HDB RESALE FLATS

HDB RESALE FLATS

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(Information on loanshark activity for prospective buyers): **

20.

Mr Zaqy Mohamad asked the Minister for National Development (a) whether HDB will consider allowing prospective buyers of resale flats to request for information pertaining to police reports made of loan shark activity for the flats they intend to purchase; and (b) what measures are in place to protect prospective resale flat buyers from sellers who suppress information which may affect the security and safety of the next owner.

Mr Mah Bow Tan: Prospective resale flat buyers should exercise due diligence, and check on the flat attributes carefully before making a purchase. They can also check with neighbours of the flat they are buying whether there were previous harassment incidents. In the case of loan shark harassments, the fact that a Police report was lodged does not always mean that the flat owner is a debtor. According to the Police, there are cases where harassment was targeted at multiple households to pressurise the real debtor to pay up.

The National Registration Act already requires Singapore residents to report their change of address to the Singapore Police Force (SPF) or the Immigration and Checkpoints Authority (ICA) within 28 days. In addition, HDB and the Police have worked together to prevent such persons from falsely reporting a change of address, or from hiding behind the address of an innocent household. HDB requires flat sellers to provide forwarding addresses. Lessees who sublet bedrooms must also register with HDB within seven days. These measures facilitate the Police's tracing of individuals involved in illegal borrowing. With the amendment to the Moneylenders Act in January 2010, borrowers who deliberately provide false addresses face imprisonment for up to a year.

Flat owners who face harassment by loan sharks should make a Police report. The Police will take appropriate action based on the circumstances of the case.

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