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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

Couple lose fight on collective sale

Couple lose fight on collective sale

July 28, 2007
The couple holding out against the collective sale of Waterfront View lost the fight yesterday when the Strata Titles Board (STB) ruled against them in what is regarded as a landmark decision.
Mr Yeo Loo Keng and his wife Cheryl Lim were the only unit owners – out of 583 – who had fought the sale to the end.
They insisted they would make a loss of $106,244, which was part of their CPF principal amount and accrued interest owed to their CPF accounts.
However, the STB ruled that this was not considered a financial loss, as the CPF Board has said if the net proceeds of the sale after repaying the bank loan are less than the outstanding CPF money owed, the couple do not need to make up this shortfall.
This is believed to be the first time the STB has had to decide if CPF money is considered a financial loss in the sale of residential property.
The STB also said, for the first time, that the conversion fee to a private estate – in this case, $19,535 – is allowed as a loss.
Said Dr Kevin Tan, a member of the Waterfront View sale committee who is also a former law professor: ‘This is a landmark case as important issues were brought up that were never before canvassed in court.’
Lawyer Leong Yung Chang from Veritas Law Corporation, who represented the couple, said the ruling ‘will affect a lot of people in the future’.
A disappointed Mr Yeo said: ‘CPF might say we do not need to make up the shortfall, but it is our money being written off in the end, as I’m being forced to sell.’
He added: ‘Future home owners will have to think very carefully before deciding on an en-bloc sale.’
Located in Bedok Reservoir Road, the former HUDC estate is a 99-year leasehold property built in 1984 and privatised in 2002.
It was sold for $385 million last May to FCL Peak, a joint venture between Frasers Centrepoint and Far East Organization.
The couple bought their 14th-floor, 1,711 sq ft apartment 12 years ago for $515,000.
While each of the 583 unit owners will be paid about $660,000 from the sale, Mr Yeo argued that it was not enough to pay off his bank loan of $342,844 and CPF principal amount and interest of $407,599, which makes a total of $750,443.
Although Mr Yeo lost the case, STB deputy president Alfonso Ang pointed out that the report on the proposed method of distribution of sale proceeds filed by the sale committee ‘fell short of the high standard expected especially when involving a project of this size’.
Under the committee’s proposal, the total sale will be distributed evenly among all units regardless of storey or size – an issue Mr Yeo contended with, as he paid a premium for a high-floor unit with a reservoir view.
Mr Ow Yong Thian Soo of Lee & Lee, who represented the sale committee, said he respected the STB’s decisions and thought they were important and fair.
Mr Yeo has 28 days to appeal to the High Court, failing which it will take about three months for the sale of Waterfront View to be completed.
He is mulling over whether to lodge an appeal.
Another resident, Mr David Govinden, told The Straits Times the STB’s ruling had brought ‘tremendous relief’ to other residents who had already committed to other properties.
‘I do sympathise with Mr Yeo,’ said the 57-year-old insurance agent. ‘But at the end of the day, we have to go with the majority vote.’
Source : Straits Times – 6 Feb 2007

Bid to stop Waterfront View en bloc sale fails

August 1, 2007
The bid by minority owners of Waterfront View to stop the Bedok estate from being sold en bloc failed in the High Court yesterday.
The owners Yeo Loo Keng and his wife opposed the sale saying they will suffer financial losses to their CPF accounts, because the net proceeds are insufficient to fully repay the outstanding bank loan and fully return CPF monies with drawn to buy the property.
The couple bought their apartment 12 years ago for $515,000 and will be paid about $660,400 from the sale but argued that that was not enough. They said they have to pay off a bank loan of $342,844 plus CPF principal amount and interest of $407,599, which makes a total of $750,443.
However, the Strata Titles Board (STB) ruled in a landmark decision in February that the principal amount withdrawn from CPF accounts and the accrued interest cannot be taken into account when determining whether a financial loss has been suffered by owners involved in such a sale.
Justice Belinda Ang yesterday dismissed the minority owners’ appeal with costs and upheld the STB’s decision, noting the CPF Board had said the couple will not need to make up for the shortfall if the net proceeds of the sale, after repaying the bank loan, are less than the amount they owe the CPF. The former HUDC estate was sold for $385 million last May.
On whether the Yeos will lodge an appeal, their lawyer Leong Yung Chang from Veritas Law Corp told BT they are ’still looking’ at whether they have ‘further avenue for appeal’.
Source : Business Times – 28 Apr 2007

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