Couple sue real estate agency, agent & law firm for S$406,285 over '99-1' property deal

A Chinese man and his Singaporean girlfriend are seeking more than S$406,285 in damages arising from a "99-1" property transaction.

The arrangement is said to allow property buyers to avoid paying more in stamp duties by having one co-owner, usually a spouse or partner, own 99 per cent of the property, whilst another owns just 1 per cent.

'99-1' arrangement

According to The Straits Times, real estate agency Huttons Asia, property agent Chan Chee How and Pertinent Law have been named the defendants.

In the couple's case, the woman, then 22-year-old student Liu Yu Tong, who attained Singapore citizenship in 2019, was told by Chan that she could first buy a S$1.38 million condo at Clementi's Ki Residences, then sell one per cent of it to her boyfriend, then 26-year-old Zhang Han Ming.

Zhang was a Chinese citizen at the time of the purchase, but became a citizen in 2025.

The agreed arrangement would allow them to qualify for a higher loan amount using Zhang's salary.

The couple would also save on ABSD payable, as Zhang would have to pay the foreigners' 20 per cent ABSD only on the 1 per cent of the condominium he legally owns.

According to the lawyer representing Pertinent Law, the condo purchase was partly financed with a UOB mortgage loan taken out jointly by Liu and Zhang.

A "99-1" arrangement was thus necessary for them to obtain financing and avoid ABSD liability, as Liu, then a student, would not otherwise have been able to obtain the loan.

Lawsuit

The couple was reportedly informed that the arrangement was a "legal and legitimate" way to avoid additional buyer's stamp duty (ABSD), as Liu was a first-time homebuyer, according to High Court documents seen by ST.

Huttons and Chan claimed that it was an arrangement "recommended by law firms at public events", according to ST, who cited defence papers.

A Pertinent Law business development manager reportedly stated that the "99-1" arrangement is their "forte".

The arrangement was discovered by the Inland Revenue Authority of Singapore (IRAS) on Dec. 18, 2025, with the couple being notified that they would face a S$406,285 penalty under the Stamp Duties Act.

This included a 50 per cent surcharge of S$135,428.

Upon this discovery, the couple alleged that Pertinent Law firm, which represented them in the purchase of the condo, "fell short of the standard that would be expected of a reasonably competent and diligent lawyer", according to court documents.

However, the law firm claimed that they were engaged to carry out a conveyancing transaction and that there were legitimate commercial purposes for the "99-1" application.

There was also no indication from IRAS at the time that such an arrangement would amount to stamp duty avoidance, they said in their defence papers.

The firm's lawyer added that the couple was equally culpable by being "contributorily negligent in failing to seek specific tax law advice on the risks of the ‘99-1’ arrangement", ST quoted.

They also did not state their intention to use the arrangement to avoid ABSD beforehand.

The defendants added that Liu and Zhang were "well aware" that Chan was not legally trained to provide legal advice regarding the condo purchase and was only conveying recommendations from law firms.

The couple would also have had to pay ABSD regardless, they pointed out, and have therefore not suffered a loss.

They would also need to account for capital gains or appreciation in value of the condo.

Top images via Ki Residences & Canva