A sitting tenant does not stop you from selling. It changes what you are selling, an occupied asset with an income stream attached rather than a vacant unit, and that needs to be handled properly with your buyer.
The tenancy generally survives the sale
When a tenanted property changes hands, the lease binds the new owner for its remaining term on the terms already agreed with the seller. The new owner cannot cancel the lease or require the tenant to leave simply because ownership changed; the tenant's right to remain runs from the lease itself, which survives completion.
For HDB flats specifically
Subletting the whole flat requires that you have completed MOP and hold valid HDB approval for the arrangement. HDB's resale flat inspection checks for exactly this, unauthorised renovation and illegal subletting are flagged as part of the standard resale approval process. If your subletting was never properly registered with HDB, sort that out before you list, not after.
What to sort out before you list
- The remaining lease term. This tells your buyer, and you, how long until vacant possession is even possible.
- The security deposit. It should transfer from you to the buyer at completion, provided for in the Sale and Purchase contract, so the buyer can return it to the tenant when the lease ends.
- Break or diplomatic clauses. These affect how certain the remaining income and remaining term actually are, disclose them.
Talk to your buyer's side early
Disclose the tenancy upfront through the OTP process, not after an offer is agreed. Whether your eventual buyer wants an investment with income attached or a home to move into themselves determines whether the tenancy is a selling point or a friction point, and that is worth knowing before you negotiate price.
Frequently asked questions
Does the buyer have to keep my tenant?
Generally yes, for the remaining term of the lease. The lease binds the new owner, and vacant possession timing follows the lease end date, not the sale completion date.
What happens to the tenant's security deposit when I sell?
It should be transferred from you to the buyer at completion, with the Sale and Purchase contract providing for this, so the buyer can return the deposit to the tenant when the lease eventually ends.
Selling a tenanted flat and want it handled cleanly?
Winfred checks your HDB subletting approval status, reviews the tenancy agreement, and structures the disclosure so your sale runs without surprises.
Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Rates and rules reflect the position as at 5 Aug 2026; verify current figures with IRAS, HDB, or MAS before making any decision.