Further changes may follow if necessary, Jaya tells MPs who want more to be done
A SLEW of intensely-debated changes aimed at making the red-hot collective sales market fairer was passed in Parliament yesterday.
The revisions - keenly watched since they were mooted in March - will make it harder for residential developments to go en bloc as they must fulfil more conditions.
And further changes may be in the works if they are necessary, said Deputy Prime Minister S. Jayakumar, also Law Minister.
He was responding to spirited appeals by several Members of Parliament yesterday, who peppered him with suggestions on how to further tighten the rules.
Most felt more could be done to protect the interests of minority owners and the elderly, who are often strongly opposed to selling en bloc but find they have no choice.
In response, Prof Jayakumar said that while their suggestions were not 'without merit', he was also concerned about not 'micromanaging the process'.
Related Video Link - http://tinyurl.com/22tfdyEn bloc sales to be more transparent
Changes to laws governing en bloc sales were passed in Parliament today with several MPs appealing for even stricter rules.
But Deputy Prime Minister and Law Minister S Jayakumar said while his ministry will consider the suggestions, it also has to be mindful about not micro-managing the en bloc sales process.
'We have to...strike a balance between trying to make the process more transparent...while at the same time not making it unduly unmanageable or too onerous.'
But he added that the ministry is not going to 'close shop and forget about the process of en bloc sales'.
It will 'monitor very closely' the new laws and make further amendments if needed.
The changes have already had some effect on the en bloc market, even before they are due to come into effect next month.
Property players say they have spurred a rush among homeowners to go en bloc before the new rules make it harder.
But some consultants, like Knight Frank director of research and consultancy Nicholas Mak, say the changes may not have a large impact on the market.
'They will add more procedural hurdles, but on the whole, they were not designed to slow down en bloc sales and they are unlikely to do so,' he said.
More than 30 amendments were approved yesterday, after extensive public and industry feedback. They are meant to introduce more regulation into the market and 'minimise complaints of harassment, unfairness and lack of transparency', said Prof Jayakumar.
Key revisions include a five-day period for owners to change their minds after signing the collective sale agreement. Also to come are new rules on setting up a sale committee and new powers for the Strata Titles Board, which governs collective sales.
Another major change addresses an imbalance in voting rights in a mixed development. It adds an extra level of owner consent, by floor area, before a sale can proceed.
The amendments were beefed up in recent months after 400 suggestions from the public and discussions with about 40 industry experts.
They follow months of grievances from homeowners over a lack of clarity in collective sales, which have seen a spectacular record run in the last two years.
The need for more regulation has also been thrown up by cases such as that of Horizon Towers, where owners are being sued by the estate's buyer over a botched collective sale.
Not to be outdone, MPs weighed in with their own proposals yesterday.
These ranged from not allowing 'young' buildings below 10 years of age to go en bloc to offering a one-for-one exchange of units in the new development.
More than one MP also spoke of the non-monetary losses felt by owners forced to sell en bloc, and condemned 'condo raiders' who buy units in a development and push for a collective sale.
Nominated MP Kalyani Mehta suggested that only residents who have stayed in an estate for more than two years can sit on the sale committee.
Prof Jayakumar took these outpourings in his stride.
A two-year residency condition, he said, would discriminate against new bona fide homeowners. Replacement units are sometimes offered, but turned down by sellers for various reasons.
As for those concerned about younger buildings, he offered this statistic: since 1999, almost 70 per cent of developments that have been sold en bloc were more than 20 years old.
But he agreed to look into some proposals, such as a best practices guide and standard forms to help en bloc players.
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