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.

COSTS & EXPENSES

Tampines Court Round III
(My reading of the CSA only, I have no legal or financial training, I am just a blogger and so there may be errors. Please seek professional advice before making any decision)


(a) Legal Fees
  1. Professional Fees: around 0.28% of Sales Proceeds / unit 
  2. Discharging of mortgage/CPF - individually charged. $ unknown
  3. STB Application Fee: $35,000 
  4. Disbursements: printing & photocopying @ $0.15/page, transport, telephone, faxes, legal research on property ownership, stamp fees etc.. the list is long and I don't know what the ballpark figure is. 
  5. GST @7%
  6. Extras: include work outside their scope of work, eg 'where a settlement agreement has to be negotiated and signed'. What is that exactly? I hope it isn't a conditional signer in a new guise. High court expenses etc. Lawyers in general will bill you for every tiny little thing, it is in the nature of their profession. 
Who pays what and when:- 
1 & 2) To be paid by all owners on successful legal completion of the sale from their sales proceeds after Bank and CPF discharges. 
3 & 4) To be paid for by the consenting majority first after reaching the 80%.

Those owners who do not sign the CSA need not be bothered with fees or charges in the event of an unsuccessful Enbloc attempt. They are only liable for Costs & Expenses after the legal completion of sale.

(b) Marketing Agent Fees
  • Professional Fees: 1% of Gross Sales Proceeds, To be paid by all owners on successful legal completion of sale from their sales proceeds after Bank and CPF discharges.

(c) Valuation Report and d) Method of Distribution Report are done by an independent firm of property consultants. The cost was between $20,000 to $30,000 in 2008. I have no updated estimate.

(e) Differential Premium/Lease Top-up: 
The Purchaser only

f) RPA: Residential Property Act 31(2). also called the Qualifying certificate.
The Purchaser only
The housing developer shall, before he purchases or acquires an estate or interest in any residential property, apply to the Controller for approval to purchase or acquire the residential property.

g) Stamp Duty
The Purchaser only
All properties have to have their Sale & Purchase agreement stamped within 2 weeks of the document being signed. The STB sent out a circular to all lawyers highlighting the need to pay the stamp duty BEFORE an application be made or heard before the Board. The circular can be found here:- Strata Titles Board, Registrar's Circular 1/2009.

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