Buying a resale HDB flat from the open market? Use this guide to plan your purchase.
To buy a resale HDB flat from the open market, you have to ensure that you meet the conditions of one of the eligibility schemes.
Home purchase is a long-term financial commitment. It is crucial for you to assess your budget carefully before you buy a flat.
If you plan to take an HDB loan, you may apply for a HDB loan eligibility letter (HLE). The letter will indicate the loan amount you are eligible for. Do note that you will need to produce a valid HLE letter when exercising the Option-To-Purchase.
If you plan to take a housing loan from a bank, you may approach the bank to ask for a loan assessment.
To look for a flat that suits your needs, you may refer to advertisements in the newspapers and the Internet, or you may hire a salesperson.
You may make arrangements with the flat owners or their salespersons to view the flats that they put up for sale.
Check EIP and SPR quotas of the flat you intend to buy
The sale of resale flats are subject to ethnic integration policy (EIP) quotas (which promote racial integration and harmony) and Singapore permanent resident (SPR) quotas (which promote integration of non-Malaysian SPRs into the local community).
To check the latest quota in any particular area, you may use HDB's eService to check buyers' eligibility under the EIP and SPR quotas.
Check resale flat prices in your preferred area
You may wish to visit the HDB InfoWEB to check the resale transacted prices of comparable flats in the past two years. This eService assist you in making an informed decision, taking into account the resale flat prices of comparable flats in the past two years.
You can also use the HDB centralised map services to search for the following:.
After you and the flat seller agree on the resale flat price, the seller (and their salesperson, if any) is required to fill up a standard HDB option to purchase (OTP) form and hand it to you. In exchange, you need to pay a negotiable option fee to the seller. This option fee can range from $1 to a maximum of $1,000.
After you have signed the OTP, the flat sellers have entered into a binding contract to sell their flat to you. They are not allowed to grant another OTP to another buyer unless you choose not to exercise your OTP within the 21 days i.e. the OTP granted to you has expired.
The valuation report will be used by the HDB, the CPFB or your bank to calculate:
More information on the valuation process.
If you decide to go ahead with the purchase, you must complete or endorse the resale checklist for buyers before you exercise the OTP.
If you choose not to buy: The OTP will expire at 4 pm, 21 calendar days (including Saturday, Sunday and public holidays) from the date that the seller granted you the OTP. E.g. if the seller grants the OTP to you on 1 April, the OTP will expire on 22 April at 4pm.
The option fee that you paid to the flat seller will not be refunded.
If you decide to buy: Sign the OTP within 21 calendar days. After you have signed the OTP, you may hand it to the flat seller or their salesperson. You must pay a deposit to the flat seller. The option fee you paid previously and this deposit must not add up to more than $5,000.
You and the flat seller must submit your resale applications within 7 days of each other. Besides that, both portions must be submitted within the previously agreed number of days on page 4 of the OTP.
Your resale applications can be submitted through these two systems. (You need not use the same system as the seller)
Required documentsA valid HDB loan eligibility (HLE) letter or a letter of offer and acceptance from your bank (if you are taking a housing loan).
First appointmentThe second party to submit their portion of the resale application will book a first appointment at HDB. The appointment date must be mutually agreed on by both parties as both parties are required to be present at the resale first appointment. You may refer to the enquiry on available dates for resale first appointment eService to see available dates and time slots.
Subsequent changes to the appointment date can be made by either the buyer or seller by logging onto My HDBPage (with consent of both parties).
Second appointmentIf the resale application is approved, the HDB will schedule the second appointment 6 to 8 weeks later.