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Do You Need A Resale License To Sell Online – Selling and buying an HDB flat at the same time can be difficult. Most families who are renovating their homes are concerned about the following:
Often, we depend on the experience of our real estate agent. Unfortunately, there are also horror stories of agents who are unable to coordinate both selling and buying schedules or properly advise their clients.
Do You Need A Resale License To Sell Online
We will guide you through the entire process, from registering your intention to sell to completing the sale and moving into your new home.
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We’ll go into the most common scenario first – a family selling and buying at the same time and using the sale proceeds from their old home to pay for the new home.
When you are ready to sell your HDB flat, you must register your intention to sell through the HDB Resale portal. Here, HDB will guide you to download your OTP.
You have a 7-day cooling off period from the time you register your Intent to Sell until you can hand over the OTP to the prospective buyer. This intent to sell is valid for one year.
During this time, you will likely be busy with home decorating and staging, marketing the home, and hosting shows.
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Once the buyer makes a satisfactory offer, you can submit a Buy Option and collect the OTP fee. You can set this anywhere from S$1 to US$1000.
Reminder: If you don’t already have another place to live, you may need an extension of your stay. You should ask for this when negotiating the sale price with the buyer before issuing the OTP.
The customer has 21 calendar days to complete the OTP, during which you cannot provide any other OTP. At this point, the buyer will receive a formal assessment if they need a home loan or use CPF funds. Before the 21st, they either decide to exercise the option or let it expire.
But this is not just a waiting game for you. Since you now have a rough idea of what the market will pay for your home, you can start window shopping to find out what you prefer in your next home.
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If the buyer exercises the option, you collect the remainder of the deposit (anywhere from $1 to $4,000). Together, the option fee + exercise fee must not exceed S$5,000 regardless of the selling price of the HDB flat.
Deciding on the date of submission of the HDB Resale Application is important. It determines how long it will take you to find and finance a new home.
The market standard is to submit an HDB application within 30 days of the option exercise date. Officially, there is no limit as long as the buyer agrees.
If you think you need more time to find a new place, you can negotiate the date of filing the resale request. This is up to the buyer as they may re-do the HDB valuation or loan approval if you take the process too long.
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Also note: while the HLE from HDB is valid for 6 months, the Approval in Principle (IPA) from the bank is only valid for 30 days. If you don’t find a place within 30 days, it’s easy enough to get another IPA.
In an ideal scenario, you would apply for a new HDB flat before re-applying for your old place. That way, there isn’t much of a gap between completing a sale for your old place and your new one.
As with the previous process, you should consider the date of submission of the Resale Application. If you require sales revenue from your previous position, schedule your time accordingly.
You will get the cash proceeds (if any) from the sale of your old place in the HDB Completion Designation, after receiving CPF refunds, home loan repayments, etc.
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Phases 3 and 4, in particular, are where the timeline can be difficult. Here are some of the most common concerns we see:
In most cases, you only have 30 days to find a new place after the buyer chooses to exercise your old place. This worries many sellers that there is not enough time.
A good agent knows how to negotiate with a buyer to find a deadline that is not too rushed for you. But if the buyer decides to stick to the market standard, here’s what to do:
However, in our experience, most people make decisions within 10 or more viewings. From this point of view, having four days off gives you enough buffer to find your new home.
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Once your old house is sold, you will get cash income in HDB completion appointments. However, CPF takes another two weeks to process the refund – and another week before you can use the CPF funds to buy a new place.
This means you have to hand over the keys to the buyer 3 weeks before you have the actual CPF funds to buy the new place.
This is where it is important to use private lawyers and apply for an extension of residence in advance.
Unlike HDB transfer officers, private lawyers do not require that your CPF funds are actually back in the account. They can make the necessary arrangements so that you can apply for your next purchase before the sale closes at your previous location.
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Whether the buyer refuses to give it, or your agent simply forgot to do it in advance – this is not a pleasant situation. This means you have to hand over the keys to your old place without moving into your old place. your new place yet.
Note: This may be why some selling agents try to extend buyers after they have submitted a Resale Application. This is illegal and can get you into serious trouble.
HDB’s advanced contra facility allows you to sell and buy part of the waiting period at the same time.
However, only one of the three parties (the buyer of the existing HDB flat, you and the seller of the new HDB flat) can use it. You should talk to your buyer and seller to make sure this is the case.
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As long as there is no existing bank loan, you can use the advanced contra option. Also, note that all three parties must submit their respective Resale Applications within seven days of each other.
If you used a bank loan for your first purchase, you are not eligible for the HDB Enhanced Contra Facility. You need a payday loan instead.
At the time of writing, banks in Singapore will only approve a credit facility if you have taken out a mortgage loan from them.
Be sure to tell the bank that you need a payday loan on top of the mortgage from the start. Otherwise, you risk having to re-apply for the loan, as the bank will have to re-price the package.
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If this is your only option, contact your bank as soon as possible and be prepared for possible changes to your loan terms.
With a good agent, you should have more than enough buffer to avoid this. We do not recommend this route as the minimum tenancy for an HDB flat is 6 months by law.
This means that there is a high probability that you will be stuck with a rental that is beyond your needs, while also costing you a bit more. Short-term rentals are also harder to come by, so you may have to settle for a unit that doesn’t fit your family’s needs.
Kenneth is the co-founder of Bluenest and helps manage the real estate side of the business. He has more than 10 years of experience and was ranked number one in Singapore by the number of HDB properties in 2019. Kenneth has been repeatedly featured in the news for his record deals.
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Previous Article7 Misconceptions About Closing Loans for HDB Upgraders Next HDB Repayment Schedule: How to Plan Your Cash Flow Sales and Use Tax is required for any business that sells tangible goods in San Jose, California. This license is also known as a wholesale license, resale license, sales license and sales certificate.
As the county seat of the very affluent Santa Clara County, San Jose, California is home to a thriving business sector. The state of California requires these businesses to have a valid vendor license if they are involved in the sale or lease of tangible goods. This permit is also known by a number of other names: wholesale permit, reseller permit, resale permit, and sales and use tax permit. If you run a business of this nature operating in San Jose, you can turn to a quick and easy method of obtaining information.
