How to Sell HDB Flat

How to sell HDB flat in Singapore? Since 2013, 1 in 4 HDB resale transaction is completed without engaging the services of a property agent. With the birth of internet and the world wide web, information are easily published with the ability to submit applications online, has made it easier for one to sell one’s property without any assistance. The rising price of HDB resale flats is also on the rise prompting many to want to save the 2% commission which can be a considerable amount.

Below we have a step by step guide on how to sell HDB flat to help you decide if you want to go through the process yourself or prefer engaging a property agent.

How to Sell HDB Flat

Step 1 : Check Your Eligibility to Sell

To be able to sell your flat on the open market, below are some criteria to be fulfilled :

  1. MOP (Minimum Occupation Period)

    The MOP is the period of time you must have physically occupied your flat which intend to sell before it qualifies for resale. This period of time is calculated from the date you collected the keys to the flat, excluding any period, such as when the whole flat is rented out or when there has been an infringement of the flat lease. To find more details of the MOP, please visit HDB MOP Page.

  2. EIP(Ethinic Integration Policy) & SPR(Singapore Permanent Residence) Quota

    The EIP & SPR ensures cohesion between ethnic groups in HDB estates thereby promoting racial integration & harmony. The buyer should check the estate of interest’s EIP and SPR quota to ensure there are no restrictions to sale. For more details on the criteria, please visit HDB EIP & SPR Quota Page.

Step 2 : Financial Planning

It is important to plan your finances carefully throughout the selling process especially so if you are using the proceeds to finance a new property. There are mainly 4 types involved.

  1. Costs involved with selling (not all are applicable)
    1. Mortgage Loan
    2. Resale Levy
    3. Upgrading Levy
    4. CPF Savings with Accrued Interests
    5. Unpaid Upgrading Costs
    6. Property Tax
    7. Seller’s Stamp Duty
    8. Service and Conservancy Charges
    9. Resale Application Fees
    10. Legal Fees
    11. Agent’s Commission (2% of selling price)

Note : More details can be found at HDB Cost And Fees Page.

  1. Past Transacted Resale Price And Calculator & Resale Statistics
  2. Price of Next Accommodation
  3. Renovation Costs

Tip

If you are buying another resale HDB flat, you can consider tapping on the Enhanced Contra Facility. This facility can help you use the proceeds and refunded CPF monies from your sale to reduce the cash outlay and mortgage loan for the purchase.

Step 3 : How to sell HDB flat?

If you have decided to sell your HDB after taking into consideration the costs and fees, sales proceed and cost of a new home involved, it is time to consider to do it yourself or leave it to a property agent.

Option 1: Selling HDB yourself

Familiarise yourself with the procedures and attend the HDB seminar. Next, advertise aggressively. You can consider advertising on different media like newspapers, online portals like noagentresidential, social media and word of mouth.

Option 2: Engage a Property Agent

Check that the salesperson is registered with the Public Register of Estate Agents and Salespersons maintained by the Council for Estate Agencies (CEA). Discuss and mutually agree on the terms of service, commission payable, period of representation and other terms like payment of valuation and advertising.

Step 4: Complete & Submit the Resale Checklist

This must be done at least 7 days before you can grant the Option to Purchase (OTP). The Resale Checklist highlights key policies and procedures that you must note before selling your flat.

Read more about the Resale Checklist

Step 5: Grant Option to Purchase

You and the buyer(s) must use HDB’s OTP as the form of contract in the transaction. Here’s the process:

  • Negotiate, agree, and declare on the true resale price.
  • Grant the OTP to the buyer(s) at least 7 days after going through the Resale Checklist.
  • Buyer can excercise the OTP if they have decided with the purchase. (Otherwise, let the OTP expire 21 days from date of granting the OTP.)
  • Decide together with the buyer(s) on the date to submit the resale application.

Read more about the OTP

Step 6: Submit Your Resale Application

You and the buyer(s) must submit your respective portions of the resale application separately within the previously agreed number of days on page 4 of the OTP and also within 7 days of each other via the e-Resale system. A resale application is deemed complete only when HDB receives both portions.

Read more about the submission of resale application

Step 7: Attend Appointments with HDB

When both resale applications have been received, HDB will send you a Letter of Appointment to inspect your flat for unauthorised renovations. HDB will schedule the First Appointment date according to the date booked in the resale application. This date must be mutually agreed by both the buyer and the seller of the flat. You will need to prepare documents for this meeting and pay the conveyancing fees. HDB will send you an approval letter within 2 weeks thereafter.

HDB will also schedule a Completion Appointment about 6 to 8 weeks from the date of the First Appointment. This is when you complete the transaction by signing transfer documents and handing over your keys to the buyer.

If your are still unsure on the procedure of how to sell HDB flat after going through the above steps and attending HDB seminar, you may  contact HDB at their resale number to raise all your doubts.

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