Costs and Fees
Financial planning is important for sellers, especially with regard to financing the next home after they sell their flat. Assist the sellers by working out their estimated sale proceeds and highlighting the outstanding payments involved, as well as informing them of the additional costs and fees payable.
Sellers need to settle all the outstanding payments listed in the table when they sell their flat.
You should also highlight to the sellers about other payments which may require cash payment (e.g. commission for engaging your services).
Outstanding mortgage loan
The outstanding mortgage loan refers to the amount of housing loan the sellers have taken which has not been fully paid yet.
If the sellers have taken an HDB loan, they can check their outstanding mortgage loan via My HDBPage. If they have taken a bank loan, they have to check with the respective bank on the outstanding amount.
Mode of payment
- The outstanding mortgage loan will be deducted from the resale price, if sufficient
- If the resale price is insufficient to settle the outstanding loan, sellers need to pay for the balance in cash. The deposit collected from buyers will also have to be returned to settle the amount
Sellers need to pay the resale levy if they are selling or have sold a subsidised flat before, and plan to or have booked a new flat from HDB, or an EC (where the land sale was launched on or after 9 December 2013).
Resale levy amount
If the sellers sold their first subsidised flat before 3 March 2006, a graded resale levy applies.
From 3 March 2006, the resale levy is set at a fixed amount that is between $15,000 and $50,000, based on the flat type of the first subsidised flat.
This revised resale levy policy will apply to second-timer applicants who fulfil these 2 conditions:
- Book their second subsidised flat from HDB on or after 3 March 2006
- Submit their resale application to sell their first subsidised flat on or after 3 March 2006
You can find out more information on the resale levy.
Making payment for the resale levy
The resale levy payable is determined at the point of booking the second subsidised flat. This is regardless of the type of ownership (joint-tenancy or tenancy-in-common) and the share of interest in the flat.
If the sellers are purchasing their second subsidised flat, they can do either of the following:
- Pay the resale levy immediately at the point of resale, i.e. when selling their subsidised flat
- Defer the payment until they purchase another flat from HDB. If they come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be payable
The resale levy can be paid with either the sale proceeds and/ or cash. HDB's mortgage financing is not extended for the payment of the resale levy and sellers cannot use their CPF savings to pay for the resale levy.
Note: For payment of resale levy at the point of the resale transaction, the amount will be deducted from the sale proceeds. Any shortfall will have to be topped-up in cash. Otherwise, the resale levy must be fully paid in cash before the sellers can take possession of their second subsidised flat.
Sellers who may need to pay the upgrading levy are:
- Singapore Citizen households who have benefitted from the Main Upgrading Programme (MUP) 2 times or more
- Singapore Permanent Resident (SPR) households
The levy is 10% of the declared resale price or 90% of the market valuation of the flat, whichever is higher.
More information on upgrading levy.
Mode of payment
The upgrading levy can be deducted from the resale price if sufficient, or paid in cash.
CPF savings with accrued interest
The amount of CPF savings that sellers have used towards paying for the flat, either as downpayment or for the monthly instalments, will have to be returned to the respective sellers’ CPF account. This amount will include the accrued interest
Mode of payment
- The amount will be deducted from the resale price, if sufficient
- If the resale price is insufficient to settle this amount, sellers will have to pay it in cash. The deposit collected from buyers will also have to be returned to settle the amount
- If the sellers are 55 years old or above, do advise them to check the CPF policies on the refund of CPF savings before they commit to sell their flat
The upgrading cost is payable by flat owners whose flats have been announced for HDB’s upgrading programmes. If the sellers’ flat is in a precinct that has undergone or is undergoing upgrading, do check if the bill has been issued and payment has been made. The status of the upgrading programme can be checked via the Enquiry on Upgrading/ Estate Renewal Programmes e-Service.
More information on upgrading cost payment and billing dates are also available below:
Mode of payment
- The upgrading cost can be deducted from the resale price, if sufficient, or paid in cash or with CPF savings
- Sellers and buyers should be aware that the flat owners at the point the bill is issued is liable for the upgrading cost. This means that:
- Sellers have to pay the cost if the bill is issued before the resale transaction is completed
- Buyers have to pay the cost if the bill is issued after the resale transaction is completed
- As salespersons, you can guide them to check the upgrading cost, as it differs for an SC and SPR household
Sellers can check the outstanding amount and arrange for payment via mytax.iras.gov.sg > "Payment Services" with your SingPass.
Mode of payment
Sellers have to settle the full year payment of property tax at least 1 week before the completion date. They need to produce the receipt if it is made a week before the completion date.
Seller's Stamp Duty (SSD)
Service and Conservancy Charges (S&CC)
Sellers can check their outstanding S&CC with their Town Council.
Mode of payment
Sellers have to settle the S&CC with their Town Council before the Completion Appointment. The receipt has to be produced during the Completion Appointment.
Resale application fees
Payment has to be made during submission of application. The fee is payable by both the buyers and sellers separately:
- $40 for 1 and 2-room flat
- $80 for 3-room and bigger flat
Mode of payment
- Credit card for submission via e-Resale
- GIRO for submission via the Estate Agent Toolkit
Legal fees have to be paid in cash during the HDB First Appointment:
- If the sellers are engaging us, you can use the Legal Fees Enquiry e-Service to work out the estimated fees
- For private solicitors, they will need to check with the solicitors on the fees
Check out more information on legal fees.
Kindly take note of the following:
(a) CEA does not fix commission rates or provide commission guidelines. This is so market forces can drive competitive pricing in the industry.
(b) As salespersons, you are expected to act ethically and should not impose any commission or fee on your clients without having explained and obtained their agreement. Your clients can negotiate the quantum and components of fees, expenses and terms with you.
(c) To allow your clients to make informed choices, you can provide a breakdown of your fees vis-à-vis the level of services and options you provide.
(d) You cannot collect commission or fees from more than one party in a transaction. If you collect commission from the sellers, you cannot collect a commission or co-broking fee or payment from the other party or from the latter’s salesperson.
(e) Commission should be paid to your estate agent and not directly to you.
More on Commission Rates – Fixed or Negotiable
Enhanced Contra Facility
The Enhanced Contra Facility (ECF) helps the sellers sell their existing HDB flat and at the same time buy another resale HDB flat using the sale proceeds and the refunded CPF monies.
The CPF refund from the sale of the flat can be used to reduce the cash payment and mortgage loan required for the purchase. However, it cannot be used for the payment of stamp and conveyancing fees.
Application for the ECF can be made together with the resale application (indicate in the application form) or by submitting the form to us.
Do highlight the Terms and Conditions for ECF to the sellers before opting for the facility.
Terms and Conditions for Enhanced Contra Facility (ECF)
Application conditions and procedures
- An owner who is selling his existing HDB Flat A and buying an HDB resale Flat B ("the contra party") may apply for the Enhanced Contra Facility to finance the purchase of Flat B, provided the buyer of Flat A and seller of Flat B have not applied for the facility for their respective flats
- The seller of Flat A must not be an undischarged bankrupt or have any bankruptcy proceedings commenced against him
- Where there is a mortgage in favour of a financial institution and/or CPF Mortgage/charge on Flat A and/or Flat B or where private solicitors have to be engaged, HDB reserves the right not to approve the application for the Enhanced Contra Facility
- The Enhanced Contra Facility is not available in resale applications under the Conversion Scheme, the sale of part-share of an existing flat, or if the contra party buys another resale flat with bank loan, or any other schemes as may be decided by the HDB
- The two applications for resale of Flat A and Flat B and the application for the Enhanced Contra Facility must be submitted together. Approval for the resale of Flat A and Flat B does not constitute approval of the application for the Enhanced Contra Facility
- The resale of Flat A must be completed before the completion of the resale of Flat B, which can be on the same day
Use of CPF monies or cash from sale of flat A
The contra party may use the cash proceeds (if any) from the sale of Flat A to pay part of or the full amount of the resale price for Flat B, only after he has used:
All the existing balance in his CPF Ordinary account, and
All CPF monies that will be refunded to his CPF Ordinary account from the sale of Flat A and which are available for use in the Enhanced Contra Facility
The amount of CPF contra to be utilised will be calculated up to the date of the First Appointment or at such other date which the HDB or CPF Board may decide.
“Cash proceeds” refers to the net amount payable to the contra party after deducting the deposit paid, outstanding mortgage loan to HDB, resale/upgrading levy, all CPF refund plus interest or such other sums due and payable to HDB from the sale price.
Where CPF monies are used in the purchase of Flat B, the withdrawal of such CPF monies is subject to the provisions of the Central Provident Fund Act (Cap 36) and the rules and regulations made thereunder and any amendment, modification or re-enactment thereof and also to all covenants, terms and conditions as may be imposed by the CPF Board from time to time.
HDB reserves the right to withhold consent, revoke approval, vary, or cancel the Enhanced Contra Facility at any time if:
The contra party is made bankrupt or has bankruptcy proceedings commenced against him pending the completion of the two resale transactions
The contra party passes away before the completion of any of the resale transactions
The contra party infringes any of the provisions of the Central Provident Fund Act (Cap 36) and the regulations made thereunder and the terms and conditions imposed by CPF Board
Any of the parties infringes any of the provisions of the Housing & Development Act, prevailing policies, rules and regulations
The resale of Flat A is delayed, aborted or not completed
The monies in the CPF account are subject to a charging order made pursuant to an Order of Court
The proceeds from the sale of Flat A (cash and/ or CPF) cannot be used to finance the purchase of Flat B under the Enhanced Contra Facility for any reason whatsoever
Cancellation of facility
If HDB revokes, varies, or cancels the Enhanced Contra Facility or if the resale of Flat A is delayed or aborted for any reason whatsoever:
Where the completion date for the resale of Flat B has not been fixed by HDB, the contra party shall pay:
All monies to be utilised under the Enhanced Contra Facility towards part/full payment of the resale price for Flat B within 10 days from the date of notification by HDB that the Enhanced Contra Facility has been varied or cancelled; and
The balance of the resale price of Flat B on the day of completion
Where the completion date for the resale of Flat B has already been fixed, the buyer of Flat B will be given notice to pay within 10 days all monies required to complete the purchase
HDB reserves the right to reschedule the completion date of Flat A and Flat B
CPF Board shall be authorised to make the necessary amendments to the "CPF Application For Withdrawal Under Public Housing Scheme" form signed by the contra party at the first appointment
HDB reserves the full discretion and right to:
Determine the amount that can be used under the Enhanced Contra Facility
Add, delete or alter the terms and conditions for the Enhanced Contra Facility at any time
Withhold consent to, vary or cancel the Enhanced Contra Facility at any time without giving any reason whatsoever
Acceptance by HDB of this application for the Enhanced Contra Facility does not imply that the CPF Board will approve such application.
These terms and conditions are in addition to HDB's Terms and Conditions of Resale/ Purchase of an HDB resale flat and are current at the time of printing.