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."
Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
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.

Signing Fees

THE FOLLOWING TABLE IS UNOFFICIAL - it is just a compilation of my understanding of the fees payable on successful completion/unsuccessful attempt of this collective sale.

In the Schedule 3 Scope of Solicitors fees, note how item  2(a) is payable on successful completion of sale, whilst for items 2(c),(d),(e),(f) there is no time stated. I have married this with clause 11.18 in the CSA and conclude that these items have to be paid for by the 80% under 'further sums' as and when requested and therefore must be paid for in cash. These sums seemingly go into the ESF (en bloc sale fund) administered by the SC. If the sale is successful, then these costs will be accounted for under solicitors costs. I imagine 'further sums' in the ESF will include other Valuations among other things. A lot can be covered under the open-ended wording of the Resolution 2.3 passed at the EGM4 (" and other incidentals").

I WILL AMEND IF SOMEONE POINTS OUT ANY ERROR! PLEASE CHECK WITH THE SC IF YOU WANT CONFIRMATION.

It is right that those keen on the collective sale should pay upfront for the signing fee/disbursements/valuation/ method of apportionment report. Signing the CSA is not to be taken lightly and those who would sign on a whim or a 'let's see' basis will think twice.  It is not a frivolous undertaking, the end goal is not just about 'making money' as signing the CSA means you are agreeing to legally force  up to 112 families out of their homes.

22 Mar 2012
SC held an Emergency meeting to resolve to open a Bank account with Bank of India for the purpose of depositing the ESF funds.

That the Account be operated upon by any 2 of the following SC members:


And verified and confirmed by any 2 of the following SC members:


28 June 2012
SC held a meeting and decided to slash the ESF fee to $40/ only per unit. The balance of $180 to be collected after the 80% is reached (and presumably before the application for sale to the STB).

The ESF was seen as a barrier to signature collection.

The $220/unit payable to the Solicitor on signing the CSA remains.

27 July 2012
Looks like they are sticking with the $220 ESF afterall. Notice on board today said that owners were to bring the usual 2 cheques to the next signing session on 30th July 2012

03 September 2012
The latest notice on the board states that there will be 3 signing sessions in  September - and that owners were to bring along 2 cheques: $250 payable to the solicitor and $40 for the ESF

No comments:

Post a Comment