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Friday, April 30, 2010

Getting tough on HDB resale exploiters

LICENSED moneylenders who exploit HDB resellers are advised to curb their activities: The Ministry for National Development (MND) is keeping a close watch on you.

In Parliament yesterday, National Development Minister Mah Bow Tan said: “HDB flats are not meant for short-term profit-taking. They are not meant to be used as collateral for loans, whether to legal or illegal moneylenders.”

He was referring to the unscrupulous practice whereby credit companies work with real- estate agents who connect them with homeowners – for a fee.

A legal loophole allows moneylenders to file a caveat on a flat, which means that they get first bite of profits when the flat is sold.

Mr Mah added that existing measures are inadequate to deal with the problem. He was responding to questions from Madam Halimah Yacob (Jurong GRC), who asked about the MND’s move to regulate real- estate agents more tightly.

Since 2007, the Inland Revenue Authority of Singapore, which licenses real-estate agencies, has received a total of 154 complaints against errant agents.

The MND is also considering “strengthening the regulatory framework…and to raise professional standards in the industry”, the elements of which will be announced “shortly”, said Mr Mah.

However, Madam Halimah pointed out one major loophole which may prevent errant agents from being reported.

“If you are the real-estate agency, I think there will be less reason for you to find fault with your own agents, because that will affect your name.”

Source : AsiaOne – 28 Apr 2010
Singapore Property

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