selling Current HDB flat to buy resale HDB flat.

[LOLMum]

best to check with hdb directly. all the best.

[justcoping]

sall:

My mother is considering selling the present 4-rm flat to buy a smaller 3-rm flat. She heard that there must be a down payment of quite a big sum of money. Also, take for example, if she manages to sell the house for 400K, and buy one for 300K, does HDB issue a cheque of the surplus 100K, in her husband's name? That old man will not give her a cent and had been squandering away all the money on his so-called girlfriends. Yes, he is in his 70s and he's still boasting about his girlfriends- PRC, filipino maid etc. Can she request that the surplus be given to her? Otherwise, she would have to foot the down payment and that old man will just pocket the cheque. Anyone knows the procedure for selling a flat and buying another resale flat?

I do not think the calculation is as simple as this: Selling Price 400 - Cost price 300 = Net returns 100. I remembered years ago when i first sold my hdb flat. The first couple that signed the sales agreement and paid the deposit called us up to call off the deal. It seemed that despite the fact that they were downgrading, they had to repay hdb the interest on loan. Then they realised that they had to even pay back hdb cash instead of receiving cash. When we realised their situation, we agreed to call off plus return them the deposit.

[sall]

justcoping:

I do not think the calculation is as simple as this: Selling Price 400 - Cost price 300 = Net returns 100. I remembered years ago when i first sold my hdb flat. The first couple that signed the sales agreement and paid the deposit called us up to call off the deal. It seemed that despite the fact that they were downgrading, they had to repay hdb the interest on loan. Then they realised that they had to even pay back hdb cash instead of receiving cash. When we realised their situation, we agreed to call off plus return them the deposit.

If there is downgrading, then why is there a need to get a loan from HDB? If can pay for the resale downsize flat at one time from sale of current flat, still need to get loan? :?
Sounds so complicated.

[piyobaby]

Cash proceed from the house will be roughly calculated by selling price minus outstanding loan if any plus interest and returning of used funds back to CPF board. As for cash proceed, it will be given in a Cheque in the name of both owners unless your mum is the only registered owner which is not quite possible. Furthermore cheque can only be cleared in a joint account.


As for levy, it should only affect those 2nd timer buying direct new flat from hdb. Loan amount for resale will be different too if taking a 2nd subsidized loan from hdb. That is to my best knowledge and if there is no change, safer to call & double check with hdb but do remember to note the name of the officer who gave the advice lest they offer different advice which is highly possible!

[sall]

Thanks for all the replies. So I guess if the cheque is in both names, then they’ll have to open a joint acc before clearing?

[justcoping]

sall:

justcoping:

I do not think the calculation is as simple as this: Selling Price 400 - Cost price 300 = Net returns 100. I remembered years ago when i first sold my hdb flat. The first couple that signed the sales agreement and paid the deposit called us up to call off the deal. It seemed that despite the fact that they were downgrading, they had to repay hdb the interest on loan. Then they realised that they had to even pay back hdb cash instead of receiving cash. When we realised their situation, we agreed to call off plus return them the deposit.

If there is downgrading, then why is there a need to get a loan from HDB? If can pay for the resale downsize flat at one time from sale of current flat, still need to get loan? :?
Sounds so complicated.

They bought their current flat at a high and with a loan so when they wanted to sell off. They forgot to compute the interest on the loan. Ultimately, they were left with negative returns if they were to sell. Hope this makes sense.

[sall]

I get it. Thanks for the clarification.

[piyobaby]

Yes they have to, not even about to cash out the cheque.

[sall]

piyobaby:

Yes they have to, not even about to cash out the cheque.

Ok, thanks. Then at least my mum is protected in the way and can get back the down payment.

[piyobaby]

sall:

piyobaby:

Yes they have to, not even about to cash out the cheque.

Ok, thanks. Then at least my mum is protected in the way and can get back the down payment.

To some extent yes but then again depends on how they compromise on the splitting of the cash proceed and had to be careful on which type of joint account applied. Make sure that both parties muz be present for any withdrawals.