Inheriting an HDB flat or private property in Singapore comes with a legal process that needs to be completed to have the property sold or transferred to a beneficiary. This process includes obtaining a Grant of Probate if the deceased left a will or Letters of Administration if there is no will, followed by conveyancing to proceed with the sale or transfer.
Below, we explain the Grant of Probate and Letters of Administration, explore what happens to an HDB flat after the owner passes away, discuss the role of conveyancing lawyers, and provide a step-by-step guide for selling inherited property in Singapore.
Key Takeaways
- In Singapore, a sale or transfer of inherited property requires obtaining a Grant of Probate if the deceased left a will or Letters of Administration if there is no will.
- Selling or transferring an inherited HDB flat is additionally subject to HDB eligibility rules.
- When selling or transferring inherited property in Singapore, you generally need to appoint a lawyer to start the conveyancing process. In the case of an HDB flat, you can ask HDB to act for you, but if HDB declines, you will need to appoint your own lawyer.
- The conveyancing lawyers carry out due diligence on the property, handle the transmission of ownership with the HDB or SLA, check for encumbrances, outstanding mortgages, and tax obligations, prepare the Option to Purchase and Sale and Purchase Agreement, and represent you at completion.
Why You Need a Grant of Probate Before Selling Property in Singapore
When someone passes away owning property in Singapore and mentions you in their will as a beneficiary, you cannot simply sell or transfer this property. You need a court order called a Grant of Probate allowing ownership of the property to be transferred to you.
Generally, only the executor or the executors of the estate appointed by the will can sell the property. The executors need to apply to the court for a Grant of Probate and can proceed with selling or transferring the property to beneficiaries once the Grant of Probate is received.
Grant of Probate vs. Letters of Administration: What Is the Difference?
Depending on whether the deceased left a will, you will need either a Grant of Probate or Letters of Administration. While the issuance of both of these documents is covered by the Probate and Administration Act 1934, these are distinct legal authorisations with their own legal paths.
If There Is a Will: Grant of Probate
If there is a will, it typically appoints someone as an executor who is responsible for obtaining the Grant of Probate and distributing the estate. After obtaining the certificate of death, the executor applies to the court for the Grant of Probate, which opens the path to selling or transferring the ownership of the property.
If There Is No Will: Letters of Administration
If the deceased left no will, the administrator of the estate, who is usually the next of kin, applies to the court for Letters of Administration. The court reviews the application and issues Letters of Administration, which authorise distribution of the estate based on the norms of the Intestate Succession Act.
HDB Property After Probate: What Happens to the Flat?
For an HDB flat, what happens after probate depends not only on the Grant of Probate or Letters of Administration, but also on HDB rules. For example, if the flat is still under the Minimum Occupation Period (MOP), an eligible beneficiary can take over the flat and live in it but generally cannot sell it or rent out the whole flat until the MOP is met.
In another scenario, you might lose the right to keep an inherited HDB flat if you already own another property or if you do not meet citizenship or ethnic quota requirements. In these cases, ineligible beneficiaries need to sell the HDB flat within a set period on the open market, typically within 6 months. If the sale does not occur within this period, HDB may compulsorily acquire the flat.
Selling the Property vs. Transferring to a Beneficiary
Usually, beneficiaries of inherited property have two options when they inherit property after obtaining the Grant of Probate or Letters of Administration. They can either sell the property, subject to eligibility, for example, for an HDB flat, or transfer the ownership.
When there is only one beneficiary, the property is usually transferred directly to them. When there are several beneficiaries, and the property is sold, they generally distribute the proceeds according to the will, or according to the Intestate Succession Act when there is no will. Another path is when one of the beneficiaries decides to buy out the shares of other heirs and keep the property.
The choice between selling the property vs transferring to a beneficiary often comes down to whether beneficiaries want cash or wish to retain the property, and whether the estate needs funds to settle outstanding debts. In case of any disagreements between beneficiaries, they may require mediation or to have the court review their claims.
HDB Conveyancing After Probate or Letters of Administration: Step-by-Step
Generally, you can sell inherited property in Singapore after obtaining the Grant of Probate or Letters of Administration. Once either of these is obtained, depending on whether there is a will, the executor or an administrator may sell it, provided all beneficiaries agree.
Step 1: Check Compliance with HDB Rules
In case of selling an inherited HDB flat, the first step is to check compliance with HDB rules, such as Minimum Occupation Period and HDB eligibility. You may check your eligibility by registering an Intent to Sell on the HDB website.
Step 2: Apply for HDB Flat Transmission
After you have the Grant of Probate or Letters of Administration, you must apply for transmission of the flat. You can do it either by appointing a conveyancing lawyer or requesting HDB to act for you, subject to availability. If HDB is unable to do so, you will need to appoint your own lawyer. In either case, conveyancing and registration fees would apply.
Step 3: List the Flat for Sale or Confirm the Beneficiary for Transfer
After registering the legal right of an Executor or an Administrator to proceed with the transmission of the flat with HDB, they can list the flat for sale on the open market. Alternatively, if the beneficiary is retaining the flat, the executor may proceed with transferring ownership.
You are free to list the flat on the HDB flat portal for resale flats or any other property websites in Singapore, for example, PropertyGuru or 99.com. While you can engage a property agent to assist with selling, you can also sell the flat on your own.
Step 4: Exercise the Option to Purchase
If beneficiaries agree to the sale and a prospective buyer makes an offer, the executor needs to print out a copy of the HDB-prescribed Option to Purchase (OPT).
When preparing the OPT, the seller fills in the information required in the form, which includes:
- the names, identification numbers, and contact information of the seller and the buyer,
- property details, including its address and size,
- purchase price,
- option period,
- option fees,
- responsibilities of the parties.
Step 5: Submit the Resale Application
After the seller and the buyer sign the Option to Purchase, they need to submit the resale application to the HDB. The resale application must be filed within the agreed period as indicated in the Option to Purchase. Both the seller and the buyer must submit their respective portions of the resale application.
Step 6: Payment of Fees and HDB Application Approval
After the parties submit the resale application, the HDB acknowledges receipt and advises on the completion date, which is usually around 8 weeks from the date of acceptance. In turn, the executor needs to pay the outstanding property tax as well as service & conservancy fees to the Inland Revenue Authority of Singapore (IRAS) and the relevant Town Council office. Following the payment of the fees, the HDB approves the resale application and confirms the completion date.
Step 7: Attending the Completion
At the last stage, the seller and the buyer meet at the HDB Hub to finalise the conveyancing transaction. If you engaged a conveyancing lawyer in Singapore, they can attend the completion at HDB on your behalf, allowing you to complete the process without the need for you to be personally present.
Private Property Conveyancing After Probate or Letters of Administration: What the Process Looks Like
Unlike the conveyancing process for HDB flats, selling inherited private property in Singapore is generally simpler as it does not require compliance with HDB eligibility requirements and rules.
Once you obtain the Grant of Probate if there is a will, or Letters of Administration if there is no will, you can proceed through the following steps:
- Decide Whether to Sell or Transfer the Property: At the first stage, the executor coordinates with the beneficiaries on whether the property should be sold on the open market or transferred directly to the beneficiaries.
- Transmit Legal Ownership through the SLA: After the beneficiaries decide whether to transfer or sell the property, the executor needs to lodge the Grant with the Singapore Land Authority (SLA) to transfer legal title. If the property is going to a beneficiary, this is done through an Assent. If the property is sold, the executor will be registered as the party with legal authority to proceed with the sale.
- Engage a Conveyancing Lawyer: Before listing the property, the executor needs to engage a conveyancing lawyer in Singapore to conduct due diligence, checking the title at SLA for encumbrances, outstanding mortgages, caveats, or outstanding tax obligations. If the deceased used CPF or had a bank loan for the property, the lawyer also coordinates the repayment of any outstanding CPF-funded mortgage and loan redemption with the CPF Board and bank.
- Check for Restrictions for Landed Property: If the heir to landed private property in Singapore is a foreigner, they need approval from the SLA to retain it under the Residential Property Act. If the approval is not granted, the property must be sold within the prescribed period.
- List the Property for Sale: After handling all the formalities, the executor can list the property for sale on property websites in Singapore and negotiate with potential buyers.
- Exercise the Option to Purchase: Once a potential buyer makes an offer and the seller accepts it, the seller needs to grant and sign an Option to Purchase, setting the conditions for the sale.
- Sign the Sale and Purchase Agreement: After the buyer signs the Option to Purchase, the seller needs to arrange for the Sale and Purchase Agreement. Depending on the arrangement, signing is usually conducted at the conveyancing lawyer’s office or the buyer’s bank.
How Long Does the Entire Process Take from Probate through Completion?
The entire process from probate to completion can vary depending on whether you inherited an HDB flat in Singapore or private property, whether there are unpaid mortgages on the property and other obligations of the deceased, whether all beneficiaries agree to a sale, and other circumstances.
Generally, obtaining a Grant of Probate or Letters of Administration can take from 3 to 6 months in uncontested cases, depending on the circumstances. In turn, if there are no special factors which require additional steps, the conveyancing procedure for an HDB flat can take around 4 months to complete from the moment you are granted probate. For private properties, the conveyancing process can be even faster, completing in approximately 2 to 3 months.
Get Help with Selling or Transferring Inherited Property in Singapore
Whether you sell property after Grant of Probate in Singapore or have it transferred, engaging conveyancing lawyers is usually a required step. Even when you inherit an HDB flat in Singapore, you need to either apply for HDB legal counsel or appoint your own lawyer if your application is declined.
When you work with a conveyancing lawyer in Singapore, they will handle the transmission of legal ownership, conduct due diligence on the property title, prepare the Option to Purchase and Sale and Purchase Agreement, and represent you during completion. If you need more information and seek practical assistance with the sale and transfer of inherited property to a beneficiary in Singapore, please contact IRB Law conveyancing lawyers for an initial consultation.
FAQs
Is there a time limit for selling an inherited HDB flat or private property in Singapore?
Generally, the executor or administrator must sell the property in Singapore within 6 years after the death of the previous owner. If the sale happens later than this, it will generally require a separate court order. For an HDB flat, if a beneficiary is not eligible to retain it, they must sell it within 6 months of the transfer of ownership, and if they fail, HDB may compulsorily acquire the flat.
Is it possible to sell the HDB flat if the will transfers it to beneficiaries as tenants-in-common?
Yes, but if the will specifies that the flat should pass to beneficiaries as tenants-in-common and they decide to sell instead, this deviates from the will. In this case, the executor would need to arrange for a Deed of Family Arrangement with the lawyer to record the family agreement before notifying HDB and proceeding with the sale.
How to sell property in Singapore with multiple beneficiaries?
If several beneficiaries inherit the same property in Singapore, they can either sell it and distribute the proceeds according to the will or the provisions of the Intestate Succession Act, or have one beneficiary retain the property and buy out the others’ shares. If beneficiaries disagree on which path to take, they may require mediation or a court application.
Can I sell an inherited property in Singapore before obtaining a Grant of Probate or Letters of Administration?
No, you can only proceed with the sale or transfer of the inherited property in Singapore after obtaining the Grant of Probate or Letters of Administration. Until that moment, the property remains registered in the deceased’s name.
Who handles selling inherited property in Singapore?
After the Grant of Probate, the executor named in the will handles the sale, makes applications to HDB, hires a conveyancing lawyer and interacts with the buyers. If the deceased left no will and the court issued Letters of Administration, selling the inherited property in Singapore is handled by the court-appointed administrator.
Do I need a Grant of Probate or Letters of Administration for an HDB flat?
In most cases where the HDB flat forms part of the deceased’s estate, for example, where the flat was held in the deceased’s sole name or as tenants in common, you need a Grant of Probate or Letters of Administration before you can sell or transfer it. However, if the flat was held as joint tenants, the deceased’s share passes automatically to the surviving joint owner(s) by right of survivorship, and no Grant is required for the flat itself. You should check the ownership type and HDB’s requirements to confirm whether a Grant is needed in your specific situation.
Who is eligible to take over an HDB flat?
Beneficiaries inheriting an HDB flat and willing to keep it should be Singapore Citizens or Singapore Permanent Residents and be at least 21 years old. Notably, a beneficiary who is a single applicant wishing to retain the flat alone generally needs to be at least 35 years of age. Beneficiaries must also meet other eligibility conditions prevailing at the time of the application. If beneficiaries do not meet eligibility conditions, they can still receive proceeds from the sale of the flat.
