"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.
Flaw in en bloc mediation process

IN A collective property sale, minority objectors create uncertainty, resulting in hardship for the 80 per cent majority owners, as follows:

They cannot commit to a new home and property prices may rise against them;
They may commit to a new home but are unable to get the sales proceeds to pay for the new property;
They lose interest on the sales proceeds (which may be a substantial amount) while the minority holds out; and
They are unable to rent at market rates because of the long sale process.To add insult to injury, under the mediation process, minority objectors are legally allowed to negotiate with buyers for higher compensation, which can run into millions of dollars.When successful, such payments to minority objectors are kept ’strictly confidential’.As the law should be equal for all Singaporeans, the authorities should remove this legal loophole by abolishing the mediation process. Objectors should object on the grounds of whether the sale process is fair, transparent and handled in good faith. There must be transparency in the legal system.

Ong Boot Lian (Mdm)

 ’I think 99 per cent, as she suggested, is too high. Perhaps 90 per cent is more reasonable.’ – MR WILLIAM TAY, responding to Ms Susan Prior’s suggestion to increase the percentage required before a collective property sale can be approved. The current rate is 80 per cent

Source : Straits Times – 23 Apr 2008

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