When you’re about to fulfill your Minimum Occupation Period (MOP), you may wonder why it is important to understand the MOP.
What is HDB’s Minimum Occupation Period (MOP)?
The MOP is a period of time that an HDB property owner is required to physically occupy the property before selling it on the open market.
This has been in placed to prevent new HDB property owners to flip their homes to earn a profit, ensuring the affordability of public housing for all.
When Does the MOP Actually Start?
MOP is calculated from the date the sellers collect the keys to the flat.
MOP requires you to physically occupy your flat before you can:
- Sell the flat in the open market
- Rent out the whole flat
- Invest in private property, both local and overseas
The keyword here is to “physically occupy”, which means that it excludes any period where you do not occupy the flat.
What are the Conditions Excluded in the MOP?
There are two conditions excluded in the MOP:
- The whole flat is rented out
- When there has been an infringement of the flat lease
Do all MOP have the same duration?
No, it depends on the purchase mode, flat type, and date of flat application:
|1. Flat Purchased from HDB||5 years|
|2. Design, Build and Sell Scheme (DBSS) flat purchased from a developer||5 years|
|3. Flat purchased under SERS with Portable SERS Rehousing Benefits||5 years|
|4. Resale flat purchased from the open market with CPF Housing Grant||5 years|
|5. Flat purchased under the Selective En bloc Redevelopment Scheme (SERS)||Either:
How about if you purchased a resale flat from the open market without CPF Housing Grant?
|Type of Property and Purchase Mode||MOP|
|1-room flat||No MOP|
|2-room flat or bigger which application date is on or after 30 August 2010||5 Years|
|2-room flat or bigger which application date between 5 March to 29 August 2010||3 years|
|2-room flat or bigger before 5 March 2010 with an HDB loan||2.5 years|
|2-room flat or bigger before 5 March 2010 without an HDB loan||1 year|
MOP is only one of the set of eligibility conditions you must fulfill before you can sell your flat together with the Ethnic Integration Policy (EIP), and Singapore Permanent Resident (SPR) quota for your block/ neighbourhood. There are also additional requirements that may have to be met in the event of bankruptcy or divorce.
MOP significantly affects your home buying and selling decisions, thus, you have to bear in mind the MOP when planning your property purchase.
If you would like to check your eligibility to sell your flat, register your Intent to Sell through the HDB Resale Portal.
Ohmyhome also provides HDB Seller Agent Services at a fixed fee from $2888 + GST. Call today at 6886 9009 to secure an appointment with our experienced property agent and receive a property report, free of charge.
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