PropNex unit sued for $586,000 over alleged misrepresentation and breach of duty
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PropNex Realty is also being sued by Hao Mart, for more than $3.5 million, over the lease for Taste Orchard.
PHOTO: PROPNEX
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SINGAPORE - A wholly owned subsidiary of PropNex and two other defendants are being sued for at least $586,172, allegedly over a breach of duty of care as well as negligent misrepresentation by one of its salespeople.
The property agency announced that its unit, PropNex Realty, has been named as one of the three co-defendants in a lawsuit filed in the High Court.
The amount of $586,172 is among the damages being sought, jointly and severally, from the defendants. The filing to the Singapore Exchange after market hours on Nov 5 did not name the salesperson, the third defendant, or the claimants. Neither did PropNex provide details of the allegations.
PropNex, which is seeking legal advice, said its board intends to “vigorously defend” the suit.
The board said in the filing that the lawsuit is unlikely to materially affect the financial position and performance of the group for the financial year ending December 2025.
The lawsuit is the fourth reported dispute to be brought against PropNex Realty before the High Court in the year to date.
In one suit, Hao Mart is suing PropNex Realty
In another suit, a claim of $849,287 was made against the subsidiary over a so-called 99-1 deal, but this claim has since been dropped, PropNex said in mid-October.
A third suit is pending before the High Court, also involving a 99-1 transaction.
The “99-to-1” scheme is a tax-avoidance arrangement used by some property buyers to reduce the rightful additional buyer’s stamp duty (ABSD) payable on the purchase of a residential property.
It enables those who already own a residential property to reduce or avoid paying ABSD, while still becoming a co-owner of an additional property and a co-applicant for a loan to finance the purchase.
Shares of PropNex jumped 3.9 per cent, or nine cents, to close at $2.41 on Nov 6, after this announcement. THE BUSINESS TIMES
