Buying HDB, DIY (V): Resale Checklist

Now, you need to fill in the Resale Checklist for Buyers. If you don’t engage a salesperson to represent you, go here. If you do, go here. Basically it is a list of stuffs that you need to be aware of before you are looking for a unit. Ok let’s assume you don’t have an agent to represent you. (If you have, well, it goes without saying that you should ask your agent to do this.)

1. Eligibility to Purchase

a. Check that you are eligible to buy a resale flat under one of HDB’s eligibility schemes. For fiancé/fiancée scheme, you must submit your marriage certificate to HDB at most 3 months from the date of taking possession of the flat. So, let say you want to get married in June, the earliest you can get the flat is March. The entire purchase process takes 3-4 months, so you should start looking for a flat around December the year before.

b. CPF Housing grant. Just tick the box. You are not eligible anyway. (It does not mean that you must be eligible before you can tick the box. Ticking the box simply means you are aware of the existence of CPF housing grant in case you are eligible for it.)

c. You and the sellers must comply with Ethnic Integration Policy and Singapore Permanent Resident Quota Policy. Check here for your eligibility.

(There is one unit where the quota is full for Chinese for that particular month. But, because I put “Indonesian” for my ethnicity in my NRIC, I was assigned as “Other” and hence we were eligible to buy the unit. We didn’t buy the unit in the end, but it is still silly. And, yeah, our marriage will be assigned as an inter-racial marriage from the legal perspective. Ha!)

2. Financing

a. HDB/bank housing loan. Ignore the HDB housing loan part. You are not eligible for it. Ok, for the bank loan, you need to (1) have a bank’s Letter of Offer when exercising Option to Purchase and (2) have accepted Letter of Offer before submitting Resale Application. So, this will be your next step. You need to go to the banks and find out which one who will offer the most suitable loan for you. So you have 14 days to do it as you need to exercise the OTP within that time frame. And let’s forget first about Resale Application. We will get to that eventually.

3. HDB’s standard Option to Purchase

a. To read and understand the standard Option to Purchase. Make sure you read it carefully and know its details.

b. You are given 14-day Option Period to exercise Option to Purchase. By “exercise” it simply means signing the OTP and pay the $4,000 to the owner as Deposit (which in total would be $5,000 inclusive of the option fee).

4. Upgrading cost

a. You have to check whether the flat is under any upgrading programme and who to pay the cost. Ask the owner’s agent whether the flat has been upgraded or not. Or you can check the status here.

(There is one flat that we viewed with a low COV, but it was not upgraded yet, and since we are PRs, we need to pay around $12k for it, which renders the low COV useless.)

5. Resale information

a. You must give true information. Of course.

Ok, so you have ticked them all and both of you signed the checklist. Just make sure that you put the checklist signing date before you sign the OTP. But, before you could sign and exercise the OTP, you need to have a bank’s Letter of Offer for housing loan to finance your house purchase (unless you want to make full payment by yourself, which is unlikely). So, next, banks and loans.

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