Buy, Sell, Rent Process

New launch, properties under construction

• Buyer pays Option fee 5% and gets Option to Purchase (OTP)

  • OTP is not assignable

• Developer delivers Sales and Purchase agreement (S&P) within 14 days

• Buyer exercise by signing the S&P agreement within 3 weeks and pay 20%

  • Failure to exercise within 4 weeks from expiry of OTP: forfeit 25% of deposit, refund 75% of deposit

• Have up to 8 weeks to pay

• Pay stamp duty - BSD, ABSD if any, within 14 days

• Progress payment follows

• Construction in progress

• Developer applies for Temporary Occupation Permit (TOP) Certificate Of Statutory Completion (CSC)

  • TOP; can move in, vacant possession, some minor work still in progress

  • CSC, within 1 year from TOP

  • SSCT or CT are issued once CSC is issued

• Developer issues Notice of Vacant Possession (NVP) (Key collection)

• Balance of minor work to be completed

• Legal completion 3 years from vacant possession, developer issues Notice to Complete.

Defects Liability Period: 12 months from Notice of Vacant Possession

Sub-sale of a new launch/ unit under construction

• Sale of a unit under construction after signing the S&P but before legal completion.

• Purchaser to inform developer of proposed sub-sale.

• Developer enters into a new S&B with sub-sale purchaser, with the same terms and conditions as the original purchaser.

Process:

• Original Buyer pays OTP:

  • signs S&P with developer,

  • pays BSD/ABSD within 14 days

  • SSD applies

• Original Buyer sell to sub-sale buyer,

  • lawyer of sub-sale buyer writes to developer to issue new S&P

  • developer prepares new S&P to sub-sale buyer

  • sub-sale buyer signs S&P and becomes new owner.

Note: sub-sale clause is to be included in OTP granted by original buyer to sub-sale buyer.

Resale, sale of completed properties

• Pre-contract stage

  • Option to Purchase (OTP): an agreement giving the purchaser an exclusive right without the obligation to buy.

  • Option Fee 1%, seller grants OTP. Seller not allowed to sell to other buyers.

• Contracting stage

  • Option exercise fee 4% (9% for commercial), buyer exercises OTP and has equitable interest.

  • Forfeits option fee if not exercised - no contract, and seller can sell to other parties.

  • Buyer pays BSD, and ABSD if applicable within 14 days from exercise date.

  • Buyer lawyers lodge caveat and conduct legal requisitions

• Post-Contracting stage

  • Legal completion in 8 to 12 weeks from date of exercise

  • Seller's lawyer prepare the transfer and completion statement.

  • completion statement contains:

    • outstanding loan settlement

    • property tax paid to date of completion

    • maintenance fee paid to date of completion

    • legal fee

    • agency fee

  • Buyer's lawyers conduct a final bankruptcy and title search and complete the registration of buyer's interest and transfer.

  • Buyer pays final payment

  • Seller hands the keys over to their lawyer who will deliver to buyer's lawyer

  • Buyer collect keys from their lawyer

HDB, sale of HDB flats

The Housing Development Board (HDB)'s role in Singapore is to provide affordable quality homes by planning and developing public housing, ensuring vibrant towns by renewal and upgrading programs, and focusing on the community by providing community spaces, maintaining racial harmony and building strong ties.

Types

• New flat - Build-to-Order (BTO), Sales of balance Flats (SBF) or Open booking of flats

• Resale flat

• Design, Build and Sell Scheme (DBSS), 2005 to 2012

• Executive Condominium (EC) from developers

• Rental Flat

HDB Eligibility check

Planning finances, cash and CPF savings, Housing loan (HDB or Bank), CPF housing grant

Flat and Grant Eligibility: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/flat-and-grant-eligibility

• Couples and Families: Enhanced CPF Housing Grant (Families), CPF Housing Grants for Resale Flats (Families), Step-Up Housing Grant (Families), Proximity Housing Grant (Families)

• Seniors: Short-lease 2-room Flexi and Community Care Apartment

• Singles: Enhanced CPF Housing Grant (Singles), CPF Housing Grants for Resale Flats (Singles), Proximity Housing Grant (Singles)

Conditions After Buying

• Taking a housing subsidy: Citizen Top-Up Grant of $10,000 or Top Up Grant where applicable.

• Disposal of existing HDB flat within 6 months.

• MOP of 5 years from TOP, MOP of 10 years from TOP for Prime Location Public Housing (PLH) flats, for essential occupiers in the flat.

• Resale levy for a second subsidised flat.

• Renting out:

  • whole unit not allowed within 5 year MOP. Renting out rooms: must seek HDB's approval.

  • PLH flats are not allowed to rent out the whole flat

• Interest in private property: may invest in private residential property after 5 year MOP for households with at least one Singapore Citizen flat owner. For households where all flat owners are Singapore Permanent Residents, the owners must notify HDB of the intention to acquire a private residential property and sell the flat within 6 months of the acquisition.

• Further conditions apply under the Married Child Priority Scheme, 3Gen Flats, Proximity Housing Grant.

Eligibility check and schemes:

New Flat Resale Flat

Public Scheme Public Scheme

Fiance/Fiancee Scheme Fiance/Fiancee Scheme

Singapore Single Citizen Scheme Singapore Single Citizen Scheme

Joint Singles Scheme Joint Singles Scheme

Non-Citizen Spouse Scheme Non-Citizen Spouse Scheme

Orphans Scheme Orphans Scheme

Non-Citizen Family Scheme

New flat (BTO, SBF, Open booking) timeline and flow:

-> Check Eligibility

-> Apply online (during Sales launch or Open booking of Flats), ballot results in up to 2 months after applications close, as early as next day for open booking

-> Book a Flat, ensure valid HDB Loan Eligibility (HLE) letter,

-> Sign Agreement for Lease, from 6 months after booking a flat. Make downpayment, ensure that you have a valid Letter of Offer from a financial institution if you are taking a housing loan from them.

-> Collect keys and pay balance of purchase price.

Upcoming BTOs: https://homes.hdb.gov.sg/home/landing

For Conditions After Buying, refer above.

HDB resale timeline and flow:

1. Register Intent to Buy at HDB Resale Portal

2. Search, shortlist and select. Obtain an Option to Purchase (OTP) once you have selected and agreed a price with the seller. Note: sellers must have registered an Intent to Sell for more than 7 days.

3. Confirm mode of financing with either a HDB housing loan (valid HDB Housing Loan Eligibility (HLE) letter) or a housing loan from a bank (financial institution) (valid Letter of Offer before exercising OTP.

4. Submit Request for Value the next working day after getting the OTP. Not required if you are not using your CPF savings and any housing loan.

5. Exercise Option to Purchase during the Option Period.

6. Submit resale application. Both buyer and seller must submit their respective portions of the resale application.

7. Endorse documents and pay fees. Both buyer and seller must acknowledge and endorse the resale documents and pay the necessary fees such as legal fees, registration and microfilming, miscellaneous fees, stamp duty and initial payment.

8. Get resale approval after the fees are paid. HDB will grant an in-principle approval.

9. Attend completion appointment about 8 weeks from the date of HDB's acceptance of the resale application. Log in to the HDB Resale Portal for the appointment details.

   • Before attending the resale completion appointment you will need to confirm the resale completion appointment, inspect the flat, buy fire insurance, pay the balance of purchase price and outstanding stamp fees, prepare and bring required documents.

For Conditions After Buying, refer above.

Executive Condominium (EC)

Eligibility conditions: Family nucleus, Citizenship, Age, Monthly household income ceiling, ownership/ interest in property in Singapore or overseas other than HDB flat, previous housing subsidies, ownership/ interest in HDB flat, undischarged bankrupt, wait-out period for applying EC.

CPF Housing Grants for EC

EC timeline and flow:

1. EC sales launch: developer announce project launch, get information on designs, units and indicative prices. Check eligibility to buy, housing loan, and other fees and costs such as option fee, downpayment, legal fees, resale levy and renovation cost.

2. Submit application to the property developer and check if any payments are required.

3. Receive outcome of application, no payments at this stage

4. Book EC unit upon invitation to book and grant of OTP. 5% option fee and submit documents.

   • If you are applying for CFP Housing grant, you need to submit to the developer:

     • the completed EC application form,

     • the application form for CPF Housing Grant for EC,

     • and all other required supporting documents.

5. Sign Sale and Purchase Agreement (S&P). 15% of purchase price plus 1-3% legal and stamp fees by CPF OA savings or cash within 9 weeks from the date of OTP or signing of the S&P.

6. Collect keys to EC. Check with property developer for payments required.

Conditions after buying EC

• Taking a housing subsidy: Citizen Top-Up Grant of $10,000 where applicable

• Disposal of existing HDB flat within 6 months

• MOP of 5 years from TOP, as well as for essential occupiers in EC

• Renting out: whole unit not allowed within 5 year MOP. Renting of rooms is allowed but must be registered with HDB within 7 days.

• Interest in private property: may invest in private residential property after 5 year MOP.

• Buying another subsidised home: must wait 30 months before you apply to buy a flat from HDB, resale flat with CPF Housing Grant, or another EC unit.

• Resale levy: $55,000 for a second subsidised flat from HDB or take over ownership of another subsidised HDB flat or buying an EC.

HDB Financing

Sources:

• Cash savings

• CPF Ordinary Account, may retain up to $20,000

• CPF housing grants

Tools:

• Budget calculator

• Payment Plan Calculator

• SERS Financial Plan Calculator

• Sale Proceeds Calculator

Housing Loan Options

• HDB

  • Eligibility conditions apply to: Household status, monthly household income, ownership/ interest in property in Singapore or overseas other than HDB flat, remaining lease of the flat, second HDB housing loan.

• Bank/ Financial Institutions (FI)

  • LTV limit of 75%

  • FI's may have additional conditions/ restrictions for flats with shorter remaining leases, and/ or if you have additional housing loan/s.

  • Minimum 5% cash downpayment.

  • CPF utilisation up to applicable limits.

  • Refinancing: able to refinance from one FI to another but not to HDB housing loan.

  • Priority of payment order.

HDB Housing Loan eligibility

• Citizenship: at least 1 buyer is a Singapore Citizen

• Household status: all applicants and essential occupiers must not have taken 2 or more HDB housing loans, have taken 1 HDB housing loan and the last owned property is not a local or overseas private residential property. Seniors aged 55 and above not applying for a short-lease 2-room Flexi flat or Community Care Apartment, and singles 35 years old and above buying a 2-room Flexi flat on 99-year lease in a non-mature estate or 5-room or smaller resale flat.

• Monthly household income: $14,000 for families, $21,000 for extended families, $7,000 for singles under Single Singapore Citizen (SSC) Scheme.

• Ownership / interest in property in Singapore or overseas other than HDB flat: must not own or have interest in an local or overseas private residential property, have not disposed of any private residential property in the last 30 months before HLE application, and do not own more than 1 market/ hawker stall or commercial/ industrial property.

• Remaining lease of the flat and Loan to Value limit, with tenure shortest of 25 years or 65 years minus the average age of buyers or remaining lease minus 20 years:

  • Remaining lease > 20 years and covers youngest buyer to age of > 95 years: 85% LTV

  • Remaining lease < 20 years and covers youngest buyer to age of > 95 years: pro-rated from 85% LTV

Income Guidelines and Documents

• Employed with monthly CPF contributions

• Employed without monthly CPF contributions

• Self-employed

• Commission-based/ Part-time/ Odd job workers

• Unemployed persons

• Additional documents for a second HDB housing loan

Enhanced Contra Facility

Rentals in Singapore

• cannot be rented on daily or weekly basis

• HDB and URA rules apply regardless if there is any tenancy agreement signed.

• no transient occupiers for company leased properties

• Private properties

  • minimum of 3 months for private properties. 10sqm per person, maximum of 6 occupants.

• HDB Flats

  • minimum of 6 months for HDB Flats. Maximum of 4 occupants for 1-room and 2-room units, and maximum of 6 occupants for 3-room and larger units.

  • Renting out of spare rooms is not allowed for 1-room and 2-room units. Approval from HDB is needed for subletting of room, tenants must register within 7 days. No non-citizen quota restrictions.

  • Whole flat rental is allowed if MOP is fulfilled and with a minimum of 1 Singapore Citizen owner. HDB approval is required and Non-citizen quota applies: 8% for neighbourhood and 11% of block.

  • Whole flat rental is not allowed for Singapore Permanent Resident owners, or if the unit is within MOP. 2-room Flexi and those on enhanced lease buyback scheme are also not allowed.

Check our All about Rentals for more information