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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.

Order of Charge

The order by which your sale proceeds are distributed between your Bank and CPF is a real headache.
You should DEFINITELY seek financial advice in this area. 


The CPF have particular rules about paying off principle sum and accrued interest, which are different depending on whether you are CPF 1st or 2nd charge.

 Tampines Court is an ex-HUDC estate built under phase III & IV and so we were CPF 2nd charge long before all other private properties. Why? Because we were the sandwich class - not private and yet not fully HDB either.

So, wherever you read that the rules regarding order of charge changed in 2002 - remember it doesn't apply to Tampines Court.  HUDCs built under phase III and IV are unique amongst all private property! I bought my unit in 1996 using a POSB loan (the only bank allowed), never refinanced yet still my CPF is 2nd charge. I tried to probe why this was so and all the bank or CPF ever said was that HUDC's were 'different!!

CHECK YOUR TITLE DEEDS OR ASK YOUR BANK

Because of Tampines Court's failed first enbloc sale and the interesting financial facts that emerged at the STB hearing regarding first charge/second charge on your sale proceeds ; it becomes imperative that people know where they stand on this complex matter. If you don't, you could be in for a shock at the end of it all.

The Bank will always demand full repayment of the outstanding mortgage, so it matters not whether it is first or second charge.

The CPF is more complicated and has a very specific order by which principle and  interest are repaid into the owner's account. I would advise everyone to look into the matter themselves. If the CPF is second charge, then basically you will lose the difference (principle as well as accrued interest) if there are insufficient sale proceeds to satisfy the repayment. I cannot be sure what happens if the CPF is first charge - because of their complex method.

Moral of En bloc round 1 story: every owner should know if the proposed RP is sufficient to:-
  • fully redeem Bank charge
  • fully redeem CPF charge
  • cash for Cost & expenses of the sale
  • cash for MCST debt (if any)
  • cash for downpayment on a new home
  • cash for  renovation costs for new home
  • cash windfall for going en bloc 
 This is the absolute minimum that the RP should cover.

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