Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
The HDB resale transaction is conducted entirely through the HDB Resale Portal (resale.hdb.gov.sg), which replaced the legacy in-person HDB appointment process. Both buyers and sellers log in with Singpass to submit their respective portions of the transaction. Agents assist clients to navigate the portal but cannot submit on behalf of clients — the client must perform actions requiring their Singpass authentication themselves.
Step 1: Option to Purchase (OTP) Grant
The seller grants the buyer an OTP using the prescribed HDB OTP form. Key terms:
- Option fee: $1 to $1,000 (paid by buyer to seller). The maximum is capped at $1,000 for HDB resale flats.
- Option period: 21 calendar days (fixed under HDB rules — cannot be shortened or extended).
- Purchase price: agreed between buyer and seller; there is no longer a mandatory HDB valuation before the OTP is granted (as of January 2023, the valuation is conducted after the OTP is exercised, not before).
Before granting the OTP, both buyer and seller should have logged into the HDB Resale Portal and completed the preliminary eligibility check. The seller registers the intent to sell; the buyer registers the intent to buy. These registrations are valid for 12 months and can be renewed.
Step 2: OTP Exercise
The buyer exercises the OTP within the 21-day option period by paying the exercise fee (the balance of the 5% deposit, i.e., 5% of purchase price minus the option fee already paid). The total deposit at exercise is up to $5,000 for resale flats — note this is different from private property where the total deposit is typically 5% of purchase price. For HDB resale:
- Option fee: up to $1,000 (paid at OTP grant).
- Exercise fee: up to $4,000 (paid at OTP exercise).
- Total deposit: up to $5,000 (paid directly from buyer to seller; not held by HDB).
After the buyer exercises the OTP, both parties must submit their portions of the resale application to HDB via the Resale Portal within 7 days of OTP exercise. Missing this 7-day window requires a fresh OTP — the exercise is deemed not to have proceeded.
Step 3: HDB Resale Application Submission
Buyer and seller each submit their half of the HDB resale application via the portal within 7 days of OTP exercise. Required information includes:
- Seller: confirmation of flat details, outstanding HDB loan balance, CPF refund amount, existing mortgage particulars.
- Buyer: financing mode (HDB loan or bank loan), CPF usage details, applicable grants (PHG, Step-Up Grant, etc.), citizenship status.
HDB processes the application and requests supporting documents. The timeline from submission to HDB approval (Letter of Offer for buyers using HDB loan, or approval letter for cash/bank loan buyers) is typically 8–10 weeks. Complex cases (additional sellers, divorce orders affecting the flat, deceased co-owners) may take longer.
Step 4: HDB Valuation
After the resale application is submitted, HDB commissions a valuation of the flat (conducted by a HDB-appointed valuer). The valuation determines:
- The CPF Withdrawal Limit (typically the lower of purchase price or valuation, subject to remaining lease and CPF rules).
- The HDB concessionary loan quantum (up to 80% of valuation or purchase price, whichever is lower).
- Whether Cash Over Valuation (COV) applies — COV is the amount by which the agreed purchase price exceeds the valuation, and must be paid entirely in cash (cannot be funded by CPF or HDB loan).
Agents should counsel buyers who are paying above the expected market value that COV risk exists. If the agreed purchase price is $550,000 but valuation comes in at $510,000, the buyer faces $40,000 in COV that must be paid in cash at completion.
Step 5: Endorsement and Pre-Completion Checks
Once HDB approves the application, both parties must endorse the resale documents via the portal (using Singpass). The endorsement replaces the old physical signing of resale documents at HDB Hub. After endorsement:
- Buyer arranges CPF withdrawal (if applicable) — CPF Board releases funds to HDB escrow.
- Buyer's bank releases loan proceeds (if bank loan) — funds are transferred to HDB escrow.
- Stamp duty (BSD) must be paid within 14 days of OTP exercise (ABSD within the same deadline).
- HDB arranges for outstanding maintenance arrears, HDB loan balance, and CPF refund (accrued interest) to be computed for the completion account.
Step 6: Completion Appointment (Key Collection)
HDB schedules the completion appointment approximately 6–8 weeks after endorsement (total timeline from OTP exercise to completion is typically 10–14 weeks). At the completion appointment at HDB Hub:
- The seller hands over the keys.
- HDB distributes the sale proceeds: HDB loan redemption, CPF refund (principal withdrawn + accrued interest at 2.5% p.a.), agent commission (if authorised), and any cash balance to the seller.
- The buyer receives the keys and any unexpired maintenance prepayment.
- The flat title is transferred from seller to buyer.
Sellers must note that their CPF refund goes back to their CPF Ordinary Account — it is not cash. If the seller has withdrawn significant CPF amounts over many years, the accrued interest refund can be substantial, reducing the net cash proceeds from the sale.
Step 7: After Completion — Buyer Obligations
After key collection, the buyer must:
- Occupy the flat within 3 months of the completion date (unless HDB grants an extension).
- Comply with HDB rules on subletting, renovation, and transfer restrictions from the date of purchase.
- The 5-year MOP clock begins from the date of key collection (or the TOP date if buying a new flat — but for resale, it is completion date).
- Update NRIC address with ICA within 30 days of moving in.
Agent Role in the HDB Resale Process
CEA-registered agents coordinate the process but cannot execute Singpass-authenticated steps on behalf of clients. Key agent responsibilities include:
- Ensuring both parties register their intent on the HDB Resale Portal before the OTP is granted.
- Advising on the 7-day submission deadline after OTP exercise — this is a hard deadline.
- Flagging COV risk to buyers before the OTP is exercised at a price above likely valuation.
- Advising sellers on the CPF accrued interest refund and its impact on net cash proceeds.
- Coordinating with lawyers (if the buyer is using a bank loan, a conveyancing lawyer is required).
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.