Meet Karen, a 35-year-old looking to buy her own private property. However, there's a twist in her story. A few years back, her parents included her name as a co-owner of the HDB flat they all reside in. Now, Karen is wondering if it's possible to remove her name from the co-ownership without selling the flat.
The Initial Query
Karen reaches out to her trusted real estate agent, Roncasa, for guidance on this matter. She's aware that co-owning an HDB flat with her parents might affect her plans to purchase private property. Here's how the conversation unfolds:
Karen (K): "HDB if co-owned with parents? Able to take out the name? Or what can be done without selling or have to sell?"
Roncasa (R): "What's the reason for wanting to do this?"
Karen (K): "I want to come out to buy private property. Currently, I'm co-owning the HDB with my parents."
Exploring the Situation
Roncasa understands that Karen is considering her options carefully. He delves deeper into the situation to provide the most relevant advice:
Roncasa (R): "Is your HDB flat still under mortgage? Have you used CPF funds for it? We need to check the outstanding mortgage and your CPF usage to see if the remaining owners, likely your parents, can take over your share."
Karen (K): "So, we have to see if my parents are able to buy over my share, right? Yes, we have used CPF, and there is an outstanding loan."
The Complexities
Roncasa knows that the complexities involved in this process can be significant. He addresses Karen's concerns about her parents' retirement status:
Roncasa (R): "If your parents are not working, it might be challenging. Retired individuals typically can't take new loans. Plus, they'd need to consider refunding your CPF usage if it was utilized."
Karen (K): "Fully paid means paying off the outstanding loan, correct?"
Roncasa (R): "Exactly, that's the basic idea. Full cash payment for your CPF usage and the outstanding loan."
Exploring a Potential Solution
Karen isn't ready to give up on her plans. She's willing to explore alternatives:
Karen (K): "I have cash. Can my parents use their CPF to pay for my CPF usage and the outstanding loan? Then, after that, my name can be removed, and I can fully utilize my CPF for my next private purchase, correct?"
Roncasa (R): "Yes, that's essentially the process. Your parents can't use CPF, but cash works. Both you and your parents will need to visit the HDB Hub to get this done. If needed, I can help arrange and accompany you."
A Path Forward
Karen and Roncasa work together to find a viable solution. They understand the steps required to navigate this complex process and are ready to take the necessary actions. It's a testament to the importance of having a knowledgeable real estate agent by your side when dealing with intricate property matters.
In conclusion, Karen's case showcases the challenges and possibilities of co-ownership of an HDB flat and the steps involved in removing a name from the ownership. It's a reminder that professional guidance can make all the difference when facing such situations.
Facing a property dilemma? Contact us for expert guidance today/