Buying or Selling a Resale HDB Flat in Singapore

Buying or selling an HDB resale flat is a major financial decision. The transaction involves more than agreeing on a price. Buyers and sellers need to consider eligibility, financing, CPF funds, the HDB resale process, the Option to Purchase (OTP), resale application, completion arrangements and other applicable policies.

This guide provides an overview of the main stages involved in an HDB resale transaction and highlights some of the key matters that buyers and sellers should consider before committing to a transaction.

 

For HDB Resale Buyers

Before looking for a resale flat, buyers should first understand their eligibility and establish a realistic budget.

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1. Check Your HDB Eligibility

Buyers should determine whether they meet the prevailing HDB eligibility requirements for purchasing a resale flat.

 

Depending on the buyer's circumstances, considerations may include:

• Citizenship and household status

• Age

• Family nucleus

• Existing or previous property ownership

• Minimum Occupation Period (MOP) requirements

• Ethnic Integration Policy (EIP)

• Singapore Permanent Resident (SPR) quota

• Other applicable HDB policies

 

Buyers should obtain the appropriate HDB Flat Eligibility (HFE) assessment before committing to a purchase.

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2. Work Out Your Budget and Financing

Before selecting a flat, consider the total cost of the purchase rather than only the agreed purchase price.

 

Your financial planning may include:

• Cash available

• CPF savings available for the purchase

• HDB housing loan or bank loan

• Monthly loan repayment

• Buyer-related stamp duties, where applicable

• Legal fees

• Renovation and furnishing costs

• Other transaction expenses

• Emergency funds and ongoing household expenses

 

Understanding your actual affordability before viewing properties can help prevent over-committing financially.

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3. Search for a Suitable Resale Flat

Once your eligibility and budget are clearer, you can search for a suitable resale flat.

 

Consider factors such as:

• Flat type and size

• Remaining lease

• Floor level

• Location

• Transport connectivity

• Schools and amenities

• Condition of the flat

• Recent transacted prices of comparable flats

• EIP and SPR quota considerations

• Future upgrading or development plans

 

Do not rely solely on the asking price. Comparing recent transactions can provide a better indication of the market.

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4. Agree on the Price and Option to Purchase

After selecting a flat and agreeing on the purchase price, the buyer may proceed with the HDB-prescribed Option to Purchase (OTP).

 

The HDB-prescribed OTP must be used for an HDB resale transaction.

The Option Fee is mutually agreed between buyer and seller and must not exceed $1,000. The OTP is generally valid for 21 calendar days, including Saturdays, Sundays and public holidays.

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If the buyer is using CPF savings and/or a housing loan, the buyer must also follow HDB's requirements concerning the Request for Value during the Option Period.

 

5. Submit the Resale Application

After the buyer exercises the OTP, both buyer and seller must submit their respective portions of the resale application and the required supporting documents through HDB's system.

 

The second party must submit their portion within 7 calendar days of the first party's submission. Otherwise, the application may lapse and the parties may have to restart the process.

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6. HDB Processes the Application

HDB will verify the information and eligibility of both parties.

If the application and documents are in order, HDB will notify the parties of its acceptance. HDB currently states that acceptance is generally provided within 28 working days for a complete application.

 

The resale completion date is generally about 8 weeks from HDB's acceptance of the resale application.

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7. Complete the Purchase

Before completion, buyers should arrange to inspect the flat with the seller and ensure that the agreed arrangements are in place.

 

At completion, the buyer becomes the owner of the resale flat, subject to the applicable

HDB terms and conditions.

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For HDB Resale Sellers

Selling an HDB flat also requires careful planning before accepting an offer.

 

1. Check Your Eligibility to Sell

Before marketing the flat, check your eligibility to sell and register an Intent to Sell through HDB's My Flat Dashboard.

HDB currently requires sellers to have a valid Intent to Sell for at least 7 days before they may grant an OTP to a potential buyer.

 

2. Plan Your Next Home

One of the most important considerations for sellers is what happens after the sale.

Before committing to sell, consider:

• Where you will live after completion

• Whether you will buy another HDB flat or private property

• Whether you need temporary accommodation

• Your CPF refund

• Outstanding housing loan

• Estimated cash proceeds

• Stamp duties for your next property

• Financing requirements for your next home

HDB itself advises sellers to plan their next housing before committing to sell their current flat.

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3. Estimate Your Net Sale Proceeds

The selling price is not the same as the amount of cash you will receive.

Depending on your circumstances, sale proceeds may need to be used to settle:

• Outstanding housing loan

• CPF refund, including applicable accrued interest

• Property tax

• Town Council charges

• Other amounts payable to HDB or other parties

Understanding your estimated net proceeds is particularly important if you intend to use the proceeds to purchase your next property.

 

4. Market and Sell the Flat

After completing the necessary preparations, you may market the flat yourself or engage a property salesperson.

 

HDB allows eligible sellers with a valid Intent to Sell to list their flat through the HDB Resale Flat Listing service. Sellers may also market their property through other appropriate channels.

 

5. Grant the OTP

Once you have found a buyer and agreed on the price, the HDB-prescribed OTP is used for the transaction.

 

The buyer will have the applicable Option Period to decide whether to exercise the OTP.

 

6. Submit the Resale Application

After the buyer exercises the OTP, both parties submit their respective resale applications and supporting documents.

 

HDB will then assess the transaction and notify the parties once the application has been accepted.

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7. Prepare for Completion

Before completion, sellers should:

• Settle outstanding payments

• Complete all required document endorsements

• Rectify any unauthorised renovation works identified by HDB

• Vacate the flat

• Arrange the buyer's pre-completion inspection

• Prepare all keys and access items

• Attend the completion appointment or make appropriate arrangements with the appointed solicitor

 

HDB's technical inspection is specifically intended to check for unauthorised renovation works that may damage HDB property or affect structural stability. It is not a general inspection of the flat's condition or market value.

 

8. Completion and Sale Proceeds

At completion, ownership of the flat is transferred to the buyer and the keys are handed over.

 

For sellers who appoint HDB to act for the sale, HDB states that cash proceeds are credited to the seller's bank account by the next working day after completion. CPF refunds are generally arranged within 7–14 working days after completion.

 

A Simple HDB Resale Transaction Flow BUYER

Check eligibility → HFE → Work out budget → Search for flat → Agree on price → OTP → Request for Value (if applicable) → Exercise OTP → Resale application → HDB acceptance → Completion → Receive keys

 

SELLER

Check eligibility → Intent to Sell → Plan next home → Estimate net proceeds → Market flat → Agree on price → OTP → Buyer exercises OTP → Resale application → HDB acceptance → Rectification if required → Completion → Receive sale proceeds

 

Important Points to Remember

1. Do not commit based on price alone

A resale flat's asking price is only one part of the financial decision. Buyers should consider financing, CPF usage, stamp duties, renovation and ongoing costs.

 

2. Sellers should calculate their net proceeds before selling

The selling price does not represent the amount that will ultimately be available to the seller.

 

3. Check eligibility before committing

HDB eligibility, EIP, SPR quota, MOP and other applicable policies can affect whether a particular transaction can proceed.

 

4. Understand the OTP before exercising it

The HDB-prescribed OTP creates important contractual commitments. Buyers should understand their financing and the applicable requirements before exercising the OTP.

 

5. Allow sufficient time for the resale process

The transaction does not end when the OTP is exercised. Both parties still need to complete the resale application, HDB processing, document endorsements, payments and completion arrangements.

 

Need Help With Your HDB Resale?

Whether you are buying your first HDB resale flat, selling your existing flat, upgrading to private property or planning your next home, careful financial and transaction planning can help you make a more informed decision.

 

KH Ngai
Huttons Asia
CEA Reg. No. R057818I
Tel / WhatsApp: 9226 8233
www.khngaiadvisory.com

 

Disclaimer: This guide provides general information for educational purposes and is not legal, financial or tax advice. HDB policies, eligibility requirements, fees and procedures may change. Buyers and sellers should check the latest requirements with HDB, CPF Board, IRAS and other relevant authorities before committing to a transaction.