FEES PAYABLE ON PURCHASE OF HDB FLATS (Clarification)

Mr Ch'ng Jit Koon asked the Minister for National Development and Communications, in view of the confusion caused by certain political parties during the recent general elections about the engagement of lawyers for purchases of Housing and Development Board flats, if he will clarify what fees are payable to the Board by purchasers of the Board's flats.

Dr Tan Eng Liang (for the Minister for National Development and Communications): Mr Speaker, Sir, the fees payable to the Board are $15 for engrossed documents and $5 administrative fee. That is all the purchaser of a HDB flat has to pay to the Board itself.

However, like any other house purchaser, he has also to pay the usual conveyancing fees to the various Government departments, namely:-

(a) Stamp Fee for lease at 2% of sale price for the first $30,000, and an additional $16 for a lease exceeding three years.

(b) Fees for registration of lease.

(c) Government Survey Fee.

(d) Stamp Fee for mortgage.

(e) Fees for registration of mortgage.

The HDB merely collects these fees on behalf of Government.

Thus, for a 3-room new flat in Ang Mo Kio which costs $15,800, the purchaser will have to pay the following fees if he takes a 20-year loan, after paying the 20% down payment of $3,200:- Engrossment of documents $ 15 Administrative Fee $ 5 Stamp Fees for lease (2% of $15,800 plus $16 for a 99-year lease) $ 332 Fees for registration of lease $ 27 Government Survey fee $ 100 Stamp Fees for mortgage (Loan of $12,600) $ 66 Fees for registration of mortgage $ 22 Total $ 567

The total sum is $567, out of which the HDB only collects $20.

Mr Ng Kah Ting: Sir, in the light of the Senior Minister of State's reply, can I ask him a question on the Government survey fee of $100, if I heard him right? Is it not too high a sum to levy? Could the Housing Board take up this matter with the relevant authority to reduce this fee of $100?

Dr Tan Eng Liang: Sir, the question should be referred to the Ministry of Finance and the Ministry of Law. However, I will convey his suggestion.

An hon. Member: Pass the buck!