New Conveyancing Regime

 

On 11 April 2011, the Minister for Law, Mr K Shanmugam, had announced in Parliament new measures to regulate conveyancing transactions and the receipt, holding and distribution of conveyancing money. These measures, which are expected to come into operation in the third quarter of 2011, seek to provide greater protection for the public and, at the same time, balance the commercial needs of the conveyancing market.

 

The Conveyancing (Miscellaneous Amendments) Bill (“Bill”) implementing these measures amends the Conveyancing and Law of Property Act and the Legal Profession Act. The Bill was passed by Parliament on 11 April 2011. To effect these measures, the Minister for Law will also make rules under the Conveyancing and Law of Property Act (“Rules”) soon.

 

In summary, the new measures include the following:

  • Solicitors will be prohibited from holding conveyancing money on behalf of their clients except in the manner permitted by the Rules.

  • Breach of this prohibition will be a criminal offence punishable with a maximum of three years’ imprisonment or a fine of up to $50,000. It may be compounded by the Public Prosecutor in appropriate circumstances.

  • Solicitors receiving conveyancing money shall deposit the money in special conveyancing accounts held with certain entities appointed by the Minister for Law (participating banks or the Singapore Academy of Law).

  • Withdrawal of conveyancing money deposited in such an account with an appointed entity will require the signatures of two parties.

  • The Law Society of Singapore will administer an adjudication scheme for the expedited resolution of disagreements in respect of the withdrawal of conveyancing money from special conveyancing accounts.

 

For details of the new measures, refer to the Ministry of Law’s website and the Singapore Academy of Law’s website.

 

To assist members, the Law Society will be conducting, together with other stakeholders, a series of briefing sessions on the new conveyancing regime in June and July 2011.

 

The Council of the Law Society has also issued Guidance Note 1 of 2011 on 18 May 2011 to inform solicitors and law practices about the new measures and the steps required in gearing up to the new conveyancing regime.

 

If members have any queries on the new conveyancing regime, please e-mail the Law Society at newcvy@lawsoc.org.sg.