{"id":47075,"date":"2021-12-30T05:30:11","date_gmt":"2021-12-29T21:30:11","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=47075"},"modified":"2024-09-18T13:00:26","modified_gmt":"2024-09-18T05:00:26","slug":"co-owning-hdb-flat-with-family","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/co-owning-hdb-flat-with-family\/","title":{"rendered":"Thinking of co-owning a HDB flat with family? Read this first."},"content":{"rendered":"
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It is the perfect love story. You have finally met the person of your dreams. You both fall hopelessly in love, butterflies abound in your stomach, you cannot stop thinking about them, and you want to be with them forever.\u00a0<\/span><\/p>\n

The day comes when you decide to pop the long-anticipated question. <\/span><\/p>\n

\u201cDo you want to BTO together?\u201d\u00a0<\/span><\/p>\n

They squeal in joy and say, \u201cYes,\u00a0<\/span>but<\/span><\/em>\u2026.\u201d\u00a0<\/span><\/p>\n

\u201cI’ve already bought a HDB flat with my family.\u201d<\/span><\/p>\n

*record scratch*<\/span><\/em><\/p>\n

Common problem couples face<\/b><\/h2>\n

This is a scenario that\u2019s common in Singapore. An individual buys an HDB flat with someone other than their spouse, becoming co-owners with either of their parents or siblings under the Public Scheme<\/a> of HDB\u2019s Eligibility Schemes.<\/p>\n

This is usually because of reasons such as providing financial support by helping their family pay for the mortgage using their CPF.<\/p>\n

Rules for buying an HDB flat<\/b><\/h2>\n

In order to purchase a new or resale HDB flat, you need to be a couple or a family unit. This refers to your spouse and kids, or parents and siblings. Either way, it boils down to having two names as co-owners of a flat.\u00a0<\/span><\/p>\n

The only exception to this rule is if you are <\/span>single and over 35 years of age<\/span><\/a>. Then, you are eligible to purchase any resale HDB flat of your choice or a 2-room Flexi BTO flat in a non-mature estate.\u00a0<\/span><\/p>\n

Potential problems<\/h2>\n

However, by choosing to co-own a flat with your parents or siblings, it means you will probably have to make some hard decisions further down the road.<\/p>\n

Here are two potential issues you may face:<\/p>\n

Getting married? <\/span><\/strong>Should you decide to get married and want a flat of your own with your spouse, you will need to remove your name from your current HDB. You cannot co-own two HDB flats simultaneously.\u00a0<\/span><\/p>\n

Potential financial strain. <\/span><\/strong>If you decide to remove your name as co-owner, your parents, or siblings will need to buy over your share, which may cause financial strain. If they cannot service the loan, the financial burden will fall on you to do so.\u00a0<\/span><\/p>\n

What is the best solution?<\/span><\/strong><\/h2>\n

Removing your name from the HDB flat<\/span><\/strong>\u00a0is by far the best and most recommended option, short of changing your partner.\u00a0<\/span>(We are joking, of course.) <\/span><\/em><\/p>\n

This can be done in two ways.<\/span><\/p>\n

1. Change in flat owners<\/h3>\n

The first way is a conveyancing procedure that does not involve any monetary consideration. In order to <\/span>change your ownership<\/span><\/a> status as a co-owner with family circumstances such as marriage, divorce, or demise of an owner, you can apply for a change in flat ownership.\u00a0<\/span><\/p>\n

To change your ownership status, everyone involved must meet the <\/span>eligibility requirements<\/span><\/a>\u00a0(current and proposed owners) and give their full consent. This process typically takes four months from start to finish.\u00a0<\/span><\/p>\n

There are 4 main types of ownership changes.<\/p>\n

    \n
  1. Addition of co-owner<\/strong>, such as when a parent includes their child as an owner.<\/li>\n
  2. Removal of co-owner.<\/strong> This is when a child removes themselves as an owner.<\/li>\n
  3. Replacement of co-owner<\/strong>, for example, replacing the son with the daughter as the owner.<\/li>\n
  4. Total change of owners<\/strong>, where a parent passes on and a child takes over the flat.<\/li>\n<\/ol>\n

    The caveat to this that most people baulk at is that the new owners taking over will have to refund the full CPF amount plus<\/em> accrued interest to the person withdrawing their ownership from the flat. On top of that, they will need to be financially stable enough to discharge any existing mortgage loan.<\/p>\n

    During this transaction, additional fees will be incurred, such as<\/p>\n