nothing to do with multiple units, but many of the speculators
in the SC bought more than 1 unit and they are going to bleed
paying the mortgage unless they sell soon 
under the new rules, more EOGMs are needed, laywers have to be
present to explain to owners wtf they are signing etc etc so
basically there is more transparency and accountability
this also adds to the costs and the property agents are likely to
demand more comission and may not work for 'free' during the
initial CSA process anymore
basically it will serve as a deterrent for serial
condo-raiders
Changes to make en bloc sales more transparent take effect from Oct
4
By Vimita Mohandas, Channel NewsAsia | Posted: 03 October 2007 1950
hrs
Photos 1 of 1
SINGAPORE: The Law Ministry has announced that the Land Titles
(Strata)(Amendment) Act, which is aimed at giving more transparency
to en bloc sales, will take effect from 4 October 2007.
The provisions of the new Act will apply to developments where the
required 80 to 90 per cent majority consent of owners (based on
share value) has not been obtained before 4 October. These
developments will have to comply with the new requirements set out
in the Amendment Act.
This means that developments where the required 80 to 90 per cent
majority of owners (based on share value) have signed the
Collective Sale Agreement will not need to comply with the new
requirements.
Developments that are 10 years or more require 80 per cent majority
consent, while those below 10 years require 90 per cent majority
consent.
The new law includes provisions that address the issue of
homeowners left unaware of what is contained in their Collective
Sale Agreement (CSA), which would in turn make the sales process
more transparent.
While some MPs raised concerns in Parliament on 20 September about
social problems that occur with the heated en bloc market, Deputy
Prime Minister and Law Minister Professor S Jayakumar assured
members that changes to the Bill are to 'provide additional
safeguards and greater transparency for all owners involved in en
bloc sales'.
Another refinement 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.
Mr 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.
He 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'. -
CNA/vm
