Mode of Communication to Inform BTO Buyers of Quantum of Resale Levy They Have to Pay
Ministry of National DevelopmentSpeakers
Summary
This question concerns the timing and communication methods HDB uses to inform second-timer BTO buyers of their specific resale levy amounts. MP Dennis Tan Lip Fong inquired about the stages of notification and whether HDB utilizes non-online modes to relay this information. Minister for National Development Desmond Lee explained that HDB provides notifications and requires signed acknowledgements when owners sell their first flat and again during in-person flat booking. He noted that reminders are included in application terms and conditions, as well as prior to key collection for the new flat. Policy details are also disseminated via the HDB website, press releases, and various official documents throughout the transaction process.
Transcript
67 Mr Dennis Tan Lip Fong asked the Minister for National Development (a) at what stage in the sales process of HDB BTOs are all buyers of their second or more BTOs informed by HDB of the actual quantum of the resale levy the buyers have to pay; (b) what are the modes of communication by which buyers are so informed of the actual resale levy by HDB; and (c) whether any of such communication modes include any non-online mode.
Mr Desmond Lee: Singaporeans enjoy a significant housing subsidy when they buy a new flat from HDB or a resale flat with a CPF Housing Grant. To ensure a fair allocation of the limited housing subsidies and prioritise the allocation of subsidies to those who have not yet received a housing subsidy, second-timers who buy a flat from HDB receive a smaller subsidy than first-timers by paying a resale levy.
Information on the resale levy policy is available on the HDB website, including the situations in which a resale levy needs to be paid, the amount of resale levy to be paid as well as when and how payment is made. HDB also periodically includes information on the resale levy in its press releases.
HDB also informs HDB owners selling their flats as well as those applying to purchase a subsidised HDB flat of the resale levy at various junctures in the process of selling and buying a subsidised HDB flat. When HDB owners sell their first subsidised flat, they will be informed that they need to pay a resale levy if they buy another subsidised HDB flat and of the amount of resale levy they will need to pay. The seller will be required to sign an acknowledgement of these requirements.
Second-timers applying for a subsidised flat from HDB are reminded that they will need to pay a resale levy via the terms and conditions of their flat application. In addition, when they turn up in person to book a flat, HDB highlights the amount of resale levy payable before they proceed to book a flat and they will have to acknowledge an undertaking to pay the resale levy. When the booked flat is ready for key collection, HDB will remind second-timers of the amount of resale levy they will need to pay before key collection (if they have sold their first subsidised flat) or upon the sale of the first subsidised flat (if they have yet to sell their first subsidised flat).