Yes, it is possible to sell your resale HDB flat before the Minimum Occupation Period (MOP) of 5 years has passed. However, there are certain restrictions and penalties that you should be aware of before making a decision.
Restrictions on Selling Resale HDB Flats Before MOP
- Cooling-off period: If you sell your flat within the first 6 months of ownership, you will be subject to a cooling-off period of 12 months. During this period, you will not be allowed to purchase another HDB flat.
- Resale levy: You will need to pay a resale levy if you sell your flat within the first 3 years of ownership. The amount of the levy depends on the duration of your ownership, the flat’s location, and the flat’s type.
- Bankruptcy proceedings: You will not be able to sell your flat if you are in bankruptcy proceedings.
Penalties for Selling Resale HDB Flats Before MOP
- Forfeiture of CPF: You will need to forfeit all of the CPF monies that you have used to purchase the flat.
- Refund of grants: You will need to refund any grants that you have received from HDB.
- Stamp duty: You will need to pay stamp duty on the sale price of the flat.
Exceptions to the MOP
There are a few exceptions to the MOP that allow you to sell your resale HDB flat before 5 years have passed. These include:
- Upgrading to a larger flat: You can sell your flat and upgrade to a larger flat if you have a family of at least 3 children.
- Downgrading to a smaller flat: You can sell your flat and downgrade to a smaller flat if you are over 55 years old and your flat is too large for your needs.
- Financial hardship: You can sell your flat if you are experiencing financial hardship and you are unable to continue paying your mortgage.
Things to Consider Before Selling Your Resale HDB Flat Before MOP
Before you decide to sell your resale HDB flat before the MOP has passed, you should carefully consider the following factors:
- Financial penalties: You will need to be prepared to pay the financial penalties that are associated with selling your flat before the MOP has passed.
- Impact on your housing needs: Selling your flat before the MOP has passed could have a negative impact on your housing needs. You may have to pay a higher price for a new flat, or you may have to find a temporary place to live.
- Long-term goals: Selling your flat before the MOP has passed could have a negative impact on your long-term housing goals. You may not be able to purchase a larger flat in the future, or you may not be able to afford to retire in your own home.
Conclusion
Selling your resale HDB flat before the MOP has passed is a complex decision. There are a number of restrictions and penalties that you should be aware of before making a decision. You should also carefully consider the impact that selling your flat could have on your housing needs and long-term goals.
Frequently Asked Questions
- Can I sell my resale HDB flat to a foreigner before the MOP has passed?
- No, you cannot sell your resale HDB flat to a foreigner before the MOP has passed.
- Can I rent out my resale HDB flat before the MOP has passed?
- Yes, you can rent out your resale HDB flat before the MOP has passed. However, you will need to obtain HDB’s approval before you do so.
- What happens if I sell my resale HDB flat before the MOP has passed and I am unable to pay the financial penalties?
- If you sell your resale HDB flat before the MOP has passed and you are unable to pay the financial penalties, you may be liable for legal action.
Useful Tables
| Table 1: Resale Levy | ||
|---|---|---|
| Duration of Ownership | Resale Levy | Example |
| 1 year or less | 12% of sale price | $100,000 flat sold after 1 year: $12,000 levy |
| 1 year to 2 years | 8% of sale price | $100,000 flat sold after 2 years: $8,000 levy |
| 2 years to 3 years | 4% of sale price | $100,000 flat sold after 3 years: $4,000 levy |
| Table 2: Financial Penalties for Selling Resale HDB Flats Before MOP | ||
|---|---|---|
| Penalty | Amount | Example |
| Forfeiture of CPF | All CPF monies used to purchase the flat | $100,000 flat purchased with $50,000 CPF: $50,000 forfeited |
| Refund of grants | All grants received from HDB | $100,000 flat purchased with $20,000 grant: $20,000 refunded |
| Stamp duty | 3% of sale price | $100,000 flat sold: $3,000 stamp duty |
| Table 3: Exceptions to the MOP | ||
|---|---|---|
| Exception | Requirements | Example |
| Upgrading to a larger flat | Family of at least 3 children | 100 sqm flat with 3 children: eligible to upgrade |
| Downgrading to a smaller flat | Over 55 years old and flat is too large | 120 sqm flat for a couple over 55 years old: eligible to downgrade |
| Financial hardship | Unable to continue paying mortgage | Loss of job or medical bills: eligible for financial hardship exemption |
| Table 4: Pros and Cons of Selling Resale HDB Flats Before MOP | ||
|---|---|---|
| Pros | Cons | |
| Can free up cash | Financial penalties | |
| Can relocate to a different area | Impact on housing needs | |
| Can upgrade to a larger flat | Long-term housing goals |
