How to Buy a Resale HDB Flat
Step 1: Check your eligibility to buy a resale HDB flat
To buy a resale HDB flat from the open market, you have to ensure that you meet the conditions of one of the eligibility schemes.
Step 2: Plan your finances
Home purchase is a long-term financial commitment. It is crucial for you to assess your budget carefully before you buy a flat.
If you plan to take an HDB loan, you may apply for a HDB loan eligibility letter (HLE). The letter will indicate the loan amount you are eligible for.
If you plan to take a housing loan from a bank, you may approach the bank to ask for a loan assessment.
Step 3: Look for a suitable flat
To look for a flat that suits your needs, you may refer to advertisements in the newspapers and the Internet, or you may hire a salesperson.
You may make arrangements with the flat owners or their salespersons to view the flats that they put up for sale.
- You should only engage salespersons who are registered with CEA. To check a salesperson’s registration details, visit CEA Public Register or download CEA@SG from Apple App Store and Google Play.
- You are encouraged to use the CEA prescribed Estate Agency Agreement which is a contract between you and the estate agent that seeks to protect both parties’ interests.
- You should also find out more information on the Code of Practice and the Code of Ethics and Professional Client Carewhich estate agents and salespersons are required to comply with the regulations to protect your interests.
- For more useful tips, you can visit CEA Consumer Resource Centre.
Check EIP and SPR quotas of the flat you intend to buy
The sale of resale flats are subject to ethnic integration policy (EIP) quotas (which promote racial integration and harmony) and Singapore permanent resident (SPR) quotas (which promote integration of non-Malaysian SPRs into the local community).
To check the latest quota in any particular area, you may use HDB’s eService to check buyers’ eligibility under the EIP and SPR quotas.
Check resale flat prices in your preferred area
You may wish to visit the HDB InfoWEB to check the resale transacted prices of comparable flats in the past two years. This eService assist you in making an informed decision, taking into account the resale flat prices of comparable flats in the past two years.
You can also use the HDB centralised map services to search for the following:
- Resale transacted prices within 500 metres of any HDB block or DBSS site/project
- Resale transacted prices for all flat types in each block
- All other information related to the block (quotas, upgrading programmes, distance enquiries)
Step 4: Receive option to purchase from the seller
After you and the flat seller agree on the resale flat price, the seller (and their salesperson, if any) is required to fill up a standard HDB option to purchase (OTP) form and hand it to you. In exchange, you need to pay a negotiable option fee to the seller. This option fee can range from $1 to a maximum of $1,000.
After you have signed the OTP, the flat sellers have entered into a binding contract to sell their flat to you. They are not allowed to grant another OTP to another buyer unless you choose not to exercise your OTP within the 21 days i.e. the OTP granted to you has expired.
Step 5: Request a valuation report
Apply for a valuation of the flat by the next working day after you have been granted the OTP.
You will need a valid valuation report if you are:
- Taking an HDB loan;
- Taking a housing loan from a bank;
- Using CPF funds to buy the flat or service monthly loan instalments.
The valuation report will be used by the HDB, the CPFB or your bank to calculate:
- How much you can withdraw from your CPF savings;
- How much housing loan can be granted to you; and
- The minimum cash payment you must make.
More information on the valuation process.
Step 6: Complete the resale checklist for buyers
If you decide to go ahead with the purchase, you must complete or endorse the resale checklist for buyers before you exercise the OTP.
Step 7: Exercise your option to purchase
If you choose not to buy: The OTP will expire at 4 pm, 21 calendar days (including Saturday, Sunday and public holidays) from the date that the seller granted you the OTP. E.g. if the seller grants the OTP to you on 1 April, the OTP will expire on 22 April at 4pm.
The option fee that you paid to the flat seller will not be refunded.
If you decide to buy: Sign the OTP within 21 calendar days. After you have signed the OTP, you may hand it to the flat seller or their salesperson. You must pay a deposit to the flat seller. The option fee you paid previously and this deposit must not add up to more than $5,000.
You must have a valid HDB loan eligibility (HLE) letter or bank letter of offer when you sign the OTP.
Step 8: Submit the resale application
You and the flat seller must submit your resale applications within 7 days of each other.
Your resale applications can be submitted through these two systems. (You need not use the same system as the seller)
For buyers and sellers who have not engaged the services of a salesperson, and for salespersons to submit applications on behalf of buyers or sellers.
- Estate Agent Toolkit
For salespersons whose estate agents have signed up for the Estate Agent Toolkit to submit applications on behalf of buyers or sellers.
- A valid HDB loan eligibility (HLE) letter or a letter of offer and acceptance from your bank (if you are taking a housing loan).
Step 9: Attend the first and second appointment
The second party to submit their portion of the resale application will book a first appointment at HDB. The appointment date must be mutually agreed on by both parties as both parties are required to be present at the resale first appointment. You may refer to the enquiry on available dates for resale first appointment eService to see available dates and time slots.
Subsequent changes to the appointment date can be made by either the buyer or seller by logging onto My HDBPage (with consent of both parties).
If the resale application is approved, the HDB will schedule the second appointment 6 to 8 weeks later.
See more at: http://www.ecitizen.gov.sg/Topics/Pages/Resale-HDB-flats-How-to-buy.aspx?Tab=Overview#sthash.m2Y5ojNz.dpuf
Services & tools
- Check resale flat prices
- Look up resale prices of flats at all HDB estates over the past year.
- Calculate estimated resale financial plan
- If you are taking an HDB loan, you can use this eService to estimate your resale financial plan.
- HDB centralised map services
- Check resale transacted prices within 500 m of any HDB Block or DBSS site/project.
- Check your eligibility to buy a resale flat under the EIP and SPR quota
- Search by street name, block number or by postal code.
- Check your CPF savings
- Check your CPF ordinary account (OA) balance.
- Submit resale applicatio or make a valuation request via eResale
- Submit your resale application or make a valuation request.
- Check available dates for first appointment at HDB
- Find a suitable date for you and the seller to meet HDB’s resale officer.
- My HDBPage
- Keep track of and manage your appointments with HDB.
- Public register of estate agents and salespersons
- Check that the salesperson you are engaging is registered with the Council for Estate Agents (CEA).
Image of HDB flats used under GFDL licence.
– See more at: http://www.ecitizen.gov.sg/Topics/Pages/Resale-HDB-flats-How-to-buy.aspx#sthash.jbxLpKSZ.dpuf
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