Selling HDB due to divorce: What you need to know

by Nigel T.

hdb-divorce-sale

Having to sell your HDB flat due to divorce may seem daunting and complicated if you happen to be in this situation.

It actually is not..

.. if you are fully aware and prepared on the procedures on what to expect beforehand.

Let us share them with you, to help you achieve a smooth selling experience, so that you can move on with your plans in life:

Communication with your ex-spouse

Upon deciding to sell the HDB flat, you and your ex-spouse should both have already agreed to the sale.

This is important to avoid conflicts during the sale as both parties will be required to sign and endorse the flat sale in order for the resale transaction to be completed.

It is also good that both of you agree on how should the flat be marketed..

And decide on whether both of you should each engage a property agent, or perhaps it could be better to just engage an exclusive agent that is neutral to assist both of you in the smooth selling of the flat.

It is also important to plan for the appropriate timeline whereby both of you will be able to move out to your next place to stay.

Divorce Final Judgement

The Final Judgement must have already been passed by the Court if a HDB sale is under divorce parties.

This means that you and your ex-spouse will only be able to start the HDB selling process after the Final Judgement has been completed.

And HDB will request for the Final Judgement document (which will show the date of Final Judgement) when you sell your flat due to divorce.

The HDB resale application will be rejected by HDB if the Final Judgement is not yet completed.

Interim Judgement will not be accepted by HDB for the sale of the flat.

Deciding on conveyancing (Lawyer to act on HDB sale)

If your HDB flat is fully paid, or if it is still under a HDB Loan (HLE Loan), then you have an option to appoint HDB to act for the conveyancing.

But if your HDB flat is still under a Bank Loan, then you can only engage a private law firm to handle the flat sale conveyancing for you.

Engaging HDB lawyer to do the conveyancing for you will be a cheaper option in terms of legal fees.

However, there is a downside of using HDB lawyer if your HDB sale is a positive sale, and there is cash proceeds for both you and your ex-spouse.

HDB lawyers will not be able to split the cash proceeds amount for you, even if there is a court order on how the amount should be allocated.

Hence, you may have to engage a private lawyer to split the cash proceeds accordingly so that you and your ex-spouse will receive the appropriate amount without any disputes.

HDB lawyer will only issue one Cashiers Order – made out to both Seller’s name. This means both sellers must have a Joint Bank Account in order to bank in the Cashiers Order.

Conclusion

With proper planning and good advice from a property agent who is experienced in handling divorce HDB sale transactions, you will be able to ensure a smooth resale journey.

Whenever we handle flat sale due to divorce, we take extra effort to ensure that transparent communication is being done between both sellers.

And till date, we have successfully completed every divorce case sale for our clients without any major hiccups.

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