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Thread: Couple sue law firm after losing $100,000 in bogus property deal

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    Default Couple sue law firm after losing $100,000 in bogus property deal

    http://www.straitstimes.com/archive/...-deal-20130115

    Couple sue law firm after losing $100,000 in bogus property deal

    Published on Jan 15, 2013

    By Selina Lum


    A MARRIED couple who were conned out of more than $100,000 in a property deal are suing a law firm which they blame for their loss.

    Mr Chu Said Thong, an oil company executive, and Madam Theresa Theen, a housewife, had paid the money to a man who claimed he held an option to purchase a house in Jalan Berjaya in Bishan.

    The option turned out to be bogus - the owner of the property, a bed-ridden woman in her 80s, had not granted anyone an option to buy her house.

    The couple claim they would not have entered into the deal had it not been for what they say were misrepresentations by a Vision Law employee.

    The couple, represented by Mr Adrian Tan, are seeking compensation of the sum they paid - $105,200 - plus damages. They say that as a result of Vision Law's actions, they could not enter the property market for months and, by the time they got back in, prices had gone up steeply.

    But Vision Law, represented by Senior Counsel N. Sreenivasan, contends that the couple did not take sufficient care, such as getting their own lawyers to make checks. The case opened in the High Court yesterday for a three-day hearing.

    In September 2010, Madam Theen answered an advertisement offering an old bungalow in Bishan for sale.

    After speaking to the advertiser, a man named Steven Sim, who claimed to be a property agent from DTZ Debenham Tie Leung, the couple viewed the house from the outside.

    Mr Sim told them the option to purchase was held by one Victor Tan, who bought it from the house owner.

    Mr Sim said that Mr Tan wanted $35,200 for the option - 1 per cent of the purchase price of $3.52 million - plus a "goodwill" sum of $70,000.

    He added that the house owner had appointed Vision Law to act for her.

    The couple met Mr Sim's assistant Lucas Ong, who showed them the purported option, which named Vision Law as the seller's lawyer. Mr Chu phoned Vision Law and spoke to employee Susan Chua. Mr Chu claimed she confirmed that Vision Law acted for the seller and that the seller had issued the option to Mr Tan.

    As a result, he said he felt reassured that there would be no problem buying the option from Mr Tan.

    However, Ms Chua, said to be a conveyancing secretary, said she merely told Mr Chu that the law firm had received a copy of an option naming it as the seller's lawyer.

    After the call, Mr Chu made out a cheque for $105,200 to Mr Tan and the couple later exercised the option at their own lawyer's office.

    Two weeks later, their lawyer told them others had seemingly exercised options to buy the property.

    A shocked Madam Theen phoned DTZ but was told that neither Mr Sim nor Mr Ong was with the company.

    The couple have made a police report but no arrests have been made. The pair eventually bought a house nearby for $8 million.

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    But how do we prevent this from happening? To me, the buyer, seller, vision law are the victims. The agent and the bogus option flipper are the offenders.

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    Quote Originally Posted by thomastansb
    But how do we prevent this from happening? To me, the buyer, seller, vision law are the victims. The agent and the bogus option flipper are the offenders.
    Is the legal position clear that you can "buy" an option from another buyer given that an option is a contract between seller/owner and the first buyer? That once a buyer exercise an option, he will lodge a caveat against the intended property to protect his right of purchase.
    hungry eat sleepy sleep

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    Quote Originally Posted by thomastansb
    But how do we prevent this from happening? To me, the buyer, seller, vision law are the victims. The agent and the bogus option flipper are the offenders.
    When the deal is too good to be true, it is usually bogus.
    Really got such gd deal, agent will take first lor
    Simple logic

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    I mean in this case, they have not reach the caveat stage yet. Legally, it is alright to give the OTP for another person to exercise because OTP can have &/or nominees. We call it flip option. But I am thinking, how do we even prevent others from issuing options in our name? I can just do a title search and sell an option that is under Mr. ABC. If that unit costs 3 million, I just pocketed 30k + whatever flipped amount I ask for.

    Imagine this:- a landed house belonging to Mr. ABC costs 3.5 million. I issue an OTP from Mr. ABC to myself at 3 million. And I flip it on the market for 100k. So that property is selling at only 3.1 million (a 400k discount). I will pocket 100k + 30k = 130k instantly from anyone who buy this bogus option.

    So how would anyone who buy a flipped option know if the real owner has issued an OTP? Unless you knock on the door lah.




    Quote Originally Posted by acidic.straw
    Is the legal position clear that you can "buy" an option from another buyer given that an option is a contract between seller/owner and the first buyer? That once a buyer exercise an option, he will lodge a caveat against the intended property to protect his right of purchase.

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    Quote Originally Posted by thomastansb
    So how would anyone who buy a flipped option know if the real owner has issued an OTP? Unless you knock on the door lah.
    True. Face to face with owner is safest....but how do you know he is real owner? Check IC? LOL
    hungry eat sleepy sleep

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    "Mr Chu Said Thong, an oil company executive, and Madam Theresa Theen, a housewife"

    Stays in a 8 million dollar house.......IRAS will interview them soon......

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    Quote Originally Posted by darkseed73
    "Mr Chu Said Thong, an oil company executive, and Madam Theresa Theen, a housewife"

    Stays in a 8 million dollar house.......IRAS will interview them soon......
    can be chief executive eh......

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    "The option turned out to be bogus - the owner of the property, a bed-ridden woman in her 80s, had not granted anyone an option to buy her house."

    buyer got case meh ??...
    questions:
    - 1st, why so stupid to pay 100K option ?? when only 35+K needed ??....
    - 2nd, 100K cheque pays to who ??...


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    Quote Originally Posted by ikan bilis
    "The option turned out to be bogus - the owner of the property, a bed-ridden woman in her 80s, had not granted anyone an option to buy her house."

    buyer got case meh ??...
    questions:
    - 1st, why so stupid to pay 100K option ?? when only 35+K needed ??....
    - 2nd, 100K cheque pays to who ??...

    think is a flipped option?

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    Quote Originally Posted by august
    think is a flipped option?
    oic... now i know why...

    but think buyer still boh case lah... not legal firm fault...

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    Quote Originally Posted by thomastansb
    I mean in this case, they have not reach the caveat stage yet. Legally, it is alright to give the OTP for another person to exercise because OTP can have &/or nominees. We call it flip option. But I am thinking, how do we even prevent others from issuing options in our name? I can just do a title search and sell an option that is under Mr. ABC. If that unit costs 3 million, I just pocketed 30k + whatever flipped amount I ask for.

    Imagine this:- a landed house belonging to Mr. ABC costs 3.5 million. I issue an OTP from Mr. ABC to myself at 3 million. And I flip it on the market for 100k. So that property is selling at only 3.1 million (a 400k discount). I will pocket 100k + 30k = 130k instantly from anyone who buy this bogus option.

    So how would anyone who buy a flipped option know if the real owner has issued an OTP? Unless you knock on the door lah.
    After CM1 to CM7, ABCDEFGH..can still flip? haha...no more flippers already

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    Adrian Tan?.... The Teenage Textbook?

    ... hahaha... finally doing some real lawyer's work.

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    Quote Originally Posted by darkseed73
    "Mr Chu Said Thong, an oil company executive, and Madam Theresa Theen, a housewife"

    Stays in a 8 million dollar house.......IRAS will interview them soon......

    Oil trader at BP. He can buy the $8m house in cash, bro.

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    Quote Originally Posted by eng81157
    can be chief executive eh......
    BP chief executive can buy the Istana in cash, bro.

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