REFER to the report, 'MPs seek steps to prevent 'magic dollars' flat scam' (March 11). It implies that HDB flat sellers involved in such illegal scams did so because the Housing Board did not grant a second HDB loan to downgrading cases. This is not so.
The illegal under-declaration of resale prices by sellers is to divert a portion of sales proceeds from being refunded back to their Central Provident Fund accounts, so they can receive it in cash. Granting a second HDB loan to such sellers for the purchase of their next flat would not provide them with the cash they want.
The HDB does grant a second loan to downgraders who are in financial hardship on a case-by-case basis if they are unable to obtain a bank loan. Flat owners in financial difficulty who need to downgrade can approach their respective HDB branch offices for advice.
We wish to remind readers it is illegal for both resale flat buyers and sellers to under-declare the transacted prices of HDB flats. The HDB conducts regular checks on declared prices of resale transactions, and suspicious cases will be referred to the police for investigation.
Those who are caught participating in illegal scams can be fined up to $5,000 and/or jailed up to six months. Housing agents who submit a false declaration can be fined and/or jailed for up to three years.
Loh Swee Heng
Deputy Director (Resale)
for Director (Estate Administration & Property)
Housing Board
