Request to act as solicitor for flat resale was declined due to complexity of the sale: HDB

“My client was happy with the sale price, but the phrasing of HDB’s e-mail could affect our work and how we advise our clients. In another situation, it could have caused the client to think that they had been ill-advised on the sale price as the asking price was too low,” said Wong.

She and her client did not appeal to HDB as the buyer had needed the unit urgently. So they engaged a private lawyer to facilitate the sale after her client was given a week to submit a lawyer’s letter to HDB.

In its response to ST, HDB said that the sale Wong had brokered involved a flat that was being sold by the executors of an estate with multiple beneficiaries.

The board said: “One of the executors is also among the beneficiaries. As the interests of the beneficiaries may differ, and considering that the asking price is lower than a recent comparable resale transaction, HDB assessed that it was not in a position to ensure that the transaction is conducted properly and that any potential conflict of interest is addressed.”

It advised the sellers to engage a private lawyer, “who would be better positioned to ensure that all beneficiaries are properly advised and that their interests are protected, thereby minimising the risk of disputes arising from the transaction”.

HDB also acknowledged that its response to the flat’s sellers “could have explained the basis for our decision more clearly”, and that it has since reached out to the sellers to clarify and provide a fuller explanation.

Wong’s Facebook post, which had sparked discussion online on whether HDB had taken issue with a resale price that was lower than recent transactions, was taken down by Oct 5.

In resale transactions, solicitors are required to carry out the conveyancing for the legal transfer of ownership of the flat from the seller to the buyer, and sellers generally can appoint either the HDB or a private lawyer to handle the legal work for the sale.

Such work includes preparing the necessary legal documents, verifying that the property title is in order, and ensuring that the seller receives the sale proceeds upon completion.

HDB said it considers various factors, including the complexity of the transaction, when assessing requests to act for flat sellers.

“For ordinary resale transactions, where flat owners are selling their flat in their own right, HDB will generally act for the sellers, regardless of the agreed resale price,” said the board.

“However, a case-by-case approach will be taken if a transaction involves greater complexity and where HDB may not be in a position to ensure that the transaction is conducted in the best interests of all parties,” it added.

Such complex cases, HDB said, could include sales arising from a divorce court order where HDB is unable to ensure compliance with the court’s terms or there may be disagreement between the parties.

It said cases where a seller lacks the mental capacity to sell the flat, or where conditions in a will affect the sale of the flat, can also be considered complex.