Co-Ownership of HDB and Removing Names for Private Purchase

Co-Ownership of HDB and Removing Names for Private Purchase

Q: If an HDB flat is co-owned with parents, is it possible to remove a name from the ownership without selling the flat?

A: Removing a name from an HDB flat's ownership can be a complex process. It's essential to understand the reasons behind this decision and the existing financial arrangements. Here are some factors to consider:

  • Reasons for change: The first step is to determine why you want to remove a name. If it's to purchase private property, you need to assess the feasibility and requirements.

  • Mortgage status: Check if there is an outstanding mortgage on the HDB flat. If so, you'll need to consider whether the remaining owners, usually the parents, can take over the son's share of the mortgage.

  • CPF usage: Verify if CPF savings have been used for the property purchase and if there is an outstanding CPF usage that needs to be addressed.

Q: If the parents are not working, can the son still withdraw his name from the co-ownership of the HDB flat?

A: If the parents are retired and not working, it can complicate matters. In such cases, it's unlikely that they can take a new loan to buy over the son's share of the flat. Additionally, they would need to consider refunding the son's CPF usage if any was used.

Q: What if the son is willing to use cash to assist in the process? Can the parents use their CPF to pay for the son's CPF usage and the outstanding loan?

A: Unfortunately, CPF funds cannot be used for this purpose. To remove the son's name, it typically requires a full cash settlement. The son would need to use cash to pay the outstanding loan and any CPF usage to the parents.

Q: Is there a specific procedure to follow to get this done? Do both parents and the son need to visit the HDB Hub?

A: Yes, both parents and the son would typically need to visit the HDB Hub to initiate this process. It's recommended to make an appointment and consider seeking assistance from professionals who are familiar with HDB transactions to ensure a smooth transition.

In summary, removing a name from co-ownership of an HDB flat is a multi-step process that involves financial considerations and HDB procedures. If you find yourself in a similar situation, it's advisable to consult with experts who can guide you through the process and make the necessary arrangements.

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