Director of Photography

Anya Krasnikova

Home / Private Agreement Hdb

Private Agreement Hdb

  • Post By:
  • Date:
  • Category: Uncategorized

Private Agreement HDB: A Comprehensive Guide

Buying a house is one of the most life-changing decisions a person can make. In Singapore, the Housing and Development Board (HDB) provides affordable housing options for its residents. Buying a flat from HDB can be a daunting process, but a private agreement HDB is a viable option that can be considered. In this article, we’ll explore what a private agreement HDB is, and how it works.

What is a Private Agreement HDB?

A private agreement HDB is a sale and purchase agreement signed between the buyer and seller of an HDB flat without the involvement of HDB. This process is also referred to as a resale transaction. The buyer should have a valid HDB eligibility status, and both the buyer and seller must be Singapore citizens or permanent residents.

The primary advantage of a private agreement HDB is that it saves time. HDB approval can take up to three months, and this can be a major inconvenience for buyers and sellers. With a private agreement HDB, the transaction can be completed within a shorter period, usually a few weeks. Another advantage is that buyers and sellers have more flexibility in terms of price negotiation and payment terms.

How Does It Work?

A private agreement HDB transaction involves several steps:

Step 1: Finding the Right Property

The buyer searches for a suitable HDB property through various channels, including online property portals, property agents, and classified ads. Once the buyer identifies a property of interest, they contact the seller to arrange a viewing.

Step 2: Making an Offer

If the buyer is satisfied with the property, they can make an offer to the seller. The offer should include the price, payment terms, and any other conditions. The seller may accept, reject, or counter-offer.

Step 3: Engaging a Lawyer

Once the buyer and seller agree on the terms, they engage their respective lawyers. The lawyers will prepare and review the sale and purchase agreement.

Step 4: Paying the Option Fee

The buyer pays the option fee to the seller. The option fee is usually 1% of the agreed price, and it shows the buyer’s commitment to proceed with the purchase.

Step 5: Exercising the Option to Purchase

The buyer has 14 days from the payment of the option fee to exercise the option to purchase. This involves paying the downpayment, which is usually 10% of the agreed price, and signing the sale and purchase agreement.

Step 6: Completion

Completion of the transaction takes place after the buyer pays the balance of the purchase price, and all legal documents are signed. The buyer can then move into the HDB flat.


A private agreement HDB is a viable option for buyers and sellers who want to save time and have more flexibility in terms of price negotiations and payment terms. It is important to engage a lawyer to ensure that all legal requirements are met. Buyers should also exercise due diligence and inspect the property thoroughly before making an offer. With proper planning and execution, a private agreement HDB transaction can be a smooth and hassle-free process.