Every HDB seller has a financial obligation when selling or changing the ownership status of their flat due to a change in family circumstances, such as divorce or marriage.
Let us bring you through the costs and fees you, the seller, may be liable to pay during your resale transaction journey. They include:
- Resale application administrative fees
- Legal fees
- Property tax
- Service and conservancy charges
- Seller’s stamp duty
Resale application administrative fees
When submitting a resale application, buyers and sellers will each have to pay an administrative fee of $40 for 1-room and 2-room flats, and $80 for 3-room flats (or bigger). The fees include Goods and Services Tax and, once paid, are non-refundable.
Legal fees are incurred when selling an HDB flat because it involves the legal transfer of homeownership from you, the seller, to a buyer. This process is called conveyancing, which starts from the date the offer was accepted and ends on the date of key collection.
You may engage HDB’s legal services when selling your flat if your current outstanding loan is with HDB or you have no outstanding loan. The legal fees will be based on their Conveyancing Fees Rules 2002.
For resale transactions or transfer of flat ownership, there is a minimum fee of $20. Here’s a more detailed breakdown:
|Type of transactions for HDB flats||HDB’s scale of fees (computed to the next $)|
|Resale, transfer or assignment of flat by the owner||First $30,000 @ 13.5 c. per $100 or part thereof|
Next $30,000 @ 10.8 c. per $100 or part thereof
Thereafter @ 9.0 c. per $100 or part thereof
There shall be a minimum fee of $20
You may also engage a legal conveyancer through Ohmyhome, with fees starting from $1,800 nett. Services will include the following:
- Conveyancing for Sale & Purchase
- Mortgage & Real Estate Planning
- Retail & Corporate Real Estate
- Power of Attorney/Lasting Power of Attorney
- Letters of Administration
- Letter of Probate
- Notary Public
HDB sellers will also need to pay the flat’s property tax up to the end of the year. The official tax payment receipt needs to be produced during the HDB completion appointment.
You can log in to the Inland Revenue Authority of Singapore’s myTax portal to check how much you need to pay in property tax.
Service & conservancy charges (S&CC)
Depending on your flat type, the service and conservancy charges (S&CC) of HDB flats typically range from $20 and $90 for Singapore citizens, factoring in the reduced rates offered to them.
For non-citizens, the charges may range from a normal rate of between $50 and $90. If you own a private property and/or have left your HDB flat vacant, you may also be liable to pay the normal S&CC rate.
You may check with your town council on the S&CC rates for your flat.
As an example, here’s the S&CC payable to the Jurong-Clementi Town Council.
|Flat Type||Reduced Rates (per month)*||Normal Rate (per month)|
The S&CC are due on the first day of each month without demand. An accumulative penalty fee, typically ranging from $0.50 for a 1-room flat and $7 for an executive flat, will apply from the following month until the payment has been made in full.
Seller’s stamp duty (SSD)
HDB flat owners are required to meet the 5-year Minimum Occupation Period(MOP) before they can sell the flat.
However, in cases where special approval has been granted by the HDB to sell the flat before the MOP, Seller’s stamp duty(SSD) may apply.
You are liable to pay the SSD if you sell your HDB flat within 3 years. This is called the holding period and starts from the date of HDB flat’s key collection or acquisition, and ends when the Option to Purchase is issued to sell the flat.
What are the SSD rates in 2022?
There are three factors that affect the total SSD payable:
- Date of purchase
- Holding period
- SSD percentage as per the holding period
For HDB flats purchased on and after 11 Mar 2017:
|A year or less||12%|
|More than 1 year and up to 2 years||8%|
|More than 2 years and up to 3 years||4%|
|More than 3 years||0%|
The total SSD payable is calculated by applying the applicable rate on the selling price of your flat or the current market value, whichever is higher.
In summary, the shorter the holding period, the higher the SSD that you need to pay.
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Frequently asked questions about Seller’s Stamp Duty
Do sellers have to pay stamp duty?
Sellers may be liable to pay the Seller’s Stamp Duty if they sell their property within 3 years. This is called the holding period and starts from the date of purchase or acquisition and ends on the date of sale or disposal.
Is there seller’s stamp duty for HDB?
Yes, the Seller’s Stamp Duty applies to HDB sellers who sell or dispose of their flat within 3 years of purchasing or acquiring it.
What is the stamp duty rate in Singapore?
For HDB flats purchased on and after 11 Mar 2017, the SSD rates are 12% for a holding period of a year or less; 8% for more than 1 year and up to 2 years; and 4% for more than 2 years and up to 3 years.