HDB buyers are home owners, not tenants

[reporter2]

HDB buyers are home owners, not tenants

Jul 19, 2017


We thank Mr Larry Leong for his feedback (Are HDB residents tenants or owners?; June 24).

Purchasers of HDB flats are owners of their property.

Flat owners enjoy rights to exclusive possession of the flat during the tenure of the flat lease.

They can sell, let out, and renovate their flats, within the guidelines specified in the Lease and Housing and Development Act.

The name of each HDB flat owner is reflected in the title deed, the original of which is kept with the Singapore Land Authority, as part of the central and comprehensive record for all properties in Singapore.

This confirms his or her ownership of the property.

We would like to clarify that HDB does not use the term "tenant" to refer to those who have bought a flat, as Mr Leong had mentioned.

We use the term "tenant" to refer to those who rent public rental flats from HDB.

Lim Lea Lea (Ms)

Director (Branch Operations)

Housing & Development Board

[reporter2]

Still unclear if HDB buyers are owners or lessees

Jul 20, 2017


As a layman, I am still confused by the HDB's reply that purchasers of HDB flats are owners (HDB buyers are home owners, not tenants; July 19).

I live in an HDB flat and have a duplicate lease.

The lease was executed by me and my spouse many years ago as a lessee in the presence of a lessor - an HDB representative.

My understanding is that HDB purchasers are lessees and the HDB is the lessor.

There is a distinct difference between owners and lessees.

As more than 80 per cent of residents are purchasers, can the HDB be clearer in its response?

Andrew Seow Chwee Guan

[reporter2]

HDB was describing a lease ownership

Jul 21, 2017


It is somewhat misleading to term HDB buyers "homeowners" rather than "lease owners".

The two terms mean very different things legally.

Homeowners own the land outright and never have to return it or pay rent on it. They are restricted only by the prevailing laws of the land.

Lease-owners, on the other hand, exclusively possess the flat for a specified time only, after which the flat returns to the state for free. During the time that they own the flat, they are in addition bound by the terms of the lease agreement they sign with the landlord.

HDB's director (Branch Operations) Lim Lea Lea states in her reply (HDB buyers are home owners, not tenants; July 19) that the name of each HDB flat owner is reflected in the Land Registry .The Land Titles Act imposes a requirement for a lease beyond seven years to be registered in the Land Registry.

Accordingly, the reasons given by Ms Lim as to why HDB-owners are homeowners in fact, fall into a standard description of a leasehold arrangement beyond seven years.

Calling HDB buyers homeowners works to perpetuate the misconception that they own the flat outright.

This results in serious and damaging misunderstandings.

For example, many are unaware that their flats will simply revert to the State at the end of the lease term for free and that their property value will depreciate leading up to that.

This fundamentally affects their decision-making with regard to buying or selling their flats.

This is made worse when we refer to HDB flats as "nest eggs" which will continue to appreciate.

The nature of HDB-ownership is different from standard commercial leases or tenancy agreements, and it may not be accurate to start calling HDB-owners "lessees" or "tenants".

But with the leases of some HDB flats starting to run out, the population is starting to realise the true nature of their HDB-ownership. This transition must be delicately managed - but not by continuing to perpetuate the misconception.

Cheah Wenjie