On The Cards: Summary Of Key Proposed Changes Affecting Collective Sales

Source : The Straits Times, Tue, Aug 28, 2007

Additional consent requirement

Additional approval required from owners of units forming at least 80 per cent of area if the development is more than 10 years old and 90 per cent of area if the development is less than 10 years old.

Formation of sales committee

Sales committee to be formed, and its members elected, at a general meeting before the signing of a collective sale agreement can start. More general meetings to be held to consider key issues such as appointment of lawyer and consultant or agent, apportionment of sales proceeds, contract terms and so on.

Collective sale agreement

Lawyer to be present to explain legal terms and liabilities when an owner signs the collective sale agreement. But the owner can change his mind within a five-day cooling-off period after signing the collective sale agreement for the first time.

Mode of sale

A collective sale launch must be made by public tender or public auction. As well, an independent valuation is to be obtained on the date of the close of the tender and bids to be revealed to the owners as soon as practicable.

STB empowered to raise proceeds

The Strata Titles Board can increase the amount that minority owners can get from sales proceeds if it finds that these owners have not been treated fairly. This proposed increase will be at least $2,000, or at most, 0.25 per cent of the sale proceeds for each unit.

Return of monies in management fund and sinking fund Upon sale completion, the money in the condominium's management fund and sinking fund to be distributed to owners.