HDBPRO
Temporary Extension of Stay for Sellers
When the sale/purchase of a resale flat is legally completed, the flat buyers become the legal owners of the flat and the flat sellers are required to move out. The buyers, being the new owners of the flat, will start a minimum occupation period (MOP) from this legal completion date. [The MOP is for subletting of whole flat (for citizen households only), investment in private property or resale of the flat in the open market.]
Some flat sellers may not be able to move out immediately, upon the legal completion of the sale of their flat for various reasons. To ease their transition to their next home, flat sellers may arrange with their flat buyers, to extend their stay temporarily in the flat, for a period of up to 3 months after the legal completion.
Conditions for flat sellers
These flat sellers:
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must have committed to buy a completed housing unit (can be another HDB flat or private residential property) in Singapore at the time of the resale application, i.e. they must have exercised an Option To Purchase or signed a Sale and Purchase Agreement.
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must not be subletting the whole flat at the time of resale application.
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must be the contra party if the transactions are under the Enhanced Contra Facility.
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Conditions for flat buyers
The start point for the computation of MOP will be set back by the period of the Temporary Extension of Stay.
As legal owners of the flat, flat buyers must pay the following during the period of extension (the list may not be exhaustive):
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Monthly instalments for housing loan
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Service & Conservancy Charges (without rebates)
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Property tax (calculated at residential tax rates)
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For more information on the difference in property tax payable, please refer to IRAS website.
Administrative Fee and Submission Procedure
The temporary extension of stay is subject to the agreement of the flat buyers and the request is to be submitted to HDB at the time of the resale application. An administrative fee of $20 (inclusive of GST) is payable by the flat buyers during the resale first appointment.
Buyers and sellers may formalise their agreement on the terms of the extension of stay (the period of stay must not be more than 3 months after legal completion) and any monetary compensation by the flat sellers to the buyers. This will be a private arrangement and they do not have to show their agreement to the HDB.
Expiry and Termination of Temporary Extension of Stay
The extension of stay will automatically be terminated at the end of three months. Flat buyers must inform HDB via My HDBPage or contact our HDB Branch if they terminate the extension earlier. The computation of the MOP for the new owners will commence after the extension of stay is terminated.