The distribution of your sale proceeds follows a specific order of priority that depends on when you purchased your property and the type of loan you have.
Private properties bought or refinanced on or after 1 September 2002 and HDB flats
Your selling price will be used to pay in this order:
If your selling price (including the option monies) cannot cover the housing loan and required CPF refund, you will only need to refund the remaining proceeds after paying your outstanding loan. However, you will still need to refund any option monies (e.g. option fee and option exercise fee) received from your buyer in cash to complete the transaction.
Private properties bought before 1 September 2002 and not refinanced after that date
Your selling price will be used to pay in this order:
- CPF principal amount withdrawn (up to 80% of the lower of the purchase price or valuation price of the property at the time of purchase) plus the CPF savings used for the legal and stamp fees
- On equal ranking:
- Remaining 20% of the CPF principal amount withdrawn
- Bank's outstanding housing loan and interest
- Any CPF principal amount withdrawn beyond the lower of the purchase price or valuation price of the property at the time of purchase and the accrued interest
If the sale proceeds (including the option monies) cannot cover both the required CPF refund and the outstanding housing loan, the proceeds will be distributed according to an agreement between you, your bank and the Board. However, any option monies (e.g. option fee and option exercise fee) received from your buyer in cash must be refunded to your co-owner's and your CPF accounts before completing the transaction.
