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Thread: Penalty threat to help HDB effect new rules

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    Default Penalty threat to help HDB effect new rules

    http://www.businesstimes.com.sg/sub/...30340,00.html?

    Published September 4, 2010

    Penalty threat to help HDB effect new rules

    Those found lying about properties abroad face imprisonment, cancellation

    By EMILYN YAP


    THE Housing & Development Board (HDB) will be relying on buyers of non-subsidised flats to declare if they own private properties here or overseas.

    Those found making false declarations will face penalties, which include a fine of up to $5,000, or imprisonment for up to six months, or both.

    HDB shared these details yesterday, in response to questions on how it will enforce new rules introduced this week to cool the residential property market. Key among these are rules preventing people from owning both public and private properties.

    From Aug 30, a person who buys a non-subsidised flat can buy a private property here or overseas only after fulfilling a minimum occupation period (MOP) of five years.

    Also, a private property owner who buys a non-subsidised HDB flat will have to sell his private property within six months of the flat purchase - regardless of whether the property is here or abroad.

    HDB said yesterday that buyers of non-subsidised flats will have to declare their interest in any other property in Singapore or overseas in the application form.

    If the private property is abroad, buyers have to produce documentary evidence showing that they sold the property within the stipulated period.

    Those found guilty of making false declarations will be fined up to $5,000, or imprisoned for up to six months, or both. If HDB discovers the lie before the flat purchase is completed, it can cancel the application. The seller can seek legal redress from the buyer for breach of contract arising from the failed transaction.

    HDB can compulsorily acquire the flat if it discovers the false declaration after the buyer has taken possession of the flat.

    Rules aside, HDB added that it is 'prepared to exercise flexibility on a case-by-case basis depending on the merits of each case'.

    According to HDB, the new rules introduce parity to the treatment of all HDB flat buyers, by subjecting buyers of non-subsidised flats to the same rules for buyers of subsidised flats. The latter are not allowed to concurrently own a flat and a private property either here or overseas within the MOP.

    Most market watchers felt that owners of private property in Singapore would declare their interest when buying non-subsidised flats.

    There are many systems for tracing the ownership of homes locally, said C&H Realty managing director Albert Lu.

    The challenge lies in verifying foreign property ownership. It is either impossible or impractical to do so, said PropNex chief executive Mohamed Ismail.

    Permanent residents who own properties overseas for their parents to live in or who inherit farming land are in a bind, he added.

    ERA Asia Pacific associate director Eugene Lim believes that there will be people who choose to take the risk and make false declarations.

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    http://www.straitstimes.com/PrimeNew...ry_574744.html

    Sep 4, 2010

    Errant flat buyers face stiff penalties

    Lying about ownership of overseas properties could land one in jail

    By Esther Teo


    PEOPLE who buy resale HDB flats face stiff penalties, including jail time, if they make false declarations about other property they own overseas.

    The Housing Board (HDB) said yesterday that dishonest owners could be fined up to $5,000, jailed for up to six months or have their flats compulsorily acquired.

    The penalties are part of sweeping new ownership rules announced on Monday.

    Anyone who buys an HDB resale flat on or after Aug 30 must sell any additional private property - owned here or offshore - within six months.

    Owners of non-subsidised HDB flats are affected as well. If they have not met the minimum occupation period (MOP) of five years, they will not be allowed to buy a private property here or overseas.

    Applicants for an HDB resale flat who own or have an interest in any other property - here or overseas - must declare that interest in their application form.

    If the property is overseas, applicants must show that it has been sold within six months of buying the HDB resale flat.

    Even before the new rules, subsidised flat buyers had to declare that they did not own homes here or abroad. They were also barred from owning an HDB flat and private property - local or overseas - within the MOP as well.

    'To ensure parity in the treatment of all HDB flat buyers, we subject buyers of non-subsidised flats to the same rule with effect from Aug 30 this year,' the HDB said.

    'This helps to reinforce the long-term owner-occupation objective of HDB flats. All flat owners are allowed to buy a private property after their MOP.'

    Breaking the rules could be costly. Making a false declaration could bring fines of up to $5,000 or up to six months in jail.

    If the false declaration is discovered before the sale closes, the HDB can cancel the application and the sellers can seek redress from the buyer.

    If the false declaration is discovered after the sale has been completed, the HDB can compulsorily acquire the flat.

    These penalties are similar to existing ones homeowners face if they are found to own both a private property and a subsidised flat - such as a build-to-order home - concurrently during their MOP.

    The HDB said it will be flexible on a case-by-case basis.

    Experts say that while the penalties will be a deterrent, tracking homes bought overseas during the MOP would be difficult.

    'The world out there is very different from Singapore and the question is how to enforce these rules overseas,' said HSR chief executive Patrick Liew.

    He added that the rules also penalised Singaporeans from capitalising on good investment opportunities overseas.

    A potential home buyer might have to place his $50,000 savings in a bank even though he might be able to invest in real estate in countries like Malaysia or the United States, he said.

    [email protected]

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