Asked by Anonymous
Hi all, thank you for reading. I have clarifications which requires help to address.
I have just settled my divorce case and the judgement states my ex spouse is selling to me his title, shares and interests at $A through part share resale. There is an outstanding loan of $B for the house.
I understand from HDB that the amount $A = the amount stated in Option to Purchase and have did so and submitted in all the way to Resale document. My ex spouse is not willing to sign on it.
I understand from MSF website that the $A includes the 50% of the outstanding loan. However, my ex spouse refused to sign and insisted that the loan should be fully taken over by me.
Extracted from:
https://familyassist.msf.gov.sg/content/impact-of-divorce/impact-of-divorce-on-housing/public-housing-options/retaining-your-current-flat/buying-your-spouses-share-of-the-flat/
Did a case hearing with Principal District Judge Phang Hsiao Chung and he is agreeable that I should be taking over all the outstanding loan. However, the amount stated in the court order is $A (includes loan based on MSF website) which i also indicated in HDB Option to Purchase which was signed by my ex spouse as well. He refused to sign on the Resale document to proceed with the sale to me.
Judge is not changing the court order to add in Registrar Empowerment Clause for me to proceed with the buying of house.
As i understand Part share resale Buyer and Seller scheme are different, can someone shed some lights to me why Part share resale outstanding loan has to be borne by me despite clearly stated in the court order?
I have just settled my divorce case and the judgement states my ex spouse is selling to me his title, shares and interests at $A through part share resale. There is an outstanding loan of $B for the house.
I understand from HDB that the amount $A = the amount stated in Option to Purchase and have did so and submitted in all the way to Resale document. My ex spouse is not willing to sign on it.
I understand from MSF website that the $A includes the 50% of the outstanding loan. However, my ex spouse refused to sign and insisted that the loan should be fully taken over by me.
Extracted from:
https://familyassist.msf.gov.sg/content/impact-of-divorce/impact-of-divorce-on-housing/public-housing-options/retaining-your-current-flat/buying-your-spouses-share-of-the-flat/
Did a case hearing with Principal District Judge Phang Hsiao Chung and he is agreeable that I should be taking over all the outstanding loan. However, the amount stated in the court order is $A (includes loan based on MSF website) which i also indicated in HDB Option to Purchase which was signed by my ex spouse as well. He refused to sign on the Resale document to proceed with the sale to me.
Judge is not changing the court order to add in Registrar Empowerment Clause for me to proceed with the buying of house.
As i understand Part share resale Buyer and Seller scheme are different, can someone shed some lights to me why Part share resale outstanding loan has to be borne by me despite clearly stated in the court order?
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Extracted from HDB:
In the event that your Divorce Order of Court grants you 50% of the flat, the agreed selling price in the Option To Purchase (OTP) will be for just for the 50% of the flat that you are buying over from your ex-spouse. If your ex-spouse agrees to sell his/her share to you at $A, it is advisable for both parties to document this decision and the agreed price in the Divorce Order Of Court to avoid disputes at the point of sale in the future.
3 The resale part-share buyer (you) will be responsible for 50% of the outstanding housing loan, on top of that, you are also buying 50% of the flat (at the price as agreed with your ex-spouse).
4 Assuming that your ex-spouse agrees to sell his/her share of the flat to you at $A, the Loan-To-Value (LTV) cap of 75% will be $A*75%. You will have to be prepared to pay 25% downpayment as well as the buyer stamp duty and legal fee using your own CPF Ordinary Account (OA) savings or cash savings.
5 If there is an outstanding bank loan of $B on the flat, you will have to ensure your approved loan amount can cover half of this outstanding loan (i.e. $B/2 = $B/2) as well as 75% of the resale flat selling price $A*75%
6 The outgoing party (your ex-spouse) will be required to use the agreed selling price for his/her 50% the flat (i.e. $A) to first discharge his/her 50% share of the outstanding loan ($A*75%) and also to refund his/her CPF withdrawn with accrued interest. The balance ($A - $B/2 - his/her CPF monies paid to the flat) will be his/her cash proceeds. Please note that you are not selling your share of the flat, there will not be any CPF refund or cash proceeds for you.
7 As the sale of your flat is persuant to a Divorce Order of Court, there could be situations that the divorce solicitor states a different outcome in a Divorce Final Judgement or Divorce Order of Court. For example, the divorce solicitor could state in the divorce documents that the matrimonial flat is to be transferred to you (not by way of sale) and also order you to pay a cash amount to your ex-spouse. You may wish to consult your divorce solicitor to understand the clauses he/she will be stating in your documents and the implications.