Here at Mogul, exploring the HDB resale timeline can seem overwhelming, whether you're a first-time buyer or a seasoned seller. The process involves multiple steps and important dates, each requiring careful attention to ensure a smooth resale transaction.
Sellers must register online and request their flat's valuation to indicate their selling intent. This sets the stage for the HDB resale application process. Once a buyer is found, both parties must submit the resale application and all required documents. Managing the timeline for payments and paperwork is crucial to avoid any delays and understanding these stages can make selling and buying your HDB flat manageable.
Understanding the HDB Resale Timeline
The HDB resale timeline ensures that all necessary checks and approvals are in place before a resale transaction is completed. Each stage requires careful planning and attention to detail, from the initial search for an HDB flat to the final resale completion date.
Step 1: Intent to Sell and Buy
The journey begins with the seller and the buyer expressing their intent to sell and purchase an HDB flat. Sellers must submit their intent to sell via the HDB Resale Portal, while buyers need a valid HFE letter.
Step 2: Option to Purchase (OTP)
Once both parties have agreed on the purchase price, the seller grants the buyer an Option to Purchase (OTP) after receiving the option fee. This gives the buyer exclusive rights to purchase the flat within a specified option period.
Step 3: Valuation and Financing
During the option period, the buyer secures a valuation of the resale flat. This valuation determines the amount that can be financed through an HDB or bank loan. The buyer must pay the valuation fee and await HDB's acceptance of the valuation report.
Step 4: Exercise the Option
The buyer exercises the OTP by paying the exercise fee and signing the agreement to purchase. At this point, the buyer's private solicitor or HDB-appointed lawyer starts the conveyancing process.
Step 5: Submitting the Resale Application
Both parties then submit the resale application via the HDB Resale Portal. This step involves providing all required documents, including the signed OTP, proof of financing, and identity verification. The resale application is crucial for securing HDB's approval for the transaction.
Step 6: Awaiting HDB Acceptance
Once the resale application is submitted, both parties await HDB's acceptance. This can take several weeks, during which HDB reviews the application to ensure all criteria are met.
Step 7: Resale Completion Date
Upon HDB's acceptance, a resale completion date is set. This is when the ownership of the resale flat is officially transferred from the seller to the buyer. Both parties must attend the resale completion appointment at the HDB Hub to finalise the transaction.
Step 8: Making Payments
Before the resale completion appointment, the buyer must ensure all payments are ready. This includes the balance payment, buyer's stamp duty, and conveyancing fees. To avoid delays, payments must be made according to the HDB resale payment timeline.
Step 9: Completion Appointment
At the resale completion appointment, both parties sign the necessary resale documents and hand over the keys to the flat. The seller receives the sale proceeds, while the buyer takes possession of the resale flat.
Step 10: Post-Completion Tasks
After the resale, the buyer must settle any outstanding costs, such as property tax, fire insurance, and conservancy charges. Additionally, if the seller requires an extension of stay, this must be arranged before the completion date.
Sellers: When to Pay for Your HDB Resale Flat
Understanding the payment schedule is essential for sellers to manage their finances effectively. Here is a breakdown of the key payments you need to make during the HDB resale process:
Step | Description |
Step 1: Register Intent to Sell | Begin by registering an Intent to Sell to receive a preliminary assessment of your eligibility to sell your HDB flat. This assessment includes when you can grant potential buyers an Option to Purchase (OTP) and serves as a reminder to plan your next housing. Once registered, you can sell your flat using the Resale Flat Listing (RFL) service on the HDB Flat Portal. You can appoint a salesperson on the HDB Flat Portal to handle this if you have engaged a salesperson. You can manage the sale independently or engage the services of a salesperson for a fee. If you choose to manage it yourself, review our resources on managing the sale of your flat. Additionally, consider signing up for our resale seminars to learn about resale policies and procedures. |
Step 2: Submit Resale Application | After your buyer has exercised the OTP, you and the buyer must submit your respective portions of the resale application. If you’ve arranged a temporary extension of stay with your buyer, ensure it is clearly stated in the resale application. |
Step 3: Endorse Documents and Pay Fees | Both parties are required to acknowledge and endorse the necessary resale documents. During this stage, you must also pay the required fees associated with the resale process. |
Step 4: Get Resale Approval | Once the fees are paid, HDB will grant an in-principle approval for the resale transaction and process your application. |
Step 5: Attend Completion Appointment | The final step is the resale completion, which typically occurs about eight weeks from the date HDB accepts the resale application. You and the buyer will be notified via SMS once the completion appointment is scheduled. You can also log in to My Flat Dashboard to view the appointment details. |
Buyers: When to Pay for Your HDB Resale Flat
Buyers also have a series of payments to manage throughout the HDB resale process. Here’s a detailed look at the payment schedule for buyers:
Step | Description |
Step 1: Register Intent to Buy | Begin by registering your intent to buy on the HDB Flat Portal. This step is crucial as it provides an overview of your eligibility and financial options, setting a solid foundation for your purchase journey. |
Step 2: Check Financial Health | Next, assess your financial health by obtaining a Home Loan Eligibility (HLE) letter from HDB or an In-Principle Approval (IPA) from a bank. These documents are essential to determine how much you can afford and ensure you have the necessary financial backing for your purchase. |
Step 3: Search and View Flats | With your finances in check, search for flats that meet your needs. Utilize the Resale Flat Listing service on the HDB Flat Portal to find suitable options. Begin viewing these flats and negotiating with sellers to find the perfect match. |
Step 4: Receive OTP from Seller | Once you have found a flat you want, the seller will grant you an Option to Purchase (OTP). This document is critical as it gives you the exclusive right to buy the flat. Remember, you must exercise the OTP within 21 days. |
Step 5: Request Flat Valuation | Before proceeding, request a valuation of the flat from HDB. Ensure you have a valid HLE letter or bank loan approval to support your purchase. The valuation helps confirm the flat's market value and informs your financial planning. |
Step 6: Exercise OTP | To proceed with the purchase, exercise the OTP by signing and submitting it to the seller within 21 days. You must also pay the required exercise fee to secure the purchase at this stage. |
Step 7: Submit Resale Application | After exercising the OTP, you and the seller must submit your respective portions of the resale application on the HDB Flat Portal. If there is an arrangement for a temporary extension of stay, ensure this is stated in the application. |
Step 8: Endorse Documents and Pay Fees | Upon submission, acknowledge and endorse the necessary resale documents. To progress the transaction, you must also pay the required fees, including stamp duty and legal fees. |
Step 9: Get Resale Approval | Following the endorsement of documents and payment of fees, HDB will grant an in-principle approval for the resale transaction and process your application. This approval is a significant milestone, bringing you closer to finalising your purchase. |
Step 10: Attend Completion Appointment | The final step in your journey is attending the resale completion appointment, scheduled approximately eight weeks from the date HDB accepts the resale application. You will be notified via SMS once the appointment is set, and you can check My Flat Dashboard for detailed information. This appointment finalises the transaction, and you officially become the owner of your new flat. |
Important Considerations
The HDB resale process involves several crucial factors for both buyers and sellers. Here’s a comprehensive breakdown of the key considerations:
Financial Considerations
CPF Refund: Sellers must refund the amount used from their CPF account to purchase the flat before the sale proceeds are disbursed.
Home Loan: Buyers should ensure their home loan arrangements are finalised before the resale completion date to avoid financing issues.
Apportioned Property Tax: Both buyers and sellers must be aware of apportioned property tax liabilities, calculated based on the completion date.
Conveyancing Fees: These fees, charged by the private solicitor or HDB-appointed lawyer for handling the resale transaction, should be budgeted for by both buyers and sellers.
Outstanding Property Tax: Sellers must clear any outstanding property tax before the resale completion to avoid legal complications.
Cash Balance: Buyers must prepare the cash balance required to complete the purchase, including any shortfall not covered by the loan or CPF funds.
Sale Proceeds: Sellers receive their sale proceeds after deducting any outgoing payments, such as CPF refunds, loans, and legal fees.
Legal Matters
Temporary Extension of Stay: If the seller requires more time to vacate the property, a temporary extension of stay can be negotiated. This must be agreed upon and documented before the resale completion date.
Private Solicitors: Engaging private solicitors can provide additional legal assurance and guidance throughout the buying process. They handle conveyancing fees and CPF refunds and ensure all legal documents are in order.
Vacant Possession: The buyer should confirm that the flat is handed over in good condition and vacant possession is granted at the resale completion appointment.
Payments and Financial Management
Sale Proceeds and Cash Proceeds: Sellers should understand how the sale and cash proceeds will be handled, including the settlement of outstanding property tax and conveyancing fees.
Buying Process and Payments: Buyers must plan for the buying process and ensure they have the necessary funds for the cash balance payment, CPF refund, and home loan disbursement.
Temporary Extension of Stay: Sometimes, sellers may need a temporary extension of stay in the resale flat. This must be negotiated and agreed upon during the resale transaction.
Additional Considerations
Stamp Duties: Both buyers and sellers are responsible for paying stamp duties on the purchase and sale of the property.
Estate Agents: Buyers and sellers may choose to engage the services of an estate agent to assist with the resale process.
Tax Implications: The resale of an HDB flat may have tax implications for both buyers and sellers. It is advisable to consult with a tax advisor for guidance.
Summary
The HDB resale timeline involves several critical steps and payments that buyers and sellers must navigate carefully. By understanding the key stages and planning your finances accordingly, you can ensure a smooth and successful resale transaction. Sellers must register their intent to sell their HDB flat, submit a valuation request, and manage payments such as the valuation fee, outstanding property tax, and fire insurance until the resale completion appointment.
Buyers must follow the HDB resale payment timeline, including paying the option fee, exercise fee, buyer’s stamp duty, and securing CPF savings or a home loan. Both parties must submit the resale application with all required documents and engage a law firm or private lawyer to handle legal matters. Clarify conveyancing fees with the law firm before starting. Organising your paperwork and tracking resale documents, outgoing payments, and required fees is essential to avoid unexpected hurdles.
Looking to sell or buy a new home? Find out more at Mogul.sg.
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