Divorce can introduce complex changes, especially when it comes to HDB ownership. Let's delve into a case study and explore crucial insights provided by an estate branch HDB officer.
Our Scenario:
A couple divorces in the 4th year before the Minimum Occupation Period (MOP). The court orders the husband to transfer ownership to the wife, who is not yet 35 years old and shares custody of their child.
Insights from the HDB Officer:
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MOP Reset: The transfer of ownership does not reset the MOP. The MOP timeline remains unaffected by the transfer, allowing the wife to retain the eligibility for various HDB schemes and benefits.
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SSD Implications: While the MOP remains intact, the Inland Revenue Authority of Singapore (IRAS) imposes Seller's Stamp Duty (SSD) if the property is sold within the next 3 years following the ownership transfer. It's essential to factor in this potential cost when planning future property transactions.
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Rental Approval: Despite the transfer of ownership, the HDB can approve the rental of the entire unit. This option provides flexibility, allowing the wife to rent out the property if needed, without resetting the MOP.
Navigating HDB ownership transfer post-divorce requires careful consideration of MOP implications, SSD obligations, and rental possibilities. Understanding these nuances is crucial for making informed decisions and ensuring a smooth transition.
Reach out should you need any property related advises!