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HDB Resale process, timeline and procedures (Part 2)

Here is the part 2 of the HDB resale process , timeline and procedures. Lets recap on the steps where we stop and continue from there.

Before you sell your HDB

  1. Check your eligibility to sell

  2. Understand your estimate sales proceed

  3. Decide on hiring professional housing consultant or DIY

When you start to sell your HDB

  1. Register your HDB Intent to Sell

  2. Advertising your home for sale.

  3. Arrange for viewings for interested buyers (physically or virtually).

  4. Request for Option to Purchase (OTP) from the seller

Once you grant your buyer OTP

  1. Buyer to request a valuation

  2. Buyer to exercise the OTP

Once Buyer Exercise OTP

  1. HDB resale application submission

  2. Safety inspection by HDB branch officer

  3. HDB resales documents endorsement and Conveyancing Payment

  4. Resale HDB approval

  5. HDB buyer's final inspection

  6. Attend HDB completion appointment and handover keys to new homeowners

Register Your HDB Intent To Sell

Sellers are required to log-in to HDB Resale portal and register "Intent to Sell" . The portal will also help to check your eligibility to sell your flat. This is a double checking system that enables you to sell to the right buyer without making mistake.

Upon registering "Intent to Sell", there is a cooling off period of 7 days for the seller. Seller can only grant the HDB Option to Purchase after 7 days of registering the Intent to Sell.

Advertising Your Home For Sale

Sellers can put up their unit for sale to look for potential buyers. However, before you invite any potential buyer to view your property, do ensure your property is presentable. Of cause, if the house is messy and dirty, buyer may think twice before offering or may even offer at a lower value because they assume of the work required to restate the whole house.

Request for Option to Purchase (OTP) from the seller

The HDB OTP has a standard of 21 days option period for the buyers to get ready their valuation report and mortgage loan. Seller CANNOT grant another HDB Option To Purchase to another buyer before OTP expired. Once the HDB OTP will expire after 21 days, 4 pm, and the seller can grant the HDB OTP to another buyer.

Once you and the potential buyer agree with the selling price, you can grant the buyer the HDB Option to Purchase (OTP) to receive the option fee from the buyer.

Buyer to request a valuation

Once buyer get the OTP, buyer need to request for valuation of the property they are buying. As the property seller, you need to understand why the buyer needs a valuation of the property they are buying.

When the buyer purchases the flat with their CPF savings or a housing loan from the bank/financial institution (FI) or HDB, they must submit a "Request for Value" to HDB via the HDB resale portal by the next working day upon receiving the HDB Option to Purchase (OTP) from you, to determine the value of the flat. The value of the flat will forms the basis for their CPF usage.

The HDB or bank/Financial Institute will take the value as the reference unless otherwise advised by a bank/Fl. With effect from 16th Dec 2021, the maximum loan-to-value (LTV) of HDB housing board loans is tightened by 5%-points from 90 percent to 85% of the value, and the Financial Institute maximum LTV is at 75% of the value, subject to buyer combine income and HDB/FI approval. Please note that the assigned valuer may request to inspect the flat for valuation. You must, within three working days, allow the assigned valuer to inspect the flat.

The value of the flat will remain valid for a period of 3 months from the day it is made available in the HDB Resale Portal.

Buyer To Exercise The OTP

Buyer must exercise the OTP within 21 calendar days from the option date. All buyers must sign the "Acceptance" section in the OTP and pay a deposit fee not exceeding $5,000.

Please note that the Option fee is part of the deposit.

Suppose the buyer fails to exercise the OTP by the 21st day, 4 pm. The buyer will forfeit the Option Fee, and you can grant a new OTP to another buyer.

HDB Resale Application Submission

You and the buyer must agree to a date to submit the HDB resale application within the number of days on page 4 of the OTP that both had agreed on previously.

Both you and the buyer have to submit the HDB resale application separately. Either you or the buyer can be the 1st party to submit first, and within 7 days the 2nd party must submit the HDB resale application.

Safety Inspection By HDB Branch Officer

You will be informed of the inspection date in HDB's notification of the acceptance of the resale application.

The purpose of the inspection by the HDB Branch is to check for windows safety, and unauthorized renovation works in the resale flat, which may damage the common property or other flats in the building and affect the structural stability of the building.

HDB Resales Documents Endorsement and Convenancying Payment

HDB will notify you and the buyer once the resale documents are available in the HDB Resale Portal. Both you and the buyer must endorse the documents within 6 days upon receiving the notification from the HDB.

Resale HDB Approval

You are almost approaching the end of the transaction. Once all documents are endorsed by both you and buyers. HDB will process to grant the resale HDB approval when all documents are in place.

Now you need to make sure your property tax is fully paid for the year. You also need to pay up the town council conservancy charge up until the HDB legal completion date.

HDB Buyer's Final Inspection

Before the HDB completion appointment, you need to allow the buyer to have a final inspection to ensure all movable items are shifted out in vacant possession state.

Attend HDB Completion Appointment and Handover to New Homeowners

Lastly, you and the buyer will attend the HDB legal completion appointment in HDB Hub Toa Payoh

If you are taking an HDB housing loan, you will sign the mortgage document/agreement during the resale completion. You will also need to hand over the keys to the flat to the new owner.

Congratulation! You have completed the resale procedure.

HDB Resale Timeline

The above timeline summarizes the HDB resale procedure timeline from the day you submit the HDB Intent to Seller until the HDB resale legal completion. It takes about 12-14 weeks from the day you (the seller) grant the OTP to the buyer until HDB resale legal completion.

17. Important Notes

WHY did you want to sell? You have to know your purpose, and is there a need to sell?

WHERE will your next home be? You have to plan your next move correctly.

WHAT are the pros and cons if you execute the plan?

WHEN is the right time to execute your plan? It is good to know the market trend and analyze the right time to execute your plan.

HOW do you want to execute your plan? You need to have a set of action plans in place to make it work well.

WHO shall assist you in executing the plan? Be it do it yourself or engage a professional realtor, most importantly, make it work.

18. Conclusion

I hope this article provides you with a clearer picture about selling your HDB flat. You need to take note of many steps and clear them before reaching the HDB legal completion steps.

This article only provides you with the standard scenario procedures. Should you have any complicated scenario, I suggest you consult a professional realtor to assist you in executing your plan.

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