Disclaimer






"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.

SECOND READING (FINAL):- Amendments passed

Now we have it on record

Method of distribution report: 
"prior to signing the CSA, owners can always require the sale committee to provide a report. Owners have the ultimate say, they can ask for what they think is necessary for the process, or for them to participate in the process."

Valuation report: there is no one size fits all solution for the provision of valuation reports to guide owners when they are signing the CSA. Ultimately it depends on their risk appetite and comfort level of different owners. Valuation reports have a shelf life..... hence,  it's best to leave it to the owners to jointly decide on the number and frequency of valuations to be carried out. We do not mandate that it should only be given at one point in time, we mandate that it should be given at such a point in time, and at all other points in time it is up to the owners to decide whether they want further valuations at whatever cost is appropriate. 


Business proposals: It is best to leave these matters to the owners to request such information if they consider it appropriate. .. At the end of the day, owners are making choices  in respect to their properties which involve millions of dollars, you expect them to know what they want, and what sort of safeguards they wish.  


Reaffirmation from owners before the award of a sale tender:
A sales committee has to act in accordance with the mandate specified in its CSA. It really depends on what mandate is given to the sale committee. If the owners empower the sale committee to make the decision for award of tender within a certain prescribed parameters, without the need for reaffirmation, then it is not the governments position to intercede, and tell the owners how they should run the process. Likewise, there is nothing in the legislation, either in the past or going forward, to prevent owners from specifying that the want the sales committee to seek such reaffirmation from the owners, before the sale tender is awarded. This can be provided in the CSA if the majority wants.




New En Bloc Rules Passed
by Jessica Cheam (ST Online)

At the second reading of the amendment Bill, Mr Shanmugam said it 'represents another step toward refining the en bloc sale regime in Singapore'.
He also told the House that between 2005 and 2009, there were 462 en bloc sales, of which half or 217 had been redeveloped or were being redeveloped.
These 217 projects comprised about 12,000 units but after redevelopment, this number has shot up to more than 26,000 units, he said.
He added that the ministry will continue to review the Act and 'will make further refinements if necessary'.
.
Suggestions ranged from including the age and state of a building to determine the consent level needed for a sale, to reducing the threshold of owners required to re-start an en bloc sales process. --
NEW rules tightening the collective home sale process were passed on Tuesday, but not before Members of Parliament called for further refinements to the bill.
Suggestions ranged from including the age and state of a building to determine the consent level needed for a sale, to reducing the threshold of owners required to re-start an en bloc sales process.
Addressing the concerns in Parliament, Law Minister K. Shanmugam said that the Government's task was to 'protect the interests of all strata unit owners, whether they are pro-sale or anti-sale' and that it should not 'micro-manage the process and prescribe too many requirements'.
Amendments to the Land Titles (Strata) Bill to streamline the en bloc sales process were first unveiled in Parliament last month.
They include a two-year restricted period for owners who attempt an en bloc sale after it failed once; a 60-day period for the Strata Titles Board (STB) to mediate in a sale, failing which it can issue an order to give the parties the option to pursue it in the High Court; and requiring stricter declarations of interests from sales committee members.
The changes will now become law sometime in June after it has been cleared by the President's office.

10 comments:

  1. Anonymous21 May, 2010

    how is it possible to vet if a sc member have the minimum qualification? Perform a test?

    ReplyDelete
  2. Well, for a start, you could ask them about their educational qualifications and their present job.

    If a person has only O'levels and whose job description is serving coffee and hot towels then it's a good guess he is lacking in the brains department.

    After educational qualifications comes the more intuitive choice. Does this person come across as honest, sincere.

    Next, will this person crack under pressure, will he cave into lawyer demands, does he have a strong personality and stick by his demands. Does he have negotiation skills.

    Nice guys with good intentions should never be qualification criteria.

    ReplyDelete
  3. Anonymous21 May, 2010

    man.... If someone can own a condo selling coffee, he must be smart.

    How does one judge if a person is honest or sincere? beauty parade?

    How are these ever going to be enforced?

    ReplyDelete
  4. Anonymous21 May, 2010

    that is why there are new rule governing enbloc, sc must be voted in...

    but checking qualification and making them go thru honesty test is going too far.

    ReplyDelete
  5. Anonymous26 May, 2010

    If you are going to place a multimillion dollar sale to people in the SC, you better place them in honest and capable hands, wouldn't you? It's not just your unit you are selling. It's the entire estate!
    Before voting them in, I'll want to see their qualifications, if the owe money... etc.

    ReplyDelete
  6. Anonymous26 May, 2010

    How do you guage honesty? high qualification = honest? Have you not heard of top lawyers running away with client's money? Do you expect potential committee members to bring along their educational cert to the eogm? who to vet whether the cert is legitimate or not? majority of owners owes money ya? I can't get elected if i have a mortgage loan?

    cmon, get real.

    every owner should have equal opportunity to get into the committee if they wish to.

    ReplyDelete
  7. Anonymous28 May, 2010

    the previous comment did not mention of oweing the mcst, it was a general term. if u read his comment, it was full of general terms like qualification, honesty...

    ReplyDelete
  8. Anonymous28 May, 2010

    I just wonder. We are a dump nation that believe in qualification. And qualification does not make a person honest. Why are we suck in. If you are a lecturer or researcher most likely you are a doctorate holder. If you are a graduate, most likely you are a professional. Believe me 'O' levels are destined entrepreneur.

    ReplyDelete
  9. Ah, to serve coffee at one time is different from serving coffee all your life. I would have no problem if he were a business tycoon with proven business acumen.

    Call me an educational snob, if you like, but I do not suffer fools easily and a man's occupation and educational level speaks volumes about his INTELLIGENCE.

    INTEGRITY is an entirely different matter and not easily verified.

    Of course there is a danger of ending up with extremes of both: an intelligent crook or an honest fool.

    The trick is to find a middle group without sacrificing either trait or virtue...

    The bar has to be set high, 560 family homes are at stake.

    ReplyDelete
  10. Anonymous04 June, 2010

    let the owners decide who they want in the sc. simple as that.

    ReplyDelete