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SGPD 60-Sec Read: How to buy a resale HDB flat?

Shelwyn @ SGPD — Wed, 06 Sep 2023 06:05:43 +0000

What is the first step if I am looking to buy a resale HDB flat?

First of all, apply for the HDB Flat Eligibility (HFE) letter on the HDB Portal.

This letter will provide you with information about your qualification to purchase a resale flat, in addition to outlining the CPF housing grants and HDB housing loan amount you are entitled to.

If you are intending to take a home loan from a bank instead of HDB, then you should concurrently apply for an In-Principal Approval and subsequently get the Letter of Offer (LO) from the bank.

So I have the HFE letter, what's next?

Congrats! With the HLE letter in hand, you can now set a budget for your search. Your HFE letter is valid for 6 months.

PropertyGuru is by far the most popular portal where the latest resale listings are posted and updated regularly.

Start with a shortlist of about 3-5 resale flats and set up viewing appointments.

You should always visit the flats you like at least twice, preferably at once in the day and once in the evening.

This will give you a good idea if there are any night and day differences or if you spot any dealbreakers.

I would like to buy a resale flat that I like, what is next?

(A) Obtain an Option to Purchase (OTP):

Get an OTP from the seller or seller’s agent. The seller needs to have already registered for an Intent to Sell for more than 7 days before an OTP can be issued to you.
You will need to pay an option fee between $1-$1000 to the seller.
You will need to submit for a Request for Value by the next working day after you get the OTP.
You have 21 calendar days to decide if you would like the exercise the OTP. Exercising means you have decided to buy the flat.
If you are getting a home loan from a bank, you will need the LO before exercising the OTP.

(B) Exercise the OTP:

With the HFE letter (+ LO for bank loan) and HDB’s valuation, you may exercise the OTP if you decide to purchase the resale flat.
You will then need to pay the seller an option exercising fee of not more than $5,000, including the option fee amount that you’ve already paid.

After exercising the OTP, how do I complete the purchase?

Both you and the seller are required to individually submit your portions of the resale application within the specified timeframes:

Within the designated number of days mentioned on page 4 of the OTP.
Within 7 days of each other’s submissions.

If both parties’ application and documents are in order, HDB will notify you and the sellers of their acceptance of the application.

Thereafter, it will take about 8 weeks to process the application and complete the transaction. This is the earliest possible date to complete the transaction.

You may possess the flat after transaction is completed, unless you have agreed to give an extension (maximum up to 3 months) to the seller.

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If you have any other questions that I did not address

The post SGPD 60-Sec Read: How to buy a resale HDB flat? first appeared on SGPD.

Joint Tenancy & Tenancy in Common: What You need to know as a Co-Owner

Shelwyn @ SGPD — Sat, 19 Aug 2023 08:48:07 +0000

Property ownership in Singapore offers multiple avenues for co-ownership, and two common options are Joint Tenancy and Tenancy in Common. In this article, we’ll dive into the implications of Joint Tenancy and Tenancy in Common, helping you navigate these options effectively.

Joint Tenancy

Joint Tenancy is a widely adopted form of co-ownership in Singapore. Its standout feature is the right of survivorship, which means that when one co-owner passes away, their share automatically transfers to the surviving co-owners. This setup is common among spouses and family members.

Key Attributes

Right of Survivorship: Upon the demise of a co-owner, their share seamlessly passes to the surviving co-owners, ensuring the property remains with the original owners.
Equal Ownership: All co-owners possess equal shares in the property, regardless of their financial contributions or investments.
Undivided Interest: Each co-owner has full access to the entire property, not just a specific portion.
Simplicity in Transfer: When one co-owner passes away, the property’s ownership changes without the need for a will or probate process.

Tenancy in Common

Tenancy in Common is another common co-ownership structure. In this arrangement, co-owners hold distinct and individual shares of the property. Unlike Joint Tenancy, Tenancy in Common does not entail an automatic right of survivorship. Each co-owner can sell, transfer, or bequeath their share independently.

Key Attributes

1. Distinct Shares: Co-owners can possess varying ownership percentages based on their contributions, investments, or preferences.
2. No Right of Survivorship: In the event of a co-owner’s demise, their share is distributed according to their will or Singaporean laws, not automatically transferred to other co-owners.
3. Transfer Flexibility: Owners can sell or transfer their share to other parties without requiring consent from fellow co-owners.
4. Wills for Clarity: To dictate the fate of their share upon their passing, co-owners must draft a will outlining their preferences.

So, Should I choose Joint Tenancy or Tenancy in Common?

The decision between Joint Tenancy and Tenancy in Common hinges on factors such as familial relationships, investment goals, and long-term plans. Joint Tenancy is suitable for those seeking a streamlined ownership transfer to surviving co-owners, often favoured within families.

On the other hand, Tenancy in Common caters to individuals or groups where flexibility in transferring or selling ownership is essential.

There is no hard or fast rule because it really depends on your specific situation. For instance, if you are looking for a different percentage ownership on your property with your spouse, then Tenancy in Common is the way to go.

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If you have any other questions that I did not address

The post Joint Tenancy & Tenancy in Common: What You need to know as a Co-Owner first appeared on SGPD.