Buyer caught in 99-1 property deal drops lawsuit against agent, ERA and law firm
A homebuyer in Singapore withdrew a lawsuit against a property agency, agent, and law firm related to a '99-1' property transaction designed to avoid stamp duty.Summary
A Singaporean homebuyer, Lim Yuan Zhang, has dropped his lawsuit against ERA Realty, its salesperson Jeremy Chan, and Anthony Law Corporation (ALC) concerning a “99-1” property transaction. Lim had sought S$180,945 in damages, alleging misrepresentation and negligence related to the arrangement, which aimed to reduce Additional Buyer’s Stamp Duty (ABSD) by having his father purchase 1% of the property. He claimed Chan misrepresented the legality of such transactions and that ALC failed to adequately advise him on the risks.
ERA and Chan denied providing legal or tax advice, asserting their role was solely as agents for the developer. ALC argued it only handled conveyancing and warned Lim about the tax authority’s powers to disregard such arrangements. The firm was previously penalized by the Ministry of Law for anti-money laundering breaches in connection with a S$3 billion money laundering case.
Lim discontinued the action in November, with each party bearing its own costs. This case is part of a series of lawsuits involving property agents and '99-1' transactions aimed at avoiding ABSD, highlighting the legal risks associated with such arrangements and increased scrutiny from authorities.
(Source：Google News)