HDB Resale check list & procedure - Singapore

I have discussed the simple resale check list & procedure for private property in Singapore in my early post dated Nov 18, 2009.

Today i would like to share with you the simple resale check list & procedure for Singapore Government Housing Estate (HDB). (A) Pre-Preparation & Discussion:

1 Visiting the house owner & Discussion - The agent & Client

2 Financial Plan - Both Buyer & Seller shall study their HDB loan eligibility schemes:
Buyers age, sex, income, bank or HDB loan or contra facility
Buyers study loan financial package, CPF Ordinary Account Balance.
Seller Outstanding Loan (get from Branch Office), Resale Levy if required !
Seller CPF Refund with Interest statement, can obtain from CPF Board

3 Price Discussion - Agent & Client
Targeted Asking / Purchase Price ?
Cash above HDB Valuation price ?
CMA Study of HDB Asking Price, Bank VR & Transacted Price
Chk if clients required to take up the contra facility or not?
Prepare the Resale flat information - Agent & the Seller

4 Agent Commission Guidelines for buy and sell - Agent & the Client

5 Sign the agree Exclusive Authorization contract to Buy/Sell property - Agent & the Client

(B) Work in Progress: Starting the process of property resale action

6 Confirmation of Seller ownership (Check their property tax or Deed of Title)
HDB online request for Confirmation of Eligibility to Resale
Request & Pay the HDB Valuation Report (3 months validity)
Check Min. years of occupany eligibility. Has the unit rent before ?
Is the Flat had undergone Main Upgrading Program? Who shall pay the upgrading fee ? (Note : usually PR will pay very high upgrading fee)

7 Buyers citizenship: 1SC or 2 PR, Age:>21
CPF Housing Grant Scheme ($30K / $40K) - Income ceiling less than $8K
Additional CPF Housing Grant Scheme ($30K ) - Income ceiling less than $4K
Finance/Financee Scheme - Buyer to produce Marriage Certificate to HDB before completion
Principal in Approval for bank loan (5% cash of HDB valuation price is required !)
Obtain HLE Letter (Valid for 3 months only)OR Letter of Offer (LO) from bank loan
(Bank loan require Laywer)

8 Credit accessment on Buyer. Financial Plan &
house mortgage loan ( HDB / Bank ) capability.
Organising the agent co-broke listing

9 HDB Flat for sale advertisment - Seller Agent
Buyer's agent's are welcome to co-brokeing during house viewing activity.
Arrangement of house viewing activity
Check for Eligibility of HDB Ethnic Integration
Price negotiation

10 Sign Option to Purchase Agreement - When buyer & seller both have agreed with the final selling price (Option fee max $1K)
Sign HDB Resale Check List
check for Power of Attorney, Divorce or Bankkrupt ?
Option Exercise must be within Option Period (14 days)

(C) Execute the Contract Progress:

11 Sale & Purchase Application for manual submission to HDB
Fill in the Inventory List where necessary

12 Prepare all the relevant photocopy doc. for submission

13 Buyer pay seller Deposit = Option Fee + Option Exercise Fee (Max $5000)
Buyer & seller pay re-salenet regrestration fee each
Buyer & seller sign Letter of Undertaking - Agent's Service Fee

14 Buyer to buy Valuation Report if application of HDB Loan

15 Application for CPF Housing Grant - for Singapore Citizen Only

16 Application of Advance Contra Facility (Not applicable for bank loan)

17 Spouse consent to sell should he/she is not an owner

18 Bridging Loan Application, Power of Attorney if required

19 Letter of Approval from Assignee (For case of Bankruptcy)

20 Submit documents to HDB (no resale net application !)

21 Engage Lawyer if the loan is from the financial institute

(D) Attend the HDB 1st Appointments & House Inspection:

22 HDB officer shall conduct a House Inspection at seller place before 1st appointment

23 In the HDB 1ST appointment process :
HDB officer verify the buyer / seller documents & Agent submit Agent's SD
Buyers Credit Accessment, Financial Plan ,
Buyer apply Housing Grant near Parent (Parent need to be present)
Buyer pay HDB Caveat Fee
Buyer settle cash payment with HDB within 10 working days - 10% max. of resale price

24 Both Buyer & Seller receive the Approval Letter from HDB in 2 weeks time.

25 Buyer inspecting the house before the Resale Completion date

(E) Completion of Resale (HDB) Progress

26 Seller should terminate on all GIRO Services.
Seller pay Service, Conservancy Charge & Property Tax

27 Buyer buy the HDB Fire Insur. & cash balance settlement

28 Seller sign the document transfer
Buyer sign the mortgage agreement (For HDB Loan)

29 Seller handover keys to buyers

30 Buyer apply or transfer of electricity, water and gas

31 Seller receive cheque for Net Sales Proceeds from HDB.

32 HDB to refund seller CPF monies with interests within 7 working days

Private Property Resale check list & procedure - Singapore

In singapore, there are private property and Government type of housing board flat (HDB) available in the market.
I listed a simple check list & procedure below in which the buyer, seller or real estate agent can take this as a reference during the process of private property resale in Singapore.

(A) Pre-Preparation & Discussion:

1 Visiting the house owner & Discussion - The agent & Client

2 Financial Plan - The Buyer must study the following matters :
Buyer need to aware what is their budget of Cash payment for above valuation (COV) +
10% cash & 10%CPF of property valuation price (Usually can bank loan up to max 80% subjected to individual financing company approval ) & estimation of 3%(Stamp Fee) + 1% (Legal Fee) of the House Purchase Price.
Buyer who are not local citizen must check their eligibility of buying private condo or landed property
Expected Asking (Selling) Price - Seller

3 Price Discussion - Agent & Client
Targeted Asking / Purchase Price
Cash above / below valuation price?
CMA & PSF Price studying
What type of Resale property is the buyer looking for?
Prepare the house resale information. - Agent & the Seller

4 Agent Commission Guidelines for buy and sell - Agent & the Client

5 Sign the agree Exclusive Authorization contract to Buy/Sell property - Agent & the Client

(B) Work in Progress: Starting the process of property resale action

6 Ask buyer or seller any Bankkruptcy issue

7 Buy a Valuation Report or check various Bank's Indicative Price - Agent & the Seller

8 House for sale advertisement - Seller Agent
Assess the Buyer buying eligibility, financial Status & housing loan information.
Buyer's agents are welcome to co-broking during the arrangement of house viewing activity.

9 Sign Option to Purchase - When buyer & seller both have agreed with the final selling price
Option period is about 14 days.
Fill in the Invertory List if needed.
Buyer pay the house owner a non-refundable option fee (1% of PP).
Sign Agent's Co-Broke's Agreement Form in the case of 2 agent co-broking.

(C) Execute the Contract Progress:

10 Appoint a Lawyer - Buyer
Laywer will execute the legal enquiries on the status of
the seller, the title of the property and the term of the sale.

11 Financing matters
Buyer to studying the current market interest rates package from various banks, sign financial loan contract ie Letter of Offer with the selected banker.
Can apply for withdrawal of CPF Saving by completing an application together with a valuation report prepared by a licensed valuer who is on the CPF Panel of valuers.
Buyer apply bridging loan facility is needed

12 Exercise the Option - Buyer
When exercise the option, buyer may pay up to 9% of the house Purchase Price. Pay stamp duty fee within 14 days of the contract.

13 Seller sign Letter of Undertaking - Agent's Service Fee

14 Legal Inspection & Completion - Lawyer
Buyer's lawyer shall carry out an investigation of owner title deeds and send requisitions to various Government Departments.
Seller's lawyer to prepare the completion statement and send documents for stamping to effect the completion.

15 Settle Payment and Handover - Buyer & the Lawyer
Cash settlement for the outstanding balance of the house Purchase Price. (Estimated: 10%). Usually the payment made 10 to 12 weeks after excerising the option
Buyer shall perform a house inspection before takeover keys
Lastly lawyer to handover the keys and title deed of conveyance to buyer.

Property Buying Tips

After discussing the important tips on how to sell property in my previous post, today i would like to share with you some important tips of buying house

1. Decide beforehand on a few likely locations that you'd like to live in. Take into account things like distance to work places, schools and places that you visit frequently. Decide with your family's lifestyle in mind.

2. Size - how large a house do you need? Think about the next couple of years - are members of your family likely to move out and any others moving in? How many bedrooms do you need? Which living area do you and your family spend the most time in?

3. Facilities - Would you like the advantage of a swimming pool, tennis courts and other condominium type facilities? Or, would you prefer to join a recreation club and enjoy a wider variety of leisure activities?

4. Amenities - Are shops, banks, markets within a short distance?

5. Budget - Once you've decided on a location and size of home that you'd like, think about how much you'll be willing to spend. Bear in mind other monthly expenses that come with owning or renting a home. If you're buying, talk to two or three banks and discuss a financial plan that you're comfortable with.

6. Start searching - Ask to see a number of units that will suit your requirements and your budget. It's best to view around four homes in a day and certainly no more than five. The idea here is so that you can still remember the first unit that you saw. Bringing along a note pad so that you can jot down relevant facts aid you in making a good decision.

7. When viewing - Before you enter any prospective home, always take note of the surrounding areas. Don't forget, you can always redecorate the interior of a home but there's no way you can change the surroundings! Also, don't be distracted by a home that looks just the way you would have liked, get carried away and forget to check for things like cracked tiles and fittings that don't work.

8. Decide - Once you feel you're comfortable with a house - go for it! Remember, you're not the only one looking around for a house, don't rush into making a hasty decision but you need to decide as soon as you can because there are others who may be eyeing on the same house as you!

9. And above all, always remember that no matter how many houses you view, there's no way they're going to be 100% perfect. It's best to have an open mind and be prepared to adjust your expectations as needed

Property Selling Tips

Selling house can be an easy task if you were following some of the tips below

1. The first impression is important. Whether it is a landed property or apartment, clear away any unsightly items outside the living areas.

2. Within the house, get rid of cracked plaster, loose door knobs and try to give stained walls a paint touch-up.

3. Remove all unnecessary boxes, old furniture and other junk. This will give the impression of the property being more spacious and besides, when you move, you're not bringing all that with you, are you?

4. Check the bathrooms especially for stained tiles and leaky pipes.

5. Loud noises are distracting. Keep radios and televisions off during the viewing.Eliminate any possible distraction of the buyer.

6. For night viewing, switch on all the lights to create a cheerful environment, as not many people like a dimly lit home.

7. Some people are uneasy around animals and they may distract the buyer's attention. If you have pets, it's suggested they be kept out of the way.

8. Buyers usually ask many questions when being shown around the house. If you have a real estate agent, your immediate presence isn't required at the viewing. However, if you want to, refrain from discussing terms, price, etc. Leave the details to your agent.

9. Keep your home cool, either by switching on the air-conditioning or fans. Nothing frustrates a buyer more than a perspiring whilst viewing a prospective home.

10. Finallly, remember that effective negotiating requires being prompt.If a reasonable offer is presented, it is wise to negotiate immediately, as it may not be offered again. As the saying goes: "A bird in the hand is worth two in the bush