer Exercise
Option within 21
days
Submission of
Resale Application
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Check Eligibility to
Sell/Buy
Only Grant Option
To Purchase to
Buyer 7 days after
Checklist
1st Appointment
Go through Resale
Checklist
Submit Resale
Checklist
Legal Completion
How To Submit Resale Application
1) E-Resale
• This is an online application for buyers/sellers who
conduct their own resale transaction without engaging
the services of a housing agent.
2) HDB-ResaleNet System
• For housing agents from licensed agencies which have
subscribed to the system to submit resale applications
electronically on behalf of their buyers/sellers
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When To Submit Resale Application
1. Seven calendar days' time frame for the second party
to submit his portion of the application
2. As agreed upon and stated in the Option to Purchase.
This is a contractual agreement between the buyer and
the seller. The time frame can be extended with mutual
consent.
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Booking of First Appointment
• The second party who submits his portion of the resale
application can book the First Appointment.
• The appointment date must be mutually agreed to by both
parties.
• RES may guide buyer/seller on using HDB’s e-Service –
Enquiry on Available Dates for Resale, and arrange for a
suitable and agreed date.
• Should there be a requirement to change first appointment
date, it can be done via buyers’ or sellers’ MyHDBPage. Note
that both parties must have joint consent to change dates.
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After Submission of Resale Application – 1st
Appointment
• HDB will schedule a First Appointment date to process the
resale transaction and will send a letter to both the buyer and
the seller informing them of the date and time of their First
Appointment to process their resale transaction.
• NOTE: if either the buyer or the seller does not turn up for the
First Appointment as scheduled, the resale transaction will be
cancelled.
• If your client is applying for any of the following grants, the
parents/married children must also be present during the first
appointment.
• CPF Housing Grant for Family (Living Near Parents/Married
Child)
• CPF Housing Grant For Singles (Living Near Parents)
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Purpose of the First Appointment
• For a flat buyer, the appointment is meant to:
•
•
•
•
Discuss Administrative Matters
Verify buyer’s eligibility
Explain the resale procedures to both buyers and sellers
Obtain sellers/buyers authorization for HDB to act for them
in the conveyancing (buyers/sellers may engage their own
solicitor to act for them)
• Confirm on the Manner of Holding that the buyers wishes to
choose (for applications with more than a buyer)
• Fix the Completion Date
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Purpose of the First Appointment (Cont’d)
• Finalize Buyers’ Resale Financial
Plan
•
•
•
•
If your client is obtaining an HDB loan,
resale officers will verify eligibility for
an HDB loan and determine the
amount of mortgage loan granted
If obtaining a bank loan, resale officers
will confirm the amount of mortgage
loan to be obtained from the bank
Process application to withdraw your
CPF savings for the purchase. Only
applicable if buyer is represented by
HDB
HDB will set aside from his CPF
Ordinary Account for the payment of
the stamp and legal fees (about 1%3% of the selling price of the flat) and
the Home Protection Insurance (if
any). Thereafter, the balance in the
CPF Ordinary Account will be fully
utilized towards payment of the
purchase price, subject to a ceiling set
by the market valuation i.e. CPF can
only be used up to the market
valuation or purchase price whichever
is the lower.
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•
•
•
•
•
Determine the amount of cash that
need to paid within 10 days from the
date of the first appointment, if any
Cash payment is required when the
purchase price is above the market
valuation or when the loan granted
(with credit assessment) and the CPF
usable for the purchase are
insufficient to cover the purchase
price. If the cash payment required is
more than 10% of the purchase price,
only required to pay 10% within 10
days from the First Appointment date.
The balance must be paid on the
resale completion. If the cash
payment required is less than 10%,
this amount must be paid within the 10
days period.
The balance cash payment to be paid
on resale completion must be in cash
or cashier's order.
Calculate the amount of stamp and
conveyancing fees you have to pay
Use of GIRO for monthly installment
Reminders By RES
Sellers
• Spousal Consent Form signed by the
seller's Spouse who is the occupier of the
flat;
• Identity Card or Passport, if Identity Card
is not available;
• Duplicate Lease (in cases where the
sellers have fully settled their mortgage
loan)
• For cases where SPR seller (s) who is/are
bankrupt, consent letter from Official
Assignee (OA) must be obtained for the
resale.
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Buyers
• Identity Card or Passport, if Identity Card
is not available;
• Marriage Certificate (if applicable);
• Latest ORGINAL computerised payslip;
• HDB Loan Eligibility Letter/Letter of Offer
from Bank
• Child’s Birth Certificates (if applicable);
• Lasting Power of Attorney (LPA), if
applicable
• Parents/married child who are listed in the
application form need to be present, when
buyers are applying for ‘living near
parents’/married child’s residence” family
grant
• For cases where buyer(s) is/are Bankrupt,
consent letter from Official Assignee (OA)
must be obtained if the buyer is (approved
to) buying > 5-room flat. i.e. Executive
Flat, Multi-Generation Flat , HUDC flat
• A Petition for Letter of Administration with
the Estate Schedule (if buyer has inherited
an interest in an HDB Flat, with prior
approval)
After 1st Appointment
• A letter of approval from HDB would be received within two
weeks from the date of first appointment.
• Buyer need to fork out cash when:
• When the buyer is taking a Bank loan;
• When the purchase price is > the market valuation price; (also
known as COV)
• When the loan granted (with credit assessment) and the CPF
usable for the purchase is insufficient to cover the purchase
price.
• If buyer is taking HDB loan, you should advise your buyer to
settle the cash payment within 10 days after the 1st
appointment date, subject to maximum of 10% of the purchase
price less Deposit paid earlier.
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Example of Cash Payable
• Purchase price = $470,000
• Market valuation = $400,000 >>>> COV = $70,000
• Buyer needs to pay within 10 days after the 1st
appointment date:
• (10% of purchase price) Less deposit paid = ($47,000)
– ($5,000) = $42,000
• Balance = $23,000 must be paid 14 days before
completion date (cash or Cashier’s Order. If payment by
cheque, it must be cleared before the completion date.
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Before Legal Completion
Seller’s Rights and Obligations
• Seller is to rectify any unauthorised works
or apply for approval for those
unauthorised fixture
• Seller must inform the HDB Branch Office
to inspect and confirm such rectification,
without which unable to fix the legal
completion date
• Seller must terminate the GIRO account
for all payments
• Seller must fully settle the Conservancy
and Service Charges (CC&SC)
• Seller to pay up full property tax up to the
effective date of resale.
• Seller to vacate the flat and remove all
moveable items that the buyer does not
want
• Seller is to invite buyer to inspect flat
before the completion date.
• Seller is required to bring all the keys of
the resale flat to the 2nd appointment and
hand over to the buyer via the HDB
Resale Officer
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Buyer’s Rights and Obligations
• Upon confirmation from Seller, Buyer can
visit and inspect the resale flat in Vacant
Possession.
• Buyer must purchase a Fire Insurance
from HDB's appointed insurer and
produce it on the day of completion, if
taking the HDB loan
• Buyer must have ready the receipt of the
cash balance payment. If it is a cheque
payment, then ensure that the cheque is
cleared before legal completion date.
HDB Resale Office
• Verify with Supreme Court that there is no
current bankruptcy notice/proceeding
against the seller
• Upon confirmation, HDB resale office will
proceed with the legal completion
Completion Appointment (2nd Appointment)
Purpose of the 2nd Appointment is for the HDB to witness:
• The signing of the transfer document by the seller of the resale
flat
• The signing of the mortgage document/agreement by the buyer
(if buyer is taking an HDB loan)
• The handing over of the keys from the seller to the buyer (or to
the buyer's lawyer if the buyer took a bank loan and engaged
the bank's lawyer to act for the purchase) after:
• The buyer confirms that the flat has been vacated and the
conditions are acceptable (buyer should arrange for a final
inspection of the flat with the seller before the date of
completion)
• The sellers have to pay the service and conservancy charges
up to the day of resale completion. As for property tax, they are
required to pay up to the end of the year.
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Cancellation Of Resale Application
• Under the following circumstances, the resale application
will be cancelled if:
• The resale is abortive for any reason whatsoever; or
• The buyer and the seller withdraw their application by giving
notice in writing to the HDB; or
• The buyer does not have sufficient CPF savings or cash to
finance the purchase of the resale flat; or
• The information given in the resale application by the
seller/buyer is incorrect or the buyer/seller has suppressed
any information required; or the buyer/seller is not eligible to
retain his application under the HDB's policies.
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4.5.8 HDB As Security/Collateral
Unit 4 Page 107
• Under Section 51 of the HDB Act, HDB flats are not
allowed to be pledged as security or collateral for any
debts security or collateral for any debt, obligation or
claim unless it is created or granted in favour of:
• HDB
• Approved Financial Institution
• Any person or person belonging to a class of persons
prescribed by the minister
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Any Questions?
Reminder to Trainees
For Lesson 18, please bring your notes on
Unit 2.8 – Mortgage as it will be covered together with
Property Finance
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Recap Unit 4 –
Property Transactions, Laws and Practices
4.5 Sale
of 
HDB flats 





Ascertain the seller’s eligibility to sell HDB flat/DBSS flat/EC in the open market.
Check whether the ethnic integration policy (EIP) and Singapore Permanent
Resident (SPR) quota, if applicable, have been met.
Execute the resale checklist for buyer or seller, and observe the procedure for
entering into a binding contract using the OTP, including the cooling-off period for
seller, the prescribed option fee and deposit, and the option period.
Submit the resale application for the buyer or seller, observing the requirements
on timeframe and information to be provided; and assist client from the first
appointment to resale completion.
Execute the above agency work using HDB e-Services across available media
platforms.
Understand S51 of H&D Act against pledging an HDB flat as security or collateral
for any debt.
Keep abreast of policy and procedural changes relating to buying and selling of
HDB flats.
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Lesson 16
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