Conditions of taking over premises from a tenant
You can apply to take over a tenancy of a commercial premises from HDB's existing tenant via assignment.
With effect from 16 Oct 2013, new HDB commercial tenants who have just taken over their premises via assignment are no longer allowed to assign their tenancies. They have to return the premises to HDB if they wish to cease business operation.
The terms and conditions are:-
Proposed Term
- You can opt to takeover the tenancy at either the balance(remaining) term under the current tenant or opt for fresh 1, 2 or 3 year term.
- For fresh term, the proposed rent would be revised to the prevailing market rent or remain at the existing rent, whichever is higher. For balance term, the rent will remain at its existing rate.
Premises Allocated under Specific Trade Conditions
For premises let out for specific trade or use, the proposed trade(s) must comply with the trade conditions specified during tender allocation. For e.g. if the premises is let only for "Office" use, no change of use/trade will be considered.
No rent-free fitting-up period
- No rent-free fitting up period would be given to the new tenant (assignee)
- The assignment of the premises is on a “as-it-is” condition mutually agreed between the existing tenant and proposed assignee
Early Termination
In the event of early termination (due to any reason whatsoever), the proposed tenant shall not be entitled to any compensation or indemnity or ex-gratia payment or grant of any alternative premises or other relocation benefits.
Upgrading Programme
If the premises is included in any Upgrading Programme by HDB, any subsequent revision in rent shall borne by the tenant as at the date of completion of the upgrading works. The revision in rent is based on the improvements in the estate as well as the provision of the Space Adding Item (SAI).
Note :
1For HDB Commercial Complexes, please contact the respective Managing Agents (MA) for more information.
2For HDB Hub, ConnectionONE, Choa Chu Kang Centre and Woodlands Civic Centre, admin fee of $214/- (including 7% GST) for a fresh term of 3 years is applicable.
Renting from a HDB tenant
HDB's tenants of commercial premises are allowed to sublet up to 50% of the trading area or living quarters (for residential use). With effect from 16 Oct 2013, subletting is limited to one sub-tenant. HDB will consider allowing the subletting if:
- tenant has complied with conditions in the Tenancy Agreement during their existing term of tenancy with HDB
- there is no arrears due to HDB by tenant
- tenant is not a bankrupt
- proposed trade of the sub-tenant is an allowable trade and must be operated within the premises.
Proposed Term
- The tenant may opt to sublet part of the premises at either the balance term or fresh 1, 2 or 3 year term.
- For a fresh term tenancy, the proposed rent would be revised to the prevailing market rent or remain at the existing rent, whichever is higher.
- For a balance term tenancy, the proposed rent shall remain at the existing rent.
Sub-tenant's Trade
- For retail shops, both proposed subtenant and tenant should be sharing the shop frontage.
Premises Allocated under Specific Trade Conditions
- For premises let out for specific trade or use, the proposed subtenant's trade(s) must comply with the conditions specified during tender allocation. For e.g. if the premises is let only for "Office" use, no change of use/ trade will be considered.
- The trade of the sub-tenant must not duplicate the trades that are already available in the same cluster of shops
Subletting of living quarters (LQ)
- Tenants are allowed to sublet their LQ to up to 8 persons for residential use. With effect from 7 Nov 06, foreign construction workers (non-Malaysian) are not allowed to be sub-tenants of HDB flats or LQ of our shops.
- Tenants are not allowed to convert their LQ into a worker's dormitory.
- Tenants who wish to sublet their LQ for commercial use are required to submit a written request to HDB for approval before doing so. Upon approval from HDB, they would also need to apply for URA's approval for the change of use.
Admin Fee
- $100 (excluding GST) for balance term
- $200 (excluding GST) for fresh term and Change of Use of Living Quarters to Non-residential use).
Application for Subletting
All application must be submitted online via Online Business Licensing Service (OBLS).
Renting from a HDB sold shop owner
HDB sold shop owners (lessee) may sublet part or their whole shop to subtenants for the operation of approved retail/service trades. There is no application required for the subletting, however for trades that involve no change of use the lessee is to update the details in the My HDBPage. For trades that involve a change in the use class, HDB’s prior consent has to be obtained before applying to the other relevant authorities eg URA for approval.
The lessee is to personally write in to HDB with the details of the proposed use for our evaluation. HDB is not able to liaise directly with the proposed/existing subtenants on matters pertaining to the shop premises.
Note :
For HDB Commercial Complexes, please contact the respective Managing Agents (MA) for more information.
Conditions of buying a shop in Resale market
Lodgement Scheme
Under the new lodgement scheme, lessees who wish to sell their shops only need to lodge or file their resale details via the online application with an admin fee of $100/- (exclusive of GST) from 5 Jul 06.
However the lodgement scheme is not applicable under the following scenarios :
- shops that have not been issued with leases
- there is a need for the lessees to sign a fresh Agreement for Lease with HDB
- exceptional cases which involves a material change of use requiring HDB’s evaluation
- HDB would first assess whether the proposed use will cause any disamenities to the surrounding. Examples of such cases are family restaurants and those who want to change their living quarters to non-residential use.
Request for Inspection Reports
Under this scheme, the shop lessees may choose not to have an inspection of the premises during the resale/transfer application. They may engage their own Qualified Person (QP) or accredited checker (instead of HDB conducting a site inspection) to verify that any alteration and addition works carried out/ to be carried out in the premises meet all statutory requirements.
For this option, both transferors and transferees are required to submit a " Declaration and Undertaking form" (26KB).
For works done prior to 1 Oct 05, they can request for HDB's renovation records/inspection report at a fee of $300/- (exclusive of GST). For works done after 1 Oct 05, they can appoint their own QP to verify that the works done meet BCA/FSSD's requirements.
Application Procedures
Criteria for Application
- You must be 21 years and above at date of application
- If the sellers/buyers are undischarged bankrupts, the consent of the Official Assignee is required for the resale
- Applicants are required to read through the Terms and Conditions
(PDF 94KB)
Supporting documents
- Photocopies of buyers' NRIC
- Latest Business Registration Record from Accounting & Corporate Regulatory Authority (ACRA)
- Company's Resolution (For Pte Ltd Co)
- Letter of Authorisation / Power of Attorney (For Mortgagee Sale)
- Letter of Undertaking for Mortgagee Sale
- Grant of Probate / Grant of Letters of Administration (For Deceased Cases)
- Undertaking for proposed trade as stated in Clause 14 of the Terms and Condition
Application
You can apply for resale/transfer for HDB sold shops premises via Online Business Licensing Service (OBLS). The above application is not applicable to shops in HDB shopping complexes managed by managing agents.
Processing Period
HDB shall inform the applicants of the outcome of application within two weeks where applicable.
Admin Fees
The following table denotes the total fees payable based on the type of application and the options that are chosen eg for Lodgement without inspection an admin fee of $100/- (excl. GST) is charged. For Lodgement with inspection an additional $300/- (excl. GST) is charged for the inspection therefore total fee payable is $400/- (excl. GST).
| Application Type | Admin Fees Payable (Exclusive of GST) | |
 | |
Total
|
Lodgement Scheme
| ||
| Lodgement (Waiver of Inspection) |
$100
|
$100
|
| Lodgement (Request for Inspection) |
$100 + $300
|
$400
|
Application (HDB Processing required)
| ||
| Lease Not Issued |
$500
|
$500
|
| Proposed Trade that require Change of Use | ||
| Change of Use of Living Quarters to Non-Residential Use | ||
| If proposed use of the Trading Area is not in the list | ||
Additional Fees for Transfer of Outdoor Refreshment Area (ORA)
| ||
| Lodgement (Waiver of Inspection) + Transfer of Existing ORA |
$100 + $200
|
$300
|
| Lodgement (Request for Inspection) + Transfer of Existing ORA |
$100 + $300 + $200
|
$600
|
| Application +Transfer of Existing ORA |
$500 + $200
|
$700
|
Undertaking for proposed trade
Unless the proposed trade is already operating in the premises, the proposed trade must commence within two (2) months from the date of the resale/transfer completion. If the proposed trade cannot be confirmed or is subject to tenancy, an undertaking signed by all the transferees is to be submitted. The undertaking should state that the transferees would operate a service/retail trade approved by HDB within 2 months after completion of the resale/ transfer.
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