ST Forum : Property checks: The authorities have a role too

May 19, 2010

Property checks: The authorities have a role too

IN ITS reply on Monday, ('Do your checks before investing in land abroad'), the Singapore Accredited Estate Agencies (SAEA) gave a good description of the mode of operation of land banking schemes.

The reply described how 200 people lost out on their investments after buying plots of land in rural Britain through a Singapore subsidiary of a company which was shut down by the British government in 2008.

While investors should follow the SAEA advice in making proper checks before investing in property abroad, there is also a need for the relevant agency here to play its part. When the seller knowingly misrepresents a product that is sold to the public, it can be considered as 'cheating'. When this involves a lot of money and many victims, the authority should investigate the complaints and act accordingly. It is hard for the public to be savvy in detecting misrepresentations in documents or advertisements.

We read about similar cases in other countries where there is official redress. There is also adequate media publicity to warn the public about these operations.

The relevant agency here should take appropriate action to prevent more people from being caught in these schemes.

Tan Kin Lian