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Resale Levy

SingaporecitizenhouseholdsenjoyahousingsubsidywhentheybuyanewflatfromHDBoraresaleflatintheopen marketappliedwithCPFHousingGrant.Eacheligiblefamilycanpurchaseuptoamaximumof2subsidisedflats,in otherwords,enjoy2housingsubsidies. Theresalelevyismeanttoreducethesubsidyonthe2ndsubsidisedflatsoastomaintainafairallocationofpublic housingsubsidiesbetween1stand2nd-timercitizenfamilies.Thisisalsotogivepriorityto1st-timerswhohavemore urgenthousingneeds. Flatownerswhodonotbuya2ndsubsidisedflatfromHDBneednotpaytheresalelevy. Asecond-timerpurchaserreferstoaSingaporecitizenhouseholdthathaspreviouslyenjoyedthefirsthousingsubsidy whentheyboughta: NewflatfromHDB,or Resaleflatwithhousinggrant Aflatisconsideredsubsidised,ifyouhaveboughtit: DirectlyfromHDB,or FromtheopenmarketwithaCPFHousingGrant Belowisaguideonwhenresalelevyispayable. Payable Youaresellingyourfirstsubsidisedflatandbuyinga secondsubsidisedflatfromHDB. Youareasecond-timertakingovertheownershipofa subsidisedflat. Not Payable Youaresellingyourfirstsubsidisedflatandbuyinga resaleflatfromtheopenmarketoraprivateproperty.

Revised Resale Levy


Asannouncedon3March2006,theresalelevyisnowsetatafixedamountofbetween$15,000and$50,000,basedon theflattypeofthe1stsubsidisedflat.Withafixedamount,itwillgivegreatercertaintytoexistingflatownerswhoare decidingwhetherornottobuya2ndsubsidisedflatfromHDB. Therevisedresalelevypolicywillapplytosecond-timerapplicantswho: BooktheirsecondsubsidisedflatfromHDBon or after 03 Mar 2006,and Submittheirresaleapplicationtoselltheirfirstsubsidisedflat on or after 03 Mar 2006 Thecut-offdatetoapplytherevisedresalelevypolicyforthevariousmethodsofsubmittingresaleapplicationstoHDB isasfollows: Method of Submitting Application HDB-ResaleNetSystem e-Resale Cut-Off Date Based On DateofreceiptofapplicationviaResaleNet Dateofreceiptofapplicationviae-Resale

DropBoxatToaPayohHDBHub ByPosttoHDB

DateofreceiptofapplicationintheDropBox DateofPostmarkbySingaporePost

Amount Payable under the Revised Resale Levy Policy


Theamountofresalelevyisgradedaccordingtotheflattypeoftheflatowners'firstsubsidisedflat.Undertherevised policy,flatownerswhosefirstsubsidisedflatisa2-roomflatwillpayaresalelevyof$15,000.Thosewhosefirst subsidisedflatisa3-room,4-room,5-roomandExecutiveflatwillpayaresalelevyof$30,000,$40,000,$45,000and $50,000respectivelywhentheypurchaseasecondsubsidisedflat. First Subsidised Flat Type 2-room 3-room 4-room 5-room Amount of Resale Levy Payable under the Revised Policy (From 3 Mar 2006*) $15,000 $30,000 $40,000 $45,000

ExecutiveFlat $50,000 * onlyapplicableforthosewhosubmittheirresaleapplicationandbooka2ndsubsidisedflaton/after3March2006.

Which Resale Levy Policy applies to you


Therevisedresalelevyhasbeenimplementedfrom03Mar2006.Therevisedresalelevypolicywillapplyto2nd-timer applicantswho book their 2nd subsidised flat from HDB and submit their resale application to sell their first subsidised flat, both of which must be on or after 3 March 2006. ThefollowingflatownerswillcomeunderthePreviousResaleLevyPolicy: BookedasecondsubsidisedflatoranExecutiveCondominiumunitfromthedeveloperbefore3Mar2006. Thisisregardlessofwhethertheyhavesoldorsubmittedaresaleapplicationtosellthefirstsubsidisedflat, or Soldthefirstsubsidisedflatandoptedfordeferredresalelevy,or SubmittedaresaleapplicationtoHDBbefore3March2006forthesale oftheirfirstsubsidisedflat

Amount Payable under the Previous Resale Levy Policy


BelowarethechargesunderthePreviousResaleLevyPolicy,i.e.basedonresalepriceor90%ofmarketvaluation, whicheverishigher: Flat Type 2-room 3-room 4-room 5-room&Executive
* +

Resale Levy payable by family grant recipient *10%/15% 20% 22.5% 25%

+Resale Levy payable by singles/half grant recipient *5%/7.5% 10% 11.25% 12.5%

2-roomflatsellerspayalowerrate,i.e.10%or5%, onlyiftheybuyabiggerflatdirectfromHDB. Theseresalelevyratesapplyonlytosellersofflatspreviouslyboughtwithsinglesgrantandwhosubmittheirresaleapplicationsonor after15Sep2004

Resale Levy Payable by Single Grant recipients


RegardlessoftheapplicabilityofRevisedorPreviousResaleLevyPolicy,singlecitizens,whohavepurchasedresale flatswiththelowerCPFHousingGrantforSingles,needtopayonlyhalfthelevyamountwhentheysubsequentlyform afamilyandbuyortakeovertheownershipofasecondsubsidisedflat.

Making Payment for the Resale Levy


Theresalelevypayableisdeterminedatthepointofbookingofthesecondsubsidisedflat.Thepaymentofresalelevyis regardlessofthetypeofownership(i.e.joint-tenancyortenancy-in-common)andtheshareofinterestintheflat. Ifyouarebuyingyoursecondsubsidisedflat,youcan: Paytheresalelevyimmediatelyatthepointofresale,i.e.whensellingyoursubsidisedflator DeferthepaymentuntilyoubuyanotherflatfromHDB.Ifyoucomeunderthepreviousresalelevypolicy andoptforthis,aninterestattheprevailingrateof5%perannumwillbecharged. YoucanpaytheResaleLevywitheither/combinationofthefollowing: withyoursaleproceedsor cash HDB'smortgagefinancingisnotextendedforthepaymentoftheresalelevy Situation Procedure Ifyou Bookasecondsubsidisedflatonorafter3Mar 2006,and Sellyourfirstsubsidisedflataftertakingpossession ofthesecondsubsidisedflat Ifyou Bookasecondsubsidisedflatonorafter3Mar 2006,and Sellyourfirstsubsidisedflatbeforetaking possessionofthesecondsubsidisedflat Ifyoupayatpointofyourresaletransaction,i.e.when sellingyoursubsidisedflat Theresalelevywillbedeductedfromthesale proceedswhenyousellyourfirstsubsidisedflatin theopenmarket Anyshortfallwillhavetobetopped-upincash Youcanchoosetopayresalelevyatthepointof: Sellingyourexistingflatintheopenmarket,or Takingpossessionofthesecondsubsidisedflat

Theresalelevywillbedeductedfromthesale proceeds Anyshortfallwillhavetobetopped-upincash Otherwise,theresalelevymustbepaidincash beforeyoucantakepossessionofyoursecond subsidisedflat Theresalelevyhastobepaidincashbeforeyoucan takepossessionofyoursecondsubsidisedflat

Ifyou Submitanapplicationtosellyourfirstsubsidised flatonorafter3Mar2006,and Subsequentlybookasecondsubsidisedflatonor after3Mar2006 LastUpdatedon19Sep2012