The fact that you are here reading this article means that the thought of selling your private property comes across your mind, and you need some guidance. More often than not, the first property you buy would most likely not be your final. As we grow older, our circumstances change, and the ideal property we desire to own changes. Rest assured, you are at the right place.
Selling Private Property or HDB House in Singapore
Before you continue, we would like to inform you that this guide is solely for selling private property in Singapore and HDB houses and only serves as a guide and not a rulebook, so do additional research on your own on top of reading this article.
Also, if you have not read our earlier article on calculating the profit/loss of your property and whether you could afford your next target property, please follow the link to learn and calculate if it is economically viable to sell your current property. Lastly, do watch this short video below on "Top 3 Ways to Increase Your Property Value" to maximise the value of your sale price.
HDB House For Sale in Singapore
1. HDB (Information is referenced from HDB's website and is correct as of the time of writing of the article)
Step 1. Register Intent to Sell:
To start, you will need to register an Intent to Sell by logging on to the HDB Resale Portal using your Singpass.
This is to check your eligibility to sell your flat. Upon registering, you will be informed of when you may start to grant an Option to Purchase (OTP) to potential buyers.
NOTE:
· Intent to Sell is valid for 12 months. It must be valid when you grant the OTP to the buyer(s) and during the submission of the resale application.
· Do read managing the sale of your flat and consider signing up for HDB’s resale seminars to learn more about resale policies and procedures.
· Use HDB’s Map Services, resale flat prices and resale statistics to help you in determining the selling price of your flat; alternatively, use our Clickstimate feature and our AI will help you get an estimated value of your property. Clicks here to access Clickstimate: https://clicks.realestate/clickstimate
Step 2. Market Your Property
Technically, you could market your property even before you register your intent to sell, however, it is advisable that you market only after you register your intent. One of the main reasons is the 7-day cooling-off period.
In Singapore, the most popular property marketing platforms are PropertyGuru and 99.co, but do note that you need to be a property agent before you could list your property on it. If you are not a property agent, you would need to engage one should you want to market your property there.
There are other platforms such as Carousell or Ohmyhome which allow you to list for free but do be aware that such platforms might either be not focused on real estate (i.e. features to address real estate related needs would not be prioritised or you might get ridiculously low offers) or are a portal for them to collect leads, especially for those which are affiliated or are run by a registered real estate agency.
If you want to market your property on a real estate focussed platform which is not affiliated to or is not a registered agency, you should list with Clicks®. While we are a relatively new platform, rest assured we are constantly upgrading our platform and building features to address all the real estate needs that you could possibly think of. What's more? Our platform is global and your property could reach a global audience.
Step 3. Option to Purchase
After you have agreed on the price with the potential buyer, grant an Option to Purchase (OTP) to the potential buyer.
NOTE:
· Your need to meet the 7-day cooling-off period after registration of intent to sell, i.e. within the 7-day immediately after registering your intent to sell, you cannot issue OTP.
· At this point, you should reach out to your private conveyancing lawyer if you do not wish to engage HDB’s conveyancing lawyer so that you can get the proper legal guidance.
Step 4. Submit Resale Application
Before you submit, you need to ensure your buyer has done the following:
· Confirm mode of financing (and he/she is able to finance the purchase; i.e. for HDB loan, a valid HDB Loan Eligibility Letter must be issued or loan from a financial institution, a valid Letter of Offer)
· Submit a request for value
· Exercise Option to Purchase
Once the above is done, you and your buyer(s) must submit your respective portions of the resale application. If you have arranged a temporary extension of stay with your buyers, you and your buyers will need to state it in the resale application.
Step 5. Endorse documents and pay fees
You and the buyers must acknowledge and endorse the resale documents, and pay the necessary fees.
Step 6. Get resale approval
After the fees are paid, HDB will grant in-principle approval for the resale transaction, and process the application.
Step 7. Attend completion appointment
Resale completion is about 8 weeks from the date of HDB’s acceptance of the resale application. You and your buyers will be notified via SMS once the appointment is scheduled. You may also log in to HDB Resale Portal for the appointment details.
* If you have no confidence to manage the sale process of your property even with the step-by-step guide, you should consider reaching out/engaging an agent from our specially curated list of agents. Alternatively, you could expand your real estate network by connecting with users on Clicks® and seeking advice/guidance from our network of users who have strong interests in real estate.
Selling Private Property in Singapore
2. Private Property
Note: you might need to pay Seller's Stamp Duties (SSD) so do follow the SSD link to read up on the requirements. When in doubt, you can contact IRAS directly to check if you need to pay SSD.
Step 1. Market Your Property
Unlike HDB, you do not need to register your intent to sell and you could straightaway market your property. If you have missed the earlier of this article relating to marketing your property, we have copied the content above here for your easy reference:
"In Singapore, the most popular property marketing platforms are PropertyGuru and 99.co, but do note that you need to be a property agent before you could list your property on it. If you are not a property agent, you would need to engage one should you want to market your property there.
There are other platforms such as Carousell or Ohmyhome which allow you to list for free but do be aware that such platforms might either be not focused on real estate (i.e. features to address real estate related needs would not be prioritised or you might get ridiculously low offers) or are a portal for them to collect leads, especially for those which are affiliated or are run by a registered real estate agency.
If you want to market your property on a real estate focussed platform which is not affiliated to or is not a registered agency, you should list with Clicks®. While we are a relatively new platform, rest assured we are constantly upgrading our platform and building features to address all the real estate needs that you could possibly think of. What's more? Our platform is global and your property could reach a global audience."
To add, as foreigners can only buy private properties in Singapore, tapping on our global network would be advantageous for private property sellers.
Step 2. Issue Option to Purchase (OTP)
Once all the viewings/negotiations are done and you have a potential buyer with an agreed price, you can issue an OTP to the buyer. If you have already engaged an agent or a solicitor, you should use their template. If you are doing it on your own, you can use the CEA OTP Template.
When the OTP is issued to the buyer/buyer's lawyer or agent, you should receive an option fee (typically 1% of the agreed purchase price) from the buyer. Once OTP is issued, the buyer has 14 calendar days to decide whether they want to proceed with the transaction. NOTE: during this period, you are not allowed to issue another OTP to another party.
The buyer can choose to exercise the option anytime before the end of the 14 calendar days by paying you the Exercise Option Fee (4% of the agreed purchase price). You should engage a conveyancing lawyer by now to take care of the legalities. If you haven't, we recommend that you contact Sterling Law Corporation via their WhatsApp.
In the event that, the buyer backs out, you will be back to Step 1 but good news is, you get to keep the 1% Option Fee.
Step 3. Pay SSD (only if needed)
From the day the buyer exercises his/her/their option, you have 14 days to pay IRAS on your SSD. While you used to be required to go IRAS office to pay SSD, now you could use e-payments.
Step 4. Final Inspection
Clearly, before the completion of the sale, you have to move out. And during this period, you are obliged to maintain the property in the same physical condition. Kindly note that any other conditions or terms written in the OTP should also be strictly adhered to.
When you have successfully moved out before the sales completion date, you can invite your buyer or buyer's agent to come over for a final inspection so that they could confirm vacant possession.
Step 5. Sales Completion
Yes! The day to collect the remaining 95% of your sale price is here. As for what to prepare, you would be advised by your conveyancing lawyer or his/her clerk. All you need is just to head down to the office, bring whatever that is needed as advised (e.g. keys, documents) and then sign the sales completion documents. All the nitty-gritty details (including the calculations) would be handled by the law firm, so you do not need to worry. Once you have collected the cheque, bank it in and that is the end of the entire process.
* If you have no confidence to manage the sale process of your property even with the step-by-step guide, you should consider reaching out/engaging an agent from our specially curated list of agents. Alternatively, you could expand your real estate network by connecting with users on Clicks® and seeking advice/guidance from our network of users who have strong interests in real estate.