"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.

SP MEETING 25 Aug 2017

I attended the above meeting and stayed for the two sessions. There were 2 sessions because too many people turned up for the first and the second was held for the overflow. This post is just my own summation - not verbatim as to what was said. 

Huttons started with a powerpoint presentation of their Feasibility Study of TC. I am not going to go through everything just some highlights.
  • 39 parties collected the Tender Document, Investment Memorandum & Feasibility Study
  • 7 Site inspections were conducted & 11 presentations
They listed 7 Negatives about the estate - the size of the new development, the 5 yr development timeframe (which to me, is not a concern as it applies to every single development in Singapore), possible DC increase in Sept, Height Restriction, Traffic restriction (oddly he linked this to having to build larger units), Higher construction costs and finally the large number of Minority. 
They listed 4 Positives about the estate - cheap compared to other collective sales, Tampines is a mature estate, Convenient to Tampines Central & Amenities and finally, no other launches in the area. 

Official Valuation Report at Close of Tender 
United Valuers and the market value of the land as of 15th Aug 2017 was $940 million. 
We didn't see the Valuer's workings (RLV).

Sale Price Analysis Slide
  • The Differential Premium (DP) was $$243,724,555
  • The Lease Upgrading Premium (LUP) was $115,000,000
I noticed they gave the existing plot ratio as '1.55 (subject to confirmation)'.

The Sales Proceeds for each unit is pretty much the same as in my table. You will get the official figure next week in a Letter which has already been sent out to all owners.

The Timeline
Everyone is interested in the Timeline. The CSC has the intention to make an Application to the STB within 1 month. I hope they won't mind if I just insert their slide ... it's easier pictorially than in writing.

So, tentative date of Application is 22 Sep 2017 (end date should be 22/8/2018)

The Retention Sum is $50k. The Buyer will return the $50k to you when you hand them your keys on vacating your unit. The MA advised owners not to buy a new property until the order of sale from the STB. This is sound advice - unless of course you can afford to own 2 properties at the same time.

The MA also said that Huttons would assist owners in finding new homes for free. So no Agent fee if you use their services

Next up was the lawyer and the Letter in the post to all owners (you should have it by Wed).

Sellers Stamp Duty (important if you purchased your unit on or after 23 Aug 2013)
You are liable to pay varying amounts of SSD by 5 SEPTEMBER 2017. All affected owners have to pay including Minority owners.

I feel they are very slow in getting this information out, especially as their 'Letter' wont arrive until the middle of next week. The penalty for late payment is 100% -400% and the quantum is quite huge. This is a huge disservice to the approx 48 owners who fall under this category. The CSC have not served them well. The amount of SSD payable in the letter is incorrect - so beware. The legal firm has offered 'legal or administrative assistance' on the payment of SSD, for a fee! Crikey! They give very little warning to SSD owners, get their SSD payments wrong and have the audacity to charge for their service!   So get your skates on and approach the IRAS to see if you can get special consideration such as paying in instalments or whatever.

There was an audible shock in the audience when the payment date for SSD (5th September;) was announced.

The Lawyer said that if an owner didn't pay, then the amount would be deducted from the sales proceeds. This is worrying as the penalty by then would be 400%! Imagine if you owed 250k in SSD and got the shock of your life when they deduct over $1m! Though he did promise that there would be no penalty. How can he manage that, I wonder? Was it a slip of the tongue or can all SSD owners now sit back, do nothing and pay at the end? This needs to be clarified.

I am not a SSD owner, I have no sympathy for the flippers but a genuine new owner caught out by this deserves attention.  

Other issues you can read for yourselves next week.

The Sales & Purchase Agreement.
He didn't go through it clause by clause but instead highlighted salient points and scrolled through the rest.

You will have to wait for the STB 'Bundle'* to view it - nothing shocking stood out. The usual conditions; I don't know why they spent 1 week hammering them out.
  • 6 months to vacate
  • $50k retention sum
  • No rent for the 6 mths
  • Owner pays maintenance fees
  • Management & Sinking Fund to go back to the Owners after auditing by the Buyer. This is Law so it's not really a condition. I am not sure if the Buyer doing the auditing is a concern, I don't know the market practice for this. 
  • Something about Owners to remove furniture on vacating (only to pile up at the dustbin centre like a mountain). You can take light fittings and the aircon with you ... I believe. 
Can't think of anything else at the moment...

Bundle*:- LTSA Frist Schedule: 
1. e) serve notice of the proposed application on all the subsidiary proprietors of all the lots and common property in the strata title plan concerned and, if applicable, on the subsidiary proprietors in reversion of the leasehold estate in the lots, or on all the proprietors of all flats in the development concerned, as the case may be, by letter by registered post notifying everyone of them of the proposed application accompanied by a copy each of the following documents, and stating that copies of the documents may also be obtained from the marketing agent or the collective sale committee:

(i) the collective sale agreement referred to in sub-paragraph (a);

(ii) the sale and purchase agreement which is to be the subject of the application to the Board;

(iii) a statutory declaration made by the purchaser under the sale and purchase agreement on the nature of his relationship (if any) or, if the purchaser is a body corporate, the nature of the relationship of every one of its directors (if any), to any subsidiary proprietor of any lot comprised in that strata title plan or any proprietor of any flat in the development, as the case may be;

(iv) the advertisement referred to in sub-paragraph (d);

(v) a valuation report from an independent valuer on the value of the development as at the date of
the close of the public tender or auction; and

(vi) a report by an independent valuer on the proposed method of distributing the proceeds of the sale due under the sale and purchase agreement; 


  1. These are not negatives but objections. It is commonly raised by buyers, be it selling individual units or collectively, to press the sellers' price down. No buyers will say good things of sellers' properties.

  2. Don't need to pay commission if go though Hutton agent when buying new homes??

    1. I think if hutton dun collect commission from you means they are acting from sellers & collecting commission from them. According to CEA agents are not allow to have dual representation.

  3. Thanks blogger for the summary. Very informative to those who didn't attend yesterday's briefing. But why do they wait till 22nd Sept to submit to STB?

    1. Paperwork & Procedure.
      1) Advertise details of he STB Application in the newspapers
      2)Post a large bundle of documents to each and every unit owner
      3) Affix a copy on the wall of each biolding
      4)Make an application to STB within 14 days of the Advertisment
      5( the Application itself includes a huge amount of paperwork - names, mortgagees, chargees, Sps, and all x 6 copies

      A lot of work for a boutique Law firm (their website)

    2. Shouldn't we have got a larger firm if our paperwork is so much ? Ownself kick ownself

    3. Hi lady, on the Lease Upgrading Premium, the slide showed a figure of $115,000,000.00.

  4. For those who got problems paying the SSD, I understand they can appeal to IRAS for installments or apply for bridging loan from banks. Whether old or new SPS we are all making good money from this enbloc. So hope we can all work together to see round thru asap so we can get our money early.

    1. Also Hutton's are looking at ways to assist and will contact affected owners next week.


  5. No rent for the 6 months... would appreciate if blogger can help to clarify this point. Does it mean rent is prohibited after 22nd Feb if everything goes according to the chart?

    1. Rent to the Buyer. I will be one of the owners staying for the 6 months after completion and it is normal not to pay rent. Round 1 S&P had a nominal $1/month. If you are renting out to tenants then I presume you can still collect rent form them. Ask the MA.

    2. Thank you so much! I believe we got to search for property asap. Just thinking of 1000 over enblocers go to purchase home roughly at the same time already quite frightening. Better buy b4 majority got the proceeds ie 22Feb 2018, but of course provided you don't have to rely on the money.

  6. Thanks blogger for the details! Can I clarify if there are objections to the board base on SSD payable, will this delay the STB order to later than 22/11/17?(eg. 1-2months) Scenerio I can think of is owner affected by SSD wants to appeal to STB to reduce SSD payable. Hope it does not affect the disbursement of sales proceeds

    1. No, the STB is set at 60 days max. Things have changed a lot since 2008 when we last went to the STB. It is no longer a 'Court' but more for mediation within a strict timeframe. The STB STB can no longer 'throw out a sale' but either Approves or pushes it to High Court.

      The STB has the power to use 0.25$ of each unit's sales proceeds (or $2000, whichever is higher) to settle legitimate Minority appeals. For example, say you renovated your house 6 months ago you could make an 'objection' to get compensation for costs. I have no idea how much the STB has awarded in the past nor do I know what they might accept as legitimate cause.

      SSD is a new issue and so again I have no knowledge if the STB will compensate or not.
      I would think the penalty payment might be a valid objection if it is payable.

      Whatever happens the STB is 60 days max

    2. Thanks for the information, really helps to clarify! In that case, what if someone suffers financial loss due to late payment etc could that end up as grounds to going to high court?

    3. I am not a lawyer! You would need to seek proper legal counsel on that question! I repeat I AM NOT A LAWYER!

      My own personal opinion :
      there are 4 allowable deductions laid out for Financial loss in the 4th Schedule :
      1) Stamp Duty on PURCHASE of flat
      2) Legal Fees on PURCHASE of flat
      3) Privatisation cost (if you were the one who paid it and
      4)Costs & Expenses of the Collective sale are all that matter to the STB.
      If you deduct all the above from your sale proceeds and are left with less than your purchase price then you are in FL.

      The last LTSA Amendments were in 2010, SSD is a new arrival on the scene and so has not made it's way into the LTSA yet . Therefore, it could hypothetically be tested at High Court as a legitimate 5th deduction to ascertain Financial loss. I think the problem might be the 'purpose' of SSD was to discourage property speculation, and if the Court adds it as a 5th deduction then that pretty much nullifies the cost of speculation. The counter argument would be that not all recent buyers are flippers, but the problem is how to differentiate a genuine buyer from a flipper? The plot thickens. A thorny issue only a Court can decide on.

      Because it is new it may qualify as a point of law and not a frivolous objection. The Court hates frivolous objections and will punish with punitive damages. BUT THIS IS JUST MY HUMBLE LAYMAN'S OPINION. PLEASE TAKE IT WITH A PINCH OF SALT!
      Going to Court is a mightily expensive undertaking - and you'd need a good lawyer like ours in RD1- and he's a senior counsel now and doesn't come cheap :(
      Court is also surprising at times - I was shocked when they ruled that losing your CPF capital was not considered financial loss (Waterfront View 2008) and the CPF board would happily waive away your hard earned savings. That case was not Appealed so technically somebody can take it up to Court of Appeal and try and have it overturned. I was equally shocked at the sweetheart Horizon Towers judgement, that was a game changer.
      Anyways. I am rattling on...
      In summary:
      SSD -> new issue -> seek legal counsel before proceeding.

      Blogger knows nuts.

    4. For the hypothetical case of penalty till financial loss. This unfortunately will be thrown out of the courts as the financial loss will be ascertained at the point of sale. The courts will determine what steps the SP has took to mitigate this 'loss' - whether the SP has arranged with IRAS for a payment plan (defer or installments) or is just a wilful act of non-payment so as to disrupt the sale. My opinion is it will be a complete waste of time and delay the sale process unnecessary not to mention the litigation costs which may work out to be as much as the SSD. Understand other owners who are paying SSD have already reach out to IRAS to work out a payment plan. Would suggest you do so if you are affected.

  7. We understand the SSD is causing some anxiety to some affected SPs.

    Huttons has formed a task force to look into ways on how to manage the SSD issue for SPs who have bought their properties after 22 August 2013. Huttons will get in touch with affected SPs. Please stay tuned for further updates.

    Thank you.(copied from Facebook)

    1. All affected SP's should have been contacted by Hutton's already. If you have not been contacted, please contact Hutton's or the Collective Sales Committee using the details on the Facebook page ASAP.

  8. So what are those 30+ conditions?

    1. They weren't listed as 33 conditions and those few they did mention were no big deal. They talked a lot about the getting the buyer to accept the building height as 49 AMSL instead of 64 AMSL. I said nothing but really, the Buyer has built 3 Buildings in Tampines and knew already how height works in this area. Plus the fact that I emailed the CSC the actual CAAS letter from round 1 earlier to make sure that they didn't use that 'ploy' to lower the price. People have forgotten that Sim Liam bid in Enbloc Rd 1 2007 in the tender and one of the conditions then was 64 AMSL.

      I don;t remember any of the conditions they mentioned as being anything out of the ordinary. Certainly nothing that could have delayed the deal by 1 week! We shall see the 'conditions' in the S&P soon - they are sending out what looks like a really messy document with things crossed out and things aded ... to show what changed. We shall see then. The scrolling was too fast to take note of much

  9. These recent buyers should have known risk of potential en bloc when they buy and make preparations for these already , pls don't sabo people because you just whack and buy and don't care about risk

    1. Every purchaser who buy old development should do his own due deligence and be aware of the risk of enbloc. Even those who buy freehold landed property should also know that his property can be acquire by the state for road widening or construction of highway. Don't blame anyone if you make a mistake as in the same way other SPs cannot share your profit.

    2. I do not understand what u mean by 'throwing people under the bus'. This enbloc started since 2015. More than enough time for SPs to prepare payment for SSD should the enbloc go through. Please don't put the blame anyone if you are caught unprepared when it's time to pay SSD.

  10. Is not law stated in clear all the while ?

  11. Peace at last? Such nice feeling. But will it last? Nah, I doubt so. Blogger will always find something to nag about. Lol

  12. Please close your blog for good. I don't see it serve any purpose except promoting quarrels & divisions among the SPs. Let the team focus on their job till completion & we all get our money !