Things to note for transfer of flat ownership due to divorce
Upon divorce, the Court may order the matrimonial flat to be transferred to either party, and this party must meet the eligibility conditions to take over ownership of the flat. The application to transfer flat ownership will be accepted only after the divorce is finalised, and applicants are issued a Certificate of Making Interim Judgement Final for a civil divorce, or a Certificate of Divorce for a Muslim divorce.
Applicants should take note of the following:
- HDB does not grant any loan for the amount of cash consideration/ lump sum payment if the Court has ordered for such sum to be paid to one of the parties as one of the terms of the divorce.
- HDB does not accept valuation requests by owners who need a valuation report to determine the cash consideration.
- If the withdrawing owner has bought or intends to buy a flat with a second mortgage loan from HDB, they must use their CPF refund and cash consideration (if any, up to 50% of the consideration) to reduce the loan quantum.
- If the terms of divorce state that the withdrawing owner will receive a partial or zero CPF refund upon withdrawing ownership from the matrimonial flat, CPF Board’s confirmation letter indicating their consent to such Court Order must be submitted to HDB at the point of application.
- If the matrimonial flat is a subsidised flat, the existing owners (and ex-spouse) would be considered to have enjoyed 1 housing subsidy. The existing owners would need to pay their respective share of the resale levy when they buy another subsidised flat/ EC unit (if eligible).
- If the proposed owner is taking a mortgage loan from the bank or financial institution licensed by the Monetary Authority of Singapore (MAS), it would be good to check if the bank or financial institutions grant loans to effect ownership changes pursuant to a Court Order. Otherwise, the change in flat ownership would have to be effected according to the mode required by the banks or financial institutions, subject to HDB’s approval.