HDB imposes 7-day cooling-off period for flat sale

[sleek]

HDB imposes 7-day cooling-off period for flat sale (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1087746/1/.html)
By Mustafa Shafawi | Posted: 18 October 2010 1139 hrs http://www.channelnewsasia.com/imagegallery/store/phppEFCie.jpg



SINGAPORE: From November, sellers of Housing & Development Board (HDB) flats will have to observe a seven-day cooling-off period before they can grant an Option-to-Purchase (OTP) to the buyers.

The cooling-off period starts after they complete a resale checklist which will have to be submitted online to the HDB website.

The checklist was introduced in 2008 to ensure flat sellers and buyers are aware of the key resale and financial policies before they commit to sell or buy a resale flat.

The HDB said the enhanced resale checklist would also require sellers to state their next housing arrangement.

HDB added if sellers intend to buy another flat, they have to work out their estimated sales proceed of their current flat, and submit a financial plan for their next flat purchase

Buyers of resale flats, acting with or without agents, will also be required to complete and submit the resale checklist.

The HDB said the enhancement was part of regular reviews to better protect the interests of sellers and buyers and help them make informed and prudent decisions.

Currently, agents engaged by sellers or buyers are required to go through a resale checklist with the sellers or buyers to highlight key policies and procedures before the sellers or buyers would grant or exercise the OTP.

After the OTP is granted or exercised, sellers or buyers are required to submit the completed checklist to HDB together with the resale application form.

Sellers and buyers without agents are encouraged, but not required, to go through a separate Do-It-Yourself (DIY) resale checklist.

They also do not need to submit the checklist to HDB.

-CNA/wk

[mcmlxxvi]

Well done. The standing of Public Housing has become commodity grade artifacts vis-a-vis insurance policies and timeshares in the gahmen's eyes.

[2824]

I think after the revised rules many pple already think twice before buying / selling HDB resale flats.

So is this really necessary???:confused:

[rattydrama]

Subtle message here, not for speculation. It is for Singaporeans and own stay.

[lancelot]

Subtle message here, not for speculation. It is for Singaporeans and own stay.
Huh? Think you are misreading this. The whole purpose of this is to make sure Singaporeans don't borrow from Ah Long and cash out of their flats to repay them and then have to set up tent at East Coast, stay in the void deck or beg the government for a rental flat because they have no money to buy another home. So if you sell your flat, the HDB wants to know what are your plans for your next roof over your head.

[TS]

Good.... now can overbid and kill all competitors. Then later on 6th day say I want to back out unless seller give me discount. *Faint*

[teddybear]

Why need to tell them? Scare I set up tent at East Coast? :doh:


HDB imposes 7-day cooling-off period for flat sale (http://www.channelnewsasia.com/stories/singaporelocalnews/view/1087746/1/.html)
By Mustafa Shafawi | Posted: 18 October 2010 1139 hrs http://www.channelnewsasia.com/imagegallery/store/phppEFCie.jpg



SINGAPORE: From November, sellers of Housing & Development Board (HDB) flats will have to observe a seven-day cooling-off period before they can grant an Option-to-Purchase (OTP) to the buyers.

The cooling-off period starts after they complete a resale checklist which will have to be submitted online to the HDB website.

The checklist was introduced in 2008 to ensure flat sellers and buyers are aware of the key resale and financial policies before they commit to sell or buy a resale flat.

The HDB said the enhanced resale checklist would also require sellers to state their next housing arrangement.

HDB added if sellers intend to buy another flat, they have to work out their estimated sales proceed of their current flat, and submit a financial plan for their next flat purchase

Buyers of resale flats, acting with or without agents, will also be required to complete and submit the resale checklist.

The HDB said the enhancement was part of regular reviews to better protect the interests of sellers and buyers and help them make informed and prudent decisions.

Currently, agents engaged by sellers or buyers are required to go through a resale checklist with the sellers or buyers to highlight key policies and procedures before the sellers or buyers would grant or exercise the OTP.

After the OTP is granted or exercised, sellers or buyers are required to submit the completed checklist to HDB together with the resale application form.

Sellers and buyers without agents are encouraged, but not required, to go through a separate Do-It-Yourself (DIY) resale checklist.

They also do not need to submit the checklist to HDB.

-CNA/wk

[rattydrama]

If people have to tent they have to tent anyway cos they are desperate and selling away their flat could mean it is their last option.

unlike private ppty purchase, the HDB buyer will need to secure a bank loan first before they can sign the OTP.

In a way the above 7 days cool off period is a waste of time. It is a way to prolong the process and make selling and buying more complex.

They set up one measure after another, it creates more new issues for the banks and lawyers and uncertainties/queries among those people who want to buy/sell NOW.

Why leh?



Huh? Think you are misreading this. The whole purpose of this is to make sure Singaporeans don't borrow from Ah Long and cash out of their flats to repay them and then have to set up tent at East Coast, stay in the void deck or beg the government for a rental flat because they have no money to buy another home. So if you sell your flat, the HDB wants to know what are your plans for your next roof over your head.

[devilplate]

i dun understand the rationale of this measure....:confused:

[devilplate]

sellers can sell to another buyer during the cooling period?

buyers can change mind and get back deposit? or simply no deposit required?

any HDB agts to clarify?

[rattydrama]

so you see, lots of questions now. How to buy and sell properly? KIV liao.


sellers can sell to another buyer during the cooling period?

buyers can change mind and get back deposit? or simply no deposit required?

any HDB agts to clarify?

[hans]

I believe this measure is to protect sellers who are downgraders or sellers above 55 yrs old, or the unit is in negative equity, they sell their larger units to downgrade to smaller units, but later found out, the loan quantum, either hdb loan or bank loan, they cannot even buy a 3 room flat. But too late, OTP signed, cannot back out.


i dun understand the rationale of this measure....:confused:

[2824]

Agree it is to protect the sellers, since buyers can just don't exercise the OTP.



I believe this measure is to protect sellers who are downgraders or sellers above 55 yrs old, or the unit is in negative equity, they sell their larger units to downgrade to smaller units, but later found out, the loan quantum, either hdb loan or bank loan, they cannot even buy a 3 room flat. But too late, OTP signed, cannot back out.

[devilplate]

ooo....1 wk (exercising period) for sellers without any forfeiture????

doesnt sound correct leh

den the seller/agts can use the offer to fish for higher offer durign the 7day cooling period???:tsk-tsk:

[2824]

Maybe they try to compensate the HDB sellers after they "killed" the market. :scared-2:


ooo....1 wk (exercising period) for sellers without any forfeiture????

doesnt sound correct leh

den the seller/agts can use the offer to fish for higher offer durign the 7day cooling period???:tsk-tsk:

[mr funny]

http://www.straitstimes.com/PrimeNews/Story/STIStory_592304.html

Oct 19, 2010

Cooling-off period for flat sellers

By Esther Teo & Cheryl Ong


PEOPLE intending to sell their Housing Board (HDB) flats from Nov 1 will have to observe a seven-day cooling-off period before the deal can proceed.

If the designated waiting time has not been met, the HDB will reject the resale application. The seven-day period starts from the time the resale checklist has been completed until the granting of the option to purchase.

The new rules announced yesterday underline the need for financial prudence before buying or selling a home, said the HDB. It noted that its flats are meant for long-term owner occupation and that buying or selling one is a significant decision that should be considered carefully.

The cooling-off move is part of a series of enhancements to the resale checklist and sale procedures to help buyers and sellers make informed decisions, the HDB said.

Checklists were introduced in 2008 to ensure that both parties in a transaction know the key resale and financial policies before they sign on the dotted line.

People who intend to sell their flats should consider their finances carefully and plan for their next accommodation, while buyers should also exercise financial prudence, the HDB said.

The new rules will require buyers and sellers to be a bit more hands-on with the checklist. New requirements include:

# Sellers will have to state their next housing arrangement. If they intend to buy another flat, they will have to work out the estimated sales proceeds of the existing home and submit a financial plan for their next purchase, said the HDB.

# Sellers must deposit a soft-copy of the checklist and supporting documents such as estimated sales proceeds and their financial plan at the HDB's website by the following day after they complete the resale checklist.

# They will then need to submit the original copy of the checklist together with the option-to-purchase (OTP) at the first resale appointment. This is scheduled with HDB for the resale transaction to be processed.

'If the date on the original copy differs from the soft-copy submitted through (the HDB website), or if the OTP is dated within seven days from the checklist, the resale application will be rejected,' the HDB said.

# Buyers of resale flats who are not using an agent will also have to submit the resale checklist together with the resale application form. Previously, only buyers with agents had to.

Some of the changes were advocated in Parliament by MPs, including Mr Ang Mong Seng (Hong Kah GRC), who suggested earlier in the year that a one-week cooling-off period be imposed.

Madam Halimah Yacob (Jurong GRC) said yesterday that people would now get a chance to reassess their situation, especially if they were subject to pressure to buy or sell their flat fast.

She cited a couple with four young children who sold their flat as they could not service the loan and wanted to downgrade. But they went into a business venture using the sales proceeds and lost everything. The couple could not get a bank loan and had to look for a rental flat.

'It's such a sad situation because it could have been avoided had they been given proper financial advice, or some time to think it through,' she said.

Madam Halimah added that the resale checklist was also very important as many people do not realise that a portion of the sales proceeds go back to their Central Provident Fund accounts.

HSR chief executive Patrick Liew said that he would occasionally hear of sellers who had not done their calculations well and had sold their property despite being unable to afford another.

HDB flat owner Stella Ong said that although she has no plans to sell her flat, the rules were welcome as they would give her more time to think through the complicated sale process.

'At least now I know that there's a temporary exit door to take if I ever feel uncomfortable with a transaction after thinking about it,' she said.

[hans]

agree, a lot of loop holes, btw what i understands, is the 7 day cooling period starts when from the day the seller submits the seller checklist to hdb, the seller can take their own sweet time to submit, but meantime can use the buyer's offer to get higher price. hdb prices to go up?


ooo....1 wk (exercising period) for sellers without any forfeiture????

doesnt sound correct leh

den the seller/agts can use the offer to fish for higher offer durign the 7day cooling period???:tsk-tsk: