Singaporean patrons in authorized dispute with Malaysian developer over possession of Johor condominium purchases | USAEMALL.com

VALUE OF PROPERTIES AFFECTED

Malaysian lawyers told CNA that the PLS is legal.

But confusion can sometimes happen because buyers sign on a standard sales and purchase agreement (SPA).

“The SPA means you deserve the ownership and you deserve the strata title, separate from the master title,” said Malaysian lawyer Chee Hui Bing of Chris & Partners Advocates & Solicitors, Johor.

“But in PLS, all you get is just a longer so-called tenancy. You get a 99-year lease period.”

Such buyers do not have the ownership rights as they might for a Singapore property.

A Singaporean lawyer said the value of the property might also be affected.

Mr Tris Xavier, head of the integrated property practice group at Yuen Law, said those thinking about selling the unit would then be “selling the right to stay in it”, and not the property itself.

“The calculation for that, you can imagine, is very different. It should actually almost be akin to rental,” he added.

A check by CNA found that at least 70 condo buyers filed a complaint in June with Singapore’s Council of Estate Agencies against the real estate agency that marketed the property to them.

But from court documents seen, the developer argued buyers should have been aware, and that the PLS is valid and legitimate. They added that buyers also have passed the legal period to make any claims.

Conveyancing lawyers and real estate agents urged buyers to read the fine print when buying a property overseas, and to seek legal advice on the various terms and conditions.

“It’s important to understand the landscape of property in the country that you are actually investing in,” said Mr Xavier of Yuen Law.

“There are many things that maybe are not entirely clear to the layman, and I think it’s important to actually get a professional who actually works in that country to guide you through the process,” he added.

“Oftentimes, it’s not easy just to Google things out. So it’s always great to have a legal professional to guide you through what exactly you’re purchasing.”

Mr Ruben Koh, senior director and head of international residential sales at real estate firm Savills Singapore, said “more savvy buyers will tend to look for local agencies first, as buying overseas properties come with risk”.