The legal completion (second appointment) denotes the buyers as
the rightful owners of the flat, and they have to update their
addresses on their ICs to open utilities and other related
accounts. Although the seller is required by law to update his
address within 28 days, the system does not ensure that this is
followed through.
This leads to problems such as loan sharks harassing the new
owners for debts owed by the previous owners. Also, some sellers
cash in their flats during property booms without thinking through
how they are going to secure alternative housing, and end up in
dire straits.
The usual time span between the first and second appointments
for a resale transaction is six to eight weeks. There is enough
time for sellers and anyone else living in the house to update
their particulars at any neighbourhood police post. Even if they
have not found a permanent abode, they could update their
particulars using their temporary addresses, supported by documents
attesting to that.
On the completion of sale, the sellers should be asked to
provide documentary proof of having changed their address (as well
as that of all others living in the house) in order to receive the
proceeds from the sale.
While this will not eliminate all problems, it is fairer to the
buyers. They can at least rest assured that the previous owners
will not be using their address and implicating them in any illegal
acts.
Should any loan shark harassment occur even after that, it is
not difficult to track down the original borrower as the new
address of the previous owner will already be on record.
It will also hopefully ensure that sellers think through their
future options before committing to the sale of their flat.
This suggestion is fair to both buyers and sellers and can be
implemented almost immediately.
Purchasing a flat should be a joyous occasion and should not be
marred by loopholes when they can be fixed easily.
Tan Huat Yong