The dispute: How a 99-1 deal led to a lawsuit

A married couple has filed a claim totalling S$586,172 against a property salesperson, PropNex Realty, and a conveyancing law firm, alleging that they were not properly advised on the risks of entering a 99-1 ownership structure when purchasing a private property.

The couple claims financial losses arose after the authorities took issue with the ownership arrangement, which has been increasingly scrutinised due to its potential use in stamp duty minimisation.

What is a 99-1 property structure?

Under a typical 99-1 arrangement, one party owns 99% of the property and the other owns 1%. This structure has been used in some instances to reduce Additional Buyer’s Stamp Duty (ABSD) through buy-out mechanisms.

The authorities have signalled tighter enforcement in recent years, and legal consequences can arise if the structure is deemed an attempt to avoid ABSD.

Claims against the agent and firm

• The couple alleges they were not informed of potential ABSD risks.
• They argue they relied on the agent’s guidance when entering the purchase.
• The claim also extends to the conveyancing law firm for alleged inadequate advice.

All three defendants — the salesperson, PropNex Realty and the law firm — are expected to contest the allegations.

Why this case matters to the wider market

This lawsuit could influence how agents present ownership structures in Singapore and may lead to clearer disclosures, written advisories and strengthened compliance procedures across the industry.

Questions the industry is now watching

• How much responsibility should agents bear for ABSD-related outcomes?
• Will conveyancing lawyers require stricter declarations for 99-1 transfers?
• Could this lead to a decline in non-standard share structures?

Thinking of buying under a 99-1 split?

Not all 99-1 arrangements are illegal — but buyers must understand the intention, timing and consequences. Legal advice and clean documentation are essential.

If you’re considering such a structure, evaluate affordability, exit planning, and worst-case exposure before you commit.

Disclaimer: This article is informational and not legal advice. Please consult a law professional before entering any shared ownership structure or tax-sensitive asset purchase.