According to HDB’s Annual Report (2017/2018), 81% of the population in Singapore live in HDB flats. It is therefore not surprising in most divorces, the parties would want to know what will happen to their HDB flat upon a divorce.
Spouses acquire together an HDB flat through a marriage and forming the family nucleus under the HDB eligibility scheme. Upon a divorce, the family nucleus is no longer in existence. HDB will require that such flat be dealt with by the divorcing couple.
There are a few possible ways to dealt with the HDB flat.
1) Agreement for Lease
The couple will be signing the HDB Agreement for Lease after the booking of their HDB flat. Once the HDB flat is completed, they will collect the key to their HDB flat.
Upon a divorce, the Agreement for Lease will be terminated. Consequently, the deposit paid to the HDB will be used to pay all monies due to the HDB. Additionally it will be used to refund the couple’s CPF accounts of the CPF monies used and its accrued interest. Meanwhile, the divorcing couple will need to agree on the sharing of the costs and expenses of the surrendering the HDB flat. This will include the sharing of the balance or which is the usual case, the shortfall. The Court will determine the ratio of sharing if the divorcing couple cannot agree on this.
What if there is insufficient money to refund back the CPF? The CPF Board will not require the couple to top up the difference to their CPF accounts. Instead, the difference will be treated as the couple has lost this amount in their CPF accounts.
2) Surrender
There is a minimal occupation period (commonly known as “MOP”) before a couple can sell their HDB flat. The MOP is calculated from the day that the key to the HDB flat is collected. For a direct purchase from the HDB, the MOP is 5 years. For a purchase in the open market, the MOP can be 3 years or 5 years.
Upon a divorce, the divorcing couple is required to surrender their HDB flat to the HDB if the MOP is unfulfilled.
The HDB will compensate the divorcing couple for the surrender. The amount is usually below value. The compensation money will be used to pay all monies due to the HDB. Additionally it will be used to refund the couple’s CPF accounts of the CPF monies used and its accrued interest. The divorcing couple will need to agree on the sharing of the costs and expenses of the surrendering the HDB flat. This includes the balance or which is the usual case, the shortfall. The Court can make an order on the ratio of sharing if the divorcing couple cannot agree on this.
If there is insufficient money to refund back the CPF, the CPF Board will not require the parties to top up the difference to their CPF accounts. That is to say that the difference will be treated as the parties have lost this amount in their CPF accounts.
3) Sale in open market
The divorcing couple can sell the HDB flat in the open market if the MOP is fulfilled.
They should try to agree on the followings without the Court’s determination:
- Firstly, what should be the sale price?
It is common to be “a sale price to be agreed by the parties”. Alternatives to this would be “a sale price at $________ above market value”, “at market value” or “not below $__________”.
- Secondly, what to do with the net sales proceed?
The net sales proceed means the sales proceed after repaying of the balance mortgage loan.
The net sales proceed can be divided in an agreed percentage or amount. Thereafter from the couple’s own shares, each party can refund back to their own CPF accounts of the CPF moneys used and its accrued interest.
The other options can be that the net sale proceeds can be used to refund both parties’ CPF accounts of the CPF moneys used and its accrued interest. Thereafter the balance be divided in an agreed percentage or amount.
- Thirdly, how to share the costs and expenses of the sale including agent’s commission?
- Finally, how about the continuation of the payments for the HDB flat pending its sale?
4) Transfer
One party can transfer his or her share of the HDB flat to the other former spouse. In most cases, the HDB flat is near the child’s school. With this mind, the couple can opt for a former spouse to retain the HDB flat. A transfer is also a popular alternative to the surrender of the HDB flat. Albeit, the former spouse who is taking over will have to satisfy the HDB’s criteria.
In a transfer situation, the former spouse that is transferring his or her share of the HDB flat may ask for any of the below:
- Partial or no refund of his/her CPF accounts of the moneys used and its accrued interest.
- Full refund of his/her CPF accounts of the moneys used and its accrued interest.
- Full refund of his/her CPF accounts of the moneys used and its accrued interest plus a cash sum.
The costs and expenses of the transfer will also need to be agreed to by the divorcing couple and if not, be determined by the Court.
5) Other arrangements
Other arrangements are possible to suit each family’s needs. Primarily, we all know that no two families are alike. This can be possible subject to your lawyers’ creativity and the HDB’s approval.
We would love to hear of your comment or question. You can comment below here or write an email to us.
If I am able to retain the flat via the Single Scheme, will the court still rule for us to surrender the flat?
the flat has not fulfill the MOP.
Dear Ryan
If the HDB flat can be retained by you under HDB’s eligibility scheme (plus your eligibility for a housing loan) and the arranging is agreed by the outgoing party or is a just and equitable division, the Court is unlikely to order a surrender despite the MOP is not fulfilled. This is subject to your ability to pay the outgoing party of her just and equitable share if any.
Dear Sir,
I bought a 3 room resale flat and after a few years I got married and my wife from china moved in to stay with me and bore me 2 children aged 6 and 3. She is now a Singapore citizen and She did not contribute any financial to the flat and I still have a 60k HDB loan. She took care of the children and worked part time to supplement ourt household expenses. Now my wife who is now 35 years old wants a divorce and my question is will she be able to retain this flat? Where do I go from here, do I shift out of the flat which mean she has to pay me before I move out. What percentage payment am I expected to receive from her. What if she does not have the financial means to pay me? TQ
Hi,
I want to divorce with my husband. There are two more years to fulfill MOP. And I have a kid aged four years. If we divorce now, will BDO flat be surrendered by HDB? Or can we go through separation first?
If you or your husband can retain the flat, then there is no need to surrender the BDO to HDB.
If you need more clarification, please feel free to make an appointment with us for free 1st consultation where we will inform you of the concepts, procedure and costing for a divorce.
Dear Andy
Your questions involved answers in multiple possible scenarios. It best that a meeting be fixed for a free first consultation. You can email us to fix the appointment.
Is it a must to pay back to CPF account if there is a shortfall upon surrender of flat before MOP?
Hi James, the CPFB will not require the shortfall to be made good and paid back to the CPF accounts. The CPFB will treat the shortfall as a CPF loss in your accounts.
hi i would like to ask if i can cancel my flat application before filling for divorce? would that be easier?
It would be prudent to check with HDB on the repercussion for cancelling the application before and after divorce.
My MOP is in Jun’21. My HDB loan will also be fully paid up in the same month. If I wait till next Jun to file for divorce and would like to take over the house to stay with my 5yos girl n mother but I do not have sufficient CPF monies to return to my ex for his contribution of the house. How do i proceed? I am 47, CPF ordinary left $2K to date.
Hi Dilenma
You should negotiate for a zero or partial refund of your spouse’s CPF and take up a bank loan to repay this agreed amount to him.
Had a bro house for a few months.. mainly cpf deduction is from me.. monthly deduction is share. And we are going thou a divorce. What will happen to the house ? Can I retain it myself..
Hi, your query is vague e.g. ‘had a bro house’. Perhaps you wish to make an appointment with us for a deeper understanding if you are still confused after reading our article. Please do drop me an email michael@crossbows.com.sg
Hi Mr Low,
my flat mop is in feb 2022.
Gg tru divorce now.
Ive 4 kids. Current mortgage loan bal is $100k.
IF court orders my children are in my sole care control n custody n i get to retaine this flat wo refund to spouse, will i be able to continue financing or i need to refinance for new hdb loan? Fyi current flat is my 1st.
Dear Momma
For financing or refinancing eligibility, please do consult HDB (HDB loan) or your bank (bank loan) and they need to assess the loan amount. They will be requiring some information and documents (e.g. court order, income document) from you.
Hi, can I know roughly what is the ‘loss’ if the flat is being surrendered to HDB before MOP? Based on your experience on previous cases.
Also, i read from some sites that mentioned about sellers stamp duty of 12%. Is this necessary when surrendering to hdb? Or other costs?
In my case I acty paid more than my husband in the hdb as I have more cpf funds to begin with. So does it mean I will likely have to take up a larger portion of the loss?
The steps leading to the loss are:
1) Surrender price will be used to pay off outstanding housing loan.
2) Then the net surrender price will be used to repay both parties’ CPF and accrued interest.
3) If there is insufficient to repay CPF then CPFB does not require a cash to make good the difference. Instead, the difference will be the loss of both parties. In other words, your CPF will not be getting back a full refund.
4) The apportionment back to CPF for you is:
(W’s CPF requisite refund/H & W CPF requisite refund) x net surrender price
5) For H will be:
(H’s CPF requisite refund/H & W CPF requisite refund) x net surrender price
Hence, you can observe that whoever puts in more from the CPF into the flat will suffers proportionally more loss.
Hi Michael, me and ex-fiance bought a resale flat 3 years ago. We intended to get married but things just fell apart. HDB advised us that we can only surrender the flat back to HDB, but what happens if the surrender value is alot lesser than the actual purchase price? We took CPF housing grants + proximity grant + a HDB loan too.
Will we be forced to top up in cash in order to return the CPF grants to HDB/CPF if the surrender value cannot cover the grants?
Hi Kelly
We suggest a free consultation meeting with me to show you the computation so that you can have a better understanding. You can pm me at 96633206 for a meeting. We can help you to generate options too.
Cheers 🙂
Hi ,
i want to surrender my house, my Ex husband been MIA. in that house im a second name. So how can i just Surrender that house and remove my name ? its been 5yr. i need help about this.
Greetings Nisa
We note that you are a Muslim. We would suggest that you consult a Syariah family lawyer for your query.
Thank you.
Hi, may I know the procedure to surrender the house back to HDB?
Do we have any forms to fill up? or Do I need to head to to HDB personally to file for surrender?
P.S. I am going through annulment now, and the house is just turning 2yrs old.
Kindly advise.
Thank You(:
Hi
You can head to HDB personally and be guided by them.
Cheers 🙂
Hi Michael,
My husband and I have started the divorce proceedings. Our matrimonial flat has been fully redeemed last year. He will be selling 30% of his share of the flat to me after the divorce.
1. May I know whether I am able to engage a property agent to handle the transactions for me or do I need to approach HDB myself?
2. At which phase of the divorce should I effect the transaction?
Thank you.
Hi Michael
My husband and I have started the divorce proceedings. Our matrimonial flat has been fully redeemed last year. He will be selling 30% of his share of the flat to me after the divorce.
1. May I know whether I am able to engage a property agent to handle the transactions for me or do I need to approach HDB myself?
2. At which phase of the divorce should I effect the transaction?
Thank you.
Hi Verlene
You can approach HDB and be guided by them.
As for when to effect, you need to refer back to your court order which will state the timeline as agreed by both of you or as determined by the Family Justice Courts.
Cheers🙂
Hi, I had recently purchase a resale flat with my fiance, and due to some issues we are going to proceed with our marriage. What will happen to our marital house. Do we have to surrender, or like the transfer how is it going to be like? And we have fully paid the flat via Cpf N cash money. Please kindly advice me at your soonest. My Rom date is near. I would like to know what other options I can opt for.
Thank you.
Hi Elaine
I think there is a typographical error in your question. It should be “we are not going to proceed…”
We need you to clarify if you have taken the keys to the HDB flat or if it is just an agreement for lease stage.
Please contact us to schedule a meeting for an in-depth enquiry and clarification.
Cheers
Michael
Hi Michael,
Sorry for the typo, yes we are not going proceed with the ROM and we collected the keys 2 weeks ago.
> the former spouse that is transferring his or her share of the HDB flat may ask for any of the below:
> Full refund of his/her CPF accounts of the moneys used and its accrued interest plus a cash sum.
A BTO before MOP can not be sold to the open market. I am wondering what should be the estimated value of the BTO, the surrender value, the purchase price or the market price of 5 year-old comparable HDB flat in the same estate.
The estimated value of the BTO would determine what the reasonable cash sum a former spouse could ask for, I suppose. Could you give me some advice on that? Thanks.
Hi Bernie
BTO before MOP would mean a surrender back of the BTO flat to the HDB. Logically the surrender value should be used.
On your next question, the reasonable amount for the former spouse to ask is dependent on many factors and not merely on the value of the BTO flat. Please arrange for a meeting with us for a detail analysis.
Cheers
Michael
hi, me and my ex fiancé has purchased a resale flat and have decided to not proceed with RoM. i understand that we have to surrender the flat to hdb since it’s still before MOP period. however, the other party does not want to go through the procedure to surrender the flat. i paid for most of the hdb instalment and am still paying for it every month with my cpf. is there anything i can do to surrender the flat without the other party, or what should i do?
Greetings
This is a non divorce case. You can check with HDB on what are your options. Hopefully, you can find your way out and not be confused anymore. We wish you all the best.
Hi, in the case of surrendering the BTO flat (before MOP), you mentioned above that the surrendered sum will first pay off loan balance to HDB, followed by refund back to each parties’ CPF principals and accrued interests. However, I actually paid for the first 5% of the downpayment back then in cash (have HDB and bank documents to prove this). What I would like to ask is if the refund will first pay back my cash portion followed by the CPF portions, or will it be treated as a loss? If it is the latter case, is there any law that allows me to claw back part of the cash portion from the other party?
Greetings Germaine
You can refer to our reply to Linda as above. As for your ‘claw back’, you can ask for CPF transfer from one spouse to one spouse of a just and equitable amount.
Hi Michael,
Could you advise me, when computing direct contributing for hdb flat does the court/judge take into account accrued interest?
I paid solely for the flat in the beginning my ex spouse continue payment thereafter.
Thanks
Greetings
Generally, the accrued interest is not taken into account.
CROSSBOWS LLP
Hi there, ive my old house almost going for MOP but ive court of order that says my ex spouse will be doing the transfering but now i cant wait anymore. I need to surrender the flat ASAP . I need HDB to help on this
We are doubtful if the HDB can process your flat unless the order has been varied from a transfer case to a surrender case.
Hi Michael, I got my final judgement some months back. My ex-wife is still living in the matrimonial flat, she has no indication of moving out/ selling the flat etc. She is not working. We have no children. We can’t reach any agreement. MOP fulfilled.
What could I do on my end to get this flat settled without involving her?
If one year is up, can HDB evacuate her if she doesn’t corporate?
At which point would I need to get a lawyer to help or get court to intervene?
Thanks.
Hulk
Dear Hulk
You can meet our one of lawyers to show your current order on the flat so that we can advise on the remedies available to you. Our 1st consult has no charges as stated in our website. We hope to receive your email soon. Meanwhile, we wish you all the best and stay well.
Hi team, how does HDB determine surrender value?
Greetings CK
Unfortunately, the workings behind the surrender value is not made known to us by the HDB. You may write to the HDB with your flat’s detail and enquire directly.
Cheers
Hi, me and my spouse both SC with no kids and not 35 yet. We own a HDB 4 years ago, MOP due to this year end soon. we agreed to divorce after selling the flat. However in such case am I allowed to buy over my spouse share & retain the flat via resale part-share? Thanks in advanced
Greetings Jack
The process is possible but needs to be approved by the HDB.
Thank you.
Hi, my fiance and I are supposed to get married soon but recently there has been some development in our relationship that might deter us from proceeding with the marriage. I would like to know what would happen to our flat (other than surrendering) if we do not proceed. We have just gotten the flat last year and have gotten approval from HDB to delay the submission of our certification. Is there any way the flat could be retained by me alone?
Hi
Upon divorce within the MOP period, the flat has to be surrendered or transfer to one party. The latter is subject to HDB’s eligibility scheme and ability to procure a mortgage loan.
Upon divorce within the MOP period, the flat has to be surrendered or transfer to one party. The latter is subject to HDB’s eligibility scheme and ability to procure a mortgage loan.
Cheers