Executive Condominium – Resale Levy
If you previously bought a new flat from HDB, Design, Build and Sell Scheme (DBSS) flat or Executive Condominium (EC) from a developer, or received a CPF Housing Grant, find out if you need to pay a resale levy when you purchase your next home. The resale levy maintains a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or Executive Condominium.
Half-resale levy for Singles Grant recipients
If you are a Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidized flat.
Situations in which a resale levy is payable
When are you required to pay the resale levy. You need to pay a resale levy in either of these cases:
- You dispose of your subsidized flat and then buy a second subsidized flat from HDB
- You dispose of your subsidized flat and then buy an Executive Condominium from a developer where the land sale was launched on or after 9 December 2013, including those where tenders were not closed, i.e. Westwood Avenue, Canberra Drive, and Anchorvale Crescent
You need not pay a resale levy if you are buying any of these:
- Design, Build and Sell Scheme (DBSS) flat from a developer
- Executive Condominium from a developer, where the land sale was launched before 9 December 2013
- HDB resale flat
- Private residential property
Resale levy amount: first subsidised flat sold on or after 3 March 2006
This fixed resale levy amount gives greater certainty for financial planning, be it for upgrading to a larger flat, or right-sizing to a smaller flat.
Resale levy amount: first subsidised flat sold before 3 March 2006
For cases where the first subsidised flat was sold before 3 March 2006, a percentage graded resale levy will apply (see table for more details). If you had opted to defer the payment of the resale levy until you buy another flat from HDB, an interest at a prevailing rate of 5% per annum is charged.
Wavier of interest for Elderly
If you and your spouse are aged 55 and above, have sold your first subsidised flat before 3 March 2006 and right-size to a new 3-room or smaller flat from the November 2015 sales launch onwards, you will pay only the percentage graded resale levy, with the interest waived. The resale levy payable is also subject to a minimum amount of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat sold. These are the same resale levy amounts payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
Paying the resale levy
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the flat. Payment can only be made by way of your flat sale proceeds and/ or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
Power of Attorney
When buying or selling a house, you need a Power of Attorney, if you are unable to attend to certain matters.
When is the Power of Attorney required?
A Power of Attorney (POA) is a legal document that allow a person (donor) to appoint another person (attorney) to act on his behalf and in his name on matters specified in the POA. When buying or selling and Executive Condominium, certain matters must be attended to at different stages of the process. For example, signing of documents, such as:
- Option to Purchase
- Agreement for Lease
- Deed of Assignment
The PoA is required if you are unable to attend to these matters personally. You are advised to consult a private solicitor in Singapore to prepare the PoA.
What must you and your private solicitor do?
Step 1: Preparing the PoA
You must get a solicitor to prepare the PoA.
Step 2: Signing the PoA
The PoA has to be signed by you in the presence of your solicitor. If you are already overseas, you must sign the PoA in the presence of one of the following parties:
- Notary Public
- Singapore High Commission
- Singapore Ambassador in the country of your stay
Step 3: Registering the PoA
After your PoA has been signed, your solicitor will register the PoA with the High Court Registry.
Step 4: Submitting required documents to HDB
Once the PoA has been registered, you need to submit any one of the following documents to us:
- Original PoA + 1 photocopy
- Certified true copy from the High Court + 1 photocopy
- 2 certified true copies of the PoA by an Advocate and Solicitor
- A letter from the solicitor confirming that the standard format for PoA provided by HDB has been used
- Certified true copy by an Advocate and Solicitor together with the computer printout with the High Court seal. This is required in cases where PoA has been registered through the Electronic Filing System
Important points to note:
- If you are going overseas, you are advised to obtain the PoA before leaving the country
- The PoA cannot be used for the signing of the following documents, which you must personally sign:
- Application Form
- Statutory Declarations (you must sign in the presence of a Commissioner of Oaths or Notary Public)
- Any undertakings
- If you have submitted an original PoA or a certified true copy of the PoA from the High Court to us, it will be returned to your solicitor. This is after the Lease & Mortgage document has been registered with the Singapore Land Authority
- However, certified true copies of the PoA by your solicitors will be retained by HDB