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Morning,

With your enquiries, I'm sure your agent didn;t explain the whole process of purchase and sales to you.
With HDB purchase, the maximum Option plus Exercise fee (also known as deposit) is $5k. This portion make up part of the COV, or selling price, if you are selling below valuation. Your buyer will pay HDB the balance of the purchase price, which includes your COV component. HDB will then deduct your outstanding loan, CPF used plus accrued interest, upgrading cost, etc. The balance, if it's a positive sales, will be presented to you, upon completion of the transaction, in a cheque.

Hope my explanation will help you clear your doubts.

Regards
Mike Lim
 96929209 
ERA Read More

Dear Aina,

COV meaning cash over valuation. It does not translate to the amount that owner will receive in cash form.

If you are selling, I am pretty sure that financial planning wasn't well presented to you or you have not understood enough if it was presented to you.

The final amount of money that you will receive for your sale will be up to $5k (deposit) when buyer exercises the option to purchase and balance will be the (Final selling price - deposit by buyer - outstanding property loan - Total CPF utilised with interest - any upgrading fees - any resale levy) if it is a positive sales. Otherwise, you may need to top up the balance should it turn out to be a negative sale.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565 
Email: lim.geryl@yahoo.com.sg Read More