SOLICITORS' SCALE FEES FOR CONVEYANCING (Retention)

Mr Heng Chiang Meng asked the Minister for Law what are the reasons for retaining the solicitors' scale fees for legal work relating to conveyancing.

The Minister for Law (Prof. S. Jayakumar): Mr Speaker, Sir, the reason for retaining the solicitors' scale of fees for conveyancing is to protect the public who are clients of lawyers in property transactions. With the system of scale fees, the client can be sure that the fee is not arbitrary and is determined on the basis of a common criterion. It also prevents over-charging and avoids disputes between solicitors and clients in relation to conveyancing work.

Mr Heng Chiang Meng (Cheng San GRC): Sir, may I ask the Minister for a review of the current system of standard pricing for conveyancing matters. In this review, Sir, may I also ask the Minister to consider allowing para-legal persons, other than solicitors, to handle conveyancing matters, particularly with regard to titles registered with the Registry of Land Titles and Deeds which, I understand, constitute the majority of real estate titles in Singapore, and the competition will make sure that there will be no over-charging.

Prof. Jayakumar: Mr Speaker, Sir, on his first point concerning the review, I will be happy to refer this to those who are now charged under the Legal Profession Act with administering the scale. Under the Legal Profession Act, the decision on the scale fees is entrusted to a statutory committee comprising the Chief Justice, the Attorney-General, the President of the Law Society, and two solicitors nominated by the Law Society. I will be happy to refer this matter to them and also to discuss with the Law Society the arguments for a review.

As to his other point of allowing non-lawyers to do certain kinds of conveyancing, I am aware that in certain countries they have allowed banks and other agencies to engage in such work. Whether this can be done in Singapore or not, I think, needs careful consideration. The primary consideration must be the interest of the public who will be the clients and who will be the potential vendors or purchasers. We must also bear in mind that conveyancing is a highly specialised and indeed technical area of the law. But I would not like to preclude or pre-empt the decision to be taken on this. It has been done in other countries, perhaps it can be done here. But I would like to discuss this with the members of the legal profession and I assure the Member that I will take this up.

Mr Chiam See Tong (Potong Pasir): Sir, there are large transactions of resale of HDB flats. I wonder if the Minister is willing to look into the scale fees in relation to the resale of HDB flats. At the moment, I believe the lawyers in the HDB are charging a rate which is very much below the present scale fees for private properties. I wonder whether the Minister can look into this area and have a set of scale fees which is perhaps lower than the scale fees relating to private property but slightly above that of the HDB rate because there are many ---

Mr Speaker: Mr Chiam, are you making a speech? Can you ask your question?

Mr Chiam See Tong: --- lessees of HDB flats who would like to engage their own private solicitors. But the scale fees at the moment are quite prohibitive.

Prof. Jayakumar: The thrust of Mr Heng Chiang Meng's question is diametrically opposite to what Mr Chiam is saying. I am not conversant at this stage with the details of the HDB transactions but I am under the impression that HDB transactions are in fact not governed by the scale fees under the solicitors' scale and that this benefits a large number of Singaporeans who purchase HDB flats. But since he has raised this point, this can also be a matter which I will refer to the committee for consideration.

Dr Wang Kai Yuen (Bukit Timah): Sir, can I ask the Minister whether his reply to Mr Heng to undertake a study regarding the possibility of introducing the non-legal profession into the scheme of conveyancing constitutes a commitment to this House to initiate that particular study.

Prof. Jayakumar: It must follow that when I said that I will review, it will be reviewed.

Mr Heng Chiang Meng: Sir, may I ask the Minister just to reiterate this point. He said that the scale fees are to protect the interest, and that includes the financial interest, of the public, and not to protect the earning capacity of lawyers.

Prof. Jayakumar: It depends on who is looking at it from which way. It can of course be said to also protect the interest of the lawyers in the sense that certain fees are fixed. But in the ultimate analysis, from my point of view, in these matters, it is the interest of the public that is paramount.