As of I August 2011. law firms will not be allowed to hold any conveyancing monies in their client account. Instead, law firms will receive and hold all conveyancing monies in an account called the Conveyancing Account held with an appointed bank approved by the Minister for Law. Conveyancing monies may include deposits paid on a purchase of property, stakeholders’ money, sale proceeds, stamp duties and security deposit on a lease agreement. Any withdrawals from the Conveyancing Account would have to be made via authorisation to the appointed bank using prescribed forms requiring two-party signatory in most cases. Usually, the counter-signing party is the lawyer acting for the other party (in a sale and purchase). Such pay-out forms are lodged and signed electronically.
Alternatively, parties who do not wish their lawyers to hold the conveyancing monies can also engage the Singapore Academy of Law to do so under their Conveyancing Money Service. These measures were put in place under the Conveyancing (Miscellaneous Amendments) Act, (Act 17 of 201 I) to provide stringent safeguards against unauthorized withdrawals of conveyancing monies and protect clients’ money in conveyancing transactions.