Under HDB regulations, a **Temporary Extension of Stay** allows the seller to remain in the flat for **up to 3 months** after legal completion. However, because it is a **private arrangement subject to your agreement**, the seller cannot impose it unilaterally if you did not agree to it in writing.
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### 1. Key Rules Governing the Extension of Stay
* **Mutual Consent & Timing:** The extension request must be formally submitted **together with the joint HDB resale application**. Both buyer and seller must endorse it on the HDB Flat Portal, and a non-refundable **S$20 administrative fee** applies (paid by the buyer).
* **Hard Cap of 3 Months:** The maximum permitted period is strictly 3 months from the legal completion date. HDB does not grant extensions beyond this window.
* **Seller Eligibility:** The seller must have already committed to a completed replacement home in Singapore (e.g., exercised an OTP for a resale flat/condo or collected keys).
* **MOP Delay for Buyers:** Your **5-year Minimum Occupation Period (MOP)** only begins counting from the day the extension ends and you officially take physical possession.
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### 2. Financial & Legal Implications for You as Direct Buyers
From the day of legal completion, **you become the legal owners** responsible for all outgoings:
1. **Mortgage & Carrying Costs:** Your bank/HDB loan repayments commence immediately.
2. **Property Tax (Non-Owner-Occupier Rate):** IRAS assesses property tax at the **non-owner-occupier rate (12% and above)** during the extension months instead of the subsidised owner-occupier tier (0%–4%), because you do not yet physically reside there.
3. **Town Council S&CC & Utilities:** Service & Conservancy Charges (S&CC) run under your name without rebates. SP utilities should remain in the seller's name until final handover.
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### 3. Recommended Terms for Your Private Agreement
If you agree to grant the extension, execute a signed **Private Agreement for Temporary Extension of Stay** covering:
* **Cash Compensation:** Negotiate a monthly sum covering your monthly mortgage interest, S&CC, and the IRAS property tax difference.
* **Security Deposit:** Hold a cash deposit (typically **S$2,000 to S$5,000**) to cover potential damage to fittings, outstanding utility bills, or late move-out charges.
* **Pre-Completion & Final Inspection:** Conduct a joint inspection prior to legal completion to photograph the baseline condition, followed by a final inspection on the exact move-out date before releasing the deposit.
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1. Did the seller include the extension clause inside the Option to Purchase (OTP) terms, or did they only bring it up after you exercised?
2. Have you already submitted the joint resale application on the HDB Flat Portal, and are your own renovation or move-in timelines affected?
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, England, United Kingdom); BBA (South Australia)
CEA Reg No: R021244C | Singapore Line:
(+65) 88899918
Email: onassis@sgagent.com
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