Clause 13

No mortgagee or chargee, when exercising his power of sale in respect of any estate or interest in any residential property, shall transfer such estate or interest to a foreign person.

Every mortgagee who, in relation to an estate or interest in any residential property, has obtained an order for foreclosure or who becomes vested by an instrument or otherwise with the entirety of such estate or interest, shall sell to a citizen or an approved purchaser such estate or interest within a period of two years of the date of such order or of the date of the vesting of such estate or interest in the mortgagee; but the Minister shall have power to extend such period, from time to time, for such cause as appears to him to be just and reasonable.

Where such mortgagee does not sell such estate or interest in the residential property within the period specified (including any extensions) in subsection (2) of this section, the Minister may, by notice in writing, direct that the mortgagee’s estate or interest in such residential property shall be attached and sold by the Controller, and the provisions of sections 4 and 5 of this Act shall apply, mutatis mutandis, to the manner of disposal of such estate or interest of the mortgagee as those provisions apply to the manner of the disposal of an estate or interest of a foreign company.

The provisions of subsections (2) and (3) of this section shall apply only to mortgagees who are foreign persons.