The various schemes available for the Singapore Citizens (SC) and Singapore Permanent Resident (SPR) to purchase a HDB Resale Flat are shown in the above table.

Scheme	Minimum Citizenship	Age	Family Nucleus	Special Condition
Public Scheme	1 SC* & SPR** or 2 SPRs	21	Applicant, spouse & children, if any; or Applicant (single), parents & siblings; or Applicant (widowed, divorced or separated) and children legally under his custody.
Finance/Financee Scheme	1 SC & SPR or 2 SPRs	21	Couple intending to get married.	Marriage certificate must be presented to HDB within 3 months from resale completion date. For couples applying for CPF Housing Grant, they must submit it on/before resale completion date.
Single Singapore Citizen Scheme	SC	35 21 (for orphans and widows)	Single person who is unmarried, divorced or widowed.
Joint Singles Scheme	2 SCs	35 21 (for orphans and widows)	Related or unrelated singles.	An orphan or widow/widower aged at least 21 can apply with another single citizen who is at least 35.
Non-Citizen Spouse	1 SC	21@ 35 #	Married to a non-citizen person.	@ Non-citizen spouse with at least 6 months social visit pass. # Non-citizen spouse with less than 6 months social visit pass.
Non-Citizen Family Scheme	1 SC	21	Applicant (single), parents & siblings; or Applicant (widowed, divorced or separated) and children legally under his custody.
Orphans Scheme	1 SC & 1 SPR	21	A single orphan applicant and his siblings.	Unmarried siblings are not allowed to buy or rent separate flats under the Orphans Scheme. If an orphan is the only child and single, he can apply under the SSC scheme if he is at least 21.
Citizen/SPR Siblings Scheme	2 SPRs	21	Two single siblings whose parents are not SCs and not residing in Singapore permanently.	Siblings of the same parents are not allowed to buy separate flats.
Conversion Scheme	1 SC* & SPR** or 2 SPRs	21	Applicant, spouse & children, if any; or Applicant (single), parents & siblings; or Applicant (widowed, divorced or separated) and children legally under his custody.	You can buy: (i) 2 units of 3-room or smaller flat from the open market; or *(ii) an adjoining 3-room or smaller flat from the open market Note: *you must be a flat owner of a 3-room or smaller flat.

It is not difficult to find a professional real estate who not only help you to find the right property, but also assist you in negotiating for the right price. As a professional real estate agent, he /she will able guide you through the process and make recommendations on-financing, legal representation and logistics issues (e.g. timing for moving-in). The following criteria may assist you in finding the right agency and real estate agent:

a. Which agency has the largest market shares in the HDB Resale Markets?

b. Which agency has recently won the Read Digest Trusted Brand – Gold Award?

c. Which agency has recently won Singapore Most Promising Brand Award?

d. Which agency’s website is the most appealing and user friendly for buyers?

e. Which agency provides you with agents who had recently transacted units in the neighbour?

f. Which agency provides you with the list of agents who has an IEA Member with a Practicing Certificate for a Peace of Mind?

g. Which friends or relative had transacted a property and extremely happy with their agents’ service?

Once you have a list of agencies and agents, make an appointment with each one to learn more about their services. Find out if agent is willing to do a free comparative market analysis (CMA) and recommend the search plan for you.

HDB has introduced a Resale Checklist for Housing agents to ensure that buyers are aware of the relevant and important HDB sale and financing policy when buying a HDB flat. It takes effect for Resale Application received by HDB on or after 1 May 2008. The appointed real estate agents will guide you through a HDB Resale Checklist.

HDB Loan – Only Singapore Citizens are eligible to take a HDB loan, you have to meet loan eligibility conditions and obtain an HDB loan Eligibility (HLE).

Bank loan- Compare the banks’ interest rates and special terms when choosing your finance scheme. Also decide whether floating rate or Fixed rates is more suitable for you.

A	Price
	1. Purchase Price	$
	2. Valuation	$
	3. Cash Top-Up	$
	4. ___ % Cash for Bank Loan	$
B.	Utilisation of CPF
	5. ___ % Valuation	$
	6. Legal & Stamp & HPIS    (HPIS: Home Protection Insurance Scheme)	$
	7. Total	$
	8. CPF Available (Ordinary)         (add CPF grant, if any)	$
	9. *Shortfall/Excess in CPF Additional Cash Top-Up	$
C.	Loan
	10. Household Income	$
	11. Age of Applicants
	12. ___ % of Valuation	$
	13. Max. Loan Eligible	$
	14. Cash Shortfall	$
	15. Total Cash Required    (s/no. 3+4+9+14)	$
D.	Repayment
	16. Monthly Repayment
	17. Less Monthly CPF (Ord A/C)	$
	18. Monthly Cash	$
E.	Others
	19. CPF Refund	$

The CPF housing grant is a housing subsidy (in the form of CPF monies) provided by the Government to assist eligible first-timer citizen households to buy a resale flat from the open market.

Types of Grant	Amount
CPF housing grant for family	$30,000
CPF housing grant for family (living near parents or married child)	$40,000
Additional CPF housing grant for lower income family	$5,000 to $30,000
Half housing grant	$15,000
Half housing grant (living near parents or married child)	$20,000
CPF housing grant for singles	$11,000
CPF housing grant for joint singles	$22,000
CPF housing Top-up grant	Top-up to $30,000
CPF housing Top-up grant	Top-up to $40,000

Model of Flat	Average Sizes in
	Sqm	Sqft
MG	165	1776
EM	145	1560
EA	141	1517
5RM EM	135	1453
5RM “A”	135	1453
5RM “I”	120	1292
5RM “STD”	112	1206
4RM “A”	105	1130
4RM “NG”	91	980
4RM”S”	85	915
4RM “I”	83	893
31/2RM	82	882
3RM “A”	75	807
3RM “NG”	69	743
3RM “S”	65	699
3RM “I”	60	646
3RM “STD”	54	581

‘MG’	Multi-Generation
‘EM’	Executive Maisonette
‘EA’	Executive Apartment
‘A’	“A” model
‘NG’	New Generation Model
‘S’	Simplified Model
‘I’	Improved Model
‘STD’	Standard Model

Once reaching a preliminary agreement to buy, ensure that all important points have been discussed and agreed, including special requirements for early renovations, or any repairs or changes prior to purchase, Fitting and Fixtures.

Buyers and sellers of resale flats must use an HDB standard Option to Purchase (OTP) as the form of contract in resale transactions. They are not allowed to enter into any other agreement relating to the sale/purchase of the flat as it is not valid under the Housing and Development Act.

Buyers and sellers must declare to HDB the true resale price of the flat. They must not enter into any supplementary or other agreements or arrangements that may cause the true resale price as declared to be inflated or understated. Housing agents must also declare all relevant information relating to the resale transaction, in a Housing Agent's Statutory Declaration.

Under the Housing and Development Act, the penalty can involve a fine of up to $5,000 and/or up to 6 months' imprisonment for giving false information to HDB. Under the Oaths and Declaration Act, the penalty can involve a fine and/or up to 3 years' imprisonment for a false declaration.

Main Features

• Option Period of 14 days for the buyer to think over the intended purchase; and to check his eligibility, financing aspects and other issues such as whether the flat is affected by redevelopment/upgrading, the liability to pay upgrading cost/levy etc.
• If the buyer does not wish to buy the resale flat, he can let the Option expire and loses only the option fee.
• To ensure a standardized practice, the Option Fee, Deposit and Option Period are prescribed as follows:
• Option Fee - An amount not exceeding $1,000
• Deposit - An amount not exceeding $5,000 (including the Option Fee)
• Option Period - 14 calendar days (including Sat/Sun & public holidays) from the date of granting the Option. Option expiry time is standardised at 4pm. (Example: If the seller grants an Option to the buyer on 1 May 06, the Option will expire on 15 May 06 at 4pm.)

LO from Bank – You are to confirm the bank loan by endorsing on the Letter of Offer from the Bank.

Appoint a Lawyer – You can appoint your own lawyer or engage the bank recommended lawyer. Your lawyer will have to make legal enquiries on the status of the seller, the title of the property and the terms of the sale. The legal fees for purchasing a HDB Flat transaction is $2000 to $3000

You need to have a valid HDB HLE or a valid LO before you can exercise the option. Once the option has been exercised, either the buying or selling agents will arrange to register the transaction to HDB. The HDB Admin fees are as follows:

Flat Type	Administrative Fee for Processing of Resale Application
Administrative Fee for Processing of Resale Application	by post/hand	via e-Resale/HDB – Resale Net System
1 & 2 room	$50	$30
3 room & Larger	$80	$60

A technical officer’s from the branch office will conduct an inspection on your purchase unit usually 1 week after the HDB registration. The seller is to rectify/remove any unauthorised renovation works in the resale flat.

The 1st Appointment is usually schedule 6 to 8 weeks from the registration. On 1st Appointment, you are required to bring the followings (original and photo stated)

Nos	Document	Status
1	Identity Card(s) of all persons listed in the application (for the identification of the person(s));
2	Birth Certificate(s) of the relevant persons listed in the application (for proof of relationship);
3	Passport and Entry/Re-Entry Permit or Singapore Blue Identity Card, for the verification of residential status in Singapore (applicable only for persons who are Singapore Permanent Residents)
4	Marriage Certificate, Deed of Separation, Divorce Certificate, Decree Nisi. Decree Nisi Absolute, Death Certificate (whichever is applicable) for verification of marital status;
5	Original Option to Purchase
6	Valuation Report of resale flat, if available;
7	Grant of Letters of Administration with its Petition and Estates Duty Schedule or a copy of the Last Will (if applicable), the Order of Court to sanction the sale (if applicable) for proof of the right of representation or inherited interest in an HDB flat or private property;
8	Letter of consent from the Official Assignee for buyer buying an Executive flat, Multi-Generation flat or HUDC flat (applicable only if buyer is an undischarged bankrupt)
9	Employed Persons: i. Payslips or Certification of Income from employer (Note: Income certification by employer must bear the letterhead/stamp of the company, name, signature and designation of the certifying officer); or ii. For an employee of a family-run business, an income certification letter from the Managing Director of the Company
10	Self-Employed Persons/Odd Job Workers: i. Latest income tax assessment; or ii. Statement of Annual Accounts certified by audit firm to confirm income for the past 12 months; or iii. Letter from the employer with the letterhead/stamp of the company, name, signature and designation of the certifying officer (applicable only for Odd Job Workers)
11	Students/Unemployed Persons: Student pass or letter from the schools. Unemployed persons will have to execute a Statutory Declaration to confirm that they have no source of income.
12	Power of Attorney (If buyer is away during the resale transaction period) Certified true copy of the Power of Attorney by the solicitor or the original copy.

For HDB loan, the cash over value and the caveat fees will be paid at the HDB Cashier, while the stamp fees, the legal fees can be paid through the CPF or Cash. The agent fees for service will be collected on 1st Appointment too.

HDB In-Principles Approval – Once HDB is approved the Transaction, HDB will send In-Principles Approval to you within two weeks from the 1st Appointment.

Inspection - Before the completion, you must invite the buyer to inspect the unit again to ensure everything is in proper.

The Completion takes place at the 2nd Appointment, usually about 5 to 6 weeks month after the 1st Appointment for HDB loan and 6 to 8 weeks after 1st Appointment for Bank loan. Before attending the appointment, you need to purchase fire insurance at the counter.

Condominium

Min site area 40,000 sqft Communal Facilities Condo Status

Private Apartment

Site area less than 40,000 sq.ft Apartment Status Communal Facilities

Good Class Bungalow

Min Plot Size 1400sm Min Frontage 18.5m Only 39 Gazetted area in Singapore

Bungalow

Min Plot Size 400sm Frontage 10m

Semi Detached House

Min Plot Size 200sm Min Frontage 8m

Corner Terrace House

Min Plot Size 200sm Min Frontage 8m

Inter Terrace House

Min Plot Size 150sm Min Frontage 6m

Clustered Houses

Strata Title Common Land Communal Facilities

Singapore Citizens are allowed to buy all type of private properties including Executive Condo after 5 years from its TOP.

Singapore Permanent Residents (SPR) a foreigner or permanent resident Under the Residential Property Act (RPA), for restricted property such as vacant land, landed properties such as bungalows, semi-detached and terrace houses, prior approval is still needed if foreigners wish to buy. Landed properties is a special class of residential property that Singaporeans aspire to own, and should remain restricted. Foreigners need to apply for approval from Singapore Land Authority before buying. For more details on application, visit the SLA website. Every application is considered on its merits. The main criteria are whether you are a permanent resident of Singapore and your economic contribution to Singapore.

Since 19 July 2005, foreigners can purchase apartments in non-condominium developments of less than 6 levels without the need to obtain prior approval.

It is not difficult to find a professional real estate who not only help you to find the right property, but also assist you in negotiating for the right price. As a professional real estate agent, he /she will able guide you through the process and make recommendations on-financing, legal representation and logistics issues (e.g. timing for moving-in). The following criteria may assist you in finding the right agency and real estate agent:

a. Which agency has the largest market shares in the HDB Resale Markets?

b. Which agency has recently won the Read Digest Trusted Brand – Gold Award?

c. Which agency has recently won Singapore Most Promising Brand Award?

d. Which agency’s website is the most appealing and user friendly for buyers?

e. Which agency provides you with agents who had recently transacted units in the neighbour?

f. Which agency provides you with the list of agents who has an IEA Member with a Practicing Certificate for a Peace of Mind?

g. Which friends or relative had transacted a property and extremely happy with their agents’ service?

Once you have a list of agencies and agents, make an appointment with each one to learn more about their services. Find out if agent is willing to do a free comparative market analysis (CMA) and recommend the search plan for you. Most property companies share the same database of property listings in Singapore.

Use only ONE agent at a time. If you use many agents at the same time, they may show you the same property. Using one agent, you will save valuable time for yourself and the agent. He will then understand your needs and requirements better after a few viewings. Only if they are incompetence, unresponsive or not showing the correct property you wanted, then start to look for another agent.

The latest MAS ruling allows purchaser to loan up to 90% of the valuation or purchase price, whichever is lower. 5% must be paid in cash and the other 5% can be paid using CPF or cash. The stamp and legal fees can also be paid in CPF. In general, the maximum loan for Singaporean (SC), Singapore Permanent Residents (SPR) and Foreigners are as shown:

Type	Minimum Down payment	Maximum Loan
Singaporean	10%	90%
SPR	20%	80%
Foreigners	30%	70%

However for case to case, applicants may get higher loan amount depending of his credit worthiness.

You are advised to compare the banks’ interest rates and special terms when choosing your finance scheme. Also decide whether floating rate or Fixed rates is more suitable for you.

The stamp duty in Singapore for Purchasing Property is as followings

Purchase Prices	Fees Payable in Percentage of the Purchase Prices
$1 to $180,000	1% of the Purchase Price
$180,001 to $360,000	2% of the Purchase Price
>$360,000	3% of the Purchase Price

In general, we used the Purchase Price multiply by 3% minus $5400.

E.g. Purchase Price is $600,000,
The Stamp duty payable is 3% of $600,000-$5400) = $12,600 or
1% of 180,000	= $1,800
2% of 180,000 to 360,000	= $3’600
3% of $360,000 to 600,000 = $ 3% of 240,000	= $7,200
	$12,600

Locations - Depending whether you are buying the property for own stay or investment, location plays an important role. Properties in prime districts retain their value very well and they usually have the highest capital gain in a bullish property market. Properties in the suburbs are lower in price and may be more suitable for own stay than investment. If you can purchase the property for investment, the properties in prime districts like Marine Bay, Sentosa Cove, and district 09, 10, 11 or the Central Business District are the safest buy. Properties with sea view at the East Coast are also great for a resort home or investment.

Valuation - Check the indicative valuation for the property you intending to buy. Valuation directly affects the amount of loan you can get for the property. Take into account the number of years that you can loan, the monthly instalments, etc.

Negotiations - Once reaching a preliminary agreement to buy, ensure that all important points have been discussed and agreed, including special requirements for early renovations, or any repairs or changes prior to purchase, Fitting and Fixtures.

The contractual part is typically a simple two step process. Typically you will give an option fee of 1% of the purchase price to the seller to exchange for a Signed “Option to Purchase”. Most Real Estate Agency provides a “standard” ‘Option to Purchase’ agreement. The Option period is usually 14 days to allow you to get the necessary financing from the bank and decide whether to purchase the property or not. At the same time, it is recommended that you also endorsed on the inventory lists.

The seller is not allowed to sell the property to another buyer during this period. If you do not exercise the Option within the stated period, the Option will expire and the seller is entitled to forfeit the 1% option money and sell the property to any other buyer.

Point A: Option to Purchase granted by seller. You pay 1% of the Purchase price.

Point B: You exercise Option to Purchase by you through your solicitor. You pay another 4% of the Purchase price. Usually 2 weeks after the OTP.

Point C: You pay the Stamp Duty through your solicitor.

Point D: Completion Takes Places usually 8 to 12 weeks after the exercise

Letter of Offer (LO) from Bank – You are to confirm the bank loan by endorsing on the Letter of Offer from the Bank.

Engage Solicitor – You can appoint your own solicitor or engage the bank recommended solicitor. Your solicitor will have to make legal enquiries on the status of the seller, the title of the property and the terms of the sale. The legal fees for purchasing a Private Transactions are approx from $2000 to $4000.

If you decided to exercise the option, you will endorse the acceptance copy witness by your solicitor together with the balance of the 4% of the purchase price your solicitor will do the necessary steps to complete the sale – lodge a caveat on the property, coordinate with the bank/CPF board for the mortgage, and prepare the contracts. This process will typically take up to 10 weeks to complete. Also the 4% of the purchase price is typically kept with the seller’s solicitor as stakeholder.

Final Inspection - Before the completion, you need to inspect the unit again to ensure everything is in proper.

The seller’s solicitor will then handover the keys and title deed of conveyance though your solicitor and you become the owner of your new home.

• This method is most commonly used. Purchaser is to pay a booking fee, normally $5,000 or 1% of selling price.
• Usually option is open for 2 weeks, for the Purchaser to instruct Solicitors, arrange for bank loan, CPF release and valuation.
• This method is most commonly used. Purchaser is to pay a booking fee, normally $5,000 or 1% of selling price.
• On the appointed day and time of exercise of option, the Purchaser has to sign and pay the balance 10% of purchase price.
• Stakeholder - usually insisted by the Purchaser’s Solicitors if the subject property has a mortgage or CPF charge. Stakeholder monies will usually be held by Vendor’s Solicitors until completion. This stakeholder clause is usually a very sticky issue between the parties. On one hand, the Vendor wants the balance 10% release to him so that he can use it immediately. On the other hand, the Purchaser’s Solicitors are afraid that the balance 90% of the purchase price may not be sufficient to discharge the mortgage that is why the Purchaser’s Solicitors insist on the stakeholder clause. Of course in most cases, the outstanding mortgage may not exceed the balance 90% of the purchase price. One way of going round the stakeholder issue is to insert a clause as follows:

  “the balance 10% to be held by the Vendor’s Solicitors as stakeholders until documentary evidence from the mortgage and/or charge that the balance 90% is sufficient to discharge the mortgage and/or charge herein.” There are also other reasons on insisting for stakeholders namely when there is a bankruptcy action against the Vendor; unsatisfactory reply to legal requisitions; title not in order or the title is encumbered; not able to deliver vacant possession, etc.

A purchaser should not make a down payment even though he is very keen on the property. He should consult his lawyer before making payment. The lawyer will have to ascertain three points prior to making down payment, that is:

• A title search is made on the property to confirm the Vendor is the rightful owner and the title is free from encumbrances.
• A bankruptcy or winding up search is made on the Vendor to ensure that the Vendor is solvent
• That the Purchaser is able to abide to the terms of the contract and agree to the terms of the contract, for example, the completion date, road widening subject to tenancy, financing etc
• After all this is done, the lawyer will advise the purchaser to proceed and the title is free from encumbrances

The sale and purchase process begins with the grant of an option to purchase. The typical conveyance process can be broken down into the following broad steps:

• Potential Purchaser conducts basic title and bankruptcy searches on the property and vendor;
• Exercise the option;
• Signing of Sale and Purchase Agreement;
• In the case of completed properties, the parties may enter directly into the Sale and Purchase Agreement without a separate grant and exercise of an option.
• Purchaser solicitors conduct title searches and legal requisitions, the conveyance documents are prepared for execution: e.g. the Transfer and Mortgage (in the case of title registered under the Torrens system) or Deed of Conveyance or Indenture of mortgage (in the case of title registered under the Deed system).
• Completion takes place: keys are handed over, outstanding mortgage discharged, balance payment made, conveyance documents executed.

• Making a Title Search
• Making Bankruptcy or Winding Search
• Checking the Option or Sale Contract
• Lodging a Caveat
• Sending Requisition On the Title to Vendor’s Solicitors
• Sending Legal Requisition to Various Government Departments including Road and Drainage Interpretation Plans
• Preparing For Transfer Documentation
• Preparing the Mortgage Loan
• Notifying the Management Corporation
• Sending the Completion Account To Purchaser
• Joint Inspection of Property
• Arranging Completion
• Making Final Title and Bankruptcy Searches
• Attending the Completion to Exchange Balance of Purchase Price For Transfer Documents
• Reporting Completion

• Upon receipt of instructions from client / agent
• Preparing option of sale contract for vendor’s approval
• Arrange title search
• Receiving the deposit
• Redeeming the mortgage
• Delivering the title deeds
• Getting property tax, maintenance bills
• Informing the management corporation of sale
• Answering Requisition on Title
• Checking the transfer
• Sending completion account
• Arranging for completion
• Attending to completion/li>
• To purchaser’s lawyer – In exchange for payment (cashier’s order)
  • Signed transfer, Certificate to Title, Total discharge Mortgage receipts for property tax and maintenance fees.
  • Copy of Notice transfer
  • Notice of change of ownership to Management Corporation
  • Keys to property
  • To Vendor’s mortgage – cashier’s order for redemption money
  • To Property Tax Department – send statutory Notice of Transfer
  • To Management Corporation – notify change of ownership
  • Reporting Completion

*Note: In general there are no regulations restricting on the sale and purchase of commercial properties to foreign buyers. However there are rules on the purchase of commercial properties in the Sale of Commercial Property Act.