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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.

Changes to Land Strata Titles Act effective from 15 July

Changes to the Land Strata Titles Act will be effective from Thursday, 15 July, after the Amendment Act was enacted in Parliament on 18 May. 

The amendments seek to provide more clarity to the en bloc sales process and balance the interest of property owners. 

Among them, a two-year restriction period will be imposed starting from the date an initial collective sale attempt failed. 

The objective is to discourage numerous attempts at en bloc sales when there is insufficient interest from the owners. 

The first re-try to convene an Extraordinary General Meeting to reappoint a sale committee will need the backing of at least 50 percent share value or total number of owners. 

For second or subsequent re-tries during the 2-year period, 80 percent will be needed. 

Currently, the requisition threshold is set at 20 percent by share value or 25 percent of the total number of owners. 

Another amendment is that the Strata Titles Board will be empowered to issue a "stop order" to cease mediation once it becomes clear that the affected owners want adjudication to be done in court. 

Currently, the Strata Titles Board mediates and adjudicates on objections filed by minority owners in en bloc sales. 

The change could help to reduce the costs and time taken to resolve more contentious en bloc applications. 

Some of the changes will apply to the en bloc sale committees. 

Among them is the requirement for those standing for election to the sale committee to declare the extent of ownership that they or their immediate family have in the development. 

To ensure that the sales process is not dragged out, the sale committee will have one year to obtain the first signature for the Collective Sale Agreement, or it will be automatically dissolved. 

The one-year time frame will start from the date the sale committee is formed. 

These changes will apply to en bloc applications made on or after the date of commencement of the Land Titles (Strata) (Amendment) Act.
CNA: 15 July, 2010

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