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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.

Let The Games Begin

TAMPINES COURT EOGM
FOR THE PURPOSE OF A COLLECTIVE SALE
29TH JANUARY 2011

I think the pro-enblocers should have had the courtesy to write to all owners about their plans and not hope to spring a surprise on the estate.  If the estate wished to go for a collective sale then we will be presented with a bunch of strangers (and some not so strange) to vote onto a committee. 
  • Being 'interested' is not enough.
  • Claims of 'experience' can be exaggerated.
  • A stranger's integrity at an EOGM cannot be gauged.
  • Personal motives cannot be plumbed.
  • Professional connections  can be hidden until after election when their revelation to the SC Chairman will not preclude them from serving on the SC.
  • Intelligence can be estimated (sir, are you an systems engineer or a glorified waiter?)
  • Personality weakness' can be sensed.
And leaving everything to chance on the day itself is like plucking a number out of a hat - maybe it's a winner, but the chances are it will be a dud. A dangerous dud.

What a god-awful system! Does the Government grab nobodies off the street  with nothing more than a perfunctory pat down and allow them to handle Government Land Sales  just because they put their hand up as volunteers? They do not! You can be sure the men and women are all highly qualified and knowledgeable in that area. No 'interested volunteers' in those multi-million dollar deals! But the Gov. doesn't mind letting loose this second rate model on private owners - any mess it creates and the blame can be pinned elsewhere.

You would need to be either psychic or nuts to allow a mere neighbour who is a total stranger with no credentials, no experience no professional insurance  with Uunknown personal motives  to handle the sale of your most valuable asset  ........ especially after our recent experience with one such group of 'interested volunteer owners' from round 1!

A comment below about how the "sale committee will be supported by the marketing agent and lawyer."

'Supported' sounds comforting and safe; the inference here is that the MA and lawyer must have the owners' best interests at heart, they are professionals after all and in the employ of the owners.

But they are not in the employ of the owners - they are free-lancing and riding on the coat-tails of a possible lucrative deal until they secure the sale  and collect their commission (and probably a nice bonus from the developer, too.)  . They want the sale to happen MORE fervently than anyone else.  The MA  takes the road of least resistance to it's reward. Vested interest rules his world.

The Sale Committee is not so much 'guided' by the marketing agent as 'led by the nose'.

14 comments:

  1. Alfred Chong06 January, 2011

    Serious? I did not receieve any "invitation" in my letter box. I presume it will come? One question. What is the quorum needed for our estate on that day before they can proceed? Thanks

    ReplyDelete
  2. No notice has been sent out.... they have been threatening it since early December... and it looks like their dreams have come true.

    ReplyDelete
  3. The quorum is 30% - which will be easily reached.

    ReplyDelete
  4. any tc owner can be in the sales committee. not only the organisers of the eogm. i suggest that interested owners volunteer themselves for nomination at the eogm. time to walk the talk.

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  5. The SC will be supported by the selected marketing agent and lawyers. They will provide the knowledge and expertise of an enbloc.

    Owners need to be in the committee to ensure that their interests are protected by making sure the reserve price, apportionment and process are acceptable by the at least 80%.

    ReplyDelete
  6. The problem arise even if you are a diligent & care for estate pro-enbloc person in the committee. You will be surrounded by pro-enblocers desperate to sell, who will out vote you in any decision in SC.
    Here's the deal:
    If the SC is filled with desperate sellers, and they are caught with their pants down doing the wrong things, sue them at High Court just like the minority owners of Horizon Towers did to claim $1 million in legal and administrative costs.
    The minorities of TC should have done the same to previous SC. Because during the en-bloc process, no one in TC can sell their unit due to the Caveat placed on each unit and entire estate (even if the market valuation was going up). Lost opportunities of better gains due to their incompetence.
    Example: 19% owners did not to sign CSA, that will be about 100 units. During the failed en-bloc process each units could have been sold for $705K instead of reserved price of $695K, it means 100 units loss of total of $1 mil. This would be the amount the minorities should sued for. Next round will be different, the amount difference will be greater, private housing market is still on upward trend.
    So on 29th Jan, remind all SC wannabes that if they mess it up, be prepared to be sued and possibly lose their home.

    Note the Horizon Towers' case, the minorities did not sue MA or Lawyers, just the 2 SC members.

    Final word, want to do en-bloc, do properly above board, not desperately.
    Someone up there is watching...

    ReplyDelete
  7. You will be led by the nose if you allow them. The working relationship between the SC, MA and lawyers is best defined by the SC.

    I suggest you get many MA and lawyers to make their proposals and you will get a good feel of TC's valuation, apportionment method, their approach and your confidence level in them.

    learn from successful enblocs like farrer court.

    ReplyDelete
  8. how many residents in TC. I am sure there are some in the legal and real estate profession. Probably some in the roles that deal with suppliers, etc.... get them in the SC.

    I am suggesting for the good of TC rather than just being negative w/o any solutions.

    ReplyDelete
  9. The power lies with the owners at this FIRST EOGM since they must define the:

    POWERS, DUTIES or FUNCTIONS of the sale committee (if one is formed).

    I expect owners to waste their precious EOGM time asking silly questions about minute details instead of getting down to the business of CURTAILING the power of of the SC. I will write a post on it nearer the time.

    This is NOT the time to talk about apportionment method.
    This is NOT the time to get bogged down in questions about stamp duty, caveats etc
    This is NOT the time to set the reserve price (based on what?)

    This is the time to tell the SC exactly what they can and cannot do.

    As our Minister of Law Shanmugam said:

    "The real point is that owners are free to adopt these measures if they think they are suitable for their particular circumstances.  Thus, the ultimate choice is with the owners themselves on how the sale should be conducted."

    ReplyDelete
  10. TC belongs collectively to all owners.
    By all means propose to cutail the function and powers of the SC. Better still join the SC if you have the knowledge that wil add value to the process.

    Ultimately, how the enbloc turns out is the collective decision of at least 80% TC owners.

    All the best in this endeavour.

    ReplyDelete
  11. Hello all,

    This enbloc is causing a concern to me. I love Tcourt but if there is a chance of it happening, i think my finances will be stretched.

    I have little savings now due to bad investments, so can someone advise how soon can i get some money so i can pay off my initial downpayment for my next house?

    Someone told me to rent somewhere else until i collected all the money. But i think its going to be very laychey.

    anyone care to comment?

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  12. The EOGM on 29 Jan 2011 2pm is confirmed. I received the Notice from TC MA tonight.

    TC Resident

    ReplyDelete
  13. you need not worry. It is likely that your SC will build in a rent-free period into the agreement with the buyer. ie., after getting your cash, you can continue to live in TC for a period of 6-12 month (depending on how the agreement was drafted). You can use this period to purchase your new home.

    ReplyDelete
  14. Just came back from the meeting . I believe two of the members in the committee do not even reside at TC. To them this will be just another transaction. Maybe one of the requirements to be in the commitee is to have someone who has resided here for 5 years or more. Comments ?

    ReplyDelete