Temporary Extension of Stay for HDB Flat Owners to Rectify Non-compliant Structures within Flat in Resale Transactions
Ministry of National DevelopmentSpeakers
Summary
This question concerns the inspection procedures and liability for non-compliant structures in HDB resale transactions involving a Temporary Extension of Stay. Miss Cheryl Chan Wei Ling enquired about the recourse for buyers discovering unauthorized structural alterations and HDB's role in facilitating final inspections during such extensions. Minister for National Development Desmond Lee clarified that extensions are private agreements, yet sellers must permit a final inspection on or before legal completion regardless of the stay. He stated that while HDB conducts safety inspections to ensure regularization before completion, buyers ultimately purchase on a caveat emptor basis and are responsible for post-purchase irregularities. If unauthorized works are found after completion, buyers can seek HDB’s assistance to assess the situation and coordinate remedial actions with the relevant parties.
Transcript
55 Miss Cheryl Chan Wei Ling asked the Minister for National Development (a) 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 (b) 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.
56 Miss Cheryl Chan Wei Ling asked the Minister for National Development whether HDB will consider taking into account the period of Temporary Extension of Stay in resale HDB flat transactions when requiring buyers of these resale flats to make structural and safety works as required by HDB.
Mr Desmond Lee: 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 three 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.
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.
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.
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.
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.