What Should You Expect After Selling Your Co Own Hdb Flat

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What Should You Expect After Selling Your Co-Own HDB Flat? | Buying a HDB flat requires committed financial responsibility. Imagine your Bidadari HDB flat is co-owned by more than one owner, it could be your spouse, parents, children or siblings. Though at the age 35, singles are allowed to buy their very own HDB flats in Singapore but being co-own scenario is not applicable for the singles. However, have it ever come across to you that things may change over time? For example, you may get into disagreement with your co-owner(s) relating to the flat like making decision or managing the flats. Some co-owner may get into financial difficulties and be unable to keep up with monthly mortgage repayment. What happens if you are stuck in this sticky situation? 

Flat ownership transfer vs Sale of flat
If both you and your co-owner could not agree on amicable terms, there are two options that you can solve the situation. 
1. Flat ownership transfer
The current existing HDB regulations highlighted that you are allow to opt for change of the flat ownership structure. It allows one owner to continue owning the flat whether if he or she is eligible to do so under HDB eligibility criteria. 
- Transfer of Flat Ownership: With this method, you are able to transfer your very own flat without any monetary consideration or involvement. 
- Resale of Part-Share: You may change flat ownership through a partial sales/ purchase between family member at a mutually agreed price. Take note that resale part-share is not allowed between a married couple

2. Flat sales
The next option is pretty simple where both you and your co-owner agree to sell your flat. On the other side, you cannot sell your flat without the permission of your co-owner(s)

What happens if both could not agree on a course of action

Well, since both the flat is jointly owned by both owners which makes the situation even trickier and complicated. Unless, both of you are unable to agree on a course of action

Pretty good examples of situation like:-
1. If your co-owner is facing financial challenges and has issues paying his share of the mortgage. 
2. If your co-owner files for bankruptcy
Here’s what to do with these scenarios
1. Your co-owner is facing financial challenges and has issues paying his share of the mortgage. 
When you buy your flat with a co-owner, both of you are legally the joint owner of the property. Legally speaking, your partner and you are obliged to ensure prompt and full payment of your monthly mortgage. If they get into financial difficulty and has problem fulfilling promise to pay their share of mortgage, you are still required to ensure full payment of the mortgage. Both of you cannot get out of the situation by claiming your co-owner that is not helping you to pay for their share

Don’t forget that the flat is still jointly owned by you which means that you will need to pay for the entire home mortgage if the need arises. This is important reason why you will need to be mindful of who you are going to co-own a property with

2. Your co-owner files for bankruptcy
Good news is that HDB flats are protected from creditors in the event where an owner declares for bankruptcy, similar to your CPF. Just because your HDB flat is safe from bankruptcy, that does not mean you cannot lose your flat. If you have sign up for home loan but unable to service your mortgage repayment, the bank that issue the home loan can reach out to HDB for approval to foreclosure on an HDB flat

What to do when situation like these happens

It is a subjective matter where the right decisions depend on individual circumstances. If your co-owner unable or refuses to make monthly mortgage repayment, there are only three options available. 
Firstly, you will have to pay for his share and keep the home. However, any repayment that you made towards the mortgage will build up home equity that ultimately belong to both of you. This may not seem like a fair or sustainable outcome to you in long run. 
Alternatively, this could be an ideal situation where you can offer to buy out the share of your co-owner even if you can afford to. This method allow you to legally own the HDB on your own and have full control over future decisions pertaining to the flat. 
Otherwise, you can default your home repayment which would lead to foreclosure. Banks would sell the flat and gain back the remaining amount due which both of you will receive and divide the remaining amount between the two of you

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