More Transparency To En Bloc Sales

Source : The Straits Times, Sep 20, 2007

PARLIAMENT has passed the Land Titles (Strata) (Amendment) Bill - aimed at giving more transparency to En Bloc sales - with some additional tweaks, based on public feedback.

The Ministry had consulted more than 100 respondents and 40 industry players in finalising the changes to the Act.

One of the key refinements to the new bill is that consent to an en bloc sale will now be based on the area of lots as shown in the subsidiary strata certificates instead of the number of units.

Explaining the change in Parliament on Thursday, Deputy Prime Minister and Law Minister Professor S Jayakumar said consent by number of units could result in 'owners of large commercial units subdividing their property into many strata lots so as to create additional votes for themselves'.

Using the area of lots as the basis for the second condition of consent will 'mitigate the current bias against residential owners in a mixed development', he said.

Prof Jayakumar added that consent by number of units will also not be fair to owners with large units as it would mean that 'a commercial unit will have exactly the same voting right as a residential unit'.

More transparency

The new law will also contain provisions that address the issue of homeowners not knowing what is contained in their Collective Sale Agreement (CSA).

This will make the sales process more transparent.

But many MPs raised their doubts about social problems that come along with the heated en bloc market, such as the trauma of uprooting families and the elderly.

Sembawang GRC MP Ellen Lee urged the government to 'strike a balance between ghettos and protecting the elderly'.

More importantly, she urged the government to develop a set of guidelines so as to deter harassment and unprofessional developers and marketing agents.

Ms Lee's concerns were echoed by many others, including Tampines GRC Irene Ng, who pointed out the need to impose greater discipline on marketing agents.

Besides this, Ms Ng also proposed that developers offer residents replacement homes in the same area at an affordable price, so that those who wish to stay put, can do so.

But Prof Jayakumar stressed that the changes to the Bill are to 'provide additional safeguards and greater transparency for all owners involved in en bloc sales', both minority and majority owners.

'I would like to reiterate that the amendments to the en bloc sale legislation maintain a careful balance.

'They provide additional safeguards and ensure greater transparency for all owners, but at the same time, have been drafted in such a way as not to make it unduly onerous to bring about an en bloc sale', he said.