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Hi, wanted to ask for advice please on the purchase of a HDB resale flat.

We have exercised the OTP and sellers would like an extension of 3 months after the resale completion date for them to find a house and move out. We have 30 days to submit this and owners might not find a house within this period. As such, we may not be able to use HDB's agreement to request for a temporary extension.

In this case, may I confirm whether we can do a private agreement on a max 3 month extension between us and sellers, without informing HDB? Also, can I have some advice on points to include in the private agreement to help protect our interest? Appreciate your help thank you.
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2 Answers

Ling CK
Replied
Hi,

1) This extension request is supposed to be brought up even before an OTP is offered.
2) If you had engaged an agent means this agent did not do his job properly.
3) The HDB does not agree or not agree to any extension request. They are just there to acknowledge there is such a request. They will not interfere or mediate if there is any conflict arise.
4) All extension agreement is an agreement between the seller and buyer. Honestly speaking it doesn't whether registered with the HDB or not does make any difference.
5) The registration process of extension is just an emotional comfort to buyer and seller that this is highlighted to the authority if you look deep into this.
6) Therefore it is more important to maintain a good relationship with the seller to ensure they will shift despite they are not able to complete their buying process.
7) You may insert any terms and conditions that could protect your interest and ensure the seller also feels it is a win-win situation for both parties.
8) The only point I would suggest is to have some monetary compensation if there are any needs to extend beyond the agreed period.
9) This often happens to those buyers who need to pay another month's rent in order to accommodate the extension.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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Ling CK
Replied
Hi,

1) By making private arrangements without registration with the HDB could violate the IRAS interest.
2) As IRAS might take this as a way to evade the correct property tax. Note that IRAS charges 10% on rental flat and only 4% on own stay property.
3) Although registration with HDB does not help in mediating if there is a conflict arise but at least you know you are doing it in a legal way.
4) This request for extension should have been brought up even before an OTP is offered. The seller is playing it dirty by rising this request after you exercising the OTP.
5) Although you may insert a monetary amount to compensate your loss of staying in your private agreement the whole thing is not correct right from the start.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
1
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