Understanding The Resale HDB Processing Timeline

GUIDE
July 2024
*Above timeline purely for reference

When it comes to the processing of a Resale HDB, one of the biggest aspects for any prospective Buyer/Seller to consider is the timeline, especially so because it impacts your ability to make plans for the next housing unit.

In this article, we will shed some light on the HDB Processing Timeline, so that you can gain a better understanding of the process and plan your purchase.

 

This article is not about the process of looking for a unit as a Buyer or marketing your unit as a Seller - we assume you've already made plans for this.

Prelude - Applying for a HDB Flat Eligibility HFE Letter

As a Buyer, the first thing you will need to do is to apply for a HFE Letter.

See : A Step By Step Guide to Apply For The HDB Flat Eligibility HFE Letter

 

Prelude - Marketing Your Unit

And for a Seller, the first step in this process is definitely to register an Intent To Sell.

Subsequently, for the maketing of your unit, you can use services such as :

You can get some ideas on how to price your unit by referencing existing listings on portals such as PropertyGuru or 99.co or by using the HDB Map Services to check out the transacted prices in your area.

  • Access the HDB Map Services portal
  • Click on Housing, key in your address
  • Select "Resale Transactions Within 200m Of This Block"
  • Select the unit type most relevant for you, and check out the transacted prices

The process of marketing your unit, conducting viewings, sifting through buyers and negotiating prices will take some time, so do be prepared for that!

 

PART 1

Issuing OTP and Exercising the OTP

Let's fast forward the process a little bit and assume that you've come to an agreement on a selling price with a buyer and you are now ready to process the sale.

Here's what will happen next:

Issue the OTP (Option to Purchase)

  • Do a Google search for "download HDB OTP" and grab a copy from the HDB website
  • Every single OTP has a different serial number, so DO NOT reuse any OTP documents from any earlier transactions! You also do not necessarily need to download the OTP inside the HDB Flat Portal as you were registering the Intent To Sell
  • Fill in the details of all Sellers and Buyers (ensure that Buyers have a valid HFE)
  • The expiry date of the OTP is 21 days later, at 4pm
  • Collect $1,000 in cash directly from the buyer and pass the OTP document to them

Apply for Valuation Report

  • This step is performed only by the Buyer
  • The Buyer will apply for a Valuation Report and make payment for this service
  • HDB will appoint and assign a Valuer, who may visit the unit physically, if needed
  • Once the Valuation Report is ready, it will be sent only to the Buyer
  • The Valuation Report will indicate the appraised value of the unit, and this means if the Valuation is lower than the agreed transacted price, the difference in value will become the COV (Cash Over Valuation)
  • See Sample Valuation Report Here

Exercise The OTP

  • Assuming the Buyer is satisfied with any COV in the transaction, both parties move on to the next step
  • Here, the Buyer will transfer another $4,000 in Cash to the Seller, and sign off the OTP document under the Acceptance section, and this signals that the Buyers have exercised their right to purchase the unit, and both parties are now committed to the transaction
  • Do note that the Buyers have 21 days from the date of issue of the OTP to Exercise the OTP
  • If the buyers do not transfer the $4,000 to the Sellers by 4pm of the 21st day, the Sellers have the right to forfeit and keep the $1,000 deposit, and look for the next Buyer
 

PART 2

Uploading To HDB and Processing Checkpoints

Once the Buyer has exercised the Option, the next step is to upload the Resale Application to the HDB Resale Portal.

The timeline for doing so will be as per the number of days indicated in the OTP document. 

Whilst usually written as 30 days, there is no fixed value for this time period; however, there is a maximum number of days that both parties can wait before uploading to the HDB Resale Portal, else the transaction is invalid.

This maximum period is determined by the expiry date of the earlier obtained Valuation Report.

Uploading To The HDB Resale Portal

  • Both Seller and Buyer will need to access the HDB Resale Portal to upload the Resale Application
  • If you are uploading the Application without assistance from a realtor, you can simply log back in to the HDB Flat Portal where you applied for the Intent To Sell or HFE Letter and continue the process from there
  • Both Seller and Buyer must upload the Resale Application within 7 days of each other
  • There will be some fees to pay for the uploading of the application

HDB Notification of Acceptance and Endorsing Documents

  • The next checkpoint in the process is the HDB Notification of Acceptance of the application and also for Buyers/Sellers to log back into the portal and endorse documents
  • Do note that this is an acceptance of the application, NOT an approval, which we will get into later on
  • See sample HDB Notification of Acceptance
  • You will notice that the Acceptance Letter states 2 dates:
    • The first date is for an Estate Executive to visit your unit and inspect for any unauthorized modifications made to the unit
    • The second date is for the Completion/Final Appt of the Application
  • See sample of Buyer Endorse Documents
  • See sample of Seller Endorse Documents

HDB Approval Letter

  • Once all the documents are in order, HDB will proceed to approve the application
  • Along with the Approval, HDB will also provide a specific time for the completion appointment
  • See Sample Approval Letter

Final Completion Date

  • At the final completion date, both Buyers and Sellers will head to HDB Hub
  • If either party are engaging a private lawyer for their transaction, a representative from the law firm will be present instead
  • If there are cash proceeds for the Seller from the sale, HDB will issue a cheque addressed to all owners to the Sellers
  • The CPF returning to the Seller's account will occur within 15 working days, as per CPF Website
 

PART 3

Temporary Extension of Stay (If Applicable)

If the Buyers and Sellers had agreed to the Seller's request for Temporary Extension of Stay, after the HDB Final Appointment, the Sellers will continue staying in the unit until the agreed final handover date.

Do note that the Temporary Extension of Stay only lasts for a maximum of 3 months.

Please refer to the HDB Website(s) for official information on the terms and conditions of the Extension of Stay. Do also note that the Property Tax levied during the Extension of Stay will also be different:

Hope the above was useful!

If you still need further assistance, drop us a note here.

Edric Ho
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Writer, Editor, Data geek

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