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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.

Stakeholders and interest

Just who is the stakeholder and who keeps the interest on the 10% deposit paid by the buyer?
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Well, the enbloc lawyer is the stakeholder, and that is common practice.
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On the matter of who keeps the substantial interest, well, that is not set in stone. The Law Society's stand on the matter is that the interest on stakeholders funds usually belongs to the stakeholder - but because we are talking hundreds of thousands of dollars, perhaps even millions, this is not automatically the case in enblocs. The enbloc lawyer should canvass the issue with the SC; they can't just quietly pocket the money. I have no doubt that our enbloc lawyer did just that (legally it's called 'excess of caution' I believe), but I take issue with the fact that the SC did not then canvass the views of the owners! The Sale Committee, in their wisdom and without consulting the owners, contractually signed this sum away to the enbloc lawyer. Mind you, when they did this (way back in 2006), they hadn't even been elected / ratified by any of the owners, did they then have the legal right to do so?
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$405,000,000
40,500,000 = 10%
3% interest/yr = $1,215,000

2 comments:

  1. are you able to be more specific as to how or in what form was the signing detected as wrong?

    ReplyDelete
  2. You are referring to HT case. How many ways can a signature be wrong?

    ReplyDelete