With the introduction of HDB Portal since 1 January 2018, HDB resale process is made more seamless, efficient and user-friendly and timeline is shortened to aid HDB resale home buyers get their keys faster. The original HDB resale process “First Appointment” are integrated into the system, saving time and cutting short the timeline for HDB resale process. Typically, a HDB resale process for a normal transaction (based on submission within 30 days) can be as fast 10 weeks or as long as 16 weeks from the exercise date of the Option To Purchase (OTP) until HDB completion, depending on how fast you submit for resale application, as compared to 12 weeks to 20 weeks with the old HDB resale process.
We will be diving into the current HDB resales process as well as milestones during the estimated timeline of the transaction from the option of a HDB flat until the HDB completion.
Understanding the HDB resale process & timeline is vital for your next transition so as to better allocate and adjust renovation lead time or otherwise make plans for funds such as the refund of CPF monies and disbursement of CPF monies.
Our elaborated timeline below will be based on the longest possible HDB resale process timeline for a normal HDB transaction on basis of 30 days submission upon exercising of the OTP.
Prior to Buying or Selling
Buyers and sellers are required to do the necessary check prior to selling or buying of a HDB Flat.
For sellers, ensure that you are eligible to sell and make sure you have done a proper financial plan, understanding your proceeds as well as planning for your next transition (if required).
Buyers should check on their eligibility to purchase, understand their CPF/Cash funds available for usage as well as housing loan availability and options. With the details available, work on the budget that you will be comfortable with.
Subsequently, both buyers and sellers should register their intent to sell or buy through HDB Resale Portal. Buyers and sellers must have their singpass ready as the log in credentials will be base on their singpass access.
Note: Sellers need to adhere to a 7 days cooling period after registering their intent to sell, meaning they can only issue Option to Purchase (OTP) after 7 days.
Now you are ready to sell or buy a HDB flat.
Fast forwarded, sellers have now found their buyers and buyers have found their home. The HDB resale process timeline sets in with the conclusion of the transaction and issuance of an OTP.
For illustration purpose, we had listed the longest possible HDB resale process and timeline below based on 30 days submission for resale application after exercising the OTP
Issue Option to Purchase (OTP)
HDB Resale Timeline: Week 1
After the OTP is issued, buyers are required to request for a valuation via their HDB Resale Portal for the flat they purchased by the next working day (unless you are using FULL CASH for purchase).
Depending on your mortgage loan preference, you are required to have obtain a letter of offer from banks or HLE letter from HDB.
All documents have to be ready before you can proceed to exercise the OTP within 21 days from the OTP issuance date.
No action is required from the seller at this stage while waiting for the buyer to exercise the OTP.
Exercise Option to Purchase
HDB Resale Timeline: Week 4
Buyers exercise the Option to Purchase on the last day of the option period.
Note: Buyers can exercise the OTP any days within the 21 days from OTP expiry.
Submit Resale Application
HDB Resale Timeline: Week 8
Buyers and Sellers are to submit the resale application respectively within 30 days from OTP exercise date via the HDB Resale Portal. It is important to work out and have consensus on when to submit with the other party.
Note: Either party may submit first, but the 2nd party must submit within 7 days from the submission of the first party.
Useful Tip: Documents will be required to be uploaded during submission. You can log in to fill up all the information first until the page where the documents required are listed and save as draft. In this way, you will have more time to prepare the documents.
Acceptance of Resale Application
HDB Resale Timeline: Week 10
Sellers and buyers will be prompted via sms that the resale application is accepted. In the SMS, they will be informed on the estimated completion date.
Note: Acceptance of resale application may be as fast as 3 working days depending on the volume of resale application submissions.
Upon acceptance, HDB starts processing the transaction checking buyers and sellers eligibility as well as processing documents required.
Flat Inspection and Document Endorsement
HDB Resale Timeline: Week 12 to 13
HDB Branch Office will informed seller on a date for inspection for any unauthorised renovation alteration of the flat. If there are any unauthorised modification, sellers are to remove or reinstate to the original state before completion.
Buyers and sellers will receive an SMS to endorse the documents. A series of resale documents including calculations, forms and undertakings will be prepared and require endorsements individually from all parties. i.e Seller A and Seller B must log in to the resale portal via individual’s singpass to endorse the documents if there are two owners to the flat.
Payments for administrative fees such as caveat fees and conveyancing fees are to be made via online payment in HDB Resale Portal or HDB Hub within 3 days with the printed advice if you have no means to make the payment online.
Approval of Resale
HDB Resale Timeline: Week 14 to 15
Resale transaction is approved at this stage. Buyers and sellers will receive an SMS stating that the application is approved. The approval letter can be found in the HDB Resale Portal.
HDB Resale Timeline: Week 18 to 20
Completion for resale flats are usually 8 to 10 weeks from the Acceptance of Resale Application. Prior to completion, sellers must ensure that all giro payments in regard to the flat are terminated, property tax is paid until the end of the year and S&CC is paid until the completion date. Payment for S&CC have to be made at Town Councils physically to obtain a receipt from them. The receipt for S&CC paid and a proof of payment with no outstanding property tax amount is necessary during resale completion.
Buyers should arrange to inspect the house to ensure vacant possession unless otherwise agreed upon and to ensure that all balance payment pertaining to the purchase are made. Also ensure that there is a valid fire insurance purchased if you are using HDB loan for your purchase.
You will again, receive and SMS update on the time and date scheduled (this time including the timing) for your resale completion around 1 week before the completion date.
Factors That May Affect HDB Resale Timeline
- How fast buyer exercise the Option. (speeds up when buyer exercise the OTP earlier)
- Submission days for resale application. (speeds up when submitted earlier)
- Resale application submission volume (delays when the number of resale applications are higher)
- Complication of case i.e buyers taking grant or contra cases (may delay the acceptance of resale application)
- Delay in HDB Inspection (causing next course of action to be delayed)
- Delay in endorsement (causing the next course of action to be delayed)
Engaging Private Lawyer for Conveyancing
There will be a slight variation in the HDB resale process but the timeline remains similar to that illustrated above. Sellers and buyers engaging a private solicitor will have to send the exercise OTP to their preferred law firm and buyers also have to send in their Letter of Offer from banks upon the execution of the OTP. Ensure that your selected law firm is under the bank’s panel of solicitors.
There will be an extra document, Solicitor Acting Letter, provided by the law firm to be uploaded when you submit for resale application.
Buyers and sellers engaging the private solicitors are required to make a trip down to the law firm prior to the completion to sign the required documents as well as making payments (for the purchase or law firm) and need not be present for the completion. Law firm will be representing you for the completion of the transaction.
Summary of HDB Resale Process and Timeline
By understanding deeper on the HDB resale process and timeline, you can make better time and fund management in terms of transition and renovation.
The entire HDB resale process and timeline is summed up in this article and summarised for easier understanding for our readers.
Still confused? Feel free to reach out to us if you require any assistance in planning and transiting to your next property.