The Complete Guide to Selling Your HDB Flat

Selling your HDB flat involves a structured administrative process through official portals and careful financial planning to understand your final cash proceeds.

1. HDB Selling Process

The selling journey is managed primarily through the HDB Flat Portal.

• Register Intent to Sell: You must first register your Intent to Sell on the portal. This assesses your eligibility and block quotas.
• Mandatory Wait: There is a 7-day waiting period after registration before you can grant an Option to Purchase (OTP).
• Grant OTP: You issue the HDB-prescribed OTP form. The buyer pays an Option Fee ($1 to $1,000).
• Exercise OTP: If the buyer proceeds, they pay an Exercise Fee (up to $4,000).
• Submit Application: Both parties must submit their portions of the application via the HDB Flat Portal within 7 days of each other.
• Approval: You will endorse documents and pay fees online. Approval typically takes 8 weeks.
• Completion: The final appointment where the sale is finalized and keys are handed over.

2. Property Portals for Selling

While the HDB portal handles paperwork, marketing is often done on these platforms:

• HDB Resale Flat Listing (RFL): A free service on the official HDB portal.
• PropertyGuru: The market leader with the highest listing volume.
• 99.co: Popular for its map-based interface and data tools.
• SRX: Famous for the "X-Value" instant home valuation tool.
• Carousell Property: Ideal for DIY listings to avoid agent commissions.

3. Calculation of Sales Proceeds

Sales proceeds are the net cash you receive after all liabilities are settled.

• Outstanding Loan: The remaining balance of your HDB or bank mortgage.
• Total CPF Refund: The principal used plus accrued interest.
• Costs/Fees: Includes agent commission (1-2%), legal fees, and admin charges.
• Upgrading Levy: Any outstanding payments for LUP or Home Improvement Programme (HIP).

4. CPF Accrued Interest

This is the interest your OA savings would have earned (2.5% p.a.) if the money hadn't been used for your home.

• Calculation: Calculated from the date of withdrawal until sale completion, compounded annually.
• Refund Policy: If you sell at market value but proceeds can't cover the full refund, you do not need to top up the shortfall in cash.
• Check Your Amount: Log into the CPF Portal under "Home Ownership" to see your exact figures.

5. Bank Loan Settlement Process

If you are using a bank loan instead of an HDB loan, there are additional steps and costs to consider:

• Redemption Notice: Banks usually require a 2 to 3-month written notice of your intent to pay off the loan.
• Lock-in Penalties: If you sell while your loan is in a lock-in period, you may be charged a penalty (often 1.5% to 3% of the outstanding amount).
• Private Legal Counsel: You must appoint a private law firm to handle the mortgage discharge.

6. Legal Fees Structure

Legal costs differ significantly based on your loan type. Both can generally be paid using your CPF OA savings.