When drafting court orders involving HDB properties, being precise and thorough is no longer optional —it is essential.
Recent developments and interactions with clients suggest that the Housing & Development Board (HDB) has become increasingly particular about how such clauses are drafted in court orders. This is especially relevant in divorce cases, where the division of a matrimonial flat is often one of the key issues for determination.
Why do Clear and Well-Drafted Clauses Matter?
It is not just about adhering to a particular legal formal – having clear and well-drafted clauses can ensure that the parties involved avoid unnecessary delays and complications later on.
A loosely drafted clause may complicate matters and create uncertainty in how clauses are interpreted and implemented by the HDB (eg. how the cash proceeds are divided after a transaction).
As such, HDB now requires court orders to explicitly address the following issues:
- What is the valuation of the HDB flat and how was it derived?
- How will the outstanding mortgage loan be dealt with – will it be borne solely by one party or jointly?
- Who is responsible for refunding parties’ CPF accounts (if any) of any CPF monies, including accrued interest, that parties have used to purchase a HDB flat?
- How will the balance sale proceeds will be divided?
This applies to all types of transactions involving HDB flats — whether they are conducted as a sale, part-share resale, transfer, or even surrender of a HDB flat.
In the past, practitioners could rely on general language, precedents and reference guides, which did not require certain details to be spelled out. For instance, in part-share transfers or surrenders, it is not mandatory to explicitly state how the outstanding mortgage loan will be dealt with or who will take over the outstanding mortgage loan, after the transaction.
However, HDB now insists that such matters be explicitly addressed in the court orders. If not, solicitors and/or parties may be required to provide clarifications, which may result in delays in the conveyancing process.
Read more: What Happens to my HDB Flat when I Divorce?
How GJC Law Helps Clients Navigate These Changes
At Gloria James-Civetta & Co, we understand how frustrating legalese and procedural delays can be, especially when clients are trying to move on with their lives after a divorce. That is why we take pride and extra care, when advising our clients and drafting court orders involving any HDB flats.
Our approach includes:
Thoughtful Listening
: We hear your concerns, tailor our advice to your circumstances and are committed to addressing any and all queries to the best of our abilities.
Thorough Drafting
: We ensure all financial matters are clearly addressed and provided for, including valuation, CPF refunds, redemption of outstanding mortgage loans, and division of any balance sales proceeds.
Up-to-Date Practices
: Our team keeps up to date with new developments and will consult the relevant agencies, including but not limited to the HDB and the CPF Board, to ensure that any orders comply with the various agencies’ latest guidelines and practices.
End-to-End Support
: If HDB requires any clarification, we step in to liaise with HDB directly, minimising stress and confusion for our clients.
Read more: What Happens to My HDB Flat if I Divorce Before MOP?
We’re here for you
When you contact our matrimonial law team, we will provide you with a consultation, tailored to your specific circumstances and goals in mind.
Our goal is to help you find a resolution that works for you.
