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Thread: HDB to allow flat sellers to extend stay

  1. #1
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    Default HDB to allow flat sellers to extend stay

    http://www.businesstimes.com.sg/arch...-stay-20140723

    Published July 23, 2014

    HDB to allow flat sellers to extend stay

    By lee meixian

    [email protected] @LeeMeixianBT


    FLAT sellers will, with immediate effect, be able to negotiate with buyers for a temporary extension of stay in their flats by up to three months.

    This will give them more time to move out of their sold flats, the Housing & Development Board (HDB) announced yesterday.

    This relaxed rule is likely to benefit about 15 per cent of total resale transactions, or some 2,700 households a year, it added.

    Minister for National Development Khaw Boon Wan and property consultants welcomed the change; the latter even expect this to boost resale transaction volume in the months to come.

    Currently, flat sellers must move out as soon as they complete the resale transaction because flat buyers are required under the lease to immediately occupy their new homes.

    According to the new policy, flat sellers who wish to extend their stay temporarily must have committed to buy a completed home (be it the exercising of an option to purchase, or signing of a sale and purchase agreement) in Singapore at the time of the resale application.

    They have to submit their requests for the extension to HDB when applying for the resale, and the extension will automatically cease at the end of three months. Any earlier termination must also be communicated to HDB, as this will impact flat buyers' minimum occupation period, which starts on the day when they take over the flat.

    Both parties must privately negotiate and agree on the details of the extension, including the duration and any monetary compensation.

    "This move will facilitate sellers who are transiting to their next homes, including those who may need more time for renovation or those awaiting funds from the sale of their current flats, eg contra cases," HDB said.

    Contra cases refer to the buying and selling of a home simultaneously, sometimes even on the same day.

    In a blog post yesterday, Mr Khaw commended HDB for the move. The previous arrangement often led to flat sellers having to "frantically look for some short interim rental arrangement, resulting in some disruption to their daily life", he said.

    "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."

    Property consultants agreed that the policy tweak was "long overdue" and that its facilitation of smoother transitions may boost resale transactions going forward, as some HDB owners may be encouraged to consider their upgrading plans.

    ERA Realty key executive officer Eugene Lim said: "It is something the market has been pushing for some time and it is certainly a relief that we now have an official policy to allow for this temporary extension of stay for the seller after the completion of the sale."

    CEO of PropNex Realty Mohd Ismail said: "Prior to this, a problem existed whereby many buyers and sellers and property salespersons took the risk of mutually agreeing to such an arrangement that was not legally recognised."

    But he added that it is unlikely to have a major impact on HDB resale prices.

  2. #2
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    Default Sold your flat? You can stay on for up to 3 more months

    http://www.straitstimes.com/archive/...onths-20140723

    Sold your flat? You can stay on for up to 3 more months

    Published on Jul 23, 2014 1:12 AM

    By Janice Heng


    HOUSING Board flat sellers can now stay in their sold units for up to three months after closing the deals, if the buyers agree.

    Previously, sellers had to move out once the sales were completed. But this put some of them in a difficult situation, noted National Development Minister Khaw Boon Wan in a blog post yesterday.

    Some were not able to move into their new homes as renovations were still in progress, for example. Others may have needed the funds from the sales to complete the purchase of their next flat.

    These include those who are selling one flat and buying another at the same time, in so-called contra deals. The proceeds and refunded Central Provident Fund monies from the sales are used to buy the second flat.

    Such sellers often had to "frantically look for some short interim rental arrangement", he noted.

    This issue arose occasionally during his Meet-the-People Sessions, and he had to appeal to the HDB on the sellers' behalf to give them more time to move out.

    The rules were tweaked yesterday to resolve this problem.

    Now, buyers and sellers can privately negotiate and agree upon a temporary extension of the sellers' stay, for up to three months.

    The extension request must be submitted to the HDB together with the resale application.

    By then, the seller must have already committed to buy a completed home, public or private.

    The HDB must be informed if the seller moves out earlier than planned, as this will affect the buyer's minimum occupation period.

    The buyer will still have to start paying his mortgage once the deal is closed.

    In a statement, the HDB said the change was part of its regular review to respond to the needs of resale sellers and buyers.

    It estimates that 15 per cent of all resale transactions, or about 2,700 each year, will benefit.

    Property agents and experts said sellers would welcome the change.

    ERA Realty agent Jolene Ho said some buyers and sellers used to resort to similar arrangements that were illegal. Said Dennis Wee Realty agent Judy Tay: "At least it's legal now, so we can assist with such arrangements."

    By making the transition between flats more convenient, the change could help boost HDB resale volumes, said ERA Realty key executive officer Eugene Lim.

    PropNex Realty chief executive officer Mohamed Ismail Gafoor also welcomed the "long overdue" change, but did not expect any major impact on prices.

    Public servant Peter Thien, 52, said the tweak will give peace of mind to sellers like him who juggle two deals at once.

    He is in the midst of selling a MacPherson five-roomer to move into a four-room flat in Hougang with his family. "It is helpful in the case of any delay," he said.

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