Fair Legislation In Collective Sales Needed To Protect Both Buyers And Sellers

Source : The Straits Times, Feb 18, 2008

THE issues in en-bloc sales stem from the rush to redevelop older condos and the resulting lack of mutual benefits between buyers and sellers.

There is absolutely no reason that minority owners should be forced to uproot under the 80/90 per cent rule.

It is ridiculous that majority consenting owners are trying to justify why they should renege the contract they signed when property price increases and not otherwise.

The intrinsic principle and spirit of collective sales for urban renewal in Singapore seem to evaporate into thin air while both parties lock horns in the pursuit of self-benefits. The dynamics of property price fluctuations, distribution of sales proceeds and disputes between aggrieved buyers and sellers only benefit the lawyers.

Looking at the situation from a different angle, I could see some light at the end of tunnel if we address the often-neglected elements of nostalgia as well as the mutual benefit mechanism in a collective sales exercise.

It is impossible to resolve the aspirations of hundreds of condo owners living at the same location for decades. A holistic approach with proper legislation may solve the perennial problems. Redevelopments on the premise of economics may not necessarily be a good thing. Pragmatic measures should be in place to control unnecessary and wonton demolitions for the sake of preserving Singapore's history and people's homes.

To mitigate the element of nostalgia and mutual benefit mechanism, comprehensive legislation is needed to protect the interests of buyers and sellers in the event of collective sales.

First and foremost is to ensure that those who don't want to move to other locations retain the right to exchange a unit of a similar area at no extra cost at the new redevelopment if they wish.

The laws embracing the interests of both willing and unwilling sellers in the event of collective sales should mandate that developers (buyers) must provide alternative options to existing owners in their new redevelopments for exchange or trading with combinations for cash and smaller units on fair terms.

Fair legislation in collective sales built on mutual benefits may eliminate potential sentimental or financial problems.

Paul Chan Poh Hoi