If you’re a homeowner, there may come a time where you find yourself thinking that you’d like to sell your current HDB flat. Maybe it’s because you want to upgrade to a larger place due to how big your family’s grown, or downsize because your children have grown up and moved out, or maybe you simply want a new neighbourhood. Regardless of the reason, you’ll need to be familiar with the HDB resale application process.
Before you put your flat up for sale…
First, check that you have fulfilled your flat’s Minimum Occupancy Period (MOP). According to HDB, the MOP is defined as “the period of time you are required to physically occupy your flat before you can sell it on the open market.” The MOP is counted from the date you get the keys to your flat. Most flats purchased with a CPF housing grant, whether directly from HDB or resale market, will have a MOP of 5 years.
The MOP excludes the following:
- Any period that you are not occupying the flat (eg: you rented out your whole flat)
- Any period where there has been an infringement of the lease of the flat
Since the MOP varies depending on factors like flat type, date of flat application, and how you bought the flat, it’s better to check HDB’s website to see if you’ve met the MOP for your flat.
What is the HDB Resale Application?
The HDB Resale Application is an official submission to HDB when you’re ready to sell your flat. This is done after you’ve found a buyer, issued them an Option to Purchase (OTP), and they’ve exercised it. The process takes about 15 to 30 minutes, and you’ll have the option to save the application as a draft and continue it later if you’re unable to finish it in one sitting.
There are two time-specific requirements that you need to take note of when it comes to the HDB resale application:
(i) Submission by the second party within 7 calendar days
Either you or your buyer can submit your respective portions of the resale application first. After the first portion is submitted, the second party must submit their portion within 7 calendar days. If this isn’t done, then the application will lapse and the process must be restarted.
(ii) Submission of application to HDB
Under Clause 12 of the OTP, you and your buyer will need to agree on the timeframe to submit the resale application to HDB. This is a contractual agreement between you and your buyer, and should the timeframe need to be extended, both of you will need to consent.
What sort of documents do I have to prepare for the Resale Application?
HDB may need you to submit supporting documents for the resale application, and the exact list will be reflected in the HDB Resale Portal when you do your submission. These documents need to be in PDF format and uploaded to the portal.
Documents that HDB may require in soft copy
If the seller is deceased
If the sellers are divorced or separated
If the documents to be submitted are in languages other than English, Chinese, Malay, or Tamil, an official translation in English of these documents is required.
Here’s something else to note: If you’re planning to use the proceeds from the sale of your current flat to buy another, you need to indicate that you’re applying for the Enhanced Contra Facility in the resale application.
You’ll also need to indicate in your resale application whether you’ll be appointing your own private lawyer, or an HDB lawyer to act for you in the conveyancing of the resale transaction.
Are there any fees or payments for the Resale Application?
When submitting the resale application, both you and your buyer will each need to pay an admin fee. This fee amount will depend on the size of the flat being sold:
- 1-room and 2-room flats: $40
- 3-room and bigger flats: $80
You can make payment on the HDB Resale Portal via Visa, or Mastercard. Once payment has been made, HDB will then send you an SMS notifying you of the approval of resale, typically within 2 weeks.
What happens after I submit the Resale Application?
After you’re done making the submission, you should inform the buyer and remind them that they have to submit their resale application within 7 days.
These are the steps you’ll need to take to take after both you and the buyer have completed the resale application.
1. Acknowledge and endorse Resale Documents
After HDB receives the completed resale application from both the flat sellers and buyers, they’ll prepare the necessary documents for endorsements.
You’ll need to endorse the documents through the HDB Resale Portal, and this needs to be done within 6 days. HDB will send both of you an SMS once the documents are ready to be endorsed.
2. Pay the Resale Fees
Once the documents are endorsed, you’ll be directed to pay the conveyancing fees online using your credit card. If you can’t pay online, you can print the payment advice and make payment at HDB Hub.
3. Wait for Approval
Next, HDB will grant you an in-principle approval for resale, usually within 2 weeks after the documents are endorsed and fees paid. Both buyer and seller will then receive notifications via email and SMS, and the approval letter will also be posted on the HDB Resale Portal.
4. Attend your Resale Completion Appointment
This is the final step in the process!
Following the approval of the resale, HDB will schedule a Resale Completion Appointment to finalise the transaction. Once the appointment has been scheduled, both you and the buyer will be notified via SMS on the date and time, and the completion letters will also be available on the portal.
Legal documents will be signed by you and your buyer during the Resale Completion Appointment at HDB Hub. Keys will also be handed over.
If you hired a HDB lawyer for the conveyancing, you’ll need to be present at the appointment. If you hired a private lawyer, he or she can attend the appointment on your behalf.
Do keep in mind that you’ll need to move out of the flat before the Date of Completion, so the buyer can take possession of the flat after the completion appointment. If you can’t move out that soon, you can always apply for a temporary extension of stay of a maximum of three months.
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