Change of Flat Ownership and Liability to Pay

Change of flat ownership

As a flat owner, you will need to pay your share of the outstanding upgrading cost in full (including the accrued late payment penalities and interest, if any) before the resale or transfer of flat ownership can be completed.

Resale of flat

The outstanding amount can be deducted from the cash proceeds of your resale transaction if a sufficient amount remains after discharging your:

• Outstanding mortgage loan
• HDB charges (if any)
• Refund to your CPF account

If there are insufficient or no cash proceeds from the sale of your existing flat, you have to pay the outstanding upgrading cost in a lump sum by cash before the resale transaction can be completed.

If you would like to use your CPF savings to pay the outstanding amount, you must pay your upgrading costs in full before the first resale appointment. The CPF Board will not allow you to withdraw your CPF savings to pay the outstanding amount if your flat is undergoing a resale transaction.

Transfer of flat

If you are transferring the the ownership of your flat, the proposed owners can, subject to our approval, take over the outstanding upgrading cost (including the accrued interest) if you are unable to pay the cost in full.

Death of sole flat owner

If the sole flat owner passes away, the outstanding upgrading cost becomes due and payable by the deceased’s estate.

Liability to pay upgrading cost

If you are the flat owner as of the date of billing on our invoice, you are required to pay the upgrading cost.

In a resale transaction, the owner’s share of the upgrading cost is to be paid by:

• The seller if the invoice is issued before the resale transaction is completed
• The buyer if the invoice is issued after the resale transaction is completed

The seller will need to settle the outstanding upgrading cost in full (including any accrued interest) before the resale transaction can be completed. The outstanding amount can be deducted from the cash proceeds of the resale transaction, if the amount is sufficient after deducting the outstanding mortgage loan, charges to us, and CPF refund.

If there are insufficient or no cash proceeds to offset the outstanding upgrading cost in full, the seller will need to pay the outstanding cost in a lump sum by cash before the resale transaction can be completed. 

Buyers and sellers in a resale transaction should take note of the scheduled billing date of the upgraded precinct to determine who should pay the upgrading cost.