Monday, April 17, 2006
How can I safeguard ageing mum's interest in flat?
Q MY 90-YEAR-OLD mother owns and lives in her HDB flat with her 70-year-old daughter, my sister, who has a 40-year-old married son.
 If your mother enters into a contract for the sale of her flat because she is weak-willed or is persuaded to do so voluntarily, she would be bound by the contract. |
As a result of the influence of her grandson, my mother wants to sell the flat. If this happens, she will be without a home.
Because of her age and inability to read or write English or Chinese, she may be misled into signing away the flat.
What can we do to make whatever she signs null and void?
Will a caveat lodged on the flat help?
A A RELEVANT issue to be determined is whether your mother is still of sound mind and capable of managing her own affairs.
If, for example, she is suffering from serious dementia and/or is unable to understand the nature of contracts, then she has lost the mental capacity to enter into legal relationships with third parties. In that case, whatever contract she signs may be invalidated.
You may wish to obtain a detailed report from your mother's doctor on her mental condition and confirmation of his opinion that your mother is not of sound mind.
This medical report could become important evidence which may be used to invalidate any contract signed by your mother.
Using this report, you may also apply to the court to be appointed as a 'committee' of the person and the estate of your mother.
When a person is allegedly mentally impaired, any person related to her by blood or marriage may apply to the High Court to be appointed as a committee of her estate.
If the court ascertains that your mother is of unsound mind so as to be disabled from managing her own legal and financial affairs, then the court will make an order appointing a committee of one or more persons with authority to take charge of and deal with her properties for her benefit.
Once you have obtained this court order, it means that the court has made a declaration that your mother is of unsound mind.
It also means that you can act on her behalf in respect of all her properties and affairs.
It will be prudent for you to put your mother's daughter, grandson and anyone else you choose on notice of her mental state.
Forward a copy of the medical report and/or court order to them and warn them against allowing your mother to sign any contract.
This could deter them from wrongfully manipulating your mother.
On the other hand, there is nothing much you can do if your mother is of sound mind.
You cannot lodge a caveat against the flat. A caveat can be lodged against the property only by a person having an interest or a claim on the property.
If your mother enters into a contract for the sale of her flat because she is weak-willed or is persuaded to do so voluntarily, she would be bound by the contract.
If she signs a document negligently without investigating the general effect of the document, she would be bound by the contract even if she is illiterate.
However, if she signs an agreement in the belief, induced by fraud or other plausible cause, that she is signing an agreement of a completely different kind from that which she is in fact signing, then the signed agreement can be invalidated.
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Tell her that it is in her best interest to sign or thumb print a document only in the presence of an advocate and solicitor after the contents and effect of the documents have been read and interpreted to her.
Lie Chin Chin
Partner
Lie Kee Pong Partnership
Partner
Lie Kee Pong Partnership
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// posted by Shajahan @ 11:35 AM 