All you will need to know before selling your current Private Residential Property and buying a BTO Flat, New EC or Resale HDB Flat.
1.0 - Hire a Seller agent
Marketing & Sale of Your Existing Property
Hire A Seller Agent You will have to engage a licenced agent to put your property on the market. An agent will be able to leverage their existing group's buyer network to help you find a suitable buyer quickly. The agent will also be able to protect you from underhanded negotiation tactics to lower your sale price. We will cover these scenarios if you choose to sell with me.
2.0 – Downsizing from Your Private Non-landed Or Landed Property
Selling your Private Residential (Non-Landed or Landed)
1) Check Your Private Residential Property Sale Price - Consult Me Directly Now to check your sale price & structure a complete moving plan. 2) Calculate Remaining Loan [Remaining Loan Payments] + [Interest from Bank Loan or CPF Accrued Interest] 3) Determine a Profitable or Negative Sale From the information gathered above, you will be fairly certain whether selling your existing Private Residential Property and moving into your next Private Residential Property will be possible or not; including estimates of cash proceeds. 4) Calculate Your Household Income Here are incomes not considered for credit assessment: - Alimony/maintenance fee - Bonuses - Claims/reimbursement/expenses - Director's fee - Dividend income/interest from deposit accounts - Income from overtime work - National Service allowance - Occupier's income - Overseas cost of living allowance - Pension - Rental income - Scholarship overseas allowance 5) Check Affordability In Cash: - To pay the Option & Exercise Fee (5%), Stamp Duties & other intermittent transaction fees. In Loanable Amount: To check your loanable amount from private banks. You are not eligible for a HDB Loan when buying a Private Residential Property. 6) List Your Existing Private Residential on the Open Market Work with your Seller Agent to market your existing Private Residential Property.
7) Find Buyers & Issue OTP You can issue an Option-to-Purchase (OTP) to potential buyers at 1% of your sale price. 8) Exercise Option (within 14-days) The buyer will have 14-days to 'Exercise the Option' by signing the Acceptance Copy & paying the remaining 4% of sale price (as the Exercise Fee). If the buyer fails to exercise option within the 14-days, the option fee is considered forfeit (you keep it).
You may view and pay the 1% Option Fee to obtain the OTP for your next intended Private Residential Property once your buyer of your existing Private Residential Property has 'Exercised their Option'. 9) Seller's Lawyers receive Acceptance Copy The OTP Acceptance Copy will be delivered to your lawyer, where a legally binding contract is formed. 10) Buyer's Lawyer Lodge Caveat The buyer's lawyer will lodge a caveat & conduct legal requisitions & searches to protect the buyer's interest. 11) Seller's Lawyer discharge Seller's Mortgage Your lawyer will arrange to discharge your mortgage. 12) Legal Completion of Sale Once all the legal requisitions are deemed satisfactory, the sellers and buyers will proceed for completion.
Completion statement will reflect: - Outstanding loan settlement with the bank; and - The property tax paid till date of completion; and - Settlement of: Utilities Bill, Maintenance Fee, Commission to Salesperson, Lawyer Fees
The balance after deductions will be issued as 'sales proceeds' to the seller.
3.0 – Decide Which HDB Property to Buy
Consider Your 3 Choices
1) HDB Resale Flat (no wait period; unless Resale HDB with Grant) You may buy a HDB Resale Flat from the open market. Hire a buyer agent to distinguish between false advertisements for properties by virtue of being a licenced agent itself. A buyer agent would also help calculate your financial affordability and minimise expected mistakes through the buying process. 2) BTO Flat (wait 30 months) If you have not used up your 2 chances to apply for a new 'subsidised flat' from HDB. You may sell your Private Residential Property, and wait 30 months before applying for a BTO Flat 3) New EC (wait 30 months) If you have not used up your 2 chances to apply for a new 'subsidised flat' from HDB. You may sell your Private Residential Property, and wait 30 months before applying for a New EC.
2) Applying for BTO Flat or New EC You will have to sell your existing Private Residential Property and then wait out 30 months before applying for your new HDB Property. This is because you are considered a wealthier individual as a recent private property owner; and this measure prevents homeowners from your asset class from flooding the new HDB Property applications, resulting in a shortage for those who need it most.
You will need to find a rental accommodation to wait out these 30 months; or, if not urgent, you may consider buying a Resale HDB Flat anyway, and live comfortably through the 5 year MOP before applying for a New HDB Flat if you still desire to do so then.
1) Register to Buy Log in to your HDB Resale Portal and register for the HDB Flat Eligibility and apply for Home Loan Eligibility (HLE) if you plan on taking a HDB loan. Valid for 6 months. read more about the resale Purchase process here. 2) Engage a Buyer Agent Hire a buyer agent to distinguish between false advertisements for properties by virtue of being a licenced agent itself. A buyer agent would also help calculate your financial affordability and minimise expected mistakes through the buying process. 3) Search for a Suitable Flat & Obtain an Option to Purchase (OTP) Arrange viewings with your buyer agent and fork out the S$1,000 Option Fee to receive the signed Option to Purchase (OTP). Your OTP Date has begun. 4) Apply for Valuation Submit request for value here as soon as possible. Once you have received the valuation, you may choose to proceed with the sale. 5) Bank Loan (if applicable) & Law Firm Representation Unless you have applied for a HDB Loan earlier, this is where you apply for a Bank Loan to receive a Letter of Offer; and engage a law firm to represent you as well. 6) Exercise Option (within 21-days) Exercise the Option to Purchase (OTP) by paying the seller the remaining S$4,000 Exercise Fee and signing on the acceptance section; this has to be done within 21-days of OTP Date.
9) Application Acceptance & Inspection Once HDB has received and accepted both your resale applications, they will send Technical Executives to check if there are unauthorised renovation works in the flat that may damage HDB property and affect the structural stability of the flats/ building. You (the incoming buyer) are encouraged to do your own inspection as well. Read more about the inspection process here.
10) Completion of Resale Purchase Once approved, you will have to prepare the balance payment of the flat and collect the keys from the seller.
You have 6-months to dispose of your private residential property if done concurrently.
