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WHAT IS A COLLECTIVE SALE?
A collective sale (or more commonly termed en-bloc sale), is a combined sale
by the owners of 2 or more property units to a common purchaser.
The most common en-bloc sale is the sale of all the units in
a strata or flatted development to a purchaser. The sale
proceeds are then divided amongst all the
unit owners.
Other variations of en-bloc sales include the sale of all units in a development
together with an adjoining development or landed properties.
WHAT DO THE AMENDMENTS TO THE LAND TITLES (STRATA) ACT COVER?
Before the amendments, an en-bloc sale of all the units in
a strata or flatted development could take place only if all
the unit owners agreed.
The amendments provide that if a specified majority of unit owners in a strata
or flatted development agree to an en-bloc sale and meet the requirements
of Part VA of the Land Titles (Strata) Act, they may apply to a Strata Titles
Board
for an order that all the units and the land in the development be sold.
WHAT IS THE REQUIRED MAJORITY WHICH MUST BE OBTAINED BEFORE AN
APPLICATION CAN BE MADE?
If a development is less than 10 years old [calculated from the
date of the issue of the latest Temporary Occupation Permit (TOP)
(or Certificate of Statutory Completion (CSC) if no TOP)], the
owners of 90% of the share values, share in land, or notional share
in the land must agree in writing to sell all the units and common
property or land to a purchaser under a sale and purchase agreement
(subject to an order of the Strata Titles Board); and
[Sections 84A(1), 84D(2) and 84E(3)]
If a development is 10 years old or more [calculated from the
date of the issue of the latest TOP (or CSC if no TOP)],
the owners
of 80% of the share values, share in land, or notional share
in the land must agree in writing to sell all the units
and common
property or land to a purchaser under a sale and purchase agreement
(subject to an order of the Strata Titles Board).
[Sections 84A(1), 84D(2) and 84E(3)].
Note: The date of issue of the TOP or CSC may be obtained from
the Building Plan Department, Building and Construction Authority
at 5 Maxwell Road #16-00 Tower Block, MND Complex, Singapore
069110
WHAT IS THE PROCEDURE FOR APPLYING?
The application for en-bloc sale must be made using the approved
form within 14 days of the publication of the advertisement. The
application is to be made by way of a statutory declaration by
the representatives appointed by the majority owners, stating that
the relevant provisions of the Act have been complied with. The
application is to be submitted at the office of the Strata Titles
Boards,
45
Maxwell Road, #01-11
East Wing, The URA Centre,
Singapore 069118
Tel: 6325 1585/6
Fax: 6325 1607
HOW CAN A MINORITY OWNER OR HIS MORTGAGEE, CHARGEE, ETC,
FILE AN OBJECTION TO THE EN-BLOC SALE APPLICATION?
A unit owner who has not agreed to the sale in writing, his mortgagee,
chargee or other person with an estate or interest in the unit
may, within 21 days of the date of the notice for en-bloc sale,
file an objection in the prescribed form with the Strata Titles
Boards.
The Board will, within 5 days of the filing of an objection,
forward a copy of it by registered post to the representatives
appointed
by the majority owners and their lawyers, if any.
Updated
January 2006, Source Strata Title Boards www.mnd.gov.sg |
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