Mr. Lim (not his real name) invested in several plots of land in Alberta, Canada, sold by a Canadian company. They were bought at different times, following briefings conducted by the Singapore office of the promoter. He received titles to some of the plots and was waiting for the title for the remaining plots, when the Canadian company filed for insolvency.
Mr. Lim was shocked to learn that the Canadian company had taken a mortgage loan on his plots of land without his permission. After a lengthy legal process, the Canadian court had ruled that the mortgage was valid and the mortgage holder had higher priority on the land.
The land title showed that they had an undivided interest in the land. Presumably, the title of the land still resided with the Canadian company, which was able to take a mortgage loan on the land, to the detriment of the owners who had bought the "plots" of land. Mr. Lim and the other Singapore investors did not lodge a caveat to register their interest in the land.
When buying any property, whether in Singapore or overseas, it is important for the buyer to engage a lawyer who will take care of the legal formalities, including lodging a caveat to record your interest. Mr. Lim had trusted the promoter to handle the formalities, but that trust was misplaced, as the promoter had acted fraudulently.
As the registered owner of the land, Mr. Lim received notices from the Alberta Provisional Government to pay the property tax on the land. He is in a dilemma as he does not know if it is a crime for him not to pay the tax, and he does not know the real value of his land.
Purchasers should be aware of this risk, when they buy an overseas property.
Mr. Lim was shocked to learn that the Canadian company had taken a mortgage loan on his plots of land without his permission. After a lengthy legal process, the Canadian court had ruled that the mortgage was valid and the mortgage holder had higher priority on the land.
The land title showed that they had an undivided interest in the land. Presumably, the title of the land still resided with the Canadian company, which was able to take a mortgage loan on the land, to the detriment of the owners who had bought the "plots" of land. Mr. Lim and the other Singapore investors did not lodge a caveat to register their interest in the land.
When buying any property, whether in Singapore or overseas, it is important for the buyer to engage a lawyer who will take care of the legal formalities, including lodging a caveat to record your interest. Mr. Lim had trusted the promoter to handle the formalities, but that trust was misplaced, as the promoter had acted fraudulently.
As the registered owner of the land, Mr. Lim received notices from the Alberta Provisional Government to pay the property tax on the land. He is in a dilemma as he does not know if it is a crime for him not to pay the tax, and he does not know the real value of his land.
Purchasers should be aware of this risk, when they buy an overseas property.
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