Source: Today Online

Letter from Cheryl Tan Cher Lin

I SIGNED the option-to-purchase for a HDB resale flat in June this year.

My first HDB appointment was in August and the second was scheduled for October.

However, the seller refused to move out of her house in October as she had not obtained the keys for her new flat.

She requested for the HDB to delay the completion of the transaction till January next year.

Doing so would incur late completion interest.

In private property transactions, this interest is deducted from the sale proceeds before it is disbursed to the seller. However, in HDB transactions, the seller has to come up with a separate cheque to pay the interest.

To my understanding, if the seller refuses to pay, I will have to resort to legal action.

I was informed by the HDB that most buyers simply ignore legal action to avoid the hassle.

Why is there a stark difference between the laws governing late completion interest in private property and HDB transactions? The laws need to be tweaked so that sellers do not abuse the system and abide by the schedule set by HDB.

Response: No difference in resale rules

HDB Letter from Loh Swee Heng Deputy Director (Resale) Housing and Development Board

I REFER to the letter from Ms Cheryl Tan, “Tweak HDB resale flat rules to prevent abuse” (Dec 11).

Ms Tan suggested that HDB follow private practice, and deduct late completion interest from the sales proceeds if there is a delay on the part of the seller in the sales completion, before it is disbursed to the seller.

For private property transactions, any deduction will depend on the terms and conditions of the contract, and with the seller not disputing the contractual right of the buyer. We wish to clarify that, similarly, for HDB transactions, if there is no dispute from the seller, the interest can also be deducted from the sales proceeds. Hence, the practices are the same for both HDB and private property transactions.

We thank Ms Tan for her feedback.