Newer Buildings: Ban En Bloc Sales

Source : The Straits Times, Sep 16, 2007

-- ST PHOTO: CAROLINE CHIA

I REFER to the proposed amendments to the Land Titles (Strata) Act governing the collective sale of properties.

The proposed amendments could have done better by prohibiting the collective sale of buildings that are less than 20 years old, and making the collective sale of buildings progressively easier for buildings 20 years and older.

For example, by requiring 80 per cent share value approval for buildings that are at least 20 years old but less than 30 years old; 75 per cent approval for buildings at least 30 years old but less than 40 years old and so on.

This formula will ensure that there is a balance between environmental concerns and urban renewal.

Secondly, it would have been better to define the method of apportionment, rather than keep silent on one of the most contentious points in any collective sale.

This problem arises because of the anomalous nature of the term 'share value'. Is it the share value of common properties? Under the current legislation, this is how it is defined.

Or is it the share value for the purpose of apportioning the maintenance costs of the building? In practice, the share value is used to determine the maintenance cost for each subsidiary proprietor.

Having a clearer definition of the method of apportionment would make most collective sales less contentious.