https://www.latestprojectlaunch.com...l-tactic-it-may-cost-you-your-entire-hdb-flat
10/21/2022
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Flat owners must obtain HDB’s approval before their new tenants may move into the flat - photo: Getty Images
In June 2022, the
Council for Estate Agencies (
CEA) highlighted a case study where a HDB owner got a real estate agent in 2019 to help him rent out his entire 5-room HDB flat. This may seem like a normal rental scenario except that at that time, the HDB flat was still within the 5-year Minimum Occupation Period (MOP) as the owner had only taken possession of the Flat around August 2018.
A tenant saw the listing for the rental of the flat and was assured that his wife and children could stay and use the entire flat. At signing, the tenant was shown a Room Rental Tenancy Agreement (the “Tenancy Agreement”) stating that the landlord was to let out 2 bedrooms in the flat to the tenant. The tenant was concerned with signing an agreement for room rental as they wanted to rent the entire flat and not 2 bedrooms but was assured again that the tenant & family is indeed renting the entire flat.
The tenant and his family (occupiers) moved into the flat after their respective work and immigration passes were approved but the landlord did not live with the tenant and the occupiers in the flat.
Sometime in September 2019, HDB
sent an advisory letter to the landlord reminding him that it was a breach of HDB’s terms and conditions if he did not live in the flat or let out the flat without HDB’s written approval. Towards the end of September 2019, HDB officers conducted an inspection of the flat and found the tenant and the occupiers living in it.
During investigations, HDB established that the landlord did not live in the flat with the tenant and that the tenant had rented the whole flat from the landlord. The landlord eventually informed the tenant to vacate the flat in October 2019 due to ongoing HDB investigations. The tenant and his family were put to great inconvenience and expense as they had to search for a new rental property within a very short period of time and incurred costs to engage movers to move all their belongings to their new rental property.
The agent was suspended with a fine and the (landlord) owner's 5-room flat was compulsorily acquired by HDB eventually.