What impact does the revised Property Tax Structure has on me?

The recently announced and unveiled Budget 2013 included a segment on a new residential property tax structure that would take effect by 1 January 2014. This tax structure features progressive tax rates for all property, based on their Annual Value. A further increase of 1% for the upper tiers is slated for 1 January 2015. In addition to increasing tax for higher-value properties, a different, higher-tax structure will also be put in place for non-owner-occupied residences.  

Non-owner-occupied residential property is the category for all residences in which the owner does not reside in. The most common example of this is a landlord who rents out an entire residential property to another  party. Even vacant properties will now fall under this category, with effect from 1 January 2014. Effectively, that means vacant properties will incur the same taxes as if it were rented out.

For a clearer impact of the new measure across all property types, do refer to the table with examples as per below:

*Refer to this IRAS link for the various calculators for property tax calculations.
 

Illustration of impact of property tax changes to owner-occupied residential property:

  Illustration of impact of property tax changes to non-owner-occupied residential property:

What are the possible Market reactions to these changes?

A possible market reaction would be for landlords to try pass the increased tax cost on to their tenants
However, the market can only absorb a finite amount of increase. Once these landlords realise that their properties are lying vacant due to overpriced rent, their asking price will tend to come back down. Moreover, these landlords will feel a greater urgency to rent out, as they have to pay the property tax whether the property is vacant or not. As such, holding the property to wait for a higher rent is no longer as attractive a proposition, especially for the higher value properties. The result might even be lower rents in the long run, as landlords with fallow properties attempt to make up for the additional taxes they have to pay due to this new tax structure. Eventually, this could exert downward pressure on property prices in general.

Therefore, when we look at the middle tier investors who will be seeing less profit, it may dampen their enthusiasm, discouraging some of them from buying units purely to seek rent. It may even cause some existing ones to pull out. This might have a temporary dampening effect on property prices which may well be a positive influence on the realty market in the long run. Investors will be thinking twice before dabbing into the market beyond their financial means and we can look into some immediate taming of the fast escalating property market.

However, when we look up the scale to the high end investors focusing on luxury properties. The absolute quantum of a couple of thousands of dollars in relation to the few millions which they were already willing to spend might not form much deterrence to their buying decisions. Therefore, I think this structural change might have minimal impact on this end of the market.

As we look forward to 2014 when the new structure comes in place, let us observe further on the ground to see how the market forces is shifting especially towards the 2nd half of 2013.

Usage of CPF to purchase Property (Including HDB properties) with Remaining Lease of at least 30 years, but below 60 years?

* Please note that MLP will apply for HDB properties as well as of 1 July 2013 to tighten the terms for granting HDB loans and the use of CPF funds for the purchase of HDB flats with remaining leases of less than 60 year.

Minimum Lease Period (MLP) refers to a flat/property with a remaining lease of at least 30 years but below 60 years. CPF can be used to purchase HDB flats/properties with MLP. However, there are additional conditions that buyers must meet in order to use CPF for flats/properties with a remaining lease of at least 30 years but below 60 years.
First, to use CPF for such flats/properties, an owner’s age plus the remaining lease of the flat/property must be at least 80 years. This is to ensure that the flat/property will last the owner until he/she is at least 80 years old, which is roughly the average life span of Singaporeans at birth.
Second, the total CPF that can be used by all owners who are eligible to use CPF is capped at a pro-rated Valuation Limit of the flat/property (the Withdrawal Limit). The pro-ration is determined by the ratio of the remaining lease of the flat/property when the youngest owner who can use CPF is 55 years old, to the lease at the point of purchase.
* Note: setting of minimum sum does not apply for such situations.

Withdrawal Limit

(The remaining lease of flat/property when the youngest owner is 55 years old)  x  Valuation Limit*

(The lease of the flat/property at the point of purchase)

The Withdrawal Limit (WL) is set at a level that covers the estimated depreciated value of the flat/property when the youngest member using CPF reaches the CPF withdrawal age of 55 years. This is to ensure prudent use of members’ CPF savings towards the purchase of flat/property with shorter remaining lease.
An example of how the WL is determined is shown below:
Example:
A 35 year old member buys a flat/property with 50 years of lease remaining. When the member turns 55 years old, the flat/property will have 30 years of lease remaining.
The pro-ration in this case is 30/50 = 0.6 (or 60%)
The applicable WL = Pro-rated Valuation Limit = 60% of Valuation Limit*
* Valuation Limit is the lower of the purchase price or the value of the flat/property at the time of purchase.

If you are buying the property with other co-owners, the age of the youngest co-owner (who is eligible to use CPF) will be used to determine the WL for the property.
Example:
A, B and C are buying a property with 50 years of lease remaining. A is 35 years old, B is 30 years old, and C is 25 years old.
In this case, C is not allowed to use his CPF savings for the property as the remaining lease of 50 years will not last him till 80 years. Only A and B can use their CPF for the property, but the WL will be a pro-rated Valuation Limit (VL)*. The pro-ration is the ratio of the remaining lease when B (the younger of the two) is 55 years old to the lease at the point of purchase.
Hence, the pro-ration is 25/50 (or 50%) and the WL is 50% of VL.
* Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase. 

For easier reference, please refer to the attached diagram:

 

Setting Your CPF Minimum Sum?

You might have probably heard of CPF Minimum Sum but when would one actually need to set aside this amount in their CPF when dealing with Singapore properties?

1. You will need to aside the Minimum Sum when you reach 55 ensures that you have some regular income from age 65 to live on in your retirement.

When you reach age 55, a portion of your OA and SA savings will be transferred to your RA to meet the MS. If there is a still a MS shortfall in your Retirement Account, a portion of the new inflows like contributions, voluntary contributions, government top-ups and/or other refunds received after 55 will be used to make up the shortfall upon your subsequent CPF withdrawals. In lay man terms, it means that one will not be able to utilize his/her CPF contributions to offset loan installments until they meet their MS. You may pledge your property for up to 50% of the MS after you have obtained the consent from all other co-owners to do so. Based on current policy, when the property is sold or otherwise disposed of, you need to refund the MS deficiency, or the principal CPF withdrawn for the property plus the accrued interest, whichever is lower. The MS deficiency is the CPF MS applicable to you when you turn 55 less the balance in your Retirement Account (excluding the interest earned).
The amount that you can pledge depends on

• HDB’s quarterly average median resale prices for HDB flats or valuation price for private properties;
• Outstanding housing loan amount (including non-housing loan for private properties);
• Co-owner’s CPF usage (for joint-ownership cases); and
• Your share of the property.

Examples illustrating the amounts that can be pledged:
EXAMPLE 1

Where the co-owner’s CPF usage is less than 50% of the residual value of the property
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$150,000
Residual value :	:$150,000
Co-owner's CPF usage :	:$ 40,000
Member's share :	:$ 75,000

In example 1 above, as the co-owner's CPF usage is less than 50% of the residual value, the member’s share of the property would be based on 50% (assuming that the property has only two owners with 50% share each) of the residual value. He can pledge the property up to the maximum limit of $69,500 if the Minimum Sum applicable to him is $139,000(Before 1 Jul 2013). With effect of 1 Jul 2013, this Minimum Sum will be raised to S$148,000 in accordance to inflation rates. *Note: the 50% property pledge will be raised to S$74,000 accordingly.

EXAMPLE 2

Where the co-owner’s CPF usage is more than 50% of the residual value of the property
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$200,000
Residual value :	:$100,000
Co-owner's CPF usage :	:$ 80,000
Member's share :	:$ 20,000

In example 2 above, as the co-owner's CPF usage is greater than 50% of the residual value, the member's share of the property would be the residual value less the co-owner's CPF usage. The member can only pledge an amount of $20,000(i.e. $100,000 less $80,000).

EXAMPLE 3

Where the co-owner did not use his CPF for the property and has 50% share ownership
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$250,000
Residual value :	:$ 50,000
Co-owner's CPF usage :	:$         0
Member's share :	:$ 25,000

In example 3 above, as the co-owner did not use his CPF for the property and the member has 50% share of the property, the amount that the member can pledge is $25,000 only.

In the scenarios quoted above, you will be required to set aside MS of ($139,000 - pledge amount) or ($148,000 - pledge amount from 1st Jul 2013 onwards)* before you can utilize any further CPF on your property.

2. When you use your CPF to purchase more than one property.

If you already own a property (HDB flat or private property) bought with your CPF savings and wish to buy another property with CPF savings after 1 July 2006, you must set aside half of the prevailing Minimum Sum before you can use the excess savings in your Ordinary Account for the second/subsequent property.  Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.
Please note that as the Minimum Sum will be raised in July each year, the amount you need to set aside will be adjusted accordingly. 
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside half of the prevailing Minimum Sum unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles.  Non-related singles can only jointly use their CPF to purchase one property (HDB flat or private property).

 

3. When you hit your CPF Withdrawal Limit.

The Withdrawal Limit (WL) is the maximum amount of CPF beyond the Valuation Limit (VL) (the lower of the purchase price of property or valuation of preoperty at time of purchase) that you and your co-owner(s) can use for the property. Once the WL is reached, no further withdrawal of CPF by any owner will be allowed. If the housing loan is still outstanding, you and your co-owner(s) will have to service it fully with cash unless you have the Available Housing Withdrawal Limit (AHWL). Use this CPF calculator to estimate your CPF Withdrawal Limit and Valuation Limit.

Avaliable Housing Withdrawal Limit (AHWL)
For those below 55, the AHWL is the balance available after setting aside the Minimum Sum component. Savings in the OA, SA and amounts withdrawn for investment can be used to meet the prevailing Minimum Sum cash component.
CPF has a calculator that helps you estimate your AHWL.

The WL is not applicable to new or resale HDB flats financed with HDB concessionary loan. The WL is determined by the date of purchase or refinancing of loan as follows:

	Date of Purchase (i.e. Sales & Purchase agreement) / Refinancing of Housing Loan Withdrawal Limit 1 Jan 2006 – 31 Dec 2006 132% of VL 1 Jan 2007 – 31 Dec 2007 126% of VL 1 Jan 2008 onwards 120% of VL

Selling your HDB flat directly back to HDB?

This recent hot topic was spiced up by National Development Minister Khaw Boon Wan relating to the new slew of cooling measures which MND is considering implementing.

It sparked discussion and panic among existing HDB property owners thinking that HDB might totally curb COV and buy back their HDB at valuation.

Subsequently Mr Khaw issued another statement to address more depth on the related measure under consideration. The content stated that the "no resale in the open market" proposal was simply one of the suggested restrictions on possible new housing options that are cheaper than today's BTO.

Although this new measure has not been officially released, I am writing this post to analyse the possible impacts of this measure.

Likely, HDB will separate this class of cheaper BTO from the existing batches of BTO. The target class will probably be young couples with limited combined income resources. How much cheaper would these BTO be from the existing BTO?

Well, probably the officials might launch these BTO cheaper at a rate of the average resale COV in the market.

The reason is because upon fulfillment of MOP, these properties can only be resold back to HDB at valuation pricing without COV. Therefore it might only seem fair that there is this trade off.

With this clear segregation, a new entity will be created which is clearly separated from the Resale Market and not impacting the Resale Market. And by creating this entity, HDB might also instill lower tenures tagged to the housing so that initial pricing can be pushed down even lower, say 60 years instead of the normal 99 years.

Bottomline, the reason for this new class of housing is to help young couples who are priced out of the market to at least purchase a new house comfortably and build their family. Buyers should not come in with a mentality on profit after MOP as I seriously do not think its worthwhile with all the restrictions built in.

EC? What's In For Me?

Executive Condominiums, EC, for short are a class of residential property right stacked in the middle tier of HDB public housing and private residential. They cater especially for young graduates and professionals who can afford more than an HDB flat but find private property to be out of their reach. The income sandwiched class.
ECs are comparable in design and facilities to private condominiums as they are developed and sold by the private developers.” Essentially, an EC has most if not all the facilities of most condos but are initially tied back to the rules and regulations of HDB.

Who is eligible to buy an EC?
I am appending all the criteria listed by HDB for your easy reference.

Age

• You must be at least 21 years old at the time of application
• If you are buying an Executive Condominium (EC) under the Joint Singles Scheme, you must be at least 35 years old.   

Family Nucleus

You must form a proper family nucleus under one of the following schemes:

Type of Scheme	Family Nucleus Requirement
Public	You, the applicant and; Your spouse, and children (if any) Your parents, and siblings (if any) Your children under your legal custody, care and control (for widowed/ divorced)
Fiancé/Fiancée Additional Information	You, the applicant and your fiancé/fiancée
Orphan Additional Information	You, the applicant and; Your unmarried siblings, or Another single unrelated orphan
Joint Singles Additional Information	You, the applicant and another single person

You may buy a dual-key EC units offered by the developer if you form a multi-generation family as follows:
(i) Married couple with parents/grandparents
(ii) Fiancé and fiancée couple with parents/grandparents
(iii) Widowed/divorced with children and parents/grandparents

Income Ceiling
Your average gross monthly household income must not exceed $12,000.

Am I eligible for any further housing grant?

* Applicable only for first timer

EC Buyer with Average Gross Monthly Household Income up to $10,000

Type of Grant Available	Amount
	SC / SC Household	SC / SPR Household
CPF Housing Grant for Family Read more about Promoting Citizenship in HDB Households	$30,000	$20,000#
Half Housing Grant If you are a first-timer citizen and your spouse has previously enjoyed a housing subsidy	$15,000

^#If you are from an SC/SPR household, you can enjoy the full housing subsidy by applying for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

EC Buyer with Average Gross Monthly Household Income from $10,001 to $11,000

From 15 Aug 2011, first-timer households with monthly income between $10,001 and $11,000 may buy new ECs with a CPF Housing Grant of $20,000. This revision is only applicable to EC projects launched for public sale on or after 15 Aug 2011.

Type of Grant Available	Amount
	SC / SC Household	SC / SPR Household
CPF Housing Grant for Family Read more about Promoting Citizenship in HDB Households	$20,000	$10,000#
Half Housing Grant If you are a first-timer citizen and your spouse has previously enjoyed a housing subsidy	$10,000

^#If you are from an SC/SPR household, you can enjoy the full housing subsidy by applying for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

EC Buyer with Average Gross Monthly Household Income from $11,001 to $12,000

From 15 Aug 2011, first-timer households with monthly income between $11,001 and $12,000 may buy new ECs with a CPF Housing Grant of $10,000. This revision is only applicable to EC projects launched for public sale on or after 15 Aug 2011.

Type of Grant Available	Amount
	SC / SC Household	SC / SPR Household
CPF Housing Grant for Family Read more about Promoting Citizenship in HDB Households	$10,000	$0#
Half Housing Grant If you are a first-timer citizen and your spouse has previously enjoyed a housing subsidy	$5,000

^#If you are from an SC/SPR household, you can enjoy the full housing subsidy by applying for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

What are the down payment schemes which I have to note?
If you are eligible for a loan ceiling of 80%, you will have to pay the initial payment of

• 5% in cash
• balance 15% using CPF savings, CPF Housing Grant or cash

If you are eligible for a loan ceiling of 60%, you will have to pay the initial payment of

• 10% in cash
• balance using CPF savings, CPF Housing Grant or cash

If you are eligible for a loan ceiling of 50% or lower, you will have to pay the initial payment of

• 25% in cash 

 

Can I purchase an EC as a second timer?
For existing HDB property owners who have fulfilled their Minimum Occupation Period(MOP), you will be eligible to apply for an EC if you can fulfill firstly the criterias mentioned earlier and secondly if you have not exhausted 2 opportunities to get a subsidized flat. (Resale Unit + housing grant is considered as one chance)  

You will not need to pay back Resale Levy to HDB as you are not eligible for any grant either. However, you must dispose of your existing flat within 6 months from the date of issuance of the Temporary Occupation Permit in respect of the Executive Condominium (EC). 

If you intend to apply to purchase an EC where the Temporary Occupation Permit for the EC has been issued, you will be required to dispose of your existing HDB / DBSS flat within 6 months from the date the Developer serves the Notice of Vacant Possession on you.

Are there other important information which I need to note?

Minimum Occupation Period (MOP)

Sale of EC

You have to occupy the EC for 5 years before you can sell it in the open market.

Essential occupiers in EC
Occupiers who are essential in the forming of a family nucleus with you in the EC application must continue to be listed in the application and stay in the EC during the 5-year Minimum Occupation Period (MOP). They cannot make a separate application, or to be listed as occupiers in another application to purchase an HDB flat or another EC within the MOP.

Renting out your EC

Renting out the whole EC unit

Renting out of whole EC unit within the 5-year Minimum Occupation Period (MOP) is not allowed, unless for valid reasons and subject to HDB’s written approval.

Renting out rooms
No prior approval from HDB is required if you rent out your bedroom(s) in the EC within the MOP. However, with effect from 1 Feb 2010, you must register the subletting of bedrooms with HDB within 7 days of doing so. You are also required to notify HDB when you renew or terminate the subletting of bedrooms, and when there are changes to your subtenants’ particulars. You may approach the HDB Branch managing your EC to register the subletting.

Buying another subsidised housing
After selling your EC in the open market, you must wait for 30 months before you can submit an application to buy:

1. a new flat from HDB; or
2. an apartment under the Design, Build and Sell Scheme (DBSS) from developers; or
3. another EC from developers.

Resale Levy
The resale levy is meant to reduce the housing subsidy that can be enjoyed by flat buyers in the purchase of their second subsidised flat from HDB. It also ensures a fairer allocation of housing subsidies among flat buyers.

You are liable to pay a resale levy of $55,000 when you buy a second subsidised flat from HDB or take over ownership of a subsidised HDB flat after selling the EC bought under the CPF Housing Grant Scheme (after meeting the 5-year Minimum Occupation Period (MOP) and the 30-month period).

If you do not intend to buy a second subsidised flat from HDB, for example, if you are buying a resale flat, a new DBSS flat, an EC from the developer, or a private residential property, you need not pay the resale levy.

Interest in Private Property
You cannot invest in private residential property during the 5-year minimum occupation period.

Executive Condominium (EC) owners who have occupied their EC and met the 5-year minimum occupation period (MOP) can sell their EC in the open market. The 5-year MOP is computed from the date of issuance of Temporary Occupation Permit (TOP) in respect of each EC.
After the 5-year MOP, from 6th to 10th year, EC can be sold in the open market to those who can meet the HDB eligibility conditions.

From 11th year, all restrictions will be lifted. Foreigners and corporate bodies can buy ECs in the open market from 11th year of the EC project. 

Please feel free to drop me an email for further queries or clarifications.

DIY Resale of your HDB Flat?

I am writing this post from my personal experience of DIY transacting of my own HDB resale flat.

9 Steps to DIY sale of flat:

1. Confirm your eligibility to sell:  
In most cases, you have to confirm whether your MOP(Minimum Occupation Period) has been fulfilled. Basically, you can log into your HDB Portal via SingPass and check your effective date of purchase of your unit in the past. At the present moment, you will be eligible to sell as long as you have fulfilled the 5 year occupation quota. (This is aside from special cases where one might have obtained special permission to sublet their entire unit within the 5 years)

2. Do your Seller Checklist:  
This is a standard requirement where sellers have to visit HDB portal, log in via their Singpass, complete their HDB Resale Seller Checklist online and do an electronic submission. Do note that each checklist document bears a unique running number which you have to use later for your HDB resale submission.
Some important items within the checklist are financial planning and sales proceeds calculations. If you were to follow the HDB e-service calculators, you can be pretty assured of your financial standings. You will also be able to determine what subsequent housing options you can go for with the estimated sales proceeds.
IMPORTANT: You can only grant any potential buyers the OTP 7 days after depositing your checklist. Upon deposition into HDB repository, the validity of the checklist will be 6 months.

3. Plan your marketing:  
To be truthfully honest, there are seasonal periods throughout the year when transactions or even viewings get typically low. Such periods within Singapore are likely Lunar Seventh Month, June/Dec school holiday periods.

It would be more effective doing marketing if you can avoid those months.

Also, you will have to consider the most effective way for you reach out to potential buyers. Typically within Singapore, the most effective way is still via Straits Times classified ads. To get the most of your money, try to run a 3 liner over the weekends where you can certainly get more visibility. You may also try the STProperty portal but I reserve my comments if it might ultimately be really successful. PropertyGuru accounts are only held by realtors such as myself so there isn't really any point trying.

4. Plan your viewing:  
It will be best to hold viewings over weekends where there is a higher chance of bringing in the crowd. Try to set your viewing timing to a certain date and time frame such as between 2- 5pm. Some realtors call this an open house strategy.

When calls start coming in, it would be highly possible for 90% of the calls to be made by real estate agents enquiring for their buyers. Do tell them honestly and upfront that you are doing selling on your own to avoid future unnecessary misunderstandings.

When conducting viewings, keep your flat clean, tidy and airy. Send the kids away if possible as noise are distracting and first impression counts. Space the viewings at least 15 minutes away from each other in order to avoid overcrowding. 

5. Pricing Your Property:
How would you price your property? You will be in a dilemma to advertise your wish price without scaring away potential buyers at first sight. For a start, HDB portal is now very transparent in sharing past transactions within any estates. You may very well gauge your sellable range from the statistics from HDB portal. Also from experience, when the marketing is still fresh, try to secure as many viewings as possible as every viewing might be an opportunity. A common strategy to advertise your pricing will be putting it as VTO (View to offer). Basically, you can use this method to let interested parties put in their offers and for you to get honest feedbacks how the market is responding to your property. At this point of time, it will be also interesting to know that every property will sell but it will be the market the sells the property. Pricing yourself out from the market will only facilitate your neighbors to sell easier. *Do check the HDB past Resale Transactions for a honest review of your neighbourhood market.

Also, it would be important for you to understand who are eligible to purchase your flat in case you are dealing with direct buyers. Read up on Buyers eligibility under the Ethnic Integration Policy and SPR Quota.

6. Accepting an Offer:  
After much negotiation,you have finally received an irresistible and fantastic offer. So what's next?

The next procedure in line will be to do up the Option To Purchase with your buyer.

Sellers and buyers of resale flats must use the HDB standard Option to Purchase (OTP) as the form of

contract in resale transactions. No party is allowed to enter into any other agreement pertaining to the sale and purchase of the flat as it is null and void pursuant to the Housing and Development Act. Go through the HDB OTP in details, especially the pages where there are open fields for filling in. (Pages 1,2,4,8)

Now I shall run through some some important fields within the OTP.

First of all, the final purchase price which will include the COV.

Next, the prescribed Option Fee, Deposit and Option Period :

   

Option Fee-

An amount not exceeding $1,000 

Deposit-

An amount not exceeding $5,000 

(Option Fee + Option Exercise Fee = Deposit) 

Option Period-

14  calendar  days  (including  Sat/Sun  &  public  holidays)  from  the  date  of  granting Option. [E.g. If the seller grants an Option to the buyer on 1 May 2012 (Tuesday), the Option will expire on 15

 May 2012 (Tuesday)]. The Option expiry time is standardised at 4pm. 

Next, name and NRIC Number of buyers and sellers as per their Identity Card.

Next, the number of calendar days for which both parties have to submit the application in to HDB for their approval from the date of exercise of Option. This is important as both buyers and sellers will have to submit their portion electronically to HDB within the stipulated timeframe.

Finally the sellers will have to sign on page 8 which is the granting of option to the buyers. Buyers can only sign this portion only after they have obtained the necessary bank loan Letter of Approval/HDB HLE and upon payment of Option Exercise Fee to the seller. within the 21 days option period. (As part of the process, any buyers who require to take loan will make use of these 21 days to apply for a valuation. Ultimately if the valuation price falls below the actual selling price, there will still be Cash Above Valuation liable for your buyer) Note: Once you have granted the option to a buyer, you are legally binded not to offer option to any other buyers within the option period.

7. Submission:  
After exercising of the OTP, the next step in line will be doing your submission to HDB. Via HDB portal e-services, you will be able to check the earliest first appointment dates and come to an agreement with your buyer on a common first appointment date and timing.  

All resale applications will have to be submitted online either via the ResaleNet system(Realtors only) or the e-Resale system. Buyers and sellers (or their salesperson) will also have to submit their respective portions of the resale application separately.

Either the buyer or the seller may submit his portion of the resale application first. Once the first party has submitted his portion, the second party will have to do so within 7 days. If not, the submission by the first party will lapse and they have to re-start the process and repay the submission fees ($60 for DIY)  
Therefore, it is always important for you to make sure you do the correct data entry of information. Any error done on the first party's part will cause problems for the second party. This is because the information will simply not match on both applications  and the process will simply halt. A simple example would be the for first party to miskey the sale price and when the second party will not be able to do submission if he/she tries to input the correct sale price for submission.  

A resale application is deemed complete only when HDB receives both portions of the resale application. The second or last party(in the event of contra) in this transaction can then book the First Appointment. Upon receiving the complete set of resale application, HDB will assess the buyer's eligibility to buy and the seller's eligibility to sell the flat as at the date of submission by the second party.

Note: If your current loan is being covered by a bank, you will also need to engage a private conveyancing lawyer to assist with the conveyancing. 

8. First Appointment:  
Do remember a few key items to bring along for your first appointment as a seller - Identity Card, first appointment letter, original OTP forms, originally signed seller checklist, declaration form for casement window and etc.

Be early if possible, in order to meet your buyer and scan your first appointment letter for a queue number.

Upon calling of your queue number, you will then proceed to check your documents at the counters outside the Resale Officers room before meeting the officers subsequently.

If you will be engaging a HDB lawyer to process conveyancing for property, do remember to bring a couple of hundred dollars for payment at HDB's payment counters after the first appointment session.

If you are engaging a private lawyer to act for your conveyancing, you would have likely preset an appointment to meet your lawyer after the first appointment.

9. Completion:  
The completion date is typically 6-8 weeks after the first appointment. Few days prior to the completion, the buyer will also arrange for a final inspection of the premises to check that you deliver the property with vacant possession.

Note: You will not have to make the 2nd trip to HDB for the completion if your are represented by a private solicitor. Your lawyers will subsequently issue a cheque for your sales proceeds separately. 

Note: Do remember to cancel your existing utilities account for your property or do a transfer to your buyer on the date of completion.

Do note if you will opting for the second concessionary HDB loan subsequently:

Flat buyers can keep the greater of $25,000 or half of the cash proceeds (including the cash deposit received), HDB will take into account the remaining part of cash proceeds when determining the quantum of the second loan to be granted.   

The above 9 key steps are the basic procedures to follow for the selling of your unit. However, there might be more complicated scenarios with extra documentations required for sale cases involving divorce dispute and bankruptcy. Also, there are much more items you have to take note when qualifying and negotiating with your buyers. This is the reason why professional consultancy from qualified realtors are actually worthwhile to safeguard your interests.

I'll be happy to share more and offer my professional assistance if required. Do drop me an email for further discussions.

Cheers