Written Answer by Ministry of National Development on temporary extension of stay for HDB resale transactions

Sep 12, 2022

Miss Cheryl Chan Wei Ling: To ask the Minister for National Development

1. what is HDB’s process and checklist for buyers to conduct a final inspection of a resale flat before transaction completion when a temporary extension of stay is in place; and
2. what recourse is available when the buyer encounters non-compliant structures in the resale flat, such as missing structural wall, despite HDB’s check on the flat’s condition prior to the sale completion.

Miss Cheryl Chan Wei Ling: To ask the Minister for National Development whether HDB will consider taking into account the period of temporary extension of stay (TEOS) in resale HDB flat transactions when requiring buyers of these resale flats to make structural and safety works as required by HDB.

Answer:

            A temporary extension of stay is a private arrangement between flat sellers and buyers, and is subject to HDB’s approval. The sellers may request for a temporary extension of stay of up to 3 months. Both parties must agree on the terms of the stay, which can include the period of the extension, the rental rate and the flat condition, and may sign a private agreement between themselves on the terms of the stay. If there is a temporary extension of stay, the sellers shall deliver vacant possession of the flat to the buyers only upon the expiry or termination of the stay.

2          Under the terms of the Option to Purchase signed between the parties, the sellers must deliver the flat to the buyers in a physical condition that both parties have agreed on. In addition, the sellers must allow the buyers to conduct a final inspection of the flat on or before the legal completion date of the transaction. This is regardless of any temporary extension of stay granted. HDB does not provide a checklist for the inspection, as the items and fixtures to check in the flat would depend on what has been negotiated between the two parties. The buyer may engage a Qualified Person (e.g. Building Surveyor) at his own expense to help him in the inspections.

3          Prior to the resale completion, HDB also conducts an inspection to check for unauthorised renovation works in the flat which could damage or affect the structural stability of the flat/building. If any unauthorised works or structural alterations to the flat that may cause safety concerns are discovered during the inspections, they must be regularised before the resale can be completed.

4          Buyers of resale flats purchase the flat on a caveat emptor basis, which means that the onus is on them to inspect the condition of the flat that they are purchasing. The buyer is ultimately responsible for any irregularity which may subsequently be discovered after the purchase.

5          Nonetheless, if unauthorised works are discovered after resale completion, buyers can approach HDB for advice. HDB will assess the situation and follow up with the parties involved on the remedial actions.