In August, 176 flat sellers have applied for an extension under HDB’s new rule which allows them to temporarily reside in the flat they just sold, said media reports
Introduced in July, the temporary extension of stay for up to three months aims to help sellers who are transitioning to their new homes, such as those awaiting funds from the sale of their current flats, or those who need more time to complete the renovation at their new place. Previously, sellers had to move out immediately after relinquishing the keys.
The seller and buyer are required to fill out a form for the extension, with supporting documents such as an Option to Purchase that has been exercised and a valid Sale and Purchase Agreement. At the time of the resale application, the form has to be submitted to HDB for approval.
However, details such as the seller’s period of occupation and buyer’s monetary compensation are purely in the hands of both parties. This means HDB does not need to know the provisions of the agreement and will not interfere if a dispute arises.
The policy is expected to benefit about 15 percent of the total resale transactions each year, or around 2,700 households.
Even before the new rule was imposed, this arrangement was not unusual, said PropNex. Previously, the parties involved keep it a secret, but because the option is now official, many sellers will likely take advantage of it.
“We have witnessed many mutual agreements on the 23rd hour falling flat, the buyers changing their minds and people becoming homeless,” said PropNex CEO Mohamed Ismail Gafoor.
“Now that this scheme is in place, I think this will create a greater number of people who will consider going through the proper process,” he added.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Source: PropertyGuru (12 Sep 2014)