5 Easy Steps to Selling Your HDB Flat

by Seo Team Seo Expert

When selling resale HDB, a large sum of money and legal documents is required for this transaction, making it difficult for many of us who are typically unfamiliar with the process. That is why some choose to employ property agents to guide them through the process. However, it is also possible to do the whole process yourself if you do not want to pay the HDB agent commission. The following are 5 simple steps that you can follow to do the process yourself.

1. Submit your intent to sell at HDB

The first step would be to submit your intent to sell through the HDB resale portal. Do take note that this intent to sell is only valid for 12 months and you would need to re-submit after 12 months. As such it is recommended that you only register after having some interested buyers. When submitting the intent to sell, ensure that all information is correct and will remain the same throughout the whole process. If there are any changes, you would need to re-submit your intent to sell.

Upon submitting the intent, you would be able to check your eligibility for selling resale HDB. The following are eligibility criteria that you should check before proceeding with the sales.

• Firstly, the minimum occupation period is typically 5 years, however, depending on your purchase mode, could range from 2.5 years up to 20 years. You could check if you have met the minimum occupation period by logging in to My HDB Page with your Sing pass.
• Next, the Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) quota. If the proportion of the buyer’s ethnic group/ SPR quota is within the prescribed limits or the buyer and seller are of the same ethnic group and/or citizenship type, there will be no restriction on the sale and purchase of the HDB flat.
• Additional requirements must be met before the flat can be sold off in cases of bankruptcy or divorce. To find out more about the eligibility criteria, click here.

2. Price and Market your HDB flat.

The next important step when selling HDB flat would be to price the HDB flat and source for potential buyers. To price the HDB price at the most suitable price, you should check the resale statistics of the HDB flats as reference. These include the median resale prices, the resale applications registered and resale price index. You can check our more here.

A piece of information that is particularly useful would be the medial resale prices for registered resale application for the previous quarter. HDB posts the previous quarter prices as soon as they are available. You could also find out the specific statistics of your HDB flat using the HDB Map Services by searching your address. The information provides a better representation of the market prices according to the town and flat type.

Next, marketing your house. You could choose to employ the help of agents. Agents are equipped with the knowledge and experience with selling a HDB flat. However, if you chose to do it yourself, the first step would be taking a picture and listing the picture on online platforms such as Carousel. The quality and lighting of the picture is crucial as it could elevate your property and reduce selling time.

3. Grant Buyer the option to purchase (OTP)

After submission of the intent to sell, there will be a cool-off period of 7 days before the option to purchase (OTP) is granted to the buyer.

After you and the buyer had negotiated an agreement on the resale price, the seller should print 1 copy of the OTP. Do not that each form has a unique serial number thus you should only print 1 copy of the OTP. The following are some information that you would need to fill up the OTP:

• Names and NRIC numbers of all sellers and buyers
• Flat Address
• Option date
• Option expiry Date: the expiry date is 21 calendar days from the Option Date (including Saturdays, Sunday and Public Holidays), and expires at 4pm
• Purchase price (the negotiated and agreed resale price of the HDB flat)
•  Option Fee (to be between $1 to $1000, the price is set by the seller and buyer)

You can only give one OTP to a buyer and if you would want to sell it to another buyer, you would have to wait after 21 calendar days after giving the OTP. If the buyers do not wish to proceed with the purchase, they would have to wait after 21 days and buyers would get to keep the Option Fee.

When buyers exercise the OTP, buyers would need to pay a deposit to you. The deposit is to be negotiated between you and the buyer and must not exceed $5000. After exercising the OTP, the buyers and sellers would decide on a date to submit the resale application. The applications of both parties must be submitted within 7 days of each other’s.

4. Submit Resale Applications

The next step would be to submit the resale applications. The following are information and documents to be provided when submitting the application:

• Details of OTP (including OTP serial number and the information listed above)
• Buyers’ particulars
• Sellers’ particulars
• Indicate if whether you have an existing loan with HDB/ Financial Institution (FI)
• Declarations regarding the purchase

Upon submission of these documents, HDB will verify the information provided and notify you of the application via SMS The application status, which is available through the HDB Resale Portal, would also be updated. The date of HDB’s acceptance of the application is the start of the 8-week processing time.

Both parties need to endorse the documents within 6 days from the SMS notification of the acceptance of application. You would then be required to pay the resale fees online using credit card or mobile payment applications. The fees would differ depending on the flat type. The approval for resale will be granted when documents are endorsed, typically within 2 weeks.

5. Completion of Resale Applications

The last step to sell your house would be attending the resale completion. This would happen at the HDB. HDB would schedule the tentative date and time of the appointment and inform you via SMS or email.

You would need to vacate the flat before the date of completion. However, in cases in which the new house is not ready yet or other reasons such that you are unable to move, you can apply for a temporarily extension of stay for up to 3 months after resale completion. For more information on the temporarily extension of stay, click here.

Although the steps may seem straightforward, the execution of the steps may be overwhelming for us who are not familiar the process. Thus, many still choose to employ the help of property agents to help with the sale. While not employing a property agent could help you save on the HDB agent commission, employing the help of the best property agent Singapore could help you breeze through this process. In particular, a good property agent would be able to help you sell the property quickly and at a better price than what you could possibly get going through the first step yourself. A guide would also be useful in preparing the documents required.

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Created on Jul 20th 2021 02:32. Viewed 258 times.

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