Navigating an HDB Estate Sale/Transfer as an Executor or Administrator

Dealing with the death of a loved one is emotionally overwhelming, but family members can also find themselves saddled with the process of handling the deceased’s estate. While this may be relatively more straightforward if the deceased had left behind a will, there are other aspects in the estate administration process to note when there is an HDB flat) involved.

This article will cover the following:

• The transmission process before transferring/selling the deceased’s HDB flat
• An overview of the HDB estate transfer and sale process in Singapore
• Important considerations for executors or administrators in an HDB estate sale

Please note that for the purposes of this article, we assume that either the deceased has left behind a legally valid will and that the grant of probate has already been extracted by the executor(s), or if the deceased has passed away intestate (i.e. without a will), the letters of administration have been obtained by the administrator.

Transmission of the Estate

Once the grant of probate or letters of administration have been extracted, the executor or administrator will need to register their legal right to manage the deceased’s HDB flat (i.e. transfer ownership of the flat to the beneficiaries or sell the flat) through a process known as “transmission”.

This is a relatively straightforward process, and, in most cases, you can simply visit the relevant HDB branch office to make the application. You will be required to bring along a number of documents at your initial appointment with the HDB, which can be found here.

To complete the transmission, you will be required to sign the relevant documents and pay the stipulated fees (e.g. stamp fees). The transmission process formally recognises you – as the executor or administrator of the deceased’s estate – to manage the deceased’s flat, and your name will be reflected in HDB’s system.

Transfer Ownership vs. Selling the Flat

If there is a will

In most cases, the deceased’s will would state that on their demise, ownership of their flat would be transferred to the named beneficiaries to hold either as joint tenants or tenants-in-common in the stipulated shares.

The will may also provide that it is only if the beneficiaries do not meet HDB’s eligibility criteria for ownership of the flat, then the flat would have to be sold and the sale proceeds be distributed according to the beneficiaries’ respective shares.

If there is no will

If the deceased was the sole owner of the flat and died intestate, then the deceased’s interest in the flat will be distributed according to the provisions of the Intestate Succession Act. For example, if the deceased leaves behind a surviving spouse but no children or parents, then the spouse will be entitled to the whole share of the estate.

Do note that HDB’s eligibility criteria would still apply.

If you proceed with the transfer of ownership to the beneficiaries 

The transfer of ownership of an HDB flat is a conveyancing procedure. This process usually takes around 4 months to complete, and you will need to ensure that the beneficiaries (i.e. the new owners) fulfil HDB’s eligibility criteria for taking ownership of the flat.

For a more detailed discussion, please refer to our article on transferring ownership of property in Singapore. Details on the application procedure can be found on the HDB’s website here.

If the beneficiaries wish to sell the flat instead 

In some cases, however, the beneficiaries may decide to proceed with selling the flat instead of having ownership transferred to them, due to various reasons. For example, the beneficiaries may already own a property of their own or are facing certain medical conditions so they wish to use the sale proceeds to cover their medical expenses instead.

The executor or administrator will then have to proceed with initiating the estate sale process, which is similar to the usual process for the sale of a flat. The steps are briefly outlined below:

• Register the intent to sell: The executor or administrator will need to register the intent to sell the flat. This can be done via My Flat Dashboard, which will be the primary platform that the seller and buyer will transact on.
• Marketing the flat: You can list the flat on the HDB flat portal for resale flats and/or other platforms or websites (e.g. 99.co, Property Guru). You may also consider engaging a property agent to assist with marketing the flat (e.g. staging the flat) as well as liaising with prospective buyers for viewings of the flat. Do note that it is not necessary to appoint an agent, and you are also able to sell the flat on your own.
• Agreeing on the sale price and exercising the Option to Purchase: if a prospective buyer makes an offer that the beneficiaries are agreeable to (in the case of an estate sale), then the seller (i.e. the executor or administrator) will grant the Option to Purchase. The buyer will then have to exercise the Option (i.e. signing on the Option) and pay the deposit/option fee.
• Submit the resale application: The seller and buyer will need to submit their respective portions of the resale application on the HDB Flat Portal. This must be done within the agreed number of days indicated in the Option to Purchase, and the buyer and seller must submit their respective portions of the resale application within 7 calendar days of each other’s submission.
• HDB accepts application and payment of fees: After the application is submitted, HDB will acknowledge and accept the application. At this juncture, HDB will also advise on the completion date, which is approximately 8 weeks from the date of acceptance of the resale application.
  • Do note that in the case of an estate sale, the executor or administrator will need to pay the outstanding property tax as well as the service & conservancy fees for the flat up to the date of completion. Payment will need to be made to the Inland Revenue Authority of Singapore (IRAS) and the relevant Town Council office respectively.
• Approval of resale application: Once the relevant documents are endorsed by the buyer and seller and payments are made, HDB will approve the resale application and confirm the completion date.
• Attend the completion: The parties will then need to attend the completion at the HDB Hub on the stipulated date and time. Do note that if you have engaged a lawyer to act for you in the conveyancing transaction, your lawyer will attend the completion on your behalf.

You can also refer to this article for an overview of the conveyancing process in Singapore.

Important Things to Note About an Estate Sale 

There are a few things to note with regard to an estate sale that the executor or administrator needs to be aware of, to ensure that the sale can be completed with minimal hiccups along the way.

Engaging a lawyer to oversee the estate sale

In most cases, for the sale of an HDB flat (whether an estate sale or otherwise), you have the option of appointing HDB’s lawyers to act for you in the conveyancing transaction. This is also usually a cost-effective way of handling the transaction.

However, there may be cases where HDB’s lawyers indicate that they are unable to act for you in the estate sale. The reasons for not being able to do so vary on a case-by-case basis and depend on the particular circumstances of your case. If this happens, you will be asked to engage a private solicitor to oversee the transaction.

Getting a Deed of Family Arrangement

A Deed of Family Arrangement is a legal document recording the distribution of an estate where it is not made in accordance with the terms of the will or the laws of intestacy. This can occur in the following illustrative scenarios:

• A deceased leaves behind a will stating that their HDB flat should be transferred to their 3 surviving children to hold as tenants-in-common in equal shares on their demise. However, the children decide to sell the flat instead. Since going ahead with the sale of the flat is not acting in accordance with the terms of the will, the executor would need to obtain a Deed of Family Arrangement to record the children’s wishes before they can notify HDB and proceed with the sale.
• A deceased who dies intestate leaves behind a surviving spouse and two children (i.e. the beneficiaries) with their HDB flat. However, the beneficiaries do not fulfil HDB’s eligibility criteria to inherit the flat, so the property would need to be sold. Under the Intestate Succession Act, the surviving spouse would receive 50% of the sale proceeds and the children would receive 25% each in equal share. However, the beneficiaries decide that one child should receive a 30% share, and the other child 20% instead. In this scenario, the beneficiaries would need to engage a lawyer to draft a Deed setting out the distribution of the shares that they have agreed to, which differs from the provisions of the Intestate Succession Act.

A Deed of Family Arrangement also protects the executor or administrator from a subsequent claim or any liabilities. Please note that you will require a lawyer to draft a Deed.

Timeline for completing an estate sale 

An estate sale would typically take an average of 6-9 months from the point where the flat is put up and marketed for sale, up to completion.

Do note that the executor or administrator must sell the property within 6 years from the death of the deceased. Otherwise, a court order will be required before the executor or administrator can proceed with the sale, and the executor or administrator will need to provide reasons for the delay in the sale.

Payment of fees etc. in an estate sale

As mentioned above, the executor or administrator would need to pay certain fees (e.g. property tax, HDB filing fees, service & conservancy charges) in an estate sale, prior to the completion of the sale. Whether or not the executor or administrator would have to do so out of pocket depends on the following possible scenarios:

• If there is a will and the deceased has put aside a sum of money to cover such expenses: the executor can use this sum of money to pay for any fees or costs incurred during the estate sale.
• If there is a will but the deceased did not leave aside money for such expenses: in this case, the executor could potentially discuss with the beneficiaries on a mutually agreed arrangement that can be made to cover the expenses (for example, the executor will pay out-of-pocket first and subsequently recover the costs from the sale proceeds). Ideally, such an arrangement should also be captured in the Deed of Family Arrangement (discussed above).
• If there is no will: in the absence of a will, the administrator may have to incur the expenses out-of-pocket first. However, it is also possible for the administrator to discuss with the beneficiaries on recovering any expenses incurred from the sale proceeds. As with the previous scenario, such an arrangement should also be captured in a Deed of Family Arrangement.

Do note that these are largely illustrative and ultimately depend on the unique circumstances of your case. If in doubt, please speak to a probate lawyer for further guidance.

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If you have been appointed as an executor or are the administrator of a deceased loved one’s estate, it is highly advised that you consult a probate lawyer to walk you through the process of administering the estate. You may get in touch with our highly-rated probate lawyers in Singapore here.

For an estate sale, please reach out to a conveyancing lawyer for further advice or guidance. You can kickstart your search from our list of top-rated conveyancing lawyers.