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Jul 21, 2010
Don't sell flat for funds
His comments come a day after law is passed to close loophole exploited by moneylenders
<!-- by line -->By Jessica Cheam
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Mr Mah (above) noted that although there was nothing to stop owners from selling their flats prematurely to raise funds, public education was crucial in explaining to people why they should not do so. -- ST PHOTO: DESMOND LIM
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HOME owners desperate for cash should look at other options to raise the funds rather than resort to selling their flats, National Development Minister Mah Bow Tan said on Tuesday.
'They will have to find other sources of funds as... the whole (home ownership) scheme was designed to provide affordable, good quality homes for them, not to use that as a collateral or source of funds for other uses - whether for business or other things,' he said.
Mr Mah's comments came a day after a housing Bill was sped through Parliament and passed to close a loophole which had allowed moneylenders to lodge caveats on HDB flats to claim a stake in sale proceeds.
In the past year or so, there has been a spike in the number of moneylenders who exploited a legal loophole that allowed them to file caveats. This was the reason the Bill had to be passed urgently, said Mr Mah on Tuesday.
He noted that although there was nothing to stop owners from selling their flats prematurely to raise funds, public education was crucial in explaining to people why they should not do so.
'We've always been telling people to be prudent, 'don't sell your flat unless you have alternatives'... that's always been our message.
Read the full story in Wednesday's edition of the Straits Times.
Don't sell flat for funds
His comments come a day after law is passed to close loophole exploited by moneylenders
<!-- by line -->By Jessica Cheam
<!-- end by line -->
<!-- end left side bar -->
<!-- story content : start -->
HOME owners desperate for cash should look at other options to raise the funds rather than resort to selling their flats, National Development Minister Mah Bow Tan said on Tuesday.
'They will have to find other sources of funds as... the whole (home ownership) scheme was designed to provide affordable, good quality homes for them, not to use that as a collateral or source of funds for other uses - whether for business or other things,' he said.
Mr Mah's comments came a day after a housing Bill was sped through Parliament and passed to close a loophole which had allowed moneylenders to lodge caveats on HDB flats to claim a stake in sale proceeds.
In the past year or so, there has been a spike in the number of moneylenders who exploited a legal loophole that allowed them to file caveats. This was the reason the Bill had to be passed urgently, said Mr Mah on Tuesday.
He noted that although there was nothing to stop owners from selling their flats prematurely to raise funds, public education was crucial in explaining to people why they should not do so.
'We've always been telling people to be prudent, 'don't sell your flat unless you have alternatives'... that's always been our message.
Read the full story in Wednesday's edition of the Straits Times.
