For purchasing a restricted residential property on behalf of a foreigner, the 49-year-old Singaporean, Song Fanrong, could be imprisoned for up to three years, fined by up to $100,000, or both.
A Singaporean woman admitted to acquiring three semi-detached properties for three foreign friends, with the intent of transferring ownership once they secured Singapore citizenship, reported Channel News Asia (CNA).
Song Fanrong pleaded guilty on Tuesday (14 December) to one charge under the Residential Property Act of acquiring a restricted residential property on behalf of a foreigner.
Two similar charges for the two other properties will be considered in sentencing.
The court heard that the 49-year-old Singaporean got to know Chinese national Wang Chen in 2013. Wang had told Song of his intent to emigrate to Singapore and own a residential property within the city-state. With this, Song recommended an estate called Belgravia Villas.
Developed by Fairview Development, Belgravia Villas is a freehold cluster housing estate within the Seletar and Yio Chu Kang area. Under the Residential Property Act, Belgravia Villas is classified as not being a non-restricted residential, noted Deputy Public Prosecutor Hon Yi.
Song offered to purchase the property on Wang’s behalf since a foreigner like him is not eligible to acquire it. The property’s ownership will be transferred to Wang once he obtained Singapore citizenship.
Related article: What You Need to Know if You’re Buying Property in Singapore as a Foreigner
Wang accepted the offer and signed an agreement with Song, which stated that she was merely a trustee and that he is the actual owner of the property.
He transferred $1.8 million to Song’s bank account in China.
In September 2014, Song entered into a sales and purchase agreement with Fairview Development for a unit at Belgravia Villas costing about $3.48 million. She used the $1.8 million as partial payment for the unit.
That same year, she also acquired two other units in Belgravia Villas for two other foreigners. One of them – Chinese national Chen Xiaopu – was charged in court.
When the three Chinese nationals stopped paying for the properties, all three agreements went into default.
In August 2017, the Commercial Affairs Department (CAD) received a report about Song from the Singapore Land Authority, stating that she had acquired four semi-detached units at Belgravia Villas.
Following the default on the agreement, the developer deducted the contractual penalties from the sums already paid by the foreigners through Song. Thereafter, the rights of Song and the three foreigners were extinguished, while the developer surrendered the remaining $1.6 million. CAD seized the amount in January 2018.
Deputy Public Prosecutor Hon Yi sought one month’s jail for Song, underscoring that she was the one who suggested acquiring the properties on behalf of the foreigners and that freehold and landed properties are prized by many.
“Such properties generally hold their value well, and often appreciate over time. Apart from providing homes for people, it is also known that property is a good investment … we thus have laws in place to keep foreigners from buying up, and possibly speculating in, land in Singapore,” he said as quoted by CNA.
Meanwhile, defence lawyer Alain Abraham Johns pointed that Song had no intention to profit from the transactions.
“Where the three foreigners are concerned, all three foreigners intended to apply for Singapore citizenship, that was their intention … the properties were to be transferred back to them once they became Singapore citizens,” he said as quoted by CNA.
“There was no dishonesty on the part of the accused. She was merely assisting the three foreigners, who were her friends.”
For purchasing a restricted residential property on behalf of a foreigner, Song could be imprisoned for up to three years, fined by up to $100,000, or both.
Chen may also be imprisoned for up to three years, fined by up to $100,000, or both.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
