Property Agents - Singapore Real Estate Agency

Eligibility to Sell

There are 2 main Eligibility to Sell conditions:

1. HDB Minimum Occupation Period
2. Ethnic e ligibility to buy

1. HDB Minimum Occupation Period (MOP) Before you can put up your HDB Flat for sale, you are advised to check whether you have completed your Minimum Occupation Period (MOP). You can check whether you have satisfied the MOP by checking through the HDB website www.hdb.gov.sg using Sing Pass or submit a form to your branch office. The MOP for the various flats is as follows:

1	1-Room and HUDC Flat	No occupation period for owners owning 1-room flat or HUDC flat.
2	Flat bought from HDB (direct-purchased flat) and Flat bought under the CPF Housing Grant Scheme	5 years from effective date of purchase.
3	Flat bought under Selective En bloc Redevelopment Scheme (SERS)	7 years from date of flat selection (provided seller has taken possession of the replacement flat) or 5 years from effective date of possession of replacement flat, whichever is earlier and subject to HDB's prevailing policies. If there is any period of subletting of the entire replacement flat (subject to HDB's prior approval), the MOP will be extended to make up for the subletting period. Flat owners who had enjoyed the SERS benefits more than once are not allowed to sell the replacement flat.
4	Resale Flat bought in the open market (without CPF Housing Grant Scheme)	2½ years from effective date of resale if the owner takes a loan from HDB: 1 year from the effective date of resale if : A.the owner has not taken a loan from HDB; or B. he has refinanced HDB market interest rate loan with the bank/financial institution; or C. he has taken a loan from the bank/financial institution to finance the purchase; or D. he has fully redeemed the market interest rate loan obtained from HDB. You may submit an e-Request on Confirmation on the Computation of Requisite Occupation Period for the purpose of resale.

Ethnic Eligibility of Buyers

You may check the eligibility of buyer's ethnic group in any particular block using the following channels :

1. e-service in HDB Info WEB: Enquiry on Ethnic Group Eligibility
2. HomeLink (24 hours): 1800-8663060
3. Sale/Resale Customer Service Line (office hours): 1800-8663066

Important Notes: The status of changes of ethnic proportions is updated on the first day of every month and is applicable for resale applications submitted to HDB in the current month.

It is not difficult to find a professional real estate who not only help you to find the right buyer for your 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 shifting out). 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 Trust Brand?

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

d. Which agency’s website has the most hits in Singapore? Why, so that you will have the maximum advertisement exposures for your property

e. Which agency provides you with Multiple-Listing Services (MLS)

f. Which agency’s website is the most appealing and user friendly for buyer and seller?

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

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

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

j. Which agent has the most credentials?

k. Which agents has the most compressive marketing plan

Once you have a list of agencies and agents, make an appointment with each one to learn more about their services. Find out if agents are willing to do a free comparative market analysis (CMA), a process that compares your home to similar homes that have sold recently. Agents use this tool to help sellers set listing prices. But you only Need One Good Agent

HDB has introduced a Resale Checklist for Housing agents to ensure that sellers are aware of the relevant and important HDB sale and financing policy when selling an 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.

Sellers’ Financial Plan Computation
Nos.		Current Market	To	Maximum
1	Estimated Valuation	$	To	$
2	Estimated Cash Above Valuation	$	To	$
3	Estimated Selling Price	$	To	$
Less
1	CPF refund with Accrued interest (CPF public Housing Scheme Statement)	$		$
2	Outstanding Loan from HDB/Bank	$		$
3	HDB Levy if any	$		$
4	Others	$		$
4	Cash Proceeds	$		$

Singapore citizen households enjoy a housing subsidy when they buy a new flat from HDB or a resale flat in the open market applied with CPF Housing Grant. Each eligible family can purchase up to a maximum of 2 subsidised flats, in other words, enjoy 2 housing subsidies.

The resale levy is meant to reduce the subsidy on the 2nd subsidised flat so as to maintain a fair allocation of public housing subsidies between 1st and 2nd-timer citizen families. This is also to give priority to 1st-timers who have more urgent housing needs.

Lessees who do not buy a 2nd subsidised flat from HDB need not pay the resale levy.For single citizens who purchased resale flats with the lower CPF Housing Grant for Singles, they need only pay half the levy amount when they subsequently form a family and buy or take over the ownership of a second subsidised flat.

First Subsidised Flat Type	New Resale Levy (from 3 March 2006)
2-room	$15,000
3-room	$30,000
4-room	$40,000
5-room	$45,000
Executive Flat	$50,000

Flat Type	Valuation & Administrative Fee for Valuation Report
	by post/hand	via e-Resale/HDB- Resale Net System
1 & 2 room	$127 Valuation Fee : $100 + $7 (*GST) Admin Fee : $20	$117 Valuation Fee : $100 + $7 (*GST) Admin Fee : $10
3 room & Larger	$180.50 Valuation Fee : $150 + $10.50 (*GST) Admin Fee : $20	$170.50 Valuation Fee : $150 + $10.50 (*GST) Admin Fee : $10

Once you have engaged the professional real estate agent. You can leave the marketing to the agent. You just need to ensure that he follows in accordance to his initial marketing plan, update you regularly on the buyers’ comments and objections.

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.)

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
	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 unit usually 1 week after the HDB registration. You are 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	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)
3	Deed of Separation, Divorce Certificate, Decree Nisi. Decree Nisi Absolute, Death Certificate (whichever is applicable) for verification of marital status;
4	Original Option to Purchase
5	Valuation Report of resale flat, if available;
6	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;
7	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.

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. You will receive your cheque for the net sale proceeds (if any). The HDB will arrange to refund your CPF monies to your CPF account within 7 working days from the completion of the resale transaction.

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HDB Seller's Guide

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