{"id":120524,"date":"2021-07-13T02:00:16","date_gmt":"2021-07-12T19:00:16","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-agent-pleads-guilty-to-instigating-another-agent-to-backdate-option-to-purchase\/"},"modified":"2021-07-18T17:02:55","modified_gmt":"2021-07-18T10:02:55","slug":"property-agent-pleads-guilty-to-instigating-another-agent-to-backdate-option-to-purchase","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-agent-pleads-guilty-to-instigating-another-agent-to-backdate-option-to-purchase\/","title":{"rendered":"Property agent pleads guilty to instigating another agent to backdate Option to Purchase"},"content":{"rendered":"


\nBy illegally backdating the Option to Purchase, the buyers were able to pay 10% Additional Buyer\u2019s Stamp Duty, instead of 15%, effectively evading $69,000 in stamp duty fees. Source: Google Maps
\nProperty agent, Mu Shen, has pleaded guilty to one charge of abetting by instigating his co-accused, Loy Thye Wei, into backdating an Option to Purchase (OTP) to evade the newly increased stamp duties\u2014making it the first case of its kind, reported Channel News Asia (CNA).
\nThe court heard that Mu, 50, served as the property agent for co-accused couple Daniel Halim and Lee Liu Ying in 2018.
\nThe couple already owns two properties\u2014an HDB flat in Strathmore Avenue and a condominium in West Coast Crescent\u2014and wanted to purchase a fourth-floor unit at Sandy Palm condominium in Loyang.
\nCourt documents showed that Loy was the property agent that handled this apartment unit for the seller.
\nOn 5 July 2018, the government unveiled new property cooling measures in which it raised the rates for the Additional Buyer\u2019s Stamp Duties (ABSD). With this, rates for Singapore citizens purchasing their third and subsequent property stood at 15% from 6 July 2018, up from 10% for acquisitions made on or before 5 July 2018.
\nThe new measures provided for a transitional remission for residential properties bought on or after 6 July 2018, where the lower ABSD rates applied, subject to certain conditions.
\nMu\u2019s buyers were supposed to pay the increased ABSD since they already owned two properties, and their OTP for the apartment unit had not been granted on or before 5 July 2018, said CNA.
\nSpecifically, Mu\u2019s buyers viewed the apartment for the first time on 7 July 2018 and again on 8 July 2018, when they agreed on the $1.38 million purchase price. However, the couple told Mu that they would only proceed with the deal if the OTP was backdated.
\nKnowing that the buyers wanted to avail of the transitional remission, Mu then instigated Loy to backdate the OTP for the property to 4 July 2018, with the intent of evading the increased stamp duty.
\nThe court heard that the seller was unaware of this scheme.
\nTo add a cloak of legitimacy, Daniel illegally backdated the cheque he issued for the option fee\u2014which was a 1% deposit of $13,800\u2014to 4 July 2018, noted the prosecution.
\nOn 24 July 2018, the couple executed the OTP, paying only the 10% ABSD instead of 15%. They were able to evade $69,000 in stamp duties.
\nMeanwhile, Loy\u2019s commission was raised by the seller from 1% to 1.5% for the successful transaction and for obtaining the $1.38 million selling price.
\nLoy later agreed to share the higher commission with Mu, who has not made restitution.
\nFor omitting information in the OTP with intent to evade duties, Mu can be imprisoned for up to three years, fined up to $10,000, or both. He will return to court for sentencing in August.\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Property agent pleads guilty to instigating another agent to backdate Option to Purchase<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By illegally backdating the Option to Purchase, the buyers were able to pay 10% Additional...<\/p>\n","protected":false},"author":1,"featured_media":120525,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/SANDY-PALM-CONDOMINIUM.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vlW","jetpack-related-posts":[{"id":121803,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/couple-pleads-guilty-to-backdating-option-to-purchase-to-evade-higher-stamp-duties\/","url_meta":{"origin":120524,"position":0},"title":"Couple pleads guilty to backdating Option to Purchase to evade higher stamp duties","date":"September 3, 2021","format":false,"excerpt":"\r Daniel Halim and his wife Lee Liu Ying told their agent to backdate the OTP for a unit at Sandy Palm condo to avoid higher ABSD charges.\u00a0 A married couple, who wanted to purchase a unit at Sandy Palm condominium, pleaded guilty to backdating an Option to Purchase (OTP)\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/SANDY-PALM-CONDOMINIUM.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":122225,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/condo-buyers-agents-jailed-for-backdating-option-to-purchase-to-evade-higher-absd\/","url_meta":{"origin":120524,"position":1},"title":"Condo buyers, agents jailed for backdating Option to Purchase to evade higher ABSD","date":"September 27, 2021","format":false,"excerpt":"\r The buyers, who are a married couple, were sentenced to six weeks\u2019 jail and fined $276,000. The property agent and seller\u2019s agent were handed an eight-week jail term each. A married couple and two property agents were jailed on 24 September for backdating an Option to Purchase (OTP) to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/09\/Man-jailed-crop.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":115484,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/former-property-agent-sentenced-to-jail-for-swindling-client-of-more-than-26000\/","url_meta":{"origin":120524,"position":2},"title":"Former property agent sentenced to jail for swindling client of more than $26,000","date":"April 8, 2020","format":false,"excerpt":"\r Kamsaton Rohani was sentenced to suffer 11 months of jail time after pleading guilty to cheating one of her clients. Former property agent Kamsaton Rohani was sentenced to suffer 11 months of jail time after pleading guilty to cheating one of her clients, making the latter pay for more\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":105903,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/pay-close-attention-to-stamp-duty-when-buying-property-in-hong-kong\/","url_meta":{"origin":120524,"position":3},"title":"Pay close attention to stamp duty when buying property in Hong Kong","date":"April 9, 2019","format":false,"excerpt":"\r I would like to share a case regarding stamp duty liability so as to remind both property agents and consumers of the importance of understanding the types and amount of stamp duty payable before entering into any provisional agreement for sale and purchase.\r\rAn agent introduced an industrial property to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26141,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/former-property-agent-fined-for-handling-clients-money\/","url_meta":{"origin":120524,"position":4},"title":"Former property agent fined for handling client\u2019s money","date":"September 15, 2016","format":false,"excerpt":"\r The cash amounting to $93,000 is the biggest sum involved, revealed the Council for Estate Agencies (CEA). A former property agent was convicted on Wednesday for handling his client\u2019s transaction money amounting to $93,000. Under the Estate Agents Act, it is an offence for property agents to handle any\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":109476,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/watten-estate-condominium-up-for-en-bloc-sale-for-536m\/","url_meta":{"origin":120524,"position":5},"title":"Watten Estate Condominium up for en bloc sale for $536m","date":"July 30, 2019","format":false,"excerpt":"\r Located at Shelford Road, the condominium is nestled on a sprawling 220,234 sq ft site, which is zoned residential with a gross plot ratio of 1.4 and a total allowable gross floor area of 308,341 sq ft.\u00a0After factoring in the additional buyer\u2019s stamp duty, the development is \u201cattractively priced\u201d\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120524"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=120524"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120524\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/120525"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=120524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=120524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=120524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}