Finally! And I thought it’s going to take them long enough to realize that sometimes even the level which is suppose to be the most just and neutral party might just give you the most problematic issues.
Ministry of Law has came up with a proposal that might allow an entity to be the stakeholder instead of the law firms that are in charged of conveyance of the intended property. The two suggestive was either the local banks or the Singapore Academy of Law to be the possible candidate in the process.
This move is to prevent lawyers who has ill-intention to abscond their clients deposits. The most common property conveyancing involves in lawyer holding deposits is via the option to purchase method to purchase a property.
The usual conveyancing process involves the buyer to pay the seller a option money (usually 1%) and have a exercise money (4% or more, depending on the cash or what the option conditions were) which is to be held by the lawyer as stated in the option; The law firm will safe-keep the deposit (as stakeholder cheques are usually issued to the firm’s name). Upon the completion date of the property, the lawyer will then release the stakeholder’s sum together with the rest of the balance amount due to the seller.
You’ll feel much safer now when the deposits are addressed to an authority assigned department. This change is likely to happen by the end of the year.