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What Can Happen to Your Executive Condominium (EC)?
Read on for an overview of the EC options that you can consider.
Retaining Your Executive Condominium (EC)
It is recommended for you to read the following content with a clear mind as decisions on housing arrangements bear financial implications. If you are feeling emotional at this point in time, you may wish to come back to this page later when you are in a calmer state of mind.
Children may become deeply unsettled by major life changes. If you have decided to go ahead with a divorce, it is important to make your housing plans bearing in mind the impact on your children. Careful planning is needed for the transition to be as smooth as possible for you and your children.
Eligibility
To retain your current EC, you would need to fulfil the Minimum Occupation Period (MOP), which is 5 years from the date of issue of the Temporary Occupation Period (TOP). HDB’s prior approval for a transfer of EC ownership is not needed if you have fulfilled the MOP. If you have not fulfilled the MOP for the EC, you would need to seek HDB’s approval for a transfer of EC ownership to retain the flat under the Public Scheme. Upon HDB’s approval for the change in ownership, you would also need to engage your own private solicitors to perform the legal conveyancing work.
To be eligible to retain the EC under the Public Scheme, you would need to form a family nucleus with any of the following:
- New spouse, and his/her children (if any)
- Parents, and siblings (if any)
- Children under your legal custody, care and control*
*If the care and control of your children under the age of 21 is shared with your spouse, you must obtain his/her written agreement before you can list your children in the transfer application.
You would also need to fulfil other eligibility conditions such as citizenship and do not own any private property. If you are considering to retain your current EC, you may wish to contact HDB.
While you consider retaining your current EC, it is also important to ensure that you can pay for the monthly instalments to service the housing loan for the EC. If you are unable to service your monthly instalments, it would be better for you to make alternative housing arrangements now and to find a housing option that is within your financial means to avoid having to sell your EC subsequently.
You can retain your EC either through transferring ownership of the EC, or buying your spouse’s share of the EC at an agreed price. However, you would also need to check with your financier on your loan eligibility.
You may also wish to note that in some instances, parties may be required to do a cash top-up to make the required CPF refunds.
For instance,
- The Court may order that the net sale proceeds are to be divided between the parties in a manner that is not commensurate with the percentage of CPF monies that each party used.
- The Court may order that if the Flat is sold at a loss:
- Party A’s CPF monies used (plus accrued interest) will be refunded to Party A’s CPF Account in full first.
- The remainder of the net sale proceeds shall then be refunded to Party B’s CPF Account to make the full required CPF refunds to Party B’s CPF Account.
In both instances, the amount received by the parties may be insufficient to make the required CPF refunds and one or both parties may be required to do cash top-ups to make the full required CPF refunds.
If you are considering retaining your current EC, you may also wish to read more about determining your financial capacity to service your housing loan here.
If you require further assistance on retaining your EC, you may wish to book an e-appointment with HDB (if applicable).
Pause and Reflect
Have you considered the proximity of your current EC to your children’s school and/or to their caregiver’s house?
Do you have sufficient budget to pay for the housing loan and the maintenance of the EC?
Are there any other financial arrangements that you need to make after the divorce?
This content was developed in conjunction with the Housing Development Board (HDB) and the Central Provident Fund (CPF) Board. The information on this site is for general information only and is not intended to be, and should not be relied on as a substitute for professional legal advice.
Selling Your Executive Condominium (EC)
