Complaints about Defects Found in HDB Resale Flats after Completion of Sale and Purchase Transaction
Ministry of National DevelopmentSpeakers
Summary
This question concerns complaints regarding undisclosed defects in HDB resale flats after the completion of sale transactions, as raised by Mr Gerald Giam Yean Song. Minister for National Development Desmond Lee explained that HDB does not track such complaints because resale transactions follow the caveat emptor principle, meaning flats are sold in "as-is" condition. He stated that while sellers must answer queries truthfully and may be liable for misrepresentation, buyers are responsible for conducting thorough inspections and ensuring satisfaction before committing. Minister for National Development Desmond Lee noted that HDB inspections only address structural stability and unauthorized works, which must be regularized before completion. Therefore, buyers should resolve disputes through final inspections and consider hiring building surveyors to verify the property's condition before the transaction is finalized.
Transcript
66 Mr Gerald Giam Yean Song asked the Minister for National Development (a) in the past five years, how many complaints did HDB receive about defects found in HDB resale flats after the completion of the sale and purchase transaction where the defects were not previously brought to the attention of the prospective buyer; (b) whether sellers of HDB flats are obliged to disclose serious defects to prospective buyers; and (c) what recourse is available to buyers who were previously not informed of such defects before the completion of the transaction.
Mr Desmond Lee: The Housing and Development Board (HDB) does not track the number of complaints received about defects found in HDB resale flats after the transaction is completed. The sale and purchase of an HDB resale flat, as well as private property resale transactions, are premised on the caveat emptor principle. This means that such transactions are based on as-is condition.
Prospective buyers should inspect the flat before purchase. If prospective buyers spot any defects during their checks and question the sellers on it, the sellers must answer the buyers’ questions truthfully. If the sellers refuse to provide the required information, buyers should then decide whether to continue with the purchase or to walk away and find another flat. If a seller provides false information to the buyers on purpose, he may be liable for misrepresentation. The buyer may rescind his contract, if he can prove that he was misled into buying the flat based on the false information provided. We encourage buyers to seek independent legal advice if they find themselves in this situation.
Before the resale transaction is completed, HDB will conduct an inspection. The purpose of this inspection is to check for unauthorised renovation works in the flat which could damage or affect the structural stability of the flat or building. If such unauthorised works or structural alterations are discovered during the inspections, they must be regularised before the resale transaction can be completed.
Both seller and buyer must arrange for a final inspection of the flat before resale completion, to ensure that the seller can deliver vacant possession of the flat by the completion date. As both parties would have entered into a binding legal contract by then, they need to resolve any disputes between them.
Buyers of HDB resale flats are advised to inspect and be satisfied with the condition of the flats that they are purchasing, before committing to the purchase. They may consider engaging a qualified professional, such as a building surveyor, to help with the checks if they find it necessary.