HDB will be depending on non-subsidised flat buyers to declare if they own private properties in Singapore or abroad, but those found making false declarations will surely face penalties, including up to six months imprisonment or a fine of up to $5,000, or both.
HDB announced these details on Friday, in response to questions on how it will implement new rules aimed at cooling down the residential property market. Among the key rules are preventing buyers from owning both private and public properties.
From August 30, buyers of non-subsidised flats can purchase a private property in Singapore or abroad only after meeting the five-year minimum occupation period (MOP).
A private property owner buying a non-subsidised flat will also have to sell his private home within six months of the property acquisition, regardless of the property’s location.
Buyers of non-subsidised flats must declare their interest in any other property, whether in Singapore or abroad, in the application form. If the private property is located overseas, buyers must present documentary evidence showing that they have already sold the property within the specified period.
HDB can cancel the application once it discovers the lie before the completion of the flat acquisition. The seller can seek legal damages from the buyer for breach of contract that arises from the failed transaction.
The flat can be compulsorily acquired by HDB once the false declaration is discovered after the buyer has taken possession of the flat.
Meanwhile, HDB said it is “prepared to exercise flexibility on a case-by-case basis depending on the merits of each case”.
The new rules introduce equality to the treatment of all buyers of HDB flats, by subjecting non-subsidised flat buyers to the same rules for subsidised flat buyers, said HDB. Buyers of subsidised flats are prohibited to concurrently own a private property and a flat either in Singapore or abroad within the MOP.