HDB's latest move to encourage greater financial prudence involves an enhanced Seller's Checklist that will now need to be submitted at least seven days before the seller can grant an Option to purchase on his or her flat.
"While the previous measures of a higher minimum cash payment and lower Loan-To-Value ratio were more buyer-centric," observes PropNex CEO Mr Mohamed Ismail, who wholeheartedly supports this new measure, "the enhanced seller's checklist will be more seller-centric.
"Firstly, the checklist actually ensures that the seller engages in concrete financial planning for his or her next residential purchase. In the past, many sellers or upgraders might have been unaware of certain costs that may negate the profits from their flat sale. Now, with the new regulations that were Implemented in August, this enhanced Seller's Checklist will be even more relevant and useful in encouraging financial prudence and forward planning on the consumer's part.
"Secondly," adds Mr Ismail, "the seven-day cooling off period will help sellers be more certain of their decision to sell their flat, and of their housing plans for the near-term. Ther is more time for them to evaluate their options and make a more informed decision for their future."
Unlike the other measures introduced on 30 August 2010, this implementation is not expected to affect the sales volume or Cash-Over-Valuation levels of HDB flats.
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726