Effective Date: 1 February 2016
PRACTICE CIRCULAR (PC) 02-16: BANKRUPT’S APPLICATION TO PURCHASE HDB FLAT – INTRODUCTION OF PRICE CRITERION IN ADDITION TO FLAT TYPE
We refer to the Practice Circular (PC) No. 1 of 2016 issued by the Official Assignee (OA) on the introduction of an addition criterion for the purchase of HDB flat which requires the OA’s consent. A copy of the PC is enclosed below.
To ensure that bankrupts live within their means and have sufficient disposable income to repay their creditors, the Insolvency Office will be introducing an additional price criterion which requires the OA’s consent to be sought for purchases of all HDB flats (regardless of size) with a net purchase price of $500,000 and above, after taking into account any HDB subsidies or levy.
With effect from 1 February 2016, bankrupts must seek the OA’s approval before purchasing a HDB flat that (a) is bigger than a 5-room flat or a 3 Gen-flat, or (b) has a net purchase price of $500,000 and above.
Please disseminate the above information to your salespersons. If you or your salespersons require further clarification, please contact the Insolvency Office’s hotline at 1800-CALL-LAW (1800 2255 529).