Dealing with the loss of a loved one is never easy.
Some find it equally hard when they inherit a property which needs to be sold for the proceeds to be distributed to the beneficiaries. I hope this article will help families or individuals in such situations.
Firstly, we need to establish the following:
It does take some time to extract either a Grant of Probate or Letter of Administration. For a straightforward and non-contentious case, you can expect to get it done in about 2-3 months.
It can take more than 6 months for a more complicated case. Once ready, this will be valid for six years. It is also important to note this application needs to be done within 6 month of the decease passing.
Some families are anxious and start to market even before the Grant of Probate or Letter of Administration has been extracted. Depending on market sentiments, it may or may not be advisable.
When the resale market is thriving (like now in 2021), then there is really no need to start marketing too early as you are not able to seal the deal even if you do find an interested buyer.
The Transmission Process
Once the grant of Probate or Letter of Administration is ready, the executor or administrator will need to register his / her right to manage the property through a process known as “transmission”.
This can be handled by either a private lawyer or via HDB branch office/ HDB lawyer.
Inherited a HDB Flat
Again, not everyone is looking to sell the flat. I have come across individuals who choose to keep the flat.
Beneficiaries can do that provided they are eligible and fulfill HDB’s housing requirements.
Do note, in order to keep the flat, you:
- Need to be a Singaporean/ PR above 21 years old (form a family nucleus) or are Singaporean singles above 35 years old etc.
- Do not own another HDB Flat or Private Property (if flat is purchase after 30 August 2010, if it’s bought before that – you can keep both your private property and the HDB flat – most people don’t know that),
- Are prepared to sell your current private property/ HDB flat within 6 months
Most of us would still need to sell the flat. For one, they are not able to fulfill the above criteria, or there are more than one beneficiary to the flats (e.g. siblings), and the proceeds are required to be split.
If you are looking to sell, you will need to notify HDB after the probate or letter of administration is ready. Set up an appointment with the designated HDB branch office. The executor or administrator needs to go to the branch office in person to sign the necessary documents. He/ She will also have to prepare the following:
- The will (if available)
- The grant of probate or Letter of Administration
- A copy of all the beneficiaries and the executor’s NRIC
- The title deed (if available)
- Death certificate
- Pay fees @ HDB Office
HDB will then take time to prepare the necessary documents, and send a letter in due course to notify of the next appointment, whereby the executor or administrator is required to sign more documents.
Once this is done, the executor or administrator will be reflected in the system (usually takes about a week or so), and can proceed to submit the Intent to Sell using their Singpass.
Once this step is completed, you are now free to issue an Option to Purchase 7 days after the Intent to sell has been lodged.
You can also get your lawyer to register your legal rights with HDB as the Executor or Administrator. But of course, it’s going to be cheaper to engage HDB’s services.
Given all the possible delays, I would always suggest using the time to prep the flat. More often than not, the house will require staging after personal belongings have been removed.
Once intent to sell has been successfully registered, then it’s time for your property agent to start marketing the unit for viewings.
How long do you have to sell?
If you check with HDB, they will advise “as soon as possible”. But they do exercise a lot of flexibility and compassion. After all, it can be hard to have to part with a long time family home.
But do note that if you do not sell the property within 6 years, then you may need another court order before you can sell the HDB flat. This will result in more legal fees.
Inherited a private property
In terms of procedure, this would be much more straightforward. There is no need to submit an intent to sell. And it is also easier for those who would like to keep the inherited property as most of us would be eligible to own a private property unless the estate is a landed property where the beneficiaries will need to be Singaporean or PRs (with special permission).
It is important to note that the beneficiaries will also take on the outstanding mortgage loan (if any), quarterly management fees and property tax etc. So there is a need to check if it is viable to keep the property. Total Debt Servicing Ratio (all loans cannot exceed 60% of gross monthly income) would also apply.
What’s more, for a beneficiary who owns a HDB flat and has not fulfilled the Minimum Occupation Period, then he or she will not be able to hold on and also need to sell the private property.
Should you tell potential buyers that this is an estate sale?
I personally feel there’s nothing to hide. You may not need to emphasize on that but we should be truthful when asked by the buyers the reason for selling. Willing buyer, willing seller. From experience, it really does not affect the sale. What remains crucial is to prep the unit well before marketing. The physical viewing experience is what will make or break the deal.
Many landed houses I’ve come across are estate sales. A lot of these houses are rarely available and we end up having to compete with many interested parties.
How I handle Estate cases
I have personally handled a few estate sales for close family members. And it can be harder to navigate. While the executor or administrator would call the shots, he or she would usually also consult other close family members.
And interestingly at times, the one making the real decision could be another family member (son or daughter) and not the executor who is the spouse of the deceased.
There’s nothing wrong, but when there are more individuals involved (often some could be reluctant to sell), I would always be careful and sensitive to the needs of all these individuals involved.
What I would try to establish from the start would be for all important parties involved to be on board, kept aware of the sale procedure and all updates on viewings and offers.
Often, I feel this arrangement has worked well for me.
If you have any questions regarding the process and steps of this topic, feel free to drop me a message with your questions via whatsapp or the contact form.
Hi Lydia. My sister just got a flat under SERS in Dec. 2021.What happens if she passed on with will. Thank you for your advice.
Hi Tian Mong
Sorry for your loss.
From my understanding, if your sister had indicated an immediate family member as a beneficiary under her will, he or she may be able to take over the new flat, subjected to HDB branch office’s assessment (check on eligibility) and approval. If there are more than one beneficiary, then all beneficiaries must agree to the transfer to the one single beneficiary, or discuss on the possible options under HDB branch office’s guidance.
If approval has been granted by HDB, then you can check with the SERS department on rehousing benefits.
It is important to note that only IMMEDIATE family members can qualify to “take over” the new flat, which means grandchildren, nieces and nephews will not be able to do so.
Hi Lydia ,If parents passed away,My sister intended to sell their flat ,After selling flat,Who will get the money for the selling flat?Thank you
Hi Lilian, very sorry to hear about your loss.
As for your question, it will depend if your parents had a will. If they did, distribution of their assets (including the flat), will be according to what they have indicated in their will.
In the absence of a will, sales proceed of their flat (minus related expenses) will be distributed based on the Intestate Succession Act. This means their children (assuming both your parents have passed away), will get everything in equal proportion. In order to sell the flat, one of the children (in this case your sister), will need to obtain a letter of administration, with the help of a lawyer.
Hi Lydia ,If parents passed away,My sister intended to sell their flat ,After selling flat,Who will get the money for the selling flat?Thank you for your advice
Hi Lydia
what if my grandma passed away without a will and i am not the administrator but would like to buy over the flat.
How and what are the procedures to buy over the flats? If administrator and myself have agreed to the price of flat, can be valid to hdb?
Dear Summer
Firstly, you will need to check that you are eligible to purchase the flat under the Single Scheme, if you intend to purchase the flat in your own name.
If you are, then you can proceed. The usual procedures of getting a HDB Loan Eligibility (HLE) Letter OR In-Principle Approval (IPA) from a financial institute, if required; and submitting your Intent to Purchase via the HDB resale portal etc. would apply.
When you submit the resale application, it would be necessary to indicate your relationship with the seller.
Please feel free to reach out to me at 9628-5498 if you require any clarification. Happy to help.
Hi Lydia.
In your article, under paragraph on “How long do you have to sell?”, the statement says, “If you check with HDB ……………….. But do note that if you do not sell the property within 6 years, then you may need another court order before you can sell the HDB flat. Does this mean that, after a Grant of Probate, I can leave the property in the estate of the deceased for a number of years, before selling it?
Thanks,
Horace Siow
HDB will strongly encourage you to sell as soon as possible, but most importantly, do check with your lawyer when the grant of probate would “expire”, so you have sufficient time to market and sell before that.
Hello there, I am the administrator, my name is the owner of the HDB flat, does the agent handling my sale need the death cert, letter of administration and all HDB documents.
Hi Kritz, yes if the agent is submitting the resale application on your behalf, HDB will usually request for both the death certificate and letter of administration or grant of probate to be provided.
Some of my clients don’t understand why this is necessary as these documents are usually already provided to HDB prior to this.
But this is just part of their process. So if you’re not comfortable to share these documents, then you have the option to sink i the resale application by yourself, via the resale portal.
Hope this clarifies. Feel free to reach out to me at 9628-5498 if you require any help.
Hope this
Dear Lydia
My late brother’s HDB flat is currently under the administrator of my other brother. We are planning to transfer the ownership to my mother. We approach HDB to ask about the transfer, and they advised to get a lawyer instaed. Is this true? May I know how much will the legal fees roughly be?
Dear Azman, I would be inclined to go with HDB’s advice. But you can clarify with them if they can help in the transfer with the documents you have on hand.
If the nature of the will/ case is too complicated, HDB may not be able to facilitate.
Since a will was not drawn, your mother’s asset, including the HDB flat will be distributed based on Syariah Law – Faraid. Given that your brother has been appointed as the administrator, might be good if he could check with the lawyer who helped with the letter of administration.
Hi Lydia, we had checked with the law firm that previously handled the LOA and they do not provide this service.
We did walk in to HDB and they advised to go via a lawyer channel and did not elaborate why they not able to do it.
There is no will and current situation is, my 2nd brother is the administrator of the flat under the estate of my 1st deceased brother.
Do you provide the service to facilitate the transfer of flat permanently to my mother?
Hi Azman, my apologies for missing your earlier message. As this will still need to be handled by a lawyer, I’ll be happy to help facilitate/ connect you with a law firm.
Please contact me at 9628-5498.
Hi Lydia,
With the LOA more then 6 years, to apply for a court order what is the estimated range of legal cost to do that please?
Also when we submit the sale request of sale to HDB, do we need to extract the certified copy of death cert ?
Many Thanks,
Dennis Tan
Hi Dennis,
The Order of Court to sanction the Sale would cost about $3500 +/-, and can take up to 3 months.
When we submit the resale application, HDB will usually also request for the following documents be be uploaded:
1) Death Certificate
2) Grant of Probate/ Letter of Administration
3) Letter from your Lawyer (unless you get HDB to handle conveyancing)
Please feel free to reach out if you require any help. The law firms I work with should be able to assist.
Hi Lydia,
My Mother passed away and was the sole owner of her HDB flat that has been fully paid for. My Father is currently the Administrator. Would it be possible to transfer ownership of the HDB flat to my sibling who is below 35 years of age?
Thank you!