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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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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.

Disbursement fees

The en bloc lawyer has sent out a letter to the majority owners demanding that they pay $781.25 to them as soon as possible for the purposes of paying for the disbursements to be incurred in the application to the STB.

These are the disbursements listed:
  1. Advertisement fee: $200,000
  2. Photocopying: 50,000
  3. Valuation: 20,000
  4. STB filing fee: 5,000
  5. Hearing fee(x5): 5,000
  6. expert witness': ______

Total: $280,000

$280,00 / 457 majority units = $612.69

So, are there more costs involved?

According to the CSA (draft); the lawyer fee that is charged on completion = $2,380 / unit + disbursements.

The lawyer fee for application to the STB is extra: $30,000 + $5,000 per minority objection, subject to a cap of $50,000.

Whether this is a $50,000 overall fee cap or $80,000 is unclear, but I believe the latter.

As it is certain that at least 40 minority owners are appealing, does this STB lawyer fee have to be paid upfront by the majority along with the hefty disbursements? It seems so.

$280,000 + $80,000 = $360,000

$360,000 / 457 majority units = $787.74

This is closer to the figure if $781.25

The majority should check on this.

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