Do you want to learn more about the Minimum Occupation Period in Singapore? Follow this article to understand the requirements, guidelines, and benefits of MOP in Singapore.

Does resale HDB have MOP
Do all flats have the same MOP

Introduction

The HBD is strictly a public housing administration that helps people with affordable housing.

HDB flats in Singapore come with specific rules you need to follow to be eligible to own them.

There is a period you need to fulfill after you buy an HDB flat.

This period is called the Minimum Occupation Period or MOP.

The MOP necessitates that you must not sell or rent out your flat and purchase private properties elsewhere for five years after buying an HDB flat.

The five-year MOP rule is implemented to ensure flat owners live physically in the residential properties provided by the HBD for a minimum of five years and not to sell off the flat and make an instant profit.

Benefits of MOP

What is the Minimum Occupation Period (MOP)?

The Minimum Occupation Period or the MOP is the minimum required period for a flat owner to live in the flat bought through HBD.

The minimum period can depend on the type of scheme the flat owner avails, the purchase mode, the date of applying for the flat, etc.

The eligibility conditions for a flat purchased under the Prime Location Public Housing scheme require the owner to live in the flat for a minimum of 10 years.

CPF Housing Grants also sell flats in the open market, which requires you to live in the flat for at least 5 years before selling or renting the flat.

Benefits of MOP

MOP prevents the prices of public properties from rising in an unchecked manner.

Before MOP was introduced, people bought public properties and sold them instantly for more than the actual price to make a quick profit.

This made it unfair for people who actually needed affordable housing but could not get it.

MOP puts the owner under the obligation to occupy the property physically for a fixed period.

The main benefit of MOP is that it discourages people from buying residential properties and putting them up for sale to earn profit.

It keeps the uncontrolled rise in the prices of housing in check.

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How is MOP calculated

Why is MOP essential?

MOP or Minimum Occupation Period allows everyone to purchase public properties irrespective of their status.

For instance, if you have purchased a 5-year MOP flat, you cannot sell the property before completing the holding period.

Since properties utilizing MOP conditions do not imitate the requirements of a commercial property, it prevents homeowners from disposing of their house without completing the MOP.

Furthermore, HDB evaluates resale applications closely to prevent an immature property purchase and transaction, promoting fair housing model plans for everyone.

In short, MOP is essential for a housing market like Singapore, where an individual cannot purchase an investment property before completing the Minimum Occupation Period of his previous flat.

The Importance of HDB’s MOP

The housing board in Singapore has a primary goal of providing properties for everyone as the board emphasizes providing a house to live instead of a lucrative property for investment.

MOP prevents people from purchasing flats for temporary accommodations and listing the properties on the market for a better selling price.

In short, MOP reduces price inflation and maintains a scheduled timeframe for the disposal of flats.

However, 1-room resale flats break the boundaries of HBD’s MOP, and you can sell the entire flat without completing the occupancy period.

Furthermore, you can list these flats on the property news platforms where any Singapore citizen or Singapore permanent resident can purchase the flat.

How can I check my HDB MOP?

The process of checking your HDB MOP status is straightforward, and you can get the details with minimal fuss.

HDB runs a scheduled maintenance check on all the properties registered under its development board, and you can visit its official website to get more details.

Here are the steps you need to follow to check the HDB MOP details:

  • Visit the official HDB portal.
  • Click on the ‘Housing’ section.
  • Enter the housing address or skip the step if you are searching for flats that have completed MOP.
  • Search for your desired block.
  • If you don’t find any details, you have not reached your MOP duration.

On the other hand, if you are searching for a new property, you can contact property owners whose lease details appear on the search result.

Why is MOP essential

How do the rental rules work with regard to MOP?

Since Singapore is a lucrative property destination for rental income, many people purchase houses as investments.

However, HDB’s MOP is a vital weapon that prevents individuals from buying residential properties that have not surpassed the minimum occupancy period.

In short, you will not be able to rent your entire property before completing the MOP duration.

Thankfully, HDB allows you to rent a part of your property (2-or-more-room HDB resale flats), provided that you occupy or utilize at least one room.

However, you have to ensure that the rental period is a minimum of 6 months to avoid the risk of losing your property to the HDB.

Once you complete the MOP, you can sell or rent the entire property, including SERS flats and complete the sales proceeds.

However, you will have to complete an additional 10-year MOP duration if you’ve purchased your flat under the PLH or Prime Location Housing scheme.

Does resale HDB have MOP?

Besides the Minimum Occupation Period for a standard property, resale HDB flats can also have MOP on them.

In short, you will have to register an application or Intent to Sell on the HDB Resale Portal before selling your property.

For instance, a matrimonial property purchased by a couple may still carry the MOP regulations if the couple calls for a divorce.

You can contact the HDB resale portal and submit your divorce documents to settle property transactions.

HDB will review the application, assess your situation, and inform you about the final proceedings.

Furthermore, you can also approach your legal firm to initiate a property transfer pursuant order to give away the property.

However, the new owner will have to follow the MOP guidelines till the minimum occupancy period is over.

You can also declare bankruptcy or inability to repay the flat loan to sell your property before completing the MOP duration.

How is MOP calculated?

Your Minimum Occupation Period starts as soon as you collect your property keys from the housing developer.

According to HDB, the minimum occupancy period for an HDB flat is 5 years (20 years for Fresh Start Housing flats), which individuals have to complete before selling their properties.

However, you will have to stay on your property to fulfill the MOP guidelines.

For instance, if you’ve left your property for some business or personal reasons, those periods will not be added to the MOP timeframe.

Likewise, if you have rented out spare rooms and locked the room you’ve intended to use and stay somewhere else, your MOP duration will halt and only continue after you stay on your property.

Furthermore, pretending to live on a property is illegal in Singapore and can land you in legal trouble.

What is the Minimum Occupation Period MOP

Do all flats have the same MOP?

When you purchase a property in Singapore, you have to keep many things in mind, like the property inheritance tax, SSD rate, cash down payment, and additional subsidies.

Likewise, different flats have contrasting MOP guidelines that you need to follow to get the best results.

Furthermore, the Minimum Occupation Period depends on the flat type, purchase mode, and application date, which can extend up to 20 years for some flats.

For instance, flats under the Prime Location Public Housing or PLH scheme come with a 10-year MOP, while BTO or Executive Condominiums will have a 5-year MOP term.

Likewise, SERS flats often come with a MOP duration of 5 to 7 years, depending on the conditions.

However, a 1-room flat is free from the MOP requirements, and you can sell or purchase it without completing the MOP duration.

 

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