A home buyer who acquired a flat under the HDB's design, build and sell scheme (DBSS) with her fiancé two years ago, is now faced with a painful penalty after cancelling their wedding.
The penalty amounts to a staggering 20 percent (more than S$120,000) of the purchase price of S$610,000. This is four times the five percent penalty payable for Build-To-Order (BTO) flats.
Ms. W L Teoh, 29, purchased a five-room flat in Ang Mo Kio with her fiancé two years ago but the wedding was cancelled soon after.
With the cancellation of the wedding, the couple became ineligible for the flat, since the HDB's Fiancé / Fiancée scheme requires an engaged couple to submit a wedding certificate three months after obtaining a flat.
"When we decided not to go ahead with the marriage due to personal reasons, we were hit with an absurd penalty amount," said Ms. Teoh.
The HDB then offered to let her buy the flat under a different scheme, with eligible family members.
Her parents, however, were ineligible, leaving her with no choice but to pay the penalty, which amounted to more than S$140,000, including the interest, legal fees and stamp duty.
Unlike a DBSS buyer who has to comply with the HDB's five-year rule, a private property buyer rejecting a unit that he has signed up for is permitted to sell his unit to another buyer.
On Ms Teoh's behalf, the HDB is appealing to the developer to consider other possible options.
The Straits Times noted that a meeting has been scheduled to discuss the issue this week.
