Do these selling fees make your head spin? Would you rather leave it to your real estate agent? We have the solution for you. Sell your property today with Ohmyhome Super Agents! You can seek legal advice from HDB when selling your apartment if your current loan is with HDB or if you do not have an outstanding loan. Legal fees are governed by the Property Transfer Fees Regulations, 2002. When selling an HDB apartment, legal fees are incurred, as it is the legal transfer of residential property from you, the seller, to a buyer. This process is called transfer and begins on the date the offer was accepted and ends on the date the keys are handed over. If you engage HDB to act on your behalf in the purchase, you may receive an estimate of attorneys` fees using our electronic legal fee claim service. The legal fees to be paid depend on the lawyer you hire for you. You can use IRAS`s handy stamp duty calculator to calculate your stamp duty. The following rates apply to transfer fees: However, in cases where HDB has granted a special permit to sell the apartment prior to the MOP, Seller`s Stamp Duty (SSD) may apply.
You are obliged to pay for the SSD if you sell your HDB apartment within 3 years. This is called the holding period and begins on the date of handing over the keys or acquiring the keys to the HDB apartment and ends when the option to buy to sell the apartment is issued. HDB allows buyers and sellers to enter into a private agreement where sellers can stay in the apartment for up to 3 months after the sale is concluded. In some cases, sellers pay new buyers of the apartment to stay in the property for the agreed term. You can also hire a legal carrier through Ohmyhome, with fees starting at $1,800 net. Services include the following: Once the documents are confirmed, sellers have the option to hire the HDB lawyer to act on your behalf when selling if the current apartment currently has an HDB mortgage or does not have a mortgage. Below you will find a table with the corresponding transport, recording and microfilming costs as well as other additional costs. If your apartment is currently mortgaged with a bank loan, you will need to hire the services of a private law firm, and their transfer rates are usually between $1500 and $2500 on average. You are responsible for another set of fees listed in the table below, in addition to the fees charged by your lawyer. In this case, they opt for legal advice recommended by their bank, at a cost of S$2,500. You may have to pay SSD if you sell or give up your shares in your apartment during the holding period. For purchases/changes of ownership made on or after March 11, 2017, the 3-year holding period begins on the day you acquire a stake in the HDB apartment (i.e.
exercise of the call option / date of the legal document). For more information, visit the website of the Inland Revenue Authority of Singapore (IRAS). Note: The SSD holding period is not the same as the minimum occupancy period (MOP), and respecting one does not necessarily mean respecting the other. Let us know the costs and fees you may have to pay as a seller during your resale transaction. These include: In addition to the deposit for your apartment, you will have to pay stamp duty and legal fees, including transfer fees. Basically, you pay HDB to act as a lawyer in the purchase and/or mortgage of your apartment. On the other hand, with other real estate transactions, you usually hire a private lawyer to act on your behalf. When filing a resale application, buyers and sellers must each pay an administration fee of $40 for 1-bedroom and 2-bedroom apartments and $80 for 3-bedroom (or more) apartments. The fee includes goods and services tax and is non-refundable after payment. You are now in the final stretch (pun intended)! In addition to paying the balance of the lump sum purchase price, you will also have to pay stamp duty and attorney`s fees. Yes, again, but this time it includes the following – depending on whether HDB worked for you in buying and/or mortgaging your apartment: Are you planning to buy an apartment during one of HDB`s sales launches and calculate the calculation for your future home? In addition to the purchase price of the apartment, there are other costs and fees that you will have to pay at different stages of your home buying journey.
But don`t sweat – check out our simple guide below! The next step is to negotiate the option fee and option exercise fee that the buyer pays to the seller. The combined amount of the option fee and the exercise fee constitutes the down payment and is payable by the purchaser. Option fees are paid to sellers to formalize the purchase option. Upon execution of the call option, buyers pay the seller the previously agreed option to exercise the fees. In addition to the final payment of property taxes, the seller must also provide the final payment of their service and maintenance fees. Check your municipal government`s website to find the fee schedule so you don`t have unexpected fees once your sale is complete. After confirming the documents, you must pay all required fees within the notice period set by HDB. Another hidden time expense when selling your HDB property is the minimum occupancy time, or MOP.
Under this law, sellers must occupy the property for a certain period of time before they can sell it. The minimum duration is usually 5 years. Keep in mind that if you owned the property for five years but spent a year abroad in another country, you will need to live in the apartment for another year before selling. The MOP is based on time spent in the property, not just ownership time. If you found this article helpful, 99.co recommend the 99.co guides: Buying a BTO – The Process and Procedures and My Complete BTO Experience: From Setup to Renovation. Find out about the resale date and the actions to take before and during the appointment. Most HDB homeowners have an outstanding mortgage at the time of sale. The proceeds of the sale will pay off the outstanding mortgage. There is a minimum fee of $20 for resale transactions or transfer of residential property. Here`s a more detailed breakdown: Once the seller has registered their intention to sell, they`ll need to upload a form called an Option to Buy. This form contains the steps specified for the transaction to continue.
The buyer and seller begin the transaction by determining the determined resale price of the property. Note that the purchase option can only be granted to the potential buyer of the HDB property for at least 7 days after the seller registers the intention to sell. This is a hidden time expense that can slow down your transaction. If you have appointed HDB as attorneys for the purchase of the apartment, you must personally attend the closing date of the resale to the HDB Hub. The approval letter includes instructions on what you need to do before the resale closing date, such as: Notice to City Council on Payment of Service and Conservation Fees and BCA Window Renovation Form. A good seller will work in your best interest as a seller to get the best possible price while taking into account the various details associated with selling homes, such as the door-to-door transition period, the index of possible pitfalls that could derail the transaction, etc.