Smoothening The Resale Transaction

Flat owners who have sold their flats are required to move out as soon as they complete the resale transaction. This is because flat buyers are required under the lease to immediately occupy their homes.

But this may put some sellers in a difficult situation. Some do not have their next homes to move into, as they may not yet be ready, e.g.renovation is in progress. Others may first need the funds from the sale of their current flat, before they can complete the purchase of their next home.

As a result, they often need to frantically look for some short interim rental arrangement, resulting in some disruption to their daily life.

This is a problem which has cropped up occasionally during MPS. I have to appeal to HDB, on behalf of the residents, to allow the sellers more time to move out of their sold flats.

To resolve this problem, HDB will tweak the policy, and will henceforth allow sellers to extend their stay in their sold flats temporarily, for a period of up to three months. But the arrangement should be privately negotiated and agreed upon between the buyer and seller, and be submitted together with the resale application.

In other words, if the buyer agrees with the request by the seller for such a temporary arrangement, HDB will have no objection.

We settled on a three-month period as we think it should be sufficient time for flat sellers to complete the purchase of their next home, or make the necessary arrangements to shift into their next home.

HDB estimates that some 15% of total resale transactions, or about 2,700 households a year, will stand to benefit from this policy tweak. I commend the HDB for this move.

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