Selling your resale HDB flat used to be an arduous affair that could take as long as 221 days or 31.5 weeks. Thankfully, HDB’s latest resale transaction process means that you can complete the whole process on the HDB resale portal and hand over your flat quicker than before. The resale process is still pretty tedious (as you’ll soon find out), but we’ve compiled everything you need to know right here.
Table of Contents:
- Planning to sell
- Submit Resale Application
- Endorse resale documents
- Pay resale fees online
- Receive approval of Resale Application
- Attend Resale Completion Appointment
Planning to sell
Step 1: Register Intent to Sell
We know that it’s exciting to move on to the next phase of your life, but HDB requires you to register your Intent to Sell before you even get started.
To register, log in to the HDB Resale Portal with your SingPass. Upon registration, you’ll receive an instant assessment of your eligibility to sell.
Keep in mind that your Intent to Sell is valid for only 12 months.
Step 2: Calculate sale proceeds
This is a good place to start your financial planning as it will help you estimate how much cash you may receive from the sale of your HDB flat after paying for the following:
- Outstanding home loan
- Resale levy (if any)
- Return CPF monies
Here’s an example of how you may calculate your sale proceeds:
|Outstanding HDB Loan Amount||$180,000|
|CPF Refund (Mr Lim)||$70,000|
|CPF Refund (Mrs Lim)||$70,000|
|Resale Levy (if any)||NA|
|Total Cash Proceeds from HDB||$60,000|
|HDB Legal Fee*||$500|
|Ohmyhome Professional Fee (incl. 7% GST)||1% of selling price + GST = $4,066|
|HDB Admin Fee||$80|
|Nett Cash Proceeds||$55,354|
Step 3: Post your flat for sale
Selling your HDB flat without an agent is extremely doable here in Singapore as there are so many property portals and mobile apps available. Take Ohmyhome, for example.
Download our free mobile app on Google Play or App Store and you will find hundreds of ready buyers that you can chat with directly. You’ll find their requirements posted as a ‘ShoutOut’, including details such as their preferred home size, location and budget. If your home matches what they’ve described, you can suggest your listing immediately.
But don’t worry, we’ll also find you the right buyer with our data-matching technology which automatically suggests your listing to our internal database of buyers.
That’s why you need to continually check the Ohmyhome app for any enquiries from interested buyers. To ensure you don’t miss anything, turn on your notifications in your settings.
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Step 4: Arrange viewings and conduct negotiations
Interested buyers may contact you through Ohmyhome’s in-app chat and arrange to view your flat and negotiate the purchase price.
As you prepare your home for viewing and conduct price negotiations, keep in mind these three things:
- You need to complete the Intent to Sell at least 7 days before granting the Option to Purchase (OTP).
- The buyer will need to have a valid HDB Loan Eligibility letter before you can grant the OTP.
- If the buyer intends to get a bank loan, he/she must have a Letter of Offer before he/she can exercise the OTP.
Step 5: Grant Option to Purchase (OTP)
With an agreed-upon purchase price between you and the buyer, you will have a 7-day cooling period (after the Intent to Sell registration) before you’re allowed to grant the OTP. You may download a copy of the HDB-prescribed OTP form on the HDB resale portal.
Remember: Once you have issued an OTP to a buyer, you will not be able to accept any other offers for about 21 days. (This is the same amount of time a buyer has to exercise the OTP. More on this below.)
Also, signing the OTP means that you have officially accepted the offer from the buyer to purchase your flat. So make sure you’re satisfied with the deal before signing anything.
After granting the OTP, you may collect an option fee ranging from $1-$1,000 from the buyer. Pro Tip: The market norm these days is $1,000. This is non-refundable should the buyer not proceed with the purchase.
Step 6: Discuss Temporary Extension of Stay with buyer
If you’re unable to move out of your home by the completion date, you may request for a Temporary Extension of Stay, which is capped at 3 months. You may download the form here. This must be submitted with the resale application, and the buyer must accompany you in doing so at an HDB branch.
Find more details about HDB’s Temporary Extension of Stay here.
Step 7: Buyer will exercise the OTP
Let’s say everything goes well and the buyer wants to move forward with the flat purchase. He/she will exercise the OTP and pay you an exercise fee. This, together with the option fee, will form the deposit, which cannot exceed $5,000. For example, if the buyer paid $1,000 for the option fee, the exercise fee should be less than $4,000.
Again, the OTP is only valid for 21 days and must be exercised within that period. Buyers have up to 4 pm on the 21st day (weekends and public holidays included) after the date of OTP issuance to exercise the OTP.
What if the OTP is cancelled?
However, should the buyer not wish to proceed with the purchase, the OTP will lapse and expire. You can then restart the viewing process with other prospects.
Submit Resale Application
Step 8: Complete the Resale Application
You and the buyer may complete the resale application on the HDB resale portal and submit it within 7 days of each other. You’ll have to pay an administrative fee of $40 for 1- and 2-room flats, and $80 for 3-room and bigger flats. It is payable by credit card (Visa or Mastercard).
The status of the application will be updated through the portal as well.
Make sure to be in constant contact with the buyer at this stage because, should you miss the deadline, you’ll have to resubmit the application (and all the supporting documents) and pay the admin fees again.
You and the buyer must submit your respective resale applications separately and within 7 days of each other. You will be required to provide the information for the following when filling up the application form:
- Resale flat address
- OTP details
- Soft copy of OTP
- Your personal particulars
Step 9: Contact a lawyer
If you have an existing bank loan, you’ll need to engage a lawyer for conveyancing and loan redemption. Conveyancing services, such as what Ohmyhome offers, may include vetting legal documents and processes. We talk more about why you need a legal conveyancing service for your HDB flat here.
This is also the stage where the flat inspection may take place. Technical Executives from an HDB branch will come down to inspect your flat for any structural damages and unauthorised modifications. This is really to ensure that your apartment does not compromise the integrity of the entire building or the safety of the new flat owners. If they spot anything, however, you won’t be able to complete the resale transaction until the HDB’s original state has been restored.
Should you be out of the country and unable to attend this inspection, you can have another person attend on your behalf via the Power of Attorney.
Endorse resale documents
Step 10: Accept the Terms and Conditions
You will receive an SMS from HDB within 10 working days informing you when you can accept the terms and conditions for all the documents prepared for you through the HDB resale portal. This must be done within 6 days of receiving the SMS.
Once endorsed, you will receive an in-principle approval for resale.
Pay resale fees online
Step 11: Make payment for legal fees
Which solicitor did you appoint to represent you? If you engaged HDB’s solicitor to act for you in the sale, you can get an estimate of the cost on HDB’s Legal Fees Enquiry Facility. But if you engaged your own solicitor from a law firm, they will advise you on the payable fees.
If you engaged Ohmyhome for legal conveyancing, fees start at $1,800 nett for the following services:
- Sale & Purchase
- Mortgage & Real Estate Planning
- Retail & Corporate Real eSTATE
- Lasting Power of Attorney
- Letters of Administration
- Letter of Probate
- Notary Public
Receive approval of Resale Application
Step 12: Receive approval notification
You’ll receive an SMS or email to notify you when HDB’s approval letter has been posted on the resale portal.
Your HDB appointment will happen 8 weeks from the date of HDB’s acceptance of the resale application if the necessary documents are submitted accurately and on time.
Step 13: Prepare for the Resale Completion Appointment
To prepare for your resale completion appointment, you’ll need to:
- Fix any unauthorised renovation work.
- Terminate any automated GIRO payments and settle any outstanding payments such as property tax (payable up to the end of the year) or service and conservancy charges (payable up to the day of the resale completion).
- Prepare to vacate your flat before the date of completion so the buyer can move in on time. After vacating, ensure that you’re ready to handover the keys to the buyer during the completion appointment.
Attend Resale Completion Appointment
Step 14: Attend Resale Completion Appointment
The appointment is for HDB to witness the following:
- Signing of the transfer document of the resale flat;
- Signing of the mortgage document/agreement (only applicable for HDB loans); and
- Handover of keys (if the buyer opted for a bank loan, the bank’s lawyer can be authorised to collect the keys on the buyer’s behalf).
As for your sale proceeds, you will receive payment for the net sale proceeds at this point as well. HDB will also refund any CPF monies to your CPF account within 10-14 working days from the date of the completion appointment.
Do note that the HDB resale application will be cancelled if the following occurs:
- You or the buyer do not go through the sale or purchase of the flat for any reason whatsoever.
- You or the buyer withdraw your application by giving notice in writing to HDB.
- You do not have sufficient CPF savings or cash to finance the purchase of the resale flat.
- The information given in the resale application by you or the buyer is incorrect or any information has been omitted by either party.
- You or the buyer are not eligible to retain the resale application under HDB’s policies.
And you’re all set!
Congratulations on selling your home!
If you’ve made it thus far, you deserve a medal. As you now know, the time it takes to sell an HDB depends on a huge variety of factors, some within the seller’s control, others not so much. But you can still maximise your chances of having a quick, successful resale by having all your documents and preparations in order before each step.
Sell your home fast and at the best price!
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