What Happens When the Sole Owner Passes Away Before MOP

When dealing with the unexpected passing of a sole HDB owner, many questions arise, especially when the Minimum Occupation Period (MOP) has not yet been met. Let’s break down what you need to know and how to navigate this challenging situation.

Q: What happens if my uncle, who is the sole owner of an HDB flat, passes away before completing the MOP?

A: Upon the passing of the owner, the HDB flat will be left to the beneficiaries, provided there is a will in place. If there is no will, the property will be distributed according to Singapore's Intestate Succession Act. Here’s how the distribution works:

1. If there is a surviving spouse and children: The spouse gets 50% of the flat, and the remaining 50% is equally divided among the children.
2. If there is only a surviving spouse (no children or surviving parents): The spouse inherits the entire flat.
3. If only children are left (no surviving spouse or parents): The children will inherit equal shares of the flat.
4. If a child has also passed away: The deceased child's share will go to their children (the grandchildren).
5. If there are surviving parents but no spouse or children: The parents will equally share the entire flat.
6. If no family members are left: The flat will go to the government.

Note: These rules don’t apply under a joint tenancy scheme, where the flat’s interest automatically transfers to the surviving joint tenant.

Q: What happens to the MOP period if it hasn’t been fulfilled?

A: The MOP is tied to the original owner’s acquisition date. If the MOP has not been met, the inheriting party must approach HDB. HDB will then evaluate the situation on a case-by-case basis to determine the next steps. It’s important to note that this isn’t an automatic approval, and decisions are made based on eligibility criteria.

Q: What are the inheritance rules if I own a private property?

A: Inheriting an HDB flat while owning a private property can be tricky, and the outcome depends on when the previous owner bought the flat:

• If the flat was purchased before 30 August 2010: You can retain both the HDB flat and the private property.
• If the flat was bought on or after 30 August 2010: You can only retain one of the properties if the MOP has not been fulfilled. HDB will guide you on which property to keep or if the flat must be sold on the open market.

Q: What happens with the Home Protection Scheme (HPS)? Will the outstanding loan be paid off?

A: Yes, if the deceased was covered by the Home Protection Scheme (HPS), CPF Board will automatically assess the claim once notified by the Immigration and Checkpoints Authority (ICA). If the claim is approved, the outstanding mortgage loan will be paid directly to the lender. CPF Board will communicate with the co-owner or next of kin regarding the outcome and any additional steps needed.

How a Real Estate Agent Can Assist

Navigating inheritance issues can be daunting, especially when MOP rules and other complexities are involved. A knowledgeable real estate agent can:

1. Help you understand your options with HDB and guide you through the inheritance process.
2. Assist with appeals to HDB if required, especially in cases where MOP has not been fulfilled.
3. Advise on eligibility criteria and how to retain the flat or manage its sale.
4. Provide support in dealing with the legal aspects, including coordination with lawyers for the transfer of ownership and ensuring all necessary documentation is in order.

Summary Highlights:

• Inheritance Rules: Follow the Intestate Succession Act if there is no will.
• MOP Considerations: Inheritors must approach HDB if MOP has not been fulfilled.
• Private Property Ownership: Outcome depends on the purchase date of the inherited flat.
• Home Protection Scheme (HPS): CPF will automatically assess and pay off the outstanding loan if eligible.

If you’re dealing with inheritance issues related to your HDB flat or facing challenges with MOP and eligibility, reach out to a professional real estate agent who can guide you through the process and help ensure you make informed decisions. Don’t navigate this alone—get expert advice today!