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June 28, 2023
What are the things to do and payments to pay before completion?
Before completion
There are a few things seller need to do before completion, they are required to :
1. Ensure renovations are authorised and permitted
2. Obtain spouse consent for the sale
3. Settle the following payments
You can find out all the process and FAQ here.
Click on the FAQ below to find out more
You need to contact your HDB Branch, you can find the full list here.
Once the resale application has been accepted, HDB will send a letter to inform you of the resale flat inspection appointment for the sale of your resale flat. This inspection is carried out by the HDB Branch. If you need to change this appointment, you may contact the HDB Branch managing your flat here.
You must remove the unauthorized renovation works in the flat before the completion of the resale transaction.
The HDB officer will prepare the necessary forms for all sellers to endorse via the HDB Resale Portal. If you are the sole owner of the flat, your spouse is required to login in the portal to endorse the ‘Spouse Consent to Resale’ form.
1. Pay resale levy (if applicable)
Resale Levy
If you previously bought a new flat from HDB, DBSS or Executive Condominium (EC) from a developer, or received a CPF Housing Grant. You might need to pay a resale levy when you purchase your next home.
The resale levy maintains a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or EC.
You need to pay a resale levy in either of these cases:
- You dispose of your subsidised flat and then buy a second subsidised flat from HDB
- You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013
You need not pay a resale levy if you are buying any of these:
- Design, Build and Sell Scheme (DBSS) flat from a developer
- EC from a developer, where the land sale was launched before 9 December 2013
- HDB resale flat
- Private residential property
Resale levy amount applies to first subsidised flat sold on or after 3 March 2006
Resale levy amount for first subsidised flat sold on or after 3 March 2006
This fixed resale levy amount gives greater certainty for financial planning, be it for upgrading to a larger flat, or right-sizing to a smaller flat.
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the flat. Payment can only be made by way of your flat sale proceeds and/ or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
When and how payment is made
Yes, you are considered to defer the payment until you purchase another subsidized HDB flat. The interest is at a prevailing rate of 5% per annum is charged.
Most owners overlooked that they have taken housing grants for their first property and miscalculated the financing costs when planning for their future asset purchases.
This deferred resale levy must be paid in cash and not from the sale proceed of your second property
Half-resale levy for Singles Grant recipients
If you are a Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat.
You do not have to pay the resale levy for the sale of your current resale flat since it was bought from the open market.
However, if you have not paid the resale levy when you sold your first flat bought directly from HDB, you will need to do so when you buy or take over the ownership of another subsidised flat.
You do not need to pay the levy if you are buying private property.
The resale levy is payable when you buy or take over the ownership of a second subsidised flat from HDB.
No, as you will not be eligible to buy a third flat directly from HDB after this.
Waiver of Interest for Elderly
Waiver of Interest for Elderly
If you and your spouse are aged 55 and above, have sold your first subsidised flat before 3 March 2006 and right-size to a new 3-room or smaller flat from the November 2015 sales launch onwards, you will pay only the percentage graded resale levy, with the interest waived. The resale levy payable is also subject to a minimum amount of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat sold. These are the same resale levy amounts payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
2. Pay service & conservancy charges and property tax
You have to pay up your liabilities till the day of completion. The procedure is to pay up for the entire year, and HDB or law firm will then apportion the back to you.
You can pay at the paying station within HDB hub or HDB branches or at the AXS machines.
Payment accepted are nets and credit cards.
You are required to pay the property tax up to the end of the year.
HDB will not be able to proceed with the completion of your resale transaction. On the day of resale completion, you must produce the official payment receipts as proof.
3. Pay upgrading cost (if applicable)
If HDB upgraded your neighbourhood a few years back and bills you while you are staying there/ selling but approaching completion.
Then you are obligated to pay for this upgrading cost.
You can pay at the paying station within HDB hub or HDB branches or at the AXS machines.
Payment accepted are nets and credit cards.
Yes. You must settle the upgrading cost in full at the Branch or request to deduct the upgrading cost from your sale proceeds (if any).
Billing will start after the upgrading works are completed and the upgrading cost is finalised.
4. Pay upgrading levy (if applicable)
You can pay at the paying station within HDB hub or HDB branches or at the AXS machines.
Payment accepted are nets and credit cards.
Yes, you may need to pay the upgrading levy if your flat is in an upgraded precinct
AND
- you are a Singapore Citizen household benefitting from the upgrading subsidy for the second or subsequent time; OR
- you are a Singapore Permanent Residents (SPR) household
Please visit the HDB InfoWEB for more details on Upgrading Levy.