HDB stand on flat adds to woes after dad's death

[R4g3]

AS A single purchaser over the age of 35, I applied for a three-room flat under the HDB Build-To-Order Scheme. The sale and purchase agreement was signed in December 2007.

At the time of application, my father and I formed a family nucleus and qualified for the purchase. Unfortunately, my father, who was a proposed occupant of the flat, died in June this year.

Thereafter, the HDB told me I was no longer eligible for the flat because my father was an essential occupant at the time of my application. It would only refund me the 10 per cent down payment. It was silent on other payments such as stamp fee on option to purchase, stamp fee on mortgage, lawyers' fees, HDB conveyancing fee, and yearly Home Protection Scheme premiums deducted last year and this year.

I was not aware of the so-called Clause 10 of the sale agreement and none of the HDB staff highlighted it to me during the signing of the sale agreement. In addition, at the time of submitting the application, it was not indicated in the form that if either of a two-member family died before collection of keys, the application would be treated as null and void, and all payments, except the 10 per cent down payment, would be forfeited.

The cancellation of my eligibility to own the HDB flat came even as I was trying to overcome my grief over my father's death. And then the law firm wrote to me asking for payment of a penalty or cancellation fee regarding the housing loan.

Tan Lay Choo (Miss)

http://www.straitstimes.com/ST+Forum/Online+Story/STIStory_445348.html

public housing? or money sucking?

 

[angie II]

The latter

.

 

[longbow]

HDB should have made clear their contract terms. But fact is that the required parties are not available when it came time to sign paperwork. I guess if dad died after they sign the paperwork then everything will be fine.

In fact, doesn't HDB sell insurance that fully pays for the share of outstanding loan of deceased party.

Like buying a life insurance policy. If you die the day that it comes into effect money is yours but if you die day before policy kicks in you are out of luck.

 

[halsey02]

public housing? or money sucking?

It should be, sucking money out of the public, who needs housing.

Their rules & regulations, can change faster than you blink your eyes.

 

[halsey02]

HDB should have made clear their contract terms. But fact is that the required parties are not available when it came time to sign paperwork. I guess if dad died after they sign the paperwork then everything will be fine.

In fact, doesn't HDB sell insurance that fully pays for the share of outstanding loan of deceased party.

Like buying a life insurance policy. If you die the day that it comes into effect money is yours but if you die day before policy kicks in you are out of luck.

HDB should add a clause to the contract that ask, are you dying soon, if yes!, contract is null & void...