Owners fined $45,000 by HDB for violating HDB leasing rules

In one of the cases, an HDB couple had lived there for just three years and wanted to purchase a private property even though their HDB lease was only for two years.

The agent advised them to buy the additional property on trust in order to give it to their infant child. The agent assured them this was not a violation of HDB regulations because the child will be the beneficial owners of the additional home.

Owners should always check relevant rules and regulations when dealing with a valuable item. Otherwise, they may be misled by agents that do not perform their due diligence.

HDB has caught approximately 150 flat owners investing in private houses, even though they have lived in the flats that they own for less than 5 years.

Most people were either unaware or misinformed by estate agents who told them that they could buy properties under trust schemes as long as they didn’t intend to use the property themselves.

As these cases illustrate, you may end up paying high prices if you’re caught doing things that could be avoided had you bothered to check yourself.

Newport Residences freehold mixed development

The agent’s failure to do his job and run his business with diligence was proven when he told the couple incorrectly that they could buy an extra property on trust for the child during the MOP.

He was sentenced to six months of suspension and was ordered by the court to pay $10,000 in penalties and legal costs.

The couple had no idea that the agent was giving them incorrect information. HDB’s rules state that a person who is under the MOP, but has not yet purchased a home for themselves or another, cannot purchase a private residence.

Unaware that this was the case, they bought a condominium. The agent was paid half of his sales commission ($7,000) because the developer also hired another agent.

In February 2020 the HDB informed a couple that it had found out they violated the MOP by purchasing a home during the prohibition period. Their flat could be repossessed or they may have to pay hefty fines.

They were eventually ordered to pay a $45,000 penalty, payable as one lump sum via a cashier’s check.

On the websites of the agencies concerned, you can find out more about HDB flats and stamp duties that apply to property investment.

error: Content is protected !!