I have applied for a 3 Gen flat under parent-child scheme, must my parents sell their existing flat in order for me to get the 3 Gen flat? I heard that 3 Gen flat cannot sublet out. I know cannot rent out new BTO for the first 5 years but subsequently can sublet?

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Don't need to sell. As long your parents stay in the house you apply will do. They do not need to sell the house.

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Home Just Mums i have applied 3 gen flat under parent child scheme must parents sell their existing flat in order get 3 gen flat i heard that 3 gen flat cannot sublet out i know cannot rent out new bto first 5 years but subsequently sublet