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Changing HDB ownership involves several legal, financial, and procedural considerations. Find out what are the different types of ownership, eligibility criteria, documentation requirements, and potential pitfalls homeowners need to know in order to navigate the process smoothly
As a homeowner in Singapore, understanding the process and implications of changing HDB ownership is crucial. Oftentimes, the first thought that pops up in everyone’s minds when it comes to the transfer of ownership is via HDB resale.
While that is the more prevalent occurrence in day to day life with the booming housing market, existing HDB flat owners might find it necessary to modify the ownership status of their flat due to shifts in their family circumstances, including instances like divorce, marriage, or the passing of a flat owner.
Whether you are currently considering transferring ownership between family members, this article will provide you with a comprehensive guide on what you need to know in order to successfully effect the change.
Content
- HDB Resale of Part Share
- Divorce HDB Transfer of Ownership
- HDB Resale Part Share: 5 Year MOP
- HDB Change of Ownership
- HDB Transfer of Ownership Rules
HDB Resale of Part Share
Firstly, let’s discuss the resale of partial shares, which involves the transfer of flat ownership through the partial sale or purchase between family members at an agreed- upon price.
HDB Resale of Part-Share: Eligibility
It is possible for one or more flat owners to sell their respective shares of flat ownership to other family members, with the condition that the buyers meet the typical HDB eligibility conditions such as Minimum Occupancy Period (MOP).
- MOP of the flat must be met by the existing homeowner (seller) and they must be eligible to sell their flat in the open market
- Prospective buyers must qualify under one of the existing housing schemes in order to acquire the share of the flat being sold by the current owner.
It is important to note that the resale of partial shares is not permitted between married couples.
Divorce HDB Transfer of Ownership
If a divorce occurs and your ex-spouse meets the eligibility criteria, and the Minimum Occupation Period (MOP) of the flat has been fulfilled, you have the option to purchase their share of the flat through a resale part-share.
Additional criteria for divorce cases
- The divorce should be officially concluded after the minimum occupation period (MOP) of the flat has been fulfilled.
- The divorce documents must clearly indicate the transfer of a partial share through resale from one party to another.
HDB Resale Part-Share: 5 Year MOP
The Minimum Occupation Period (MOP) of 5 years applies before all owners or occupiers may apply for a flat, sell the flat, rent* the flat or invest* in local or overseas private properties.
If you've just bought over a HDB flat via HDB Resale Part Share, your MOP commences upon the legal completion of your flat purchase.
*Additional terms applies. Check HDB.
HDB Change of Ownership (Non-Sale Transaction)
Next, flat owners seeking to alter the ownership status of their flat without involving any monetary transaction will be required to submit an application for a change in flat ownership (not through a sale).
4 Types of HDB Transfer of Ownership
There are four primary forms of ownership transfer:
- Addition of co-owner: e.g. Parents include daughter as owner
- Removal of co-owner: e.g. Daughter removes herself as owner
- Replacement of co-owner: e.g. Father replaces daughter with son as owner
- Total change of owners: e.g. Father passes on, and the son takes over the flat
HDB Transfer of Ownership Lawyer Fees
Changing the ownership of a flat (non-sale) involves a conveyancing process similar to that of purchasing an HDB flat. It is essential that all existing and prospective owners are fully aware of and provide their consent for the alteration in flat ownership.
Legal process takes 4 months
The legal procedure entails the preparation of financial and legal documents. On average, the process takes approximately four months, considering that all applicants have confirmed their intention to proceed with the ownership change and have submitted all the necessary documents.
Do note that in certain cases involving complexities, such as those requiring legal clarification from lawyers regarding Court Orders, a longer processing time may be anticipated.
HDB Transfer of Ownership Rules
1. HDB Flat owners have to apply for the change
Existing flat owners have the option to apply for a change in their flat ownership to include immediate family members who satisfy all eligibility criteria.
In cases where there are multiple proposed owners, they must decide on the type of ownership arrangement, whether joint tenancy or tenancy-in-common (each flat can accommodate a maximum of four owners).
2. HDB Transfer of ownership eligibility
What are some of the eligibility criteria in order to qualify for change in flat ownership (non-sale)? Here are some of the eligibility criteria to take note of:
- The proposed owners must physically reside in the flat following the ownership change.
- The proposed owners must be immediate family members of the current owners, which spouses, parents, children, or siblings.
- The proposed owners must be at least 21 years old.
- The proposed owners can either be a Singapore Citizen (SC) or a Singapore Permanent Resident (SPR), with another owner or occupier who is an SC or SPR.
If all the proposed owners are SPRs, they and the essential occupiers must have held permanent residency for at least 3 years.
- The proposed owners must not be a current owner or essential occupier of either an HDB flat or a DBSS flat, or an Executive Condominium (EC) unit (within its 5-year Minimum Occupation Period) bought from a developer.
3. HDB Transfer of Ownership Conditions
What are the conditions that apply after change in flat ownership (non-sale)?
Proposed owners who are looking to rent out the flat need to take note that any existing approval for owners to rent out the entire flat or register the rental of bedrooms will be terminated.
A new application/ registration after the ownership transaction is completed has to be submitted and eligibility of the flat owners to rent out the flat or bedrooms will be reassessed based on the prevailing conditions at the time of application or registration.
Similarly, it is imperative to satisfy the Minimum Occupation Period (MOP) requirement prior to selling or renting out the entire flat or acquiring an interest in a private property.
For those who are considering disposing of the flat after the change of ownership within a specific holding period, you may be subject to the Seller’s Stamp Duty (SSD).