HDB Selling Procedure Steps (Start to Finish)
by Nigel T.
HDB Selling Process involves plenty of steps and procedures to take note of, and it can be complicated for most HDB sellers.
But if you are determined to have a pleasant HDB selling experience, understanding the entire process will help you avoid potential pitfalls!
So in this insider guide, we are going to walk you through the complete HDB resale selling steps and procedures you ought to know..
And you can start selling your HDB flat like an expert, even without a property agent’s help!
Here’s the detailed step by step sequence:
1. Intent to Sell
To kick start your HDB selling process, Intent To Sell is the first thing you will need to do.
Intent To Sell is the registering of your intention to sell your flat on HDB’s portal.
This is a compulsory step to allow you to check your eligibility to sell your HDB flat.
And you will only be allowed to issue an Option To Purchase to a buyer 7 days after your Intent To Sell has been registered.
Intent to Sell can be easily registered on HDB’s Resale Portal.
And you will need your Singpass ready to do this.
Let us guide you through step by step:
- Click on this link: HDB Resale Portal
- Select ‘I am Buyer or Seller’
- Login using your Singpass
- Select ‘I want to sell my flat’
- Click on Step 1 to Register your Intent to Sell
This simple step just requires you to fill in the details of the flat owners.
And you should be done in 5 minutes!
Once your Intent To Sell is done, you will be able to see that the Step 1 in your resale portal is now completed.
You can now see the date of your Intent To Sell, and you will only be able to issue an Option To Purchase 7 days after this date.
- An Intent To Sell will last for 1 year
- On the Intent To Sell ‘Address of Next Housing’, you can leave it empty if you have not bought your next house
Now, it is time for you to start marketing your HDB flat, and try to get a buyer that is willing to put in an offer which you will be happy to accept.
And once you decide to accept an offer, the next step on the Option To Purchase awaits you..
2. Issue Option To Purchase
Option To Purchase (OTP) is the official contract between sellers and buyers when agreeing on selling and buying a property.
For every HDB resale transaction, it is a must to use the HDB prescribed Option To Purchase form.
If you like to know find out more, here’s our complete explanation on HDB’s Option To Purchase and insider tips on what to look out for.
Otherwise, you just simply need to know that it is the Seller whom will Issue the OTP to the Buyer.
And this is where you can download the official HDB Option To Purchase.
Once you have issued the OTP for your HDB flat sale, you can immediately collect your Option Fee (first deposit) from your buyer.
Thereafter, you should quickly pass the original OTP to your buyer, so that they can proceed to apply for the HDB Flat Valuation.
An Option To Purchase will last for 21 days. And buyers will need to exercise the Option To Purchase before the expiry date in order to confirm the purchase.
3. Flat Valuation
If your buyer is using their CPF or a mortgage loan to finance their purchase, it is a must for them to obtain a HDB Valuation to buy your flat.
Only when the Flat Valuation Report is out, then the buyer will know whether is there any Cash Over Valuation (COV), or how much is the COV they need to pay to buy your flat.
And they will now have to make a decision on whether to Exercise the Option To Purchase.
4. Exercise Option to Purchase
When your buyer exercises the Option to Purchase, they will now enter into a legal agreement to purchase your HDB flat from you.
All buyers will need to sign on the Acceptance section in the OTP before the Option Expiry Date.
And of course, once buyers exercise the OTP, they will then have to pay you the Option Exercise Fee (second deposit).
If your buyer decides not to exercise the OTP –
- You get to keep the Option Fee (first deposit)
- You have to wait until the current OTP Expire before you can issue a new OTP to another buyer
5. HDB Resale Application Submission
After buyer has exercised the Option to Purchase, the HDB Resale Application submission will kick-start the transaction processing by HDB.
Basically, both sellers and buyers will have to submit the HDB Resale Application.
And it can be conveniently done on the HDB Resale Portal.
If you have engaged a property agent to help you with your HDB sale, your property agent should be helping you submit the resale application on your behalf. (You shouldn’t need to log-in to do it yourself)
And to complete the resale application, there will be a $80 Resale Application Fee that is payable to HDB immediately.
(For 3-room flats and above, the Resale Application Fee is $80. For 1 and 2-room flats, the Resale Application Fee is $40)
- Both Seller and Buyer must complete the Resale Application within 7 calendar days apart
6. Resale Acceptancce
After HDB receives the Resale Application from you and your buyers, HDB will review the application.
If everything is in order, HDB will notify you in about 14 working days via sms and email that the application has been accepted.
You will also now know when is the HDB Completion Appointment Date scheduled for your flat sale.
7. Flat Inspection
Upon receiving your HDB Acceptance notification, you will be informed about HDB Flat Inspection on your Acceptance Letter.
For every resale transaction, HDB will send their inspector to check on the flat for any unauthorized renovation, before they approve the sale.
Typically, most units should pass their inspection.
But if the inspector finds anything unsatisfactory, you will be required to rectify / reinstate the issue before HDB allows you to proceed with the sale.
These are some common inspection issues that sellers may face:
- Bomb Shelter opening covered up
- Windows not within required safety standards
8. Acknowledge & Endorse Documents
This is the step where HDB uploads all the relevant forms and undertaking which require sellers to endorse.
You will receive a sms from HDB when these documents are ready for you to view.
Basically, you just need to log into your Resale Portal using your Singpass, view the documents, and endorse them if it is all in order.
And if your HDB flat has more than one owner, all owners will need to complete this endorsement step.
- If you do not have a Singpass, you can make an appointment with your HDB resale officer and make a trip to HDB to physically sign the documents
- If you are applying for Proximity Housing Grant, your Parents / Child will also need to endorse the documents
9. HDB Fees Payment
Immediately after completing your Document Endorsement, you may be prompted to make Fees Payment.
This fees are actually HDB Conveyancing Fees, and will only be applicable if you are engaging HDB Lawyer to handle your flat sales.
If you see Step 4 in your Resale Portal being shown and prompting you to Pay Fees, you will need to complete this payment step.
10. Resale Approval
You will receive your finalized Resale Approval from HDB about 2 weeks after you have done your Document Endorsement and paid the HDB Fees.
HDB will also furnish you an Approval Letter guiding you what to do next while waiting for your Completion Appointment Date.
Which is what we are going to show you next..
11. Service & Conservancy Payment
Your Town Council Service & Conservancy charges will be pro-rated to the date of your HDB Completion Date.
Which means that you definitely will not overpay your S&CC.
When your HDB Resale Approval has been granted, HDB will upload a Notification Letter to Town Council, which can be found in your Resale Portal.
What you need to do is pretty simple..
You just need to print out this letter, and bring it to your Town Council branch to make payment for the final month of your S&CC.
Upon payment, the Town Council staff will return you a receipt, and you must bring this receipt to your HDB Completion Appointment to give it to your HDB resale officer.
- For the final month of your S&CC, do not make payment via AXS as it will only show charges for the full month
- If your S&CC is on Giro, you need to arrange to terminate the Giro
12. Window Declaration Form
When you receive your HDB Resale Approval, a window declaration form will also be uploaded on your Resale Portal.
Sellers will be required to sign off this form, and return it to the HDB officer during the HDB Completion Appointment.
13. Property Tax Payment
On your HDB Completion Appointment, you need to ensure that you have already settled all the outstanding property tax for your HDB flat.
This is because HDB officer will not allow the resale transaction to complete if there is any outstanding balance.
So, what we advice you to do is to check for any outstanding property tax balance before you attend the HDB Completion Appointment.
Here is where you can check your Property Tax balance on IRAS website.
If you realize that you have an outstanding balance, be sure to make payment before the HDB Completion Date.
Thereafter, you can check and ensure that your property tax balance shows $0.
14. Completion Appointment
And finally, this is the day that your HDB sale will be completed.
If you are using HDB lawyer to act in your flat sale, you and all owners of the flat will need to be present at the HDB Completion Appointment at Toa Payoh HDB Hub.
But if you are engaging a private law firm for your flat sale, you do not need to be present. Your law firm will complete the sale on your behalf.
Here are some tips for you to prepare yourself for the HDB Completion:
Completion Appointment Timing
HDB will only sms you the exact appointment timing about 1 week before the Completion Date.
Completion Appointment Date
If you are required but unable to attend the HDB Completion Appointment due to personal reasons, it is possible to change the date by writing to HDB.
Cash Proceeds Cashiers Order
If you are receiving cash proceeds from HDB for your flat sale, HDB will only issue a Cashiers Order in the name of all flat owners.
So, if your spouse is also the owner of the flat, you will need to have a Joint Bank Account ready in order to bank in the Cashiers Order.
SP Termination (Utilities)
To avoid handing over your HDB flat to your buyer with the SP still under your account, you will need to terminate your SP account.
Closing of your SP account can be easily done here on SP Group’s website.
Just take note that you should apply for your account closure at least 2 weeks before your HDB Completion Date, so that you are able to select your preferred account closing date.
Our comprehensive guide and tips should now help you better manage your selling process, and if you prefer immediate expert advice on your HDB resale matters, do get in touch with us via the Whatsapp button below!
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