Asked by Tresa Hnin
what is the meaning of "Owner doing Contra" in buying hdb flat?
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5 Answers
Evening Tresa,
It's tough to explain clearly, but Owner doing Contra means that the owner will perform the buying of another resale flat and selling of his current flat at the same time, all to be done with one single process.
FYI.
Mike Lim
96929209
ERA Read More
It's tough to explain clearly, but Owner doing Contra means that the owner will perform the buying of another resale flat and selling of his current flat at the same time, all to be done with one single process.
FYI.
Mike Lim
96929209
ERA Read More
Hi Tresa
Thanks your question.
"Owner Doing Contra" simply means that the current owner is looking into selling his unit and buying another one and wanted both transactions to be executed at the same time.
There will be more parties involve in a contra case as compared to a normal buy and sell situation (in Buy and Sell, only 2 parties involve). However in a contra case, the seller sell his unit, and he buys another one, and the person who bought his unit, and whom he bought the unit from, (in this case 3 parties involved), and all these parties have to go through the entire process together until the keys are properly handed over.
Well, the list can go on and on whenver a Contra case is happened. =)
Regards
Ally Chin
PropnexRealty P/L
Mobile 811 222 13 Read More
Thanks your question.
"Owner Doing Contra" simply means that the current owner is looking into selling his unit and buying another one and wanted both transactions to be executed at the same time.
There will be more parties involve in a contra case as compared to a normal buy and sell situation (in Buy and Sell, only 2 parties involve). However in a contra case, the seller sell his unit, and he buys another one, and the person who bought his unit, and whom he bought the unit from, (in this case 3 parties involved), and all these parties have to go through the entire process together until the keys are properly handed over.
Well, the list can go on and on whenver a Contra case is happened. =)
Regards
Ally Chin
PropnexRealty P/L
Mobile 811 222 13 Read More
2
In the context of buying an HDB resale flat in Singapore, "Owner doing Contra" refers to a situation where:
The seller of your desired flat is also purchasing another HDB flat at the same time. They are selling their current flat (Flat A) to you and using the proceeds to buy 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's a breakdown of the 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
The seller of your desired flat is also purchasing another HDB flat at the same time. They are selling their current flat (Flat A) to you and using the proceeds to buy 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's a breakdown of the 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
2
In the context of buying an HDB resale flat in Singapore, "Owner doing Contra" refers to a situation where the seller of your desired flat is also purchasing another HDB flat at the same time. They are selling their current flat (Flat A) to you and using the proceeds to buy another flat (Flat B)². Essentially, it's a financial arrangement that allows them to transition smoothly from one property to another.
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1
“Owner doing contra” means the current HDB owner is looking to swap their flat for another one instead of selling it outright.
In this arrangement, the owner buys a new flat (usually a resale or BTO) and sells their existing flat at roughly the same time, effectively “exchanging” properties. It’s often done to upgrade, downsize, or relocate without having to move twice or face a gap between selling and buying.
If you want to explore contra deals or need advice on how they work, feel free to reach out anytime.
Aren Goh | 96576701 Read More
In this arrangement, the owner buys a new flat (usually a resale or BTO) and sells their existing flat at roughly the same time, effectively “exchanging” properties. It’s often done to upgrade, downsize, or relocate without having to move twice or face a gap between selling and buying.
If you want to explore contra deals or need advice on how they work, feel free to reach out anytime.
Aren Goh | 96576701 Read More