New property measures to protect property buyers and sellers were passed in the Parliament on 11th April and are expected to take effect on 1 August 2011.
Under the new rules, lawyers will now be prohibited from holding conveyancing money in their clients' accounts. It will also stop the practice of depositing money from property transactions into law firms' client accounts.
“Lawyers currently hold conveyancing money for practical and important reasons as stakeholders or as agents for their clients who may be overseas or otherwise unable to attend to legal completion,” Law Minister K Shanmugam said in Parliament.
“They perform a valued service within the conveyancing market: these new measures will help enhance public confidence in their role.”
The new law, which amended the existing Conveyancing and Law of Property Act, will also require law firms to open conveyancing accounts in banks appointed by the Law Minister and two signatures from the parties, usually lawyers for the buyers and sellers, are required before funds are withdrawn. In addition, the Singapore Academy of Law (SAL) can also hold the conveyancing money on behalf of the buyers and sellers. Lawyers and law firms who violates the new rules will be fined up to S$50,000 or face imprisonment of up to three months.
“No system can be absolutely secure against a determined criminal who chooses to flout the law. But we have made it more difficult for a crooked lawyer to try to abscond with conveyancing money,” said Mr. Shanmugam.
Under the new rules, lawyers will now be prohibited from holding conveyancing money in their clients' accounts. It will also stop the practice of depositing money from property transactions into law firms' client accounts.
“Lawyers currently hold conveyancing money for practical and important reasons as stakeholders or as agents for their clients who may be overseas or otherwise unable to attend to legal completion,” Law Minister K Shanmugam said in Parliament.
“They perform a valued service within the conveyancing market: these new measures will help enhance public confidence in their role.”
The new law, which amended the existing Conveyancing and Law of Property Act, will also require law firms to open conveyancing accounts in banks appointed by the Law Minister and two signatures from the parties, usually lawyers for the buyers and sellers, are required before funds are withdrawn. In addition, the Singapore Academy of Law (SAL) can also hold the conveyancing money on behalf of the buyers and sellers. Lawyers and law firms who violates the new rules will be fined up to S$50,000 or face imprisonment of up to three months.
“No system can be absolutely secure against a determined criminal who chooses to flout the law. But we have made it more difficult for a crooked lawyer to try to abscond with conveyancing money,” said Mr. Shanmugam.
