Legal matters... about ownership of a flat

Honeybunz SG

Not sure whether we have a sub forum for questions/topics pertaining to legal matters.

I own a flat with my father and siblings. Now I want to take my name out, but my parents do not want to sell the flat, cuz of the hassel having to move all the barang barang to a new place.

How do I go about removing my name from the ownership without having to sell the flat?

Your_Father SG

http://www.hdb.gov.sg or u can call them.

Wanda SG

I believe it's not as simple as merely removing your name. If you have been paying for the flat as co-owner or joint owner using your cfp, you'll be required to returned the amount paid out from cpf back into your cfp account (maybe with interest?). The rest of the members will then have to folk out more money from their cpf or cash to top up.

There will also be some conveyancing fees involved for the change in ownership (I remember I had to waste about $2.5k for this Mad Crying or Very sad ).

Honeybunz SG

Thanks for advice.

Actually I am removing my name, cuz I want to start paying my condo with my CPF monthly contribution.

Do you think I can just reduce my contribution to the existing HDB flat, and then put in my name in the new condo?

viciouskitty74 SG

Father and siblings? Joint Tenants or Tenants in Common?

viciouskitty74 SG

Not unless you got the approval from HDB to own that condo, and that you declare it legally as a investment and Not your home.

Honeybunz SG

Like that one ah?

shucks mann...

Maybe should make a trip down to HDB office to clarify everything. headache siah.

viciouskitty74 SG

I guess you are really an owner of the HDB if you are paying thru your CPF. Most likely on the one parent and child forming a family nucleus scheme?

Some cases, like a parent passed away and leave her share of the home to the children. therefore there is more then 2 owners of the flat.

If its possible, you dont have to sell that HDB. Just transfer your share to your father. he should be afterall in some way eligible to own the flat in his own name himself.

But that will mean that your father has to apply for a new loan plans to buy over your share. Thats the problematic part unless them father and siblings has ready cash/CPF.

viciouskitty74 SG

Can wan lah. This is your investment or a matrimonial condo?

if investment, a letter will do.

matrimonial....then a bit problematic. Unless you got a very strong MP that can help you along.

Honeybunz SG

ya... it's a family nucleus scheme.

About transfering the ownership to my father, that means my father will have to come out with cash to buy over my share by putting back the money into my CPF with interests. Am I right?

I am hoping my parents dun have to do that. Cuz the price of my flat was kinda high when we first bought it from resale. So there is a lot of money my parents will have to pay to my CPF account. Sad

viciouskitty74 SG

Yah...its more of a CPF ruling then a HDB ruling.

Think there is a 4 way discussion you will have to do.

With parents.

With HDB.

With CPF.

With Bank. (If you used a bank instead of the HDB loans. Then you will have to work out how to transfer the loan.) I believe the bank standards was to terminate your loan, by means of someone activating a loan to cover yours.

Wanda SG

From what I know:

(1) You can reduce your contribution, provided someone else can top up the amount reduced on a monthly basis, thereby without affecting the whole term/duration of the loan. However, if you want to change the term of the loan (assuming eligible), it would involve another set of procedures - need to check with HDB.

(2) I think you can buy new condo without informing hdb, bec it's your private matter. Many ppl who already owns a hdb flat subsequently went on to buy a condo. (I believe the restriction is for the case whereby you already owned a condo and subsequently want to buy a hdb flat - then you may not be allowed to buy the hdb flat).

If you happen to know someone who is a property agent, you can ask them as I'm sure they're familiar. Good luck. Wink

viciouskitty74 SG

I dont know if the rules have relaxed.

Because HDB was considered 'subsidised housing'. (We know its actually craps from the gahment now lah. But HDB was then created for the low income folks instead of them living in squatter condition kampungs.)

So if you can afford a condo, you wont need subsidies. But if that condo/landed property purchase was for investments, then they will close the eye. Provided you got inform them.

There was a article from HDB some many years ago, that did mentioned about folks who broke the rule by not seeking approval for that extra purchase of the condo/landed property as well as not living in them, and the HDB threatened eviction by confiscating the HDB flat or owners are allowed 6 months to sell off the HDB flat.

viciouskitty74 SG

think honybunz case, can talk to hdb and the MP to allow for 'supporting the parents home & own her condo for her own home'.

As Wanda suggested, might be able to reduce the laon payments for the parents home, and can pay her condo thru her CPF too.

Might work to support both homes. Though it will be kinda tough....but it might just work. Wink

We dont have a thinking hands on the chin emoticons. Cool

gentlerock SG

I'm not sure about HDB flats.....but I think they it should be the same as private properties where sale is concerned? If thats the case, then you can't just put a name in or pull a name out (its not like a company where you can insert and remove shareholders as you wish).

Legally, for a property, its a sale. That means.....

The whole group of you sell the flat.....and the whole group of you (except yourself) buy the flat again. Lawyers must be involved...and they will want to see cash being transferred (just a dud cheque will do). Stamp fees will apply, etc. I believe the total process is 3 months (at least thats the case for private properties).

You can own a HDB flat and condo at the same time....as long as you live in the HDB flat and not the condo. But realise that you ahve to declare to the government and bank that your condo is an investment (which can sometimes mean higher than normal bank loan interest rates, higher taxes, have to declare rental in your annual income, etc etc).