The legal completion (second appointment) denotes the buyers as the rightful owners of the flat, and they have to update their addresses on their ICs to open utilities and other related accounts. Although the seller is required by law to update his address within 28 days, the system does not ensure that this is followed through.
This leads to problems such as loan sharks harassing the new owners for debts owed by the previous owners. Also, some sellers cash in their flats during property booms without thinking through how they are going to secure alternative housing, and end up in dire straits.
The usual time span between the first and second appointments for a resale transaction is six to eight weeks. There is enough time for sellers and anyone else living in the house to update their particulars at any neighbourhood police post. Even if they have not found a permanent abode, they could update their particulars using their temporary addresses, supported by documents attesting to that.
On the completion of sale, the sellers should be asked to provide documentary proof of having changed their address (as well as that of all others living in the house) in order to receive the proceeds from the sale.
While this will not eliminate all problems, it is fairer to the buyers. They can at least rest assured that the previous owners will not be using their address and implicating them in any illegal acts.
Should any loan shark harassment occur even after that, it is not difficult to track down the original borrower as the new address of the previous owner will already be on record.
It will also hopefully ensure that sellers think through their future options before committing to the sale of their flat.
This suggestion is fair to both buyers and sellers and can be implemented almost immediately.
Purchasing a flat should be a joyous occasion and should not be marred by loopholes when they can be fixed easily.
Tan Huat Yong