A Comprehensive Timeline of Selling HDB Flats

Selling a Housing & Development Board (HDB) flat may take time and, most of all, a lot of effort, as many factors come into play during the process. Therefore, if you are a property owner planning to put up your HDB flat for sale, understanding the timeline of the entire sales process is crucial. This knowledge empowers you to prepare adequately for each phase, ensuring a smooth transition and timely receipt of your proceeds. Here, we outline the comprehensive timeline for selling HDB flats, designed to guide you efficiently through your selling journey.

Step 1: Listing the Property for Sale (1-3 weeks)

Preparing your property for listing is the first step in selling your HDB flat. Creating an appealing listing is also pivotal during this phase. You can do this by posting high-quality photos and an accurate, compelling description of your property to enhance its attractiveness to potential buyers. Moreover, engaging with a proficient real estate salesperson can streamline this process, ensuring your listing finds the right audience and stands out in the competitive market.

Step 2: Viewings and Negotiations (1 day to 4 months)

Once your property is listed, the next phase involves conducting viewings for potential buyers and entering into negotiations. This stage’s duration can vary widely depending on current market conditions and your HDB flat’s attractiveness. Moreover, effective negotiation skills and a deep understanding of market trends are crucial to securing the best possible deal. For more information on how to negotiate with clients, check out our guide on how to handle difficult negotiations.

Step 3: Register Your Intent to Sell (7 Days)

Before transitioning ownership of your HDB flat to the buyer, it’s essential to initiate the process by registering your intent to sell. This critical step ensures that you:

• Verify your eligibility to sell the flat, ensuring that all criteria and conditions for sale are met according to HDB’s regulations.
• Receive a clear timeline on when you are authorised to issue the Option to Purchase (OTP) to your prospective buyer, marking the formal start of the sales process.
• Gain insights into the Ethnic Integration Policy/Singapore Permanent Resident (EIP/SPR) Quota applicable to your block. Depending on the buyer’s ethnicity and residency status, this may affect the sale.
• Obtain detailed information regarding any ongoing or completed upgrading programs for your block, including the financial aspects of billing for upgrading costs. Additionally, you’ll have access to the most recent transaction prices for flats in your vicinity, providing a benchmark for pricing your property competitively.

Step 4: Granting of Option to Purchase (OTP) (1 day to 2 Weeks)

After agreeing on the price for the HDB for sale with the buyer, the next step is to grant the Option to Purchase (OTP), which legally binds the agreement. If your buyer proceeds with the purchase, they should exercise the OTP within the given option period and pay the Option Fee and Option Exercise Fee. The Option Fee ranges from S$1 to S$1,000, and the Option Exercise Fee can be any amount that does not exceed S$5,000. Moreover, the duration of the Option Period is usually 21 calendar days, including Weekends and Public Holidays. Should they not wish to continue, then the OTP will expire when the buyer forfeits the Option Fee. It’s essential for you and your buyer to go through the Important Notes on the OTP and Terms and Conditions of Resale. This has all the procedures and requirements you will need to go through with the HDB sale.

Step 5: Both Parties Submit Resale Applications Online (1 to 7 days)

Following the exercise of the OTP, both the buyer and seller must submit their resale applications to HDB. Before submitting your resale applications, make sure of the following deadlines in the application process:

• Both you and your buyer are required to submit your parts of the resale application within a span of 7 calendar days from each other.
• According to clause 12 of the OTP, you and the buyer must mutually agree upon and adhere to a specific timeline for submitting your application. It is imperative to stick to this agreed schedule.

In the course of submitting your application, you will need to provide the following details and documents:

• Information related to the OTP, including its Serial Number, dates when the option was granted and exercised, the agreed purchase price, as well as the Option Fee and Option Exercise Fee;
• Personal details of both you and the buyer;
• Disclosure of whether you currently have an outstanding loan with HDB or any financial institution;
• Declarations pertaining to your purchase.

Additionally, your resale application may require you to submit further supporting documents. The specific documents needed will be indicated in the My Flat Dashboard upon the submission of your resale application.

Step 6: Endorse Resale Documents and Pay Resale Fees

Upon the approval of your resale application by HDB, you and the buyer will be prompted to digitally sign several documents prepared by HDB, accessible through the My Flat Dashboard. These documents include:

• Details regarding the seller’s proceeds from the sale.
• Acknowledgment of participation in any Upgrading Programme, should it be relevant.
• Consent form from the spouse for the sale of the flat, where necessary.
• Various resale documents require your acknowledgement.

Moreover, both parties, you and the buyer, are obligated to pay an administrative fee—S$40 for one and two-room flats and S$80 for flats with three rooms or larger. This payment can be made online using a credit card via the My Flat Dashboard. Additionally, you, as the seller, are responsible for settling any applicable legal fees, stamp duty (if applicable), property tax, and any charges related to service and conservancy.

Step 7: Approval of Resale Documents

Usually, HDB issues approval for the resale in around two weeks after you and your buyer endorse the documents. After the application gets the green light, both parties will be informed through SMS and email notifications. The approval letter will also be made available on the My Flat Dashboard for both the seller and buyer to access. It’s important to pay attention to the details contained in the approval letter, which will outline:

• The scheduled date for HDB’s flat inspection is set to occur approximately 5 working days after the resale application is approved. This inspection aims to identify any unauthorised renovation works that could potentially harm HDB property or compromise the structural integrity of the flat/building.
• A preliminary date for the resale completion appointment.

Step 8: HDB Inspection (5 Days)

The first HDB appointment involves inspecting the HDB flat for sale to ensure that there are no renovations that may affect the stability of the flat or the building. If there are any unauthorised renovations in the flat, you should rectify them before completing the resale transaction with the seller.

Step 9: Resale Completion Appointment (6 to 8 weeks)

The final step in the sale process is the second HDB appointment, where the official documents are signed and the sale is completed. This appointment typically occurs 6 to 8 weeks after the first, marking the conclusion of the resale process.