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HDB-assigned valuers for bank loan cases


From 1 Apr 2005, all HDB resale flat transactions involving a bank loan and the use of CPF savings for the purchase of the flat and servicing of the loan will require a valuation report from a private valuer assigned by HDB.
This requirement will also apply to transferees who are taking bank loans to effect transfer of ownership of an existing HDB flat at market valuation.
Since 1 Jan 2003, valuation reports for such flat transactions could be performed by any licensed valuers including banks’ in-house valuers or external valuers engaged by the banks.
However, we have been receiving feedback on "cash-back" arrangements. These occur when the buyers, sellers and housing agents collude to inflate the declared purchase price so as to enable the buyers to take a higher bank housing loan and/or to withdraw more CPF savings. These arrangements are supported by valuation reports, which are also on the high side.
Such "cash-back" arrangements are illegal. They are also not financially prudent for the buyer. The buyer’s retirement savings are eroded by the withdrawal of more CPF monies than is needed for the actual purchase.
Buyers also expose themselves to greater financial risks by taking on bigger mortgage loans, which will result in more interest being incurred. Moreover, they will have to pay higher stamp/legal fees which are computed based on the declared resale price.
Sellers may also be liable for a higher resale levy based on the declared resale price if they subsequently purchase another subsidized flat directly from HDB.
Parties involved in “cash-back” arrangements can be prosecuted for cheating or false declarations. CPF Board and HDB will not hesitate to take action against anyone found practising or abetting “cash-back” transactions.
Under the Oaths and Declarations Act and the Housing and Development Act, the penalties for such “cash-back” arrangements can involve a fine and/ or up to 3 years’ imprisonment for a false declaration, or a fine of up to $5,000 and/ or up to 6 months’ imprisonment for giving false information to HDB respectively.
Housing agents found involved in cash-back transactions will also be reported to the Inland Revenue Authority of Singapore (IRAS), which licences housing agencies. In addition, if the housing agent is from an agency under HDB's Listed Housing Agents Scheme, HDB may also delist the agency.
With immediate effect, the CPF Board will also conduct independent valuation on any suspected over-valued flats. This valuation will then be used to determine the quantum of CPF withdrawals and housing loans.
The new requirement to use an HDB-assigned valuer for cases involving bank loans and usage of CPF funds will apply to resale flat applications and flat transfer applications submitted to HDB on or after 1 Apr 2005. Valuation requests submitted to HDB will be randomly assigned to one of the private valuers on its panel.
Public Enquiries
Members with enquiries on CPF matters can call the CPF Call Centre at 1800-227-1188, email or visit the CPF website
For further information on acquiring the services of an HDB assigned private valuer, the public can
- refer to HDB’s website at  (under Housing Loans from Banks)
- e-mail,
- call the toll-free Sales/Resale Customer Service Line at 1800 - 866 3066 on weekdays from 8 am to 5 pm.
Issued By : Housing & Development Board
Date : 21 Feb 2005

Source: Housing & Development Board Press Release 21 Feb 2005


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22 February 2005