During the MOP period, the owner cannot sell, rent out the entire flat or invest in private housing during that five-year period, either directly from the HDB or through the resale market.

But what are the penalties for disregarding these rules? When can HDB issue a compulsory repossession order? Can homeowners appeal?

At the end of last year, in response to a query from 8TV News, the HDB revealed that it was aware of vacant pre-owned HDB flats being offered for sale in the open market, including cases reported in the media. One such case was a pre-purchased HDB flat in Yishun, which was sold after being vacant for eight years.

From January 2017 to November 2022, a total of 53 HDB flats were subject to enforcement action by the HDB for failure to physically occupy the flats during the minimum residence period. 21 of the flats were compulsorily repossessed, while the rest faced fines or were issued with written warnings.

MediaCorp English News Network (CNA) reports that under the Ordinance, the HDB can compulsorily repossess a flat if the owner or his or her spouse no longer lives in the flat.

The flat may also be repossessed if it is used for purposes other than those specified in the lease, without written approval from the HDB.

If the owner allows someone other than the authorised occupant to live in the HDB flat, it may also be repossessed.

Owners who provide false or misleading information in their applications or at the time of purchase may also have their flats forcibly repossessed by the authorities.

Those homeowners who rent out their flats or part of their flats without prior permission from HDB may also face enforcement action and HDB may also repossess the vacant flats left by their owners.

HDB can also repossess flats if the owner is no longer a Singapore citizen or permanent resident.

The law also provides that HDB may compulsorily repossess a flat if the rent or any payment remains unpaid for three months after it has become due and the authority has served a written notice on the owner.

If the owner does face circumstances that prevent him or her from living in the flat during the minimum period of residence, such as divorce or separation, medical reasons or being posted overseas for work, he or she should write to the HDB to seek exemption. The authorities will assess each case on its own merits.

What is the next step after a compulsory repossession order is issued?

When the HDB intends to compulsorily repossess a flat, a written notice must be sent to the owner.

After the notice has been served, the owner must remove their belongings within 30 days. Under the law, if the HDB is objected to or obstructed in the repossession of a flat, the authority may take the necessary measures, including calling the police to evict the occupants.

If the owner fails to remove their belongings from the flat, the HDB may throw them away or sell them. The repossessed flats will be sold in the Sale of Balance Flats (SBB) campaign.

Will there be any compensation?

When a flat is compulsorily repossessed, HDB determines the amount of compensation.

In response to a query from the CNA, HDB said that its compensation policy in such cases takes into account various factors such as the severity of the infringement and the circumstances of the case, as well as the administrative holding costs of the repossessed flat.

"This policy ensures that flat owners who violate the rules do not enjoy undue financial benefits." The amount of compensation awarded by the Minister of National Development may vary following the filing of an appeal under the Act.

What is the appeal process?

An owner who objects to the compulsory repossession of a flat or is dissatisfied with the compensation may write to HDB within 28 days of the service of the notice.

HDB must consider the grounds of objection and respond to the owner by written notice.

If the owner is dissatisfied with the HDB's decision, they may submit an appeal to the Minister of National Development within 28 days of the service of the authority's decision.

Under the Act, the Minister's decision is final and cannot be reviewed or challenged on any grounds.

How does HDB investigate? What are the penalties?

HDB conducts about 500 inspections per month to check for breaches of housing rules, such as illegal renting of flats.

Flat owners or anyone living in a flat must allow officers access to the flat. Depending on the severity of the breach, HDB may issue a written warning, impose a fine of up to $50,000, or take the flat back from the owner.

Last month, National Development Minister Lee Chee San told Parliament that disciplinary action was taken against 18 estate agents who helped clients market HDB flats that did not meet the minimum residence requirement between 2017 and 2022.

They are 18 of the 51 cases investigated by the Council for Estate Agencies (CEA) in those years, which involved a total of 69 estate agents. 32 investigations have been completed and 19 are still under investigation.

Of the 18 real estate agents found to have breached the code of ethics, six were suspended from registration for between seven and 48 weeks and fined between $2,000 and $5,000.

The authorities issued letters of reprimand to two real estate agents, while one of them was also fined $1,000. The remaining ten real estate agents received letters of warning.