The proposed changes to the Conveyancing Act introduced yesterday by Law Minister K. Shanmugam will make it more difficult for conveyancing lawyers to make off with their clients’ funds.
Once the changes are approved, lawyers will be prevented from receiving and holding conveyancing money that belongs to sellers and buyers of property in their normal client accounts.
Rather, they will have to open a new conveyancing account with an approved bank.
The withdrawal of money from the accounts will also require signatures from two parties, typically lawyers for the seller and buyer.
If sellers or buyers do not want to deposit the money with lawyers, they can engage the Singapore Academy of Law (SAL) to hold the conveyancing money on their behalf.
The proposed changes will likely be implemented in the third quarter.