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.

Mechanism to Lower the RP Part 2

After thinking about this long and hard and talking it over with a very learned friend I have come to the conclusion that Mr. Vasan is right and the Lawyer is wrong. The RP cannot possibly be lowered in the way outlined - namely everyone is pegged to their original RP and the RP can be raised or lowered like a yo-yo.

Raising the RP in a piecemeal fashion, like pouring water into measuring cylinder, is okay on the way up.  When the 80% is finally reached then everyone is on the same page as there can only be one CSA and one RP. It is nonsense to assume than old CSAs and their old RPs are somehow relevant when in fact they are dead, finished. The fact that owners are not required to re-sign is immaterial as they are deemed to be party to the new RP in the CSA and will receive the same sales proceeds as everyone else. That fact alone proves that their old RP is not active. 

The 80% is crucial, it is pivotal, it is the tipping point at which all things change. The second 12 months is triggered by the 80%, the estate can be sold at 80%, the minority lose their homes to the 80% . It cannot be treated like any other percentage. 

Once the 80% is reached then it is comprised of all majority owners at a single RP. If the RP is lowered then the 80% DISAPPEARS IN TOTAL because no one can be deemed to be below.  A fresh round of signature collection must begin. You can have a supplemental agreement to lower the RP but it must be signed by a fresh 80% .

This would not be considered a 'frivolous objection', I believe, and if the Lawyer's mechanism for lowering the RP is attempted, it would have to be tested in a court of Law.

(The Lawyer was wrong when he advised the SC at the 19th SC Meeting held on 1 June 2017 to hold an EOGM and had to correct his mistake afterward - so is he really, really sure of his wobbly mechanism here?)

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