Re-issue OTP for a resale HDB to the same buyer

Can a seller re-issue an OTP for a resale HDB to the same buyer?

My fiancée and I are waiting for an appeal result from HDB for a loan eligibility letter as we have exceeded the income ceiling.

We have already been granted an OTP for a resale unit with a bank loan, but if our appeal is successful, we want to use the HDB loan instead.

Are there any penalties if the seller agrees? I'm unsure if the restriction that starts in 2020 applies only to private homes, or to resale HDB as well. Thank you for your advice.

Edited for clarity.

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Ace

13 Feb 2023

You can get HLE regardless of whether OTP is issued - https://www.hdb.gov.sg/residential/buying-a-flat/financing-a-flat-purchase/application-for-an-hdb-loan-eligibility-hle-letter/hdb-loan-eligibility-hle-letter - valid for 6 mths. I got mine before I went home viewing (following HDB step by step) and requested another when Covid19 struck and it expired b4 I continued viewing.
You can try to expedite the HLE by calling up HDB to help (they also need time to process/appeal will take longer time).
The Offer to Purchase (OTP) is a legal document and has its expiry date - if not exercised within Option Period - Seller has legal rights to keep option fee (loss to buyer - forced forfeit of option fee paid). Because the buyer wasted seller's time.
The OTP is a legal document.
Likewise if seller issue OTP but decided suddenly don't want to sell the house, they have to pay option fee to buyer + buyer can issue court order to force seller to complete transaction too.
If there's any arrangement to extend the Option period - then good to put under black and white - not sure if such an option available - good to check with HDB.
Seller can sell to others/offer OTP to others after Option period (not tied down) / no obligation to wait for you or the appeal results?
New OTP, new option fee (totally new transaction).
Last advice: Buy what you and your spouse can comfortably afford.

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