Understanding the Conditions for Paying a Resale Levy and Applying for an Executive Condominium Unit

Resale levies are a type of fee imposed on buyers of Executive Condominium (EC) units in Singapore. The levy is imposed in order to ensure that the market is not distorted by people taking advantage of the government’s subsidized housing policy. The aim is to keep the price of EC units at a reasonable level and ensure that the subsidies are enjoyed by those who need it most.

In Singapore, the resale levy is applicable to all EC units purchased on or after 9 December 2013. The levy is applicable for purchases of both new EC units and resale EC units. The amount of the levy is calculated based on the purchase price of the EC unit, and the number of years since the unit was purchased from the developer.

For new EC units, the levy is calculated based on the purchase price of the unit and the number of years since the unit was purchased from the developer. The amount of the levy is calculated as a percentage of the purchase price of the unit. For example, for a new EC unit purchased in 2020, the levy is calculated as 10% of the purchase price.

For resale EC units, the levy is calculated based on the market value of the unit and the number of years since the unit was purchased from the developer. The amount of the levy is calculated as a percentage of the market value of the unit. For example, for a resale EC unit purchased in 2020, the levy is calculated as 15% of the market value of the unit.

In order to pay the resale levy and purchase an EC unit, buyers must first apply for an Executive Condominium (EC) unit. This can be done through the Housing and Development Board (HDB) website or through a real estate agent. When applying for an EC unit, buyers must provide the necessary documents and information, such as their identity documents, income information, and CPF statements.

Once the application is approved, the buyer will be required to pay the resale levy. The levy must be paid in full within 30 days of the approval of the application. Failure to do so will result in a penalty of 10% of the levy amount. The levy must be paid in cash or by cheque.

Once the levy is paid, the buyer will be able to proceed with the purchase of the EC unit. The buyer must then sign the Sales and Purchase Agreement, and submit the relevant documents to the HDB. After the documents are approved, the buyer will be issued a Certificate of Entitlement (COE). The COE is proof that the buyer has the right to purchase the EC unit.

In conclusion, the resale levy is a fee imposed on buyers of EC units in Singapore. The amount of the levy is calculated based on the purchase price or market value of the unit, and the number of years since the unit was purchased from the developer. In order to pay the resale levy and purchase an EC unit, buyers must first apply for an EC unit. Once the application is approved, the buyer will be required to pay the resale levy and must do so within 30 days of the approval of the application. Once the levy is paid, the buyer will be able to proceed with the purchase of the EC unit.

Resale Levy (RL) is a payment that must be made when a buyer purchases an Executive Condominium (EC) unit from the open market or from a previous owner. This payment serves to ensure that the EC continues to provide affordable housing options to Singapore citizens. The amount of the resale levy varies depending on the size of the unit, the type of EC unit purchased, and the timing of the purchase.

In order to pay the resale levy, a buyer must first obtain an In-Principle Approval (IPA) from the Housing & Development Board (HDB). This approval must be obtained before the buyer can enter into a Sales & Purchase Agreement (SPA) with the seller. The buyer must also be eligible to purchase the EC unit under the HDB’s eligibility criteria, which requires them to be a Singapore citizen, have a valid employment pass, or be a member of a family nucleus.

Once the buyer obtains the IPA, they must pay the levy within 14 days of signing the SPA. The amount of RL is determined by the HDB, and it is based on the size of the flat, the type of EC unit purchased, and the timing of the purchase. For example, the RL for a 3-room EC purchased from the open market is $55,000, while the RL for a 5-room EC purchased from the open market is $75,000.

When the buyer has paid the RL, they may then apply for an EC unit. This process involves completing the HDB’s EC application form and submitting it along with the required supporting documents. The documents required include the SPA, proof of income, proof of identity, and a copy of the buyer’s passport or identity card.

Once the application has been submitted, the HDB will review it and decide whether the buyer is eligible to purchase the EC unit. If the application is approved, the buyer will be given an appointment to sign the SPA. After the SPA has been signed, the buyer must pay the balance of the purchase price, which includes the RL and any other applicable fees.

It is important to note that the RL must be paid in full before the buyer can move into the EC unit. If the full amount is not paid, the buyer may be required to return the unit.

It is important to understand the conditions for paying the RL and applying for an EC unit in order to ensure that the purchase process goes smoothly. The RL is required in order to ensure that the EC continues to provide affordable housing options to Singapore citizens, and it is important to note that the amount of the RL varies depending on the size of the unit, the type of EC unit purchased, and the timing of the purchase.

In addition to understanding the conditions for paying the RL, it is important to be aware of the requirements for applying for an EC unit. This includes completing the HDB’s EC application form and submitting it along with the required supporting documents. Once the application is approved, the buyer must pay the balance of the Tengah Plantation Close EC purchase price, which includes the RL and any other applicable fees.

Understanding the conditions for paying the resale levy and applying for an EC unit is essential for ensuring a successful EC purchase process. By understanding the requirements and ensuring that all necessary documents and payments are in order, the buyer can ensure that their purchase process is completed without any issues.