Buyer caught in 99-1 property deal drops lawsuit against agent, ERA and law firm
A home buyer in Singapore withdrew his lawsuit against a property agency, agent, and law firm related to a '99-1' property transaction intended to evade stamp duty.Summary
A Singaporean home buyer, Mr. 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. Mr. Lim had sued, seeking $180,945 in damages after being penalized by IRAS for attempting to avoid Additional Buyer’s Stamp Duty (ABSD) through the arrangement, where his father purchased 1% of the property. He alleged misrepresentation by the agent regarding the legality of the scheme and negligence by the law firm in failing to advise him of the risks.
ALC was previously penalized by the Ministry of Law for anti-money laundering breaches related to a $3 billion money laundering case. The defendants denied wrongdoing, with ERA and Mr. Chan stating they did not provide legal or tax advice, and ALC asserting they only handled conveyancing and warned Mr. Lim about IRAS’s powers. They argued the duty of care rested with other parties.
Ultimately, Mr. Lim discontinued the action, 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 reducing ABSD payments, highlighting the legal risks associated with such arrangements and increased scrutiny from regulatory bodies.
(Source：Google News)