Mr. Tan, a sole owner of a 4-room HDB flat in Bedok, suddenly passed away, leaving behind his wife, Mrs. Tan, and their two adult children. The family was grief-stricken, but another urgent concern quickly surfaced—Mr. Tan had not yet completed the Minimum Occupation Period (MOP) of his flat. Now, the family was uncertain about what to do next, especially as they navigated the inheritance process.
Mrs. Tan was unsure whether she could continue living in the flat or if she would have to sell it. Their children, who had moved out, were equally confused about the implications of inheriting the flat. They reached out to a real estate agent for guidance.
Understanding the Legalities:
The first step was to determine how the flat would be distributed among Mr. Tan’s family. Since Mr. Tan did not leave behind a will, the Intestate Succession Act would apply. Under Singapore’s laws, the following rules dictate the distribution of the flat:
- If there is a surviving spouse and children: Mrs. Tan would be entitled to 50% of the flat, while their two children would inherit the remaining 50% equally.
- If there was only a surviving spouse (no children or surviving parents): Mrs. Tan would have inherited the entire flat.
- If Mr. Tan had only left behind his children: The children would inherit equal shares of the flat.
Mrs. Tan, still residing in the flat, was eligible to inherit half of the flat’s interest, with the rest being shared between her two children. However, there was a major complication—the flat’s MOP had not yet been met.
The MOP Complication:
One of the critical issues Mrs. Tan faced was what to do about the Minimum Occupation Period (MOP). Mr. Tan had purchased the flat just three years ago, and with two more years to go before fulfilling the five-year MOP, Mrs. Tan feared she might be forced to sell the flat prematurely.
The real estate agent explained that MOP is tied to the original owner’s acquisition date. Since the MOP had not yet been met, the family would need to approach HDB and seek advice. Fortunately, Mrs. Tan had a strong family nucleus—she and her children were all Singapore citizens, which is a key eligibility criterion to retain the flat.
Navigating HDB’s Process:
The real estate agent advised the family to write to HDB and explain their situation. They needed to appeal to HDB, highlighting that Mrs. Tan and her children wanted to continue living in the flat. The agent also noted that HDB would evaluate their case on a discretionary basis.
However, if the family didn’t meet the eligibility criteria, HDB could require them to sell the flat in the open market. This meant that Mrs. Tan needed to prepare for both possible outcomes.
Inheritance and Private Property Ownership:
One of Mrs. Tan’s children, Jason, owned a private property that he had purchased a year before Mr. Tan’s passing. This added another layer of complexity. The real estate agent explained that Jason’s ability to inherit the flat depended on when the flat was purchased:
- If the flat was purchased before 30 August 2010: Jason could retain both the HDB flat and his private property.
- If the flat was purchased on or after 30 August 2010: Jason would have to choose between keeping the HDB flat or his private property. Only one could be retained.
Given that Mr. Tan had purchased the flat after the 2010 deadline, Jason would have to make a tough decision if the flat was passed to him.
The Home Protection Scheme (HPS):
One of the brighter spots in the process was the Home Protection Scheme (HPS), which Mr. Tan had enrolled in. The real estate agent reassured the family that upon Mr. Tan’s passing, CPF Board would automatically assess whether HPS could cover the outstanding mortgage loan.
Once notified of the death by the Immigration and Checkpoints Authority (ICA), CPF Board would determine if the remaining loan could be paid off. If the claim was approved, the outstanding mortgage would be settled directly with the lender, easing some of the financial burdens on Mrs. Tan and her children.
Outcome:
After several weeks of back-and-forth with HDB, Mrs. Tan’s appeal was successful. HDB exercised flexibility and allowed Mrs. Tan to remain in the flat, even though the MOP had not been met. Jason, meanwhile, decided to keep his private property, allowing his mother to continue living in the family home without any disruption.
While the process was emotionally and logistically challenging, the family was grateful for the guidance they received from their real estate agent. With his help, they were able to navigate the complex rules surrounding HDB inheritance and MOP regulations.
Key Takeaways for HDB Owners Facing Similar Situations:
- Inheritance Distribution: If there’s no will, the Intestate Succession Act dictates the distribution of an HDB flat.
- MOP Complications: If the MOP hasn’t been met, approach HDB for advice. HDB will evaluate each case on a discretionary basis.
- Private Property Ownership: The ability to retain both an inherited HDB flat and a private property depends on the purchase date of the flat.
- Home Protection Scheme (HPS): If covered by HPS, CPF Board will assess and potentially pay off the outstanding mortgage upon the owner’s passing.
Are you facing a similar situation with an HDB flat inheritance or MOP-related issue? Navigating these rules can be complex, but you don’t have to go through it alone. Reach out to a knowledgeable real estate agent today for expert advice and guidance. We’re here to help you through every step of the process.