HDB Option to Purchase – Property in Singapore for rent
The sellers and buyers of resale flats must use ONLY the HDB’s prescribed Option to Purchase (OTP) as the form of contract in all resale transactions. No party is allowed to enter into any other supplementary agreement pertaining to the sale & purchase of the resale flat. Property in Singapore for rent.
The OTP provides buyers with an option period of 14 days to consider their purchase. During this period, buyers can check on their eligibility, financial aspects and other issues such as whether the flat they intended to purchase is affected by any redevelopment/ upgrading programme and the liability to pay upgrading cost/levy etc. before deciding whether to proceed with the purchase. After granting the OTP to the prospective buyers, sellers cannot revoke the offer within the option period. Once the buyers have exercised the option, a legally blinding contract is formed between the sellers and buyers for the sale and purchase of the HDB flat.
Please take note that it is a serious offence to give a false declaration, including over-declaring or under-declaring the resale transacted price. Under the Oaths and Declaration Act, the penalty can involve a fine and/or up to 3 years’ imprisonment for a false declaration. If a housing agent is found to have made a false declaration, HDB will report the matter to the appropriate parties such as the Police and the Council for Estate Agencies (CEA).
Important Notes:
- Buyers and Sellers are reminded not to enter into any supplementary agreements/ arrangements to allow the sellers to prolong their stay in the flat.
- After the signing of the transfer documents, the flat is legally under the buyers names and thus buyers will be held responsible for any and all matters related to the flat.
- If sellers require a longer time to vacate the flat, they should discuss with the buyers and inform HDB resale officers to schedule the Completion Appointment at a later date.
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