š¢Selling Your HDB? Hereās What You Need to Know About the Temporary Extension of Stay!
Selling your HDB flat but worried about having nowhere to live while waiting for your next home to be ready? Fret not! HDB has a very handy provision known as the Temporary Extension of Stay. It is a lifesaver for timeline planning, but there are strict rules you need to follow. Let's break down exactly how this works in a simple, easy-to-understand guide!
š What is the Temporary Extension of Stay?
The Basics: It is an arrangement that allows HDB sellers to continue living in their sold flat after the legal completion of the resale transaction.
Maximum Duration: You can extend your stay for up to 3 months from the Resale Completion Date. Take note: HDB is very strict on this, and there are absolutely no further extensions allowed beyond the 3-month mark!
Independent Transaction: The legal completion of your resale flat will still take place on time, regardless of this extension. Once completed, the buyer legally owns the flat while you stay on as a temporary occupant.
š Who is Eligible?
Confirmed Next Home: Sellers must have already committed to buying a completed property in Singapore that is ready for occupation (e.g., you have exercised an Option to Purchase or signed a Sale & Purchase Agreement). You cannot use this if you are waiting for a property currently under construction (like an uncompleted BTO).
Strictly for Sellers: The flat can only be occupied by the sellers and the authorized occupiers listed in HDB's records. You cannot use this extension to let your tenants continue staying there.
š How Does the Process Work?
Mutual Agreement: This is essentially a private arrangement. It is entirely subject to the buyer's agreement. If the buyer says no, the extension cannot happen. Always negotiate this before issuing the Option to Purchase (OTP)!
Application: The request must be submitted together with your HDB resale application.
Admin Fee: Upon confirmation, the buyer will need to pay a non-refundable administrative fee of $20 (inclusive of GST) to HDB.
š Crucial Tips for the Private Agreement
HDB strongly advises buyers and sellers to sign a formal private agreement to protect both parties. Here is what you should cover:
Monetary Compensation: Will the seller pay "rent" to the buyer for these 3 months?
Bills & Maintenance: Who pays for the utilities and Town Council Service & Conservancy Charges (S&CC) during the extension? (Usually, it is the seller who is staying there).
Property Tax Warning for Buyers: During the extension period, the flat will be subjected to the higher non-owner-occupier property tax rate. Buyers should ensure the private agreement factors in who will cover this difference!
Termination Clause: Outline what happens if either party decides to cancel the arrangement early.
š” Looking Beyond the Usual Property Transactions? Let's Talk for a seamless transaction!
Mastering resale timelines is just the tip of the iceberg! Most importantly is the seamless transition !!!
