Source : The Straits Times, Aug 27, 2007
HOMEOWNERS will get added protection with proposed changes that will make the en bloc sales process clearer, fairer and more transparent, with the introduction on Monday of the Land Titles (Strata) (Amendment) Bill.
Among the enhancements are a requirement for a sales committee to be formally appointed and for a five-day 'cooling off' period after the collective sales agreement is signed, in case owners change their minds.
Deputy Prime Minister and Minister for Law Professor S. Jayakumar first outlined some of the changes in March.
But in moving the new Bill, he told Parliament on Monday that more proposals were added after a public consultation exercise as well as group discussions with industry experts like lawyers, property consultants and academics.
The public consultation was held from April 2 to May 12, during which more than 400 suggestions were collected from more than 100 respondents.
In all, there are more than 30 proposed amendments, most of which aim to tighten the collective sale process.
A key move will see owners' voting rights in a collective sale decided by the area of their flats, in addition to the share value of their flat.
The sales committee must be also be formally appointed to conduct the collective sale agreement.
Another new requirement - every home owner must have a lawyer to explain their legal rights in the agreement.
Another change will give the Strata Titles Board the power to increase the amount minority owners can get from sales proceeds if, say, they spent a lot to renovate their home not too long before the en bloc sale.
'The proposed amendments are to provide additional safeguards and to ensure more transparency for all owners, i.e. the minority and majority owners, but in a way that does not make it unduly onerous to bring about an en bloc sale,' said a spokesperson from the Law Ministry.
The new Bill is expected to be debated next month, with the enhancements scheduled to take effect in early October.
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