How To Extend Your HDB’s MOP If You Are Going Overseas

Hi everyone!

I haven’t written in the long time, and that’s because I’ve been having lots of fun adventures in New Zealand. We did so much during the past 5 months here, and have been incredibly thankful for the opportunity. In the short time we were here, we’ve:

• Built our own 1973 retro caravan (the Doggy caravan!) and we can’t wait to share more about it in a future post
• Changed 3 cars – We had a Toyota Alphard, and Audi A3, and now more recently, a Toyota Vanguard
• Climbed many mountains (Roys peak, Mount Fyffe, etc)
• Joined local clubs for pottery and a Rock and Mineral club (where we collect rocks and turn them into necklaces)
• Made lots of new friends
• Wwoof at a dog farm and a charitable horse trust
• Camped in the freezing cold during winter

and soo much more. I can’t wait to have the time to share more about my experiences, but I’ll leave these for another day.

I got a text recently from one of our readers enquiring about how to extend your resale / BTO flat’s MOP if you were to decide to do a working holiday. There is virtually nothing about it online, so I thought I churn out a quick article today so that this helps them, and those who need it in the process.

What is a Minimum Occupancy Period? (MOP)

A Minimum Occupancy Period (MOP) is a requirement in some housing markets, typically for government-subsidised housing. It stipulates that homeowners must physically reside in their property for a minimum of 5 years before they can sell it or rent it out entirely.

Can you live overseas while your HDB is on an MOP?

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If you have recently purchased a resale flat or received the keys to a BTO, it doesn’t mean you won’t be able to go on a working holiday just because you’ve got a new home!

You are required to get conditional approval from HDB if you were to move overseas when you are supposed to fulfill the minimum occupancy period of your flat. Here’s how I did it for my resale flat as my partner and I moved to New Zealand for a year:

1. Writing an email appeal to HDB

I emailed HDB requesting an extension for MOP. I did so by sending in an email request via the HDB Portal:

2. Documentation required

1. Documents on overseas attachment for you and your husband. The documents should state the start and end date of the attachment period.
2. Documents on the flights, e.g. departure from Singapore and arrival to Singapore flight tickets;
3. Visa documents to show the period of your stay in New Zealand for you and your husband.

1. The period of renting out of the flat (within MOP) will not be included in the computation of the 5-year MOP, i.e. both of you must fulfil it upon return to occupy the flat;
2. As all owner(s) are overseas, they must appoint an Attorney to manage the flat during the renting out period. You may approach private solicitors on the Power of Attorney. We require this before you may successfully submit your application to rent out if the appeal is successful;
3. The maximum amount of time we can grant for renting out a flat within MOP is 2 years. Upon expiry of the renting out of the flat period, any subsequent request would be considered on a case-to-case basis as renting out is a temporary arrangement;
4. Flat owners must fulfill the 5-year MOP before renting out the whole flat, selling the flat on the open market, or investing in a private property. Hence, they are to manage the necessary matters to resume occupation in the flat after the expiry of the renting out period.

3. Get an In-principal approval

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Once you’ve sent the documentation above, you should be able to get an in-principal approval from HDB to rent out your flat. Once you get the approval, you may then kickstart the process of finding a potential tenant and doing up the Power of Attorney.

4. Power of Attorney

As you will not be in Singapore during the renting out of flat period, you are required to appoint a person (known as an ‘Attorney’) to manage the flat in your absence.

You will. have to engage a lawyer to prepare the Power of Attorney document, using HDB’s prescribed standard format. This Power of Attorney document is to be submitted to HDB at the point of the application.

How did we find a lawyer to do our Power of Attorney

We had a close friend who was a divorce lawyer (haha), who also did the power of attorney. We reached out to him to help us with this process. However, if you do not have a contact to a lawyer, it may be worth searching up a list of lawyers in Singapore and giving them a call to check if they do the Power of Attorney. Not all lawyers are familiar with the process, and it is best to get one that has gone through the process before, to ensure that everything is submitted in the correct format.

Do also note that there is a huge difference between the Power of Attorney and Lasting Power of Attorney, so make sure that you give context to the lawyer you are speaking to to ensure that you get the right documentation.

How much does a POA cost?

Our POA documentation costs about ~S$450. This price may vary depending on the lawyer that you engaged.

What is HDB’s prescribed standard format for the Power of Attorney?

This was something that confused us and we’ve searched the internet for ‘HDB’s prescribed standard format’ to no avail. After numerous calls to HDB, we found out that they do not have a ‘standard format’ to provide us with, and this should be done on the lawyer’s end. Our lawyer had done a POA before for a previous client, and was able to use that template for ours. Hence, its important to check with your lawyer to ensure that he/she is confident in providing the right documentation prior to engaging him/her.

5. Apply for Written Approval: Online Application

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Here is a summary of how to submit the online application:

1. Find suitable tenants for your flat
2. Once the rental agreement is agreed upon, you will need to submit an online application via the HDB portal: www.hdb.gov.sg/rentingout
3. The formal approval must be obtained before you rent out the flat. Otherwise, the renting out would be deemed as unauthorised.

More information on the HDB rules on renting out your flat can be found in the HDB InfoWEB (www.hdb.gov.sg/rentingout-regulations). Please be familiar with the rules before you proceed to look for tenants.

HDB flats are meant for owner-occupation. Hence, you will need to resume occupation of the flat when the approval for the renting out of flat expires.

Step 1: Please login to www.hdb.gov.sg/rentingout via Singpass.
Step 2: Select “Purchased Flat” > “Renting Out” > “Renting Out of Whole Flat”.
Step 3: Select “Application to Rent Out the Flat (with special approval)”.
Step 4: Complete the online application.
Step 5: Make a payment of $20 administrative fee.

Renting out your flat in Singapore while it’s on MOP

While the Minimum Occupancy Period (MOP) is a significant consideration for HDB flat owners, it does not necessarily preclude opportunities for overseas experiences. By understanding the necessary steps and adhering to HDB’s guidelines, it is possible to obtain conditional approval for renting out your flat during your absence.

Do note that HDB evaluates each request on a case-by-case basis, and what has worked for us may not necessarily work for another couple, so do take this article with a pinch of salt. Good luck!