Today i would like to share with you the simple resale check list & procedure for Singapore Government Housing Estate (HDB).
(A) Pre-Preparation & Discussion:1 Visiting the house owner & Discussion - The agent & Client
2 Financial Plan - Both Buyer & Seller shall study their HDB loan eligibility schemes:
Buyers age, sex, income, bank or HDB loan or contra facility
Buyers study loan financial package, CPF Ordinary Account Balance.
Seller Outstanding Loan (get from Branch Office), Resale Levy if required !
Seller CPF Refund with Interest statement, can obtain from CPF Board
3 Price Discussion - Agent & Client
Targeted Asking / Purchase Price ?
Cash above HDB Valuation price ?
CMA Study of HDB Asking Price, Bank VR & Transacted Price
Chk if clients required to take up the contra facility or not?
Prepare the Resale flat information - Agent & the Seller
4 Agent Commission Guidelines for buy and sell - Agent & the Client
5 Sign the agree Exclusive Authorization contract to Buy/Sell property - Agent & the Client
(B) Work in Progress: Starting the process of property resale action
6 Confirmation of Seller ownership (Check their property tax or Deed of Title)
HDB online request for Confirmation of Eligibility to Resale
Request & Pay the HDB Valuation Report (3 months validity)
Check Min. years of occupany eligibility. Has the unit rent before ?
Is the Flat had undergone Main Upgrading Program? Who shall pay the upgrading fee ? (Note : usually PR will pay very high upgrading fee)
7 Buyers citizenship: 1SC or 2 PR, Age:>21
CPF Housing Grant Scheme ($30K / $40K) - Income ceiling less than $8K
Additional CPF Housing Grant Scheme ($30K ) - Income ceiling less than $4K
Finance/Financee Scheme - Buyer to produce Marriage Certificate to HDB before completion
Principal in Approval for bank loan (5% cash of HDB valuation price is required !)
Obtain HLE Letter (Valid for 3 months only)OR Letter of Offer (LO) from bank loan
(Bank loan require Laywer)
8 Credit accessment on Buyer. Financial Plan &
house mortgage loan ( HDB / Bank ) capability.
Organising the agent co-broke listing
9 HDB Flat for sale advertisment - Seller Agent
Buyer's agent's are welcome to co-brokeing during house viewing activity.
Arrangement of house viewing activity
Check for Eligibility of HDB Ethnic Integration
Price negotiation
10 Sign Option to Purchase Agreement - When buyer & seller both have agreed with the final selling price (Option fee max $1K)
Sign HDB Resale Check List
check for Power of Attorney, Divorce or Bankkrupt ?
Option Exercise must be within Option Period (14 days)
(C) Execute the Contract Progress:
11 Sale & Purchase Application for manual submission to HDB
Fill in the Inventory List where necessary
12 Prepare all the relevant photocopy doc. for submission
13 Buyer pay seller Deposit = Option Fee + Option Exercise Fee (Max $5000)
Buyer & seller pay re-salenet regrestration fee each
Buyer & seller sign Letter of Undertaking - Agent's Service Fee
14 Buyer to buy Valuation Report if application of HDB Loan
15 Application for CPF Housing Grant - for Singapore Citizen Only
16 Application of Advance Contra Facility (Not applicable for bank loan)
17 Spouse consent to sell should he/she is not an owner
18 Bridging Loan Application, Power of Attorney if required
19 Letter of Approval from Assignee (For case of Bankruptcy)
20 Submit documents to HDB (no resale net application !)
21 Engage Lawyer if the loan is from the financial institute
(D) Attend the HDB 1st Appointments & House Inspection:
22 HDB officer shall conduct a House Inspection at seller place before 1st appointment
23 In the HDB 1ST appointment process :
HDB officer verify the buyer / seller documents & Agent submit Agent's SD
Buyers Credit Accessment, Financial Plan ,
Buyer apply Housing Grant near Parent (Parent need to be present)
Buyer pay HDB Caveat Fee
Buyer settle cash payment with HDB within 10 working days - 10% max. of resale price
24 Both Buyer & Seller receive the Approval Letter from HDB in 2 weeks time.
25 Buyer inspecting the house before the Resale Completion date
(E) Completion of Resale (HDB) Progress
26 Seller should terminate on all GIRO Services.
Seller pay Service, Conservancy Charge & Property Tax
27 Buyer buy the HDB Fire Insur. & cash balance settlement
28 Seller sign the document transfer
Buyer sign the mortgage agreement (For HDB Loan)
29 Seller handover keys to buyers
30 Buyer apply or transfer of electricity, water and gas
31 Seller receive cheque for Net Sales Proceeds from HDB.
32 HDB to refund seller CPF monies with interests within 7 working days
