HDB Flat Selling Timeline – 2022 Comprehensive Guide

Selling your resale HDB flat used to be an arduous affair that could take as long as 221 days or 31.5 weeks. Thankfully, HDB’s latest resale transaction process (effective as of 1 Jan, 2018) means that you can complete the whole process on the HDB resale portal and hand over your flat quicker, around 10-16 weeks. The resale process is still pretty tedious (as you’ll soon find out), but we’ve compiled everything you need to know right here.

Overview of HDB Seller Guide

• Register Intent to Sell: ~7 days
• Issue Option to Purchase (OTP): ~14 days
• Submit Resale Application: ~14 days
• Acceptance of Resale Application: ~7 days
• Resale Completion Appointment: Physical & Legal Inspection: ~28 days

Time will vary greatly depending on a variety of factors including luck, your ability to handle paperwork, and whether you have a good agent to guide you.

1. Registering Intent to Sell – AKA: Informing HDB

We know that it’s exciting to move onto the next phase of your life, but HDB requires you to register your Intent to Sell before you even get started. We’re assuming that it’s to prevent homeowners from selling on a whim and regretting their decision later, which probably explains why sellers have to wait out a 7-day cooling period after registration before they can move onto the next stage: issuing the Option to Purchase (OTP) to the buyer.

Before moving onto the next step, however, you’ll want to ensure that your buyer has a valid Intent to Buy as well. Similar to the Intent to Sell, the Intent to Buy has a cooling period of 7 days. Both documents are valid for 12 months after registration, so you could technically take your time sourcing for a buyer. Once that 12-month period lapses, however, you’ll move right back to square one.

Time spent thus far: 7 days (assuming that both you and your buyer are on the ball and have everything ready by the end of the cooling period)

2. Will they or won’t they: Issuing the Option to Purchase

At this stage, you will need to have the Intent to Sell and a valid, willing buyer. Then, you can issue the OTP. Think of it as a big red button that your buyer can press when they wish to make their purchase official. Signing on the OTP via the HDB resale portal will mean that you’ve officially handed the OTP over. And just in case, your buyers will be forking over an Option Fee deposit of anything between $1 to $1,000, which you can pocket should they decide not to go through with the home purchase.

But remember, issuing the OTP is a commitment. It means that you have decided to offer your HDB to one buyer and one buyer only. So don’t issue an OTP until you’re comfortable with the deal you’ve been given.

While buyers can technically exercise the OTP immediately upon receiving it, this is highly unlikely. They’ll have a bunch of documents to prepare, including a Letter of Offer if they are taking out a bank loan. They have up to 4pm on the 21st day (weekends and public holidays included) after OTP issuance to press the big red button, so the pressure’s on, for them at least.

Once buyers exercise the OTP, you’ll be granted a second deposit. Both the Option Fee and second deposit must not total up to more than $5,000. This amount should be mutually agreed upon between the buyer and seller. The more likely you think they’ll run, the higher you can set the deposit. We’re only half kidding.

Fastest possible timeline thus far: 7 + 1, but to be realistic we’ll go with 14 days. So 7 + 14 = 21 days

3. (Finally) Submitting your Resale Application

Considering that you’re reselling your flat, you’d think resale application_ _would be step 1 of the entire process. But nope, we’re only just getting into the swing of things.

Another timer starts from the moment buyers exercise the OTP: Both seller and buyer must submit their respective resale applications within 30 days after the OTP exercise date. The application form includes details like your personal particulars, flat address, and other grant and CPF related documents, just to name a few.

The catch? Both parties must submit their applications within 7 days of one another. Unless you want to sabotage the process and make things awkward, make sure there’s communication and that you agree upon the date(s) of submission. Don’t say we didn’t warn you, because there’s a resale application fee of $40 or $80 each time you restart the process.

Time spent thus far: 7 + 14 + 14 = 35 days (this process can be pretty smooth, if no one messes up)

4. Acceptance of Resale Application

Yes, it’s an entire step in itself. Once your resale application is successful, you’ll receive a ceremonious announcement via SMS. You can also view a confirmation of the application status on… you guessed it, the HDB resale portal! This process is entirely out of your hands, and will take anywhere between 3 to 14 days depending on how many applicants are queuing in front of you (read: how lucky you are).

Time spent thus far: According to our non-scientific calculations, the average Joe with average luck will probably spend 7 days waiting, but YMMV for this one. 7 + 14 + 14 + 7 = 42 days.

5. Resale Completion Appointment – AKA: Physical inspection and ending payments

This is when you will attend the one and only resale appointment. Technically, preparations for this step can be done way in advance. But you should be fine unless you’ve done something weird like install a unicorn head into a structural pillar. This is also when your legal and monetary ties to the flat will start to get cut off, so if there’s any time to say your last goodbyes, this is it.

Flat inspection

Technical Executives from HDB Branch will come down to inspect your flat for any structural damages and unauthorised modifications. This is really to ensure that your apartment does not compromise the integrity of the entire building or the safety of the new flat owners. If they spot anything, however, you won’t be able to complete the resale transaction until the HDB’s original state has been restored.

Should you be out of the country and unable to attend this inspection, you can have another person attend on your behalf via the Power of Attorney.

You will be greeted by an SMS carrier pigeon once your HDB has been deemed fit for ownership transfer.

Vacating the flat and payment terminations

You don’t want to be paying for a flat you no longer live in, so be sure to cease all automated GIRO payments for anything flat-related. Also, be sure to settle any outstanding payments such as property tax (payable up to the end of the year).

Hopefully, you’ll have a place to stay before the Date of Completion, because that’s when you’ll have to make way for the new homeowners to move in. In case you’re unable to do so, you can request for a Temporary Extension of Stay of up to three months.

Hiccups notwithstanding, you’ll be informed of your successful resale completion via SMS one week before the Date of Completion, and that will be your cue to move out.

Time spent thus far: Presuming that you pass the flat inspection with flying colours and have no intention of extending your stay, this entire process should take approximately 4 weeks.

Total time spent: 7 + 14 + 14 + 7 + 28 = 70 days

Congratulations on selling your home!

If you’ve made it thus far, you deserve a medal. As you can see, the time it takes to sell an HDB depends on a huge variety of factors, some within the seller’s control, others not so much. But you can still maximise your chances of successful resale in 10 weeks by having all your documents and preparations in order before each step.

Sell your flat with Ohmyhome (We’ll remind you about EVERYTHING)

If processing documents and crunching dates and numbers aren’t your thing, you might wish to consider engaging Ohmyhome’s Agent Service. We’ll keep track of all the paperwork AND keep your buyer up to speed so that you won’t have to repeat any resale transaction process. Just sit back and focus on moving to your new home, because that in itself is stressful enough!

So call 6886 9009 or Whatsapp at +65 9727 5270 for your personal home-selling assistant, or simply when you need a refresher on the resale process. We’re always here to help.