By Janice Heng, The Straits Times, 23 Jul 2014
HOUSING Board flat sellers can now stay in their sold units for up to three months after closing the deals, if the buyers agree.
Previously, sellers had to move out once the sales were completed. But this put some of them in a difficult situation, noted National Development Minister Khaw Boon Wan in a blog post yesterday.
Some were not able to move into their new homes as renovations were still in progress, for example. Others may have needed the funds from the sales to complete the purchase of their next flat.
These include those who are selling one flat and buying another at the same time, in so-called contra deals. The proceeds and refunded Central Provident Fund monies from the sales are used to buy the second flat.
Such sellers often had to "frantically look for some short interim rental arrangement", he noted.
This issue arose occasionally during his Meet-the-People Sessions, and he had to appeal to the HDB on the sellers' behalf to give them more time to move out.
Now, buyers and sellers can privately negotiate and agree upon a temporary extension of the sellers' stay, for up to three months.
The extension request must be submitted to the HDB together with the resale application.
The HDB must be informed if the seller moves out earlier than planned, as this will affect the buyer's minimum occupation period.
The buyer will still have to start paying his mortgage once the deal is closed.
In a statement, the HDB said the change was part of its regular review to respond to the needs of resale sellers and buyers.
It estimates that 15 per cent of all resale transactions, or about 2,700 each year, will benefit.
Property agents and experts said sellers would welcome the change.
ERA Realty agent Jolene Ho said some buyers and sellers used to resort to similar arrangements that were illegal. Said Dennis Wee Realty agent Judy Tay: "At least it's legal now, so we can assist with such arrangements."
By making the transition between flats more convenient, the change could help boost HDB resale volumes, said ERA Realty key executive officer Eugene Lim.
PropNex Realty chief executive officer Mohamed Ismail Gafoor also welcomed the "long overdue" change, but did not expect any major impact on prices.
Public servant Peter Thien, 52, said the tweak will give peace of mind to sellers like him who juggle two deals at once.
He is in the midst of selling a MacPherson five-roomer to move into a four-room flat in Hougang with his family. "It is helpful in the case of any delay," he said.
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