1. 15-month Wait Out Period For Private Property Owners
Before 30th September 2022, private property owners who sell their private properties within 6 months of purchasing a HDB flat can buy an HDB resale flat on the open market. However, this will no longer be allowed.
Private residential property owners and those who had sold a private property before applying for a resale flat must now wait 15 months before they can buy a non-subsidised HDB resale flat.
This means that if you had exercised your Option to Purchase (OTP) before 30th September 2022, you’ll have to wait 15 months to buy a resale flat.
So, what if you’ve already sold your private property?
Well, HDB will be flexible enough to waive the 15-month wait-out period for those who have proof that they’ve obtained an OTP to buy a HDB resale flat.
All you have to do is to file an appeal to HDB with the following documents:
- Proof of Option Fee* payment
*An option fee of $1 to $1,000 in cash is paid to the seller to ‘reserve’ the property*
- Proof of Option Exercise Fee** payment
**Within the option period of 21 days, the buyer can exercise his OTP, which means he has legally agreed to buy the flat, and this fee should not exceed $5,000 when the Option Fee is included. Once the option has been exercised, the buyer has legally agreed to purchase the property and cannot back out of the property transaction**
However, if the OTP has NOT been obtained before 30th September, but the resale buyer has committed to selling or has sold their existing private property, HDB will assess the situation on a case-by-case basis.
In the event where the resale flat buyers are no longer eligible for the purchasedue to the 15-month wait-out period, the OTP will become invalid and void. Sellers will then be required to refund the Option Fee paid to the buyer.
Note: This measure WILL NOT BE APPLIED to seniors who are 55 and above who are moving from their private property to a four-room or smaller resale flat.