PUBLIC HOUSING – HDB FLATS

TABLE OF CONTENTS
1. ELIGIBILITY TO PUBLIC HOUSING...................................................................................................................................... 2
GENERAL REQUIREMENTS FOR THE DIRECT PURCHASE OF NEW FLATS OR RESALE FLATS FROM HDB....................................................................2
MINIMUM OCCUPATION POLICY............................................................................................................................................................ 3
ETHNIC INTEGRATION POLICY................................................................................................................................................................ 3
2. NO SECURITY OR TRUST OVER HDB PROPERTY W/O HDB’S APPROVAL.............................................................................5
SECURITY.......................................................................................................................................................................................... 5
EXPRESS TRUST AND MINORS................................................................................................................................................................7
3. RESULTING TRUSTS........................................................................................................................................................ 10
Prior to 2005............................................................................................................................................................................10
BETWEEN 2005 AND 2010...............................................................................................................................................................11
POST-2010:................................................................................................................................................................................... 12
RESULTING TRUST AND RENOVATION COSTS...........................................................................................................................................12
4. DETERMINATION OF A LEASE – FORFEITURE S 55 HDA.................................................................................................... 14
5. COMPULSORY ACQUISITION – S 56 HDA......................................................................................................................... 16
BREACH.......................................................................................................................................................................................... 16
S 56 HDA..................................................................................................................................................................................16
COMPENSATION -.............................................................................................................................................................................19
PUNISHMENT:................................................................................................................................................................................. 19
6. JUDICIAL REVIEW OF COMPULSORY ACQUISITION.......................................................................................................... 20
PROCEDURE.................................................................................................................................................................................... 20
7. TOWN COUNCIL............................................................................................................................................................. 21

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1. ELIGIBILITY TO PUBLIC HOUSING

 The Housing and Development Board (“HDB”) is a statutory board with its power to make its own regulations
 The Minister may make rules describing the terms and conditions of sale, criteria to be met by the intending purchaser and
the conditions of occupation
o s 65(1)(b) HDA

(1) The Minister may make rules for giving effect to the provisions of this Part and, in particular, for or
with respect to all or any of the following matters:

(b) the person to whom the flat, house or other building may be sold and the persons who are allowed
to stay in it, including the qualifications as to income, the minimum number in the family, citizenship of
and ownership of any other properties by all or any such persons;

 The HDB, being the largest single landlord in Singapore, is a convenient and successful vehicle for promoting government
policies and controlling the social behaviour of the population.
o Through the eligibility conditions, government social policies are more effectively implemented.
o The eligibility conditions, being only conditions set down by the HDB, can be changed without the cumbersome process
that goes with subsidiary legislation.

GENERAL REQUIREMENTS FOR THE DIRECT PURCHASE OF NEW FLATS OR RESALE FLATS FROM HDB

 These eligibility requirements are enforced quite strictly and a breach of these requirements may result in serious
repercussions, e.g. compulsory acquisition.

Singapore Citizens One of the authorised occupiers must also be a Singapore citizen or at least a Singapore
permanent resident.

“Family Nucleus”  Must comprise another Citizen/PR

 Categories of family nucleus include –
o Marital/blood relation
(a) Spouses and children
(b) Parents and siblings
(c) Children under legal custody
(d) Unmarried siblings
o Exception
 Fiancé
 Joint singles scheme (over 35).

Age  The applicant must be at least 21 years old at the time of application
o Family nucleus by marital/blood ties must be above 21 years
o Joint single scheme above 35 years
o Widow/Orphan – 21 years

Income Ceiling (total average  3-room flat:

gross monthly household o Non-mature estates: $6,000 or $12,000, depending on the project.
income) o Mature estates: $12,000.
 4-room flat or bigger:
o $12,000.

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 o If purchasing with extended or multi-generation family (married couples, their
siblings and their parents): $18,000.

No Ownership of Private Housing
 The applicant and any person listed as an authorised occupier must not own any
other property overseas or locally, and must not have disposed of any within the last
30 months.
 An applicant who is residing in a HDB flat purchased directly from HDB must have
occupied his flat for at least 5 years prior to the new application.

Minimum Occupation Period  Must remain in possession for a minimum occupation of 5 years – s 49A HDA
 Prohibited from parting possession with the flat (e.g. selling in open market or
renting out entire flat) w/o approval

Ethnic Quotas The HDB attempts to recreate the racial composition of Singapore in each area in
allocating flats and resale of flats.

Non-debarment The applicant and any of his intended authorised occupiers must not have

infringed any of the HDB or government rules, regulations and policies.

MINIMUM OCCUPATION POLICY

 S 49A of HDA provides that within “the prescribed minimum period” (5 years under s 65(1)(b), Minister can make
requirements), except with the consent of HDB, the owner shall not in any manner sell or agree to sell his flat or any interest
in it to any person

Prohibition of sale within minimum occupation period, etc.

49A.—(1) Except with the prior written consent of the Board, no owner of any flat, house or other building which
has been sold by the Board under the provisions of this Part shall, within the prescribed minimum occupation period,
by contract, agreement or otherwise, sell or agree to sell his flat, house or other building or any estate or interest
therein to any other person.

[41/98]

(2) Unless otherwise authorised by the Board, every contract, agreement or other document relating to the sale of
any such flat, house or other building which is made between the owner of the flat, house or other building and a
purchaser other than the Board shall be in the prescribed form.

[41/98]

(3) Any contract, agreement or other document which is made on or after 20th November 1998 in contravention of
subsection (1) or (2) shall be null and void.

[41/98]

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ETHNIC INTEGRATION POLICY
- Tang, “The Legal Representation of the Singapore Home and the Influence of the Common Law” (2007):
 The legal image of the Singaporean home is rooted in communitarianism, pragmatism and a series of state-imposed
ideologies.
 The state-imposed ideologies are:
(1) The ideology of stake
holding in the country.
(2) The ideology of the
family.
(3) The ideology of multi-
culturalism.
(4) The ideology of politics.
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 One of HDB’s core policies is to promote widespread home ownership in Singapore.
o To achieve this, HDB introduced the Home Ownership Scheme in 1964:
 HDB offers housing loans to potential home owners at very competitive rates.
 A person is entitled to use his Central Provident Fund savings to buy a HDB flat.
 The overarching philosophy of the HDB’s housing policy is “pro-family”.
 A person is only eligible to buy a HDB flat if he forms a “family nucleus”, i.e. a buyer and
one of the following:
o A spouse.
o Parents.
o Children (for a widower or divorcee).
o Fiancé or fiancée.
o Siblings (for orphans).
 This may encourage couples to get married rather than cohabit with each other.
 This indirectly strengthens the economic and legal position of women in a long term
relationship.
 The ideology of the “family nucleus” has been relaxed in recent times:
o Single Singaporean Citizen Scheme: single persons over the age of 35 years old.
o Joint Singles Scheme: 2 unrelated and unmarried Singapore citizens who are older than
35 years old.
 The Ethnic Integration Policy lays down a certain percentage of each ethnic group that
may be allowed to live within each HDB block and neighbourhood.
o It works at 2 levels:
(a) During the process of allocation of new flats.
(b) The eligibility conditions in the resale market.
 The government has embarked on a long-term policy of upgrading to improve older HDB
estates, to prevent them from degrading into slum areas. This can take any or all of the
following forms:
o Providing a face-list of the external façade of the HDB block.
o Building lifts which reach every floor.
o Adding extra space in each individual flat.
o Improving the HDB estate by sprucing up the environment and constructing amenities,
e.g. covered walkways, parks, etc.
 HDB upgrading is linked to the level of support received by the ruling party.
 o Thus, the policy is closed tied to the ideology of politics.

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2. NO SECURITY OR TRUST OVER HDB PROPERTY W/O HDB’S APPROVAL

SECURITY

 The HDB flat is meant to be a place for family to stay, and is not meant to be used for security.
o ss 51(1) and (2) of HDA provides that any security interest cannot be created over the HDB flat:

Property not to be used as security or attached, etc., and no trust in respect thereof to be created without
approval of Board

51.—(1) Subject to subsection (4), any contract or agreement to directly or indirectly use protected property (or
the proceeds of sale of protected property) as security or collateral for any debt, obligation or claim shall be null and
void.

(2) Any act (including the deposit of title deeds), deed, instrument or document that purports to protect rights
under or give effect to any contract or agreement that is null and void under subsection (1) shall be of no effect and
shall not result in or create any interest in land or be capable of being registered under the provisions of the
Registration of Deeds Act (Cap. 269) or the Land Titles Act (Cap. 157).

(3) Where any deed, instrument or document referred to in subsection (2) is registered under the provisions of the
Registration of Deeds Act or the Land Titles Act —

(a) the Board may, by an instrument lodged with the Registrar of Deeds or the Registrar of Titles, as the
case may be, declare such deed, instrument or document to be null and void; and

(b) the Registrar of Deeds or the Registrar of Titles shall register the instrument lodged by the Board under
paragraph (a) without being concerned to inquire into its regularity or validity, and upon registration
thereof shall cancel the registration of such deed, instrument or document declared by the Board to be
null and void.

(4) Subsection (1) does not apply if the security or collateral is to be created or granted in favour of —

(a) the Board;

(b) an approved financial institution; or

(c) any person or person belonging to a class of persons prescribed by the Minister as a person to whom,
or a class of persons to which, subsection (1) will not apply.

(5) No protected property shall vest in the Official Assignee on the bankruptcy of the owner thereof.

(6) No protected property shall be attached in execution of an order of any court unless the order of the court is
obtained by —

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 (a) a mortgagee in exercise of his rights under a mortgage created with the prior written consent of the
Board over that property; or

(b) a chargee in exercise of his rights under a charge under any written law over that property.

(7) Subsections (5) and (6) shall not apply if the sole owner of any protected property is not a citizen of Singapore
or, where there is more than one owner, all the owners are not citizens of Singapore.

(8) No trust in respect of any protected property shall be created by the owner thereof without the prior written
approval of the Board.

(9) Every trust which purports to be created in respect of any protected property without the prior written
approval of the Board shall be null and void.

(10) No person shall become entitled to any protected property (or any interest in such property) under any
resulting trust or constructive trust whensoever created or arising.

(11) In this section —

“approved financial institution” means —

(a) any bank licensed under the Banking Act (Cap. 19);

(b) any finance company licensed under the Finance Companies Act (Cap. 108);

(c) any direct insurer licensed under the Insurance Act (Cap. 142); and

[Act 11 of 2013 wef 18/04/2013]

(d) any merchant bank approved as a financial institution under the Monetary Authority of
Singapore Act (Cap. 186);

“proceeds of sale”, in relation to any property, means the proceeds from any transaction involving the sale,
transfer, conveyance, assignment, mortgage, charge or the disposal in any manner of the property or an
estate or interest in the property;

“protected property” means any flat, house or other building that has been sold by the Board under the
provisions of this Part;

“Registrar of Deeds” means the Registrar of Deeds appointed under the Registration of Deeds Act (Cap. 269)
and includes any Deputy Registrar of Deeds;

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 “Registrar of Titles” means the Registrar of Titles appointed under the Land Titles Act (Cap. 157) and includes
any Deputy Registrar of Titles and Assistant Registrar of Titles.

EXPRESS TRUST AND MINORS

 S 51(8) of HDA provides that no trust shall be created over an HDB flat by the owner w/o the written prior approval of the
Board.
 S 51(9) HDA provides that any such trusts made without the requisite approval of HDB shall be null void

 At present, HDB does not approve of the creation of express trusts except for acceptable reasons under the following
special circumstances:
o Divorce except on grounds of annulment and non-consummation or legal separation of the owner.
 If the owner does not wish to transfer his interest in the flat to his former spouse, he may appoint a trustee to hold his
interest for his minor children.
o Death of owner:
 Where the owner dies leaving a non-citizen spouse and minor children who are Singapore citizens, the Public Trustee or
a private person may be appointed as trustee until the children reach 21 years of age.

 This creates problems in respect of succession, as minors cannot hold property in their own name.

4 options to circumvent this problem WRT wills for minors

Option  The owner can bequeath the HDB to the minor in his will.
A The executors will settle the trust and seek HDB approval before transferring the HDB to the minor.
o
 S 52 of H&D Act: HDB approval is required for the transmission of the deceased owner’s HDB flat to his
personal representatives and the transfer to the ultimate beneficiaries.
 This is the best option.

 X makes a Will leaving the HDB flat to Z. Upon X passing away, X’s executors would draw up the necessar y
trust deed naming Z as the beneficiary. Before settling the trust, X’s executors would seek HDB’s written
approval in relation to this express trust. Once HDB’s approval is given, the flat would then be transferred to
the trustees to be held on trust for Z.
(a) Giving executors the necessary powers to seek HDB approval to create the trust
(b) Simplest and cleanest method.
(c) Must provide for situation where the HDB denies permission

Option  The owner can create a trust in his will and ask for HDB approval.

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 B
o Will HDB approve such a trust, or treat it as premature?

 X creates a trust in favour of Z in his Will, naming the trustees and stipulating the terms of the trust. X seeks
HDB’s written approval of the express trust to be created in the Will after the Will has been executed. Once
HDB’s approval is given, the flat would then be transferred to the trustees upon X’s death to be held on trust
for Z
o HDB may not give permission on the grounds that it is premature, as the trust will only come into effect later.

Option  The owner can create a trust in his will w/o seeking HDB approval.
C o Is such a trust valid? Or avoided by H&D Act?
 Do not use option C, especially not to tag on conditions that may not work and may be in breach of HDB
regulations.

 Create trust in will without approval

(a) Will contravene s 51 HDA. May be void
(b) If trust is avoided, residuary powers will be invoked. Disappointed legatee may bring action in negligence
against drafter

Option The owner can create an executory trust – a trust that operates in future.
D

 Create executory trust; X creates a trust in favour of Z in his Will, naming the trustees and the terms of the
trust. No approval is sought from HDB at the time when the Will is executed. Upon X passing away, X’s
executors would seek HDB’s written approval of the trust created in the Will. Once HDB’s approval is given,
the flat would then be transferred to the trustees upon X’s death to be held on trust for Z

(a) On a plain reading of s 51 HDA, the trust will be void for want of prior written approval.
(i) It will be too late for the executors to seek permission from the Board
(ii) Such an analysis is also consistent with the general maxims of equity: “equity will not assist a volunteer”
and “equity does not perfect an imperfect gift”. This is the likely position that would be argued by the
beneficiaries of the residuary clause in the Will or the disinherited wife, Y, if there is no residuary clause in
the Will
(iii) If the trust is avoided, then the HDB flat falls to be distributed as per the residuary clause in the Will
(iv) Absent a residuary clause, the HDB flat would then be governed by the Intestate Succession Act
(v) A possible criticism of this conclusion is that this analysis is unduly harsh to the child, Z, and does not
facilitate the intention of the testator who intended to bequeath the whole HDB flat to the child albeit by
way of a trust, but the child can later sue the solicitor who drew up the trust for negligence ( While v
Jones)
(b) An alternative analysis validating the unapproved trust in Option C is equally possible.
(vi) As Lord Browne-Wilkinson said in T Choithram International SA v Pagarani “[a]lthough equity will not aid
a volunteer, it will not strive officiously to defeat a gift”.
(vii) Consistent with this philosophy, it is suggested that the courts might adopt a more benevolent
construction in order to save the trust.
(viii) As such, it could be possible that the trust over the HDB flat is saved by the Re Rose doctrine; it could be
argued by analogy that in this case the trust is valid, save for the final step of asking for approval from the
HDB
(ix) Hence, the executors and/or the prospective trustees could perfect the trust by asking for HDB’s approval

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 after the testator’s demise
(c) Yet another characterisation saving the trust is to argue that the trust was not constituted upon X’s demise.
(x) At that time, Z’s interest in the unadministered estate was merely a spes or a hope.
(xi) Whether Z’s interest crystalises will depend on HDB’s approval and the fact that the debts and expenses of
the estate do not exhaust the HDB flat.

 However, the analyses above in favour of saving the trust will not work if the terms of the purported trust in the Will are
incompatible with HDB policies.
o An illustration of a trust which might offend HDB policies is a trust which directs the trustee to exclude the testator’s
wife and child from staying in the flat and mandating the trustee to lease out the whole HDB flat to third parties in
order to accumulate an income for the testator’s child

 Note that may result in compulsory acquisition if executors act in breach of the HDA.

 Unresolved issues: However, there is an aspect which remains unclear: the situations in which the HDB would consider the
creation of a trust as being legitimate, apart from a trust created for minor children on the death of the lessee parent. For
example, would the HDB approve a trust in the following circumstances:
o Can a trust be created for special needs dependents on the passing of the lessee parent?
o Can a trust be created for a lessee who lost mental capacity?
 Logically, the HDB should have no objections to the creation of such trusts.
 It is suggested that the HDB should state clearly either on its website or subsidiary legislation instances in which it would
approve the creation of a trust over a HDB flat.
 Such a move would certainly assist lessees, especially those with minor children and special needs dependents in
planning their affairs.

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3. RESULTING TRUSTS

 General rule = Resulting trust would not be offensive if it is declared in favour of an eligible person
E.g. if a husband and wife purchase a HDB flat as joint owners and the wife paid for more in terms of the purchase price.
o
The wife argues that there is a resulting trust in her favour.
 A resulting trust is possible because both are eligible persons.
o Sitiawah
o Neo Boh Tan
o Tan Chui Lian v Neo Liew Eng [2007]
 Construction of S 51(6) HDA: only prohibited constructive or resulting trusts arising in favour of ineligible persons –
“become entitled” - does not preclude a person already entitled to a resulting trust.
 Resulting trusts are accrued property rights at the point of contribution.
 If Parliament had intended to displace accrued property rights, they would have considered it seriously in Parliament,
but there was no trace of that in Parliament.
 A resulting trust is not declared if the claimant is an ineligible person.
o Cheong Yoke Kuen
 A resulting trust was not declared b/c the person already owned another HDB flat

PRIOR TO 2005
 “BY THE OWNER”
 Presumption of resulting trust was outside the scope of s 51(4) HDA b/c it was not “created by the owner” of the flat but
arose by a presumption of law
 As such, there was a resulting trust declared in favour of eligible persons
o Sitiawah Bee bte Kader v Rosiyah bte Abdullah [1999] (SGHC)

Facts  The plaintiff (mother) and defendant (daughter) held the property as joint tenants.
o The purchase price was S$27,100. S$6,231 came from the late father.
 The rest came from the defendant daughter’s CPF (~77%)
 The mother and daughter’s relationship became strained.
o The plaintiff mother sought an order for the flat to be sold and proceeds distributed according to
contribution.
 The plaintiff mother argued that she was entitled to an equal share of the sale proceeds, as resulting trusts
were prohibited by s 51(4) of the HDA  when the flat is sold the proceeds of sale should be divided
equally between the parties.

Principl  How a resulting trust works

e o “[W]here two or more co-owners at law contribute different amounts to the purchase price of a property,
equity recognises a presumed intention that the parties intended to hold the property in proportion to their
relative contributions, and raises a resulting trust which adjusts the equities accordingly.”
o “This is, of course, subject to the presumption of advancement, or evidence that the funds were intended to
have been a gift.”

 Interpretation of s 51(4) of the HDA

o S 51(4) provided “No trust in respect of any such flat, house or other building shall be created by the owner
thereof w/o the prior written approval of the Board.”
o The resulting trust was outside the scope of s 51(4), because it had not been “created by the owner” of the

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 flat, but instead arose by presumption of law.
 Therefore, the resulting trust was not prohibited by s 51(4).

Held  SGHC allowed appeal in part

 Held resulting trust in favour of daughter not void by virtue of s 51(4) HDA

BETWEEN 2005 AND 2010

 S 51(6) of the HDA was enacted and provided that “No person shall become entitled to any such flat, house or other
building under any resulting trust or constructive trust, whensoever created.”
o Tan Chui Lian v Neo Liew Eng [2006] (SGHC)

Facts  The plaintiff son and his father owned HDB flat as tenants in common in equal shares.
o The father bequeathed his share in the flat to the defendant (the father’s wife).
 The father died and the plaintiff sought an order for the HDB to be sold on the open market, with the net
sale proceeds to be divided in the ratio of the contribution of the parties towards the purchase of the
flat.
 The flat was purchased in the 1970s:
(a) Purchase price
o The purchase price was $29,000.
o The son contributed $21,000.
o The father contributed $8,000.
(b) Renovation costs at time of acquisition
o The father contributed $10,000 towards renovation at the time of acquisition.
(c) Renovation costs after acquisition
o The father contributed $5,300 towards renovation costs in 1997.
o The father contributed $3,000 towards estate upgrading costs imposed by HDB.

Principl  Construction of S 51(6) HDA: only prohibited constructive or resulting trusts arising in favour of ineligible
e persons – “become entitled” - does not preclude a person already entitled to a resulting trust.
 Resulting trusts are accrued property rights at the point of contribution.
 If Parliament had intended to displace accrued property rights, they would have considered it seriously in
Parliament, but there was no trace of that in Parliament.

Held  SGHC granted plaintiff’s application

 A constructive or a resulting trust could arise over a HDB flat between wo eligible co-owners of the flat:
o S 51(6) of H&D Act does not prevent any interest in an HDB flat arising under a resulting trust or
constructive trust regardless of the circumstances, but rather prevents any entitlement to own an HDB flat
arising in favour of a person by virtue of the law implying a resulting or constructive trust where that
person would otherwise have been ineligible to acquire such an interest.
 The provision was not intended to have any application where the parties concerned were already
entitled to some interest in the property, and therefore no issue could arise as to their eligibility to such
entitlement.
 In such circumstances, the parties concerned would not be claiming to become entitled to own an
interest in the flat by virtue of the implied trust, and there would be no concern of their bypassing the

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 eligibility criteria set by HDB.
 Thus, s 51(6) of the H&D Act only prohibited constructive or resulting trusts arising in favour of
ineligible persons.
 Only Singapore citizens or PRs are eligible to hold HDB flats.
 Thus, S 51(6) had no application to the case, because there was no suggestion that either the plaintiff
or defendant was ineligible or did not already have some entitlement to the flat.

POST-2010:

 Section 51 HDA was amended in 2010

Old s 51(6) HDA New s 51(10) HDA

“No person shall become entitled to any such flat, “No person shall become entitled to any protected property (or
house or other building under any resulting trust or any interest in such property) under any resulting trust or
constructive trust, whensoever created.” constructive trust whensoever created or arising.”

 However, the wording on which Tan Chui Lian relied on– “person shall become entitled to…” was retained in s 51(10) HDA
o It is suggested that Tan Chui Lian is still good law, and the new section does not go so far as to overturn the case law:
o The crucial limb in s 51(10) – “no person shall be entitled” – remains in the statute.
 Menon CJ held that this phrase only prohibited constructive or resulting trusts arising in favour of ineligible persons.
 An eligible person is already entitled and does not become entitled by way of a resulting trust.
 Reaffirmed by Judith Prakash J in Koh Cheong Heng v Ho Yee Fong [2011] (SGHC)
 “It is neither evident from Hansard, nor from the plain reading of the provision, that Parliament was seeking to change
the legal position as it stood in Tan Chui Lian.”
 Considered that the words “become entitled” were considered by Menon JC in Tan Chui Lian but not changed in the
new s 51(10).
 Resulting and constructive trusts are not precluded by HDA if the beneficiary is eligible to own an HDB flat.
 “Although the amended legislation includes the words “or “arising” at the end of the relevant provision, in my opinion
the addition of the words “or arising” only clarify that a “resulting trust” or a “constructive trust” may be more
properly said to arise by operation of law, rather than by the creation of parties.”
 “Accordingly, in my view, the law regarding creation of trusts over HDB property remains as stated in Tan Chui Lian.”

RESULTING TRUST AND RENOVATION COSTS

 3 differing approaches

Not relevant – Sitiawah
[1999] (SGHC)
 In ascertaining the proportionate contributions made by each party to the purchase
price, the court did not take into account the contributions made to renovation costs.
o The court would have to “make a rough and ready assessment on the basis of some
inflationary index” in weighing the relative values of the renovation works undertaken
at different times.
o Further, “the costs of renovations appear to be monies expended gratuitously after the
purchase of the flat and cannot be a factor in ascertaining the equitable interests of the

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Relevant if undertaken at the
time of purchase – Tan Chui
Lian [2006] (SGHC)
Relevant if undertaken at the
time of purchase + increase
in property value – Lau Siew
Kim [2008] (SGCA)
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parties in the flat at the time of the purchase.”
o “Costs of renovation and costs of maintenance and utilities are matters of private
arrangement between the joint owners of property and it would not be appropriate to
take those costs into account in ascertaining the extent of each party’s interest in a
property that is jointly purchased.”
 In assessing each party’s contributions towards the purchase price of the property,
renovation costs undertaken at the time of purchase should be taken into account:
 Rejected the approach taken in Sitiawah:
o “[I]t would be artificial to ignore the reality of the situation when dealing with a case
where such costs are expended at about the same time that the property was
acquired. This is all the more so in dealing with properties such as HDB flats where
purchasers very often intend and expect to spend considerable sums of money on
renovations or improvements or remodelling soon after a flat is purchased.”
o Renovation costs should not be taken into account in assessing the parties’ property
interests, if they are “expended much later and are not referable to the initial
acquisition”.
 Although this is so, “where a power of sale is being ordered, it may be appropriate in
certain circumstances to order that the money expended by one party to improve the
property to enhance its value be compensated by the other”.
 The extent to which this principle is applied will depend on “all the facts and
circumstances of each case”, including the following factors:
(a) When the improvements were done.
(b) Whether the works were done to enhance the value of the property or were
necessary repairs.
(c) Whether there has been in fact an enhancement in the resale value of the property
as a result of the expenditure.
(d) Whether the improvement has already been enjoyed by a party in occupation so as
to warrant either no further remedy or limit the remedy ordered.
In determining the respective proportion of contributions to the purchase price,
contributions to the costs of redevelopment can be relevant if the property is redeveloped
closely after purchase and if its value is increased by the redevelopment.
 Latest case law pronouncement and it is from apex court
4. DETERMINATION OF A LEASE – FORFEITURE S 55 HDA

 All owners of HDB flats have a 99-year lease from the HDB.
 HDB does not usually use the doctrines under general law to determine a lease  relies on statutory powers
o Where there is a breach, HDB relies on its statutory powers under ss 55 and 56 of H&D Act to determine leases
o S 55 HDA: Forfeiture (the main way of determining a lease) is governed by the statutes.
 When the owner has contravened any of the matters set out in ss 55(1)(a)-(f) HDA  the grounds for determination of a
lease  the HDB has a right to forfeit the lease.
 Note that there is no compensation for forfeiture of the lease.

Determination of lease

55.—(1) Where a flat, house or other building has been sold by the Board under the provisions of this Act, the
Board may re-enter upon the flat, house or other building or part thereof in the name of the whole and thereupon the
lease shall absolutely determine —

(a) if the rent reserved by the lease or any part thereof is unpaid for 3 calendar months after becoming
payable and the Board has sent a demand in writing by registered post addressed to the purchaser at
the flat, house or other building (whether the demand has been received by the owner or not);

(b) if the owner has committed any breach of a condition against assigning, underletting or parting with
possession of the flat, house or other building or any part thereof or has committed a breach of any
other condition the breach of which is not capable of remedy and the Board has sent a notice in writing
by registered post addressed to the owner or purchaser at the flat, house or other building (whether the
notice has been received or not);

(c) if any condition (being a condition the breach of which is capable of remedy) on the part of the owner is
not performed or observed within 2 weeks after a notice in writing has been sent by the Board to the
owner addressed to the owner at the flat, house or other building drawing the attention of the owner to
the non-performance or non-observance of the condition (whether the demand has been received by
the owner or not);

(d) if the owner has submitted a false statement in his application form for the purchase of the flat, house or
other building;

(e) if the owner has, in the opinion of the Board, committed a breach of any of the rules made under
section 65(1)(f); or

(f) if the owner has, without the prior written approval of the Board, used or allowed the use of the flat,
house or other building otherwise than for the purpose permitted by the lease.

[31/2002]

(2) Any determination of a lease under subsection (1) shall be without prejudice to any right of action or remedy of
the Board in respect of any such breach or any other breach of the conditions contained in the lease.

15
 S 63 of HDA provides that receipt by HDB of any money paid is not to be regarded as waiver of the breach, and any notice to
quit or notice of compulsory acquisition sent is not affected by such receipt

Direction by Board to remove any article or object placed in a manner likely to cause damage to property, etc.

63.—(1) The Board may by notice in writing direct any owner, lessee or occupier of any flat, house or other living
accommodation sold or leased under the provisions of this Act to remove any article or object placed by any window or
on any balcony of or outside such premises in a manner which is likely to cause any damage to property or injury to life.

[21/86]

(2) Any person who fails to comply with the direction of the Board given under subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding $2,000 and, in the case of a continuing offence, to a
further fine of $100 for every day during which the offence continues after conviction.

[21/86]

16
5. COMPULSORY ACQUISITION – S 56 HDA

BREACH

1. Exclusive and continuous occupation:

 Under the lease, the HDB owner covenants with the HDB that he and the authorised occupiers will be in exclusive and
continuous occupation of the flat.
o S 2 of H&D Act defines “authorised occupier” as a person:
(a) “named in an application made to the Board as the person who intends to reside in the flat, house or other living
accommodation sold or to be sold by the Board under Part IV”; or
(b) “authorised in writing by the Board to reside therein except that, where such a person has entered, stayed or remained
in Singapore in contravention of any provision of written law relating to immigration, he shall be deemed not to be an
authorised occupier from the date of contravention”.
 The owner also covenants that he will not, without prior written consent of HDB, use the flat other than as a residential flat
“solely and exclusively for himself and other authorised occupiers nor allow anyone other than the authorised occupiers to
live in or share the flat (whether permanently or temporarily)”.
2. No transfer without prior written consent of HDB:
 Under the lease, the owner covenants that he will not, without prior written consent of HDB, “sell, transfer, assign,
mortgage or charge the flat or underlet or part with or share with any person other than the authorised occupiers, the
actual or legal possession or occupation of the flat or any part thereof”.
 S 50 of HDA also proscribes any assignment, mortgage, transfer, charge or lease of the flat without prior written consent of
HDB.

S 56 HDA

Board may compulsorily acquire property sold subject to the provisions of this Part

56.—(1) The Board may compulsorily acquire any flat, house or other living accommodation sold subject to the
provisions of this Part, whether before or after 2nd June 1975 —

(a) if the owner thereof and his spouse, if any, has, in the opinion of the Board, ceased to occupy the same;

(b) if the owner thereof, his spouse or any authorised occupier has at any time, whether before or after 2nd
June 1975, acquired whether by operation of law or otherwise any title to or an estate or interest in any
other flat, house or building or land;

(c) if the flat, house or other living accommodation has, without the prior written approval of the Board,
been used otherwise than for the purpose permitted by the lease;

(d) if the owner thereof has permitted any person other than an authorised occupier to reside or stay in the
flat, house or other living accommodation;

(e) if the owner thereof has failed to perform or observe any condition contained in the lease to be
performed or observed on the part of the owner after a notice in writing has been sent by the Board
drawing his attention to the non-performance or non-observance of the condition in the lease;

17
 (f) if the owner thereof has made a misleading or false statement in his application to the Board for the
purchase of the same;

(g) if the owner thereof has made a misrepresentation of a material fact, whether innocently or otherwise,
to the Board relating to the purchase of the flat, house or other living accommodation;

(h) if the owner thereof assigns, underlets or parts with the possession of the same or any part thereof
without obtaining the prior written consent of the Board as required by the lease;

(i) if, in the opinion of the Board, the flat, house or other living accommodation is not being occupied by
such minimum number of persons or by such persons as the Board may require;

(j) if the owner thereof has at any time, whether before or after 2nd June 1975, ceased to be a citizen of
Singapore or if the owner thereof has, at any time whether before or after 1st May 1982, ceased to be a
permanent resident of Singapore;

(k) if the rent or any payment or any part thereof due to the Board reserved under the lease or mortgage
remains unpaid for 3 calendar months after it is due and payable and the Board has sent a notice of
demand in writing to the owner thereof;

(l) if the purchase price or any loan for the purchase of the flat, house or other living accommodation has
been paid in full or partially with any cash grant made by the Government to the owner and paid into
the owner’s account with the Central Provident Fund pursuant to section 14 of the Central Provident
Fund Act (Cap. 36) and the owner refuses or fails to return the money to the Government when he is
required to do so under the terms of the grant;

(m) if the owner thereof, his spouse or any authorised occupier above the age of 14 years has on or after 1st
March 1984 been convicted of an offence under section 304A, 336, 337 or 338 of the Penal Code (Cap.
224) in connection with the throwing of any matter or thing from any property belonging to, sold by or
leased from, the Board; or

(n) if the owner thereof, his spouse or any authorised occupier has been convicted of an offence under any
written law relating to immigration for giving food or shelter to any person who has entered, remained
or stayed in Singapore in contravention of any written law relating to immigration or for assisting such
person in any way to evade apprehension.

[13/75; 25/79; 12/82; 21/86; 31/2002]

(2) Subsection (1)(b) shall not apply to any owner or his spouse or any authorised occupier who has purchased or
acquired, with the prior written consent of the Board, any commercial property not exceeding in value $250,000 or
such higher value as the Minister may allow, and that commercial property is used or intended to be used by any such
person for business purposes.

[25/79]

18
 (3) Where the Board intends to exercise its powers of compulsory acquisition conferred by this section, the Board
shall serve a notice in writing on the owner of the flat, house or other living accommodation and all persons known or
believed to be interested in claiming all or any part of the compensation to be paid for the flat, house or other living
accommodation (referred to in this Part as an interested person) stating the intention of the Board to acquire the
premises and the compensation to be paid therefor.

[13/75]

(3A) Where the owner or interested person is deceased —

(a) any reference to the owner or interested person in subsections (3) to (6) includes a reference to any
legal personal representative of the deceased;

(b) if no legal personal representative is appointed in respect of the deceased owner, any notice required to
be served by the Board on the deceased owner under this section may be served by affixing a copy of
the notice in a conspicuous place at the flat, house or other living accommodation; and

(c) if no legal personal representative is appointed in respect of the deceased interested person, any notice
required to be served by the Board on the interested person under this section may be served by
affixing a copy of the notice in a conspicuous place at the last known place of residence of the interested
person immediately before the interested person’s death.

[Act 13 of 2015 wef 20/07/2015]

(4) Any owner or interested person who objects to a proposed acquisition by the Board may, within 28 days after
the service of a notice referred to in subsection (3), submit in writing to the Board precisely the grounds upon which
he objects to the acquisition and the compensation offered by the Board.

[13/75]

(5) The Board shall consider the objection and may either disallow it or allow it either wholly or in part, and shall
serve the owner or interested person by post or otherwise with a written notice of its decision.

[13/75]

(6) Any appeal by any owner or interested person aggrieved by the decision of the Board shall be made to the
Minister within 28 days after the date of service of such decision on the owner or interested person and the decision of
the Minister shall be final and not open to review or challenge on any ground whatsoever.

[21/86]

(7) This section shall not limit or affect the powers conferred upon the Board by any other provision of this Act or
under any other written law to exercise its right of forfeiture and right of re-entry for a breach of the conditions of a
lease.

[13/75]

19
 (8) The compensation to be paid by the Board for any flat, house or other living accommodation compulsorily
acquired by the Board under this section shall be determined by the Board.

[13/75]

(9) The Minister may direct the Board to exempt any person or class of persons from all or any of the provisions of
this section.

[12/82]

 Section 56 HDA empowers the Board to compulsorily acquire any flat, house or living accommodation sold under Part IV of
the HDA where the owner has committed one of the 14 acts/omissions set out –
o S 55 HDA (see above):
 The power to compulsorily acquire extends beyond the circumstances expressly set out in s 55. Thus, the HDB has wide
and sweeping powers of compulsory acquisition.
 Note that compulsory acquisition is usually for redevelopment, but s 56 allows HDB to compulsorily acquire the property
on other grounds, e.g. where the owner has “permitted any person other than an authorised occupier to reside or stay”
in the flat, where the owner or authorised occupier has been convicted of an offence of “killer litter” or harbouring
illegal immigrants.
o S 56(3) of HDA:
 Once HDB decides to invoke its powers, it will serve on the owner and all persons interested in the compensation
concerned a written notice stating its intention to acquire and indicating the compensation that it will pay.
 When HDB compulsorily acquires the property, it pays the owner a price that is below market value. The owner is not
permitted to sell his flat in the open market.
o S 56(6) HDA:
 Allows for appeal to the Minister, and provides that the decision of the Minister shall be final and not open to review or
challenge on any ground whatsoever.
 “Authorised occupier” = refers to a person who is named in an application made to the HDB as the person who intends to
reside in the flat or a person who is authorised in writing by the HDB to reside there
o Wong Yip Pui v HDB [1983-1984]
 S 48A of H&D Act allows the HDB to compulsorily acquire an HDB flat if any authorised occupier “acquired whether by
operation of law or otherwise any title to or an estate or interest in any other flat, house or building or land”.
 The phrase “authorised occupier” refers to a person named in an application made to HDB as the person who intends
to reside in the flat or a person who is authorised in writing by HDB to reside there.
 However, in the instant case, the plaintiff’s son (who had purchased private property) was not an authorised occupier
under s 48A as there was no person named in the application made to HDB, nor any authorisation in writing by HDB.

COMPENSATION -

 Section 56(8) HDA: Compensation shall be determined by the Board.

o From HDB website: Compensation payable is based on either the original selling price, or the prevailing posted price of the
flat, whichever is higher, but in any event the sum must not exceed the market value of the flat.
o Compensation money will used to off-set the mortgage loan and other moneys owed to the HDB and Town Council and
any balance is paid into the errant owner's CPF account, if he had used his CPF funds to purchase the flat.

PUNISHMENT:

20
 Lies in the loss of the market value of his flat, being barred from HDB housing for five years and being liable to be charged
for an offence under section 61 of the HD Act which is punishable with imprisonment or a fine.
 Where the covenant breached is that of subletting, unless he has been declaring the rental received to the tax authorities,
he would be also be liable for tax offences.

21
6. JUDICIAL REVIEW OF COMPULSORY ACQUISITION

PROCEDURE

 S 56(3): When HDB intends to exercise compulsory acquisition, it will serve a notice in writing stating its intention to
acquire the premises and the compensation to be paid after.
 S 56(4): The owner has 28 days to lodge with the Board his objection to the proposed acquisition or to the quantum of
compensation after the service of the notice
 S 56 (5): The Board, after considering the objection, may allow or disallow it in whole or in part
 S 56(6): The Board's decision shall be communicated to the owner, who then has a further 28 days to appeal to the
Minister. The Minister's decision shall be final and is not open to any review by the courts.
 S 57: Where the decision to compulsorily acquire has been made, the Board shall lodge with the Registrar of Deeds and
Titles an instrument vesting the interest in the Board. On registration of this instrument in the land register, the interest
shall vest in the Board freed from all encumbrances.

Notwithstanding s 56(6), HDB’s decision could still be challenged by way of judicial review –

 Notwithstanding s 56(6), HDB’s decision could still be challenged by way of judicial review
o Per Ah Seng Robin v HDB [2015] (SGCA)

Facts  Owner had an HDB flat in Bukit Batok  declared that he had rented out 2 out of 3 rooms of a HDB for $2K
 There was a tip off that the owner instead stayed in a condominium and tenanted all the rooms of the HDB
flat and was not staying in the HDB flat
o The tenant was the one occupying the whole HDB flat.
 HDB hence investigated  served notice of its intention to compulsorily acquired the flat  invoking s
56(1)(h) HDA
 S 56(1)(h) HDA: “The Board may compulsorily acquire any flat, house or other living accommodation sold
subject to the provisions of this Part, whether before or after 2nd June 1975 ... if the owner thereof
assigns, underlets or parts with the possession of the same or any part thereof without obtaining the
prior written consent of the Board as required by the lease …
 HDB subsequently compulsorily acquired the flat
o Owner appealed to Minister for National Development (1st stage of appeal)  but owner’s appeal was
rejected
 Owner subsequently applied for quashing orders of the HDB’s and the Minister’s decision

Principl  The challenge to compulsory acquisition was precluded, because it was not taken within 3 months of the
e Minister’s decision (O 53 r 1(6) of the RC provides a time bar for judicial review).
o The HDB’s decision to acquire could be challenged if it was illegal, irrational or tainted with procedural
impropriety.
 Plaintiff failed at establishing HDB’s decision was illegal, irrational or tainted with procedural impropriety

Held  Considered that HDB’s decision could be challenged if it was shown that it was illegal, irrational, or tainted
with procedural impropriety
 However, on the facts, HDB’s decision was not illegal, irrational or tainted with procedural impropriety
o HDB invoked s 56(1)(h) – parting with possession
 Held: HDB’s decision was not illegal, irrational or tainted with procedural impropriety.
 This was because on the facts, the HDB owner was indeed not staying there, and had parted with

22
 possession

7. TOWN COUNCIL

 The Town Council manages and improves “common property” in HDB estates, much like a MCST in strata title properties.
o The HDB owns the common property of the housing estates.
 S 2 of H&D Act defines “common property” as “so much of the developed land and all parts of the building as are not
comprised in the flats in a building” and “developed land means any land of the Board upon which a building has been
erected”.
o Under the Town Councils Act, the town councils manage and improve the facilities offered and the common property.
 Town councils are designed to give Singaporeans the chance to decide for themselves the kind of environment they
prefer and participate in the day-to-day management of their estates.
 Thus, town councils are “an important nation building mechanism to help Singaporeans forge stronger community and
identity.”
o S 53(1) of Town Councils Act provides that on the establishment of a town council, the HDB shall case to be responsible for
the maintenance and management of the common property, notwithstanding the H&D Act and the terms of the lease.
 S 53(2) states that the provisions of the H&D Act and the leases shall continue in force, and HDB shall remain able to
enforce them.

 Duties and powers of the Town Council as listed out in ss 18 and 19 Town Council Act:

 Whether the estate is well run has political significance.

o Attorney-General v Aljunied-Hougang-Punggol East Town Council [2015] (SGCA)

- Tan Sook Yee:

 As owner of the common property and as the institution having the reversionary interest in all the HDB leases, the HDB
remains interested in the standard of maintenance of the common property.
 Officers of the Board inspect the places regularly and give monthly reports on the town councils  may result in situations
where the interests of the parties do not coincide

23