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Hi Leon,

Contra in HDB deal is to facilitate the seller of him selling his flat and at the same time buying another flat with a seamless flow of CPF money from the sales proceed to the purchase of the next flat. The only condition is that this seller must be servicing his current flat with a HDB loan and that he intends to service his next flat also using HDB loan. Only 1 party in the transaction can do contra.

If I could assist you in your flat purchase, pls contact me 9876 5130  , thanks.

TC Tan
Senior Associate Director
DWG
 9876 5130 
dennisweeagent@yahoo.com.sg Read More

Hi Leon,
HDB Contra Facility assists a HDB owner who upgrades or will fully paid off his next flat, to transfer his CPF monies used for existing flat to pay for the next flat. Positive Proceeds if any, can also be used to pay for the next flat, partial or in full. The CPF will be fully utilised but not the cash proceeds.
All 3 flats will be completed on the same day in a contra deal meaning agents have also to coordinate for the contra party to have a smooth transaction.

If the seller not eligible to contra, he can also opt to do a bridging loan with a bank.

Though you are not the contra party, agents have to make known to all parties involved (all sellers & buyers) that 1 party will be doing CONTRA.
Risk of Contra: if either of the parties pull out from the deal or unable to complete the transaction, the whole deal involving 3 houses, 3 families will not go through.

Hope this info could be useful to you.

Cheers.

Ken Khoo S.T.
ERA TEAM DIRECTOR
SALES & RENTAL (HDB / COMMERCIAL / PRIVATE PROPERTIES)
ERA REALTY NETWORK PTE LTD
(Listed Housing Agency AD041-3002382K)

Mobile : (65) 9009 2003 
Fax : (65) 68877 6210
Website : www.property88.myweb.sg
Forum : www.myhouseforum.com Read More

Hi Leon,
HDB Contra Facility assists a HDB owner who upgrades or will fully paid off his next flat, to transfer his CPF monies used for existing flat to pay for the next flat. Positive Proceeds if any, can also be used to pay for the next flat, partial or in full. The CPF will be fully utilised but not the cash proceeds.
All 3 flats will be completed on the same day in a contra deal meaning agents have also to coordinate for the contra party to have a smooth transaction.

If the seller not eligible to contra, he can also opt to do a bridging loan with a bank.

Though you are not the contra party, agents have to make known to all parties involved (all sellers & buyers) that 1 party will be doing CONTRA.
Risk of Contra: if either of the parties pull out from the deal or unable to complete the transaction, the whole deal involving 3 houses, 3 families will not go through.

Hope this info could be useful to you.

Cheers.

Ken Khoo S.T.
ERA TEAM DIRECTOR
SALES & RENTAL (HDB / COMMERCIAL / PRIVATE PROPERTIES)
ERA REALTY NETWORK PTE LTD
(Listed Housing Agency AD041-3002382K)

Mobile : (65) 9009 2003 
Fax : (65) 68877 6210
Website : www.property88.myweb.sg
Forum : www.myhouseforum.com Read More

In the context of buying an HDB resale flat in Singapore, a contra deal refers to a situation where:

* **The seller of your desired flat is also buying another HDB flat at the same time.** They are selling their current flat (Flat A) to you and using the proceeds to purchase another flat (Flat B).

* **There's a coordinated transfer of funds using your CPF monies for both transactions.** This streamlines the process by utilizing your CPF funds for the purchase of your flat (Flat A) while simultaneously directing the seller's CPF funds towards their new flat (Flat B).

Here are some key implications of a contra deal for you as the buyer:

**Potential Benefits:**

* **Faster Transaction:** Contra deals can sometimes be processed quicker compared to regular transactions due to the coordinated CPF transfer.

**Potential Challenges:**

* **More Complex Process:** A contra deal involves more parties and requires careful coordination between all agents, lawyers, and HDB. This can potentially lead to delays if there are complications with either the seller's or your own purchase.

* **Conditional Offer:** Your offer to purchase the flat might be subject to the successful sale of the seller's new flat (Flat B). This can introduce some uncertainty until both transactions are confirmed.

* **Limited Options:** The availability of suitable contra deals might be lower compared to regular resale transactions. You might have fewer flats to choose from if you're specifically looking for a contra deal.

**Here are some additional points to consider:**

* **Transparency from Agent:** Ensure your property agent clearly explains the contra deal process and potential implications.
* **Independent Legal Advice:** Consider consulting a lawyer specializing in HDB transactions to ensure you understand the legal aspects of the contra deal and protect your interests.

**Ultimately, the decision of whether to proceed with a contra deal depends on your individual circumstances and risk tolerance.** Weigh the potential benefits (faster processing) against the potential drawbacks (complexity, conditional offer) before making a decision.

Here are some additional questions you can ask your agent to gain a better understanding of the specific contra deal:

* **Reason for Contra Deal:** Why is the seller opting for a contra deal?
* **Timeline for Seller's New Flat Purchase:** How far along is the process for the seller's purchase of their new flat (Flat B)?
* **Contingency Plans:** What are the contingency plans in case there are delays or issues with the seller's purchase of their new flat?

By being informed and asking the right questions, you can navigate a contra deal for your HDB resale purchase with greater confidence.
My Answer with regards to your Question:

Allow me Assist Further Read More

A contra deal means the seller is swapping their current flat for another one instead of a straightforward sale. Basically, they’re buying a new flat (usually resale or BTO) and selling their existing flat at about the same time, effectively exchanging properties.

Implications to know:

Timing is key — both transactions need to line up to avoid issues.

It might affect your move-in dates and financing plans.

Usually done to upgrade or relocate with less hassle.

If you want help navigating a contra deal or understanding its details, feel free to message me anytime.

Aren Goh | 96576701  Read More