Singapore Law Blog

During the Committee of Supply Debate 2007, Deputy Prime Minister, Co-ordinating Minister for National Security and Minister for Law, Professor S Jayakumar announced the main proposed amendments to the en bloc sale legislation. These and other amendments were recommended by a study team that was set up to review the en bloc sale legislation.

Proposed Amendments to the En Bloc Sale Legislation

2. The three main proposed amendments are as follows:

A) Additional Consent Requirement from Owners

• It is proposed that in addition to the existing requisite consent for an en bloc sale of 80 per cent/90 per cent of share value for developments that are more than and under 10 years old respectively, an additional majority consent requirement based on ownership of units - at 80 per cent of units if the development is more than 10 years old and 90 per cent if it is less than 10 years old - be included.
• This additional requirement will go some way to addressing the issue with respect to mixed developments of residential unit owners holding a substantial floor area and number of units but having significantly less share value, and thereby the en bloc sale is dictated mainly by the office and shop owners.

B) STB to be Empowered to Increase Sale Proceeds for Minority Owners Who Have Filed Valid Objections in Appropriate Cases

• It is proposed that the Strata Titles Board (STB) be given the power to increase the sale proceeds for minority owners who have filed valid objections if it is of the view that it would be fair and equitable to do so.
• This will address the situation where an objector may not have been treated fairly or equitably in the distribution of the sale proceeds, even though the STB determines that there is no bad faith on the part of the majority.
• The total amount that the STB can increase the sale proceeds for all minority owners who have filed valid objections will be capped at an aggregate sum of 0.25 per cent of the sale proceeds or $2,000 from each unit, whichever is higher.

C) Other Improvements to be Made to the En Bloc Sale Procedures

• Improvements are proposed to the en bloc sale procedures to enhance the transparency and certainty of the sale process. Examples are:
• It is proposed that STB be empowered to issue guidelines on the allowable expenditures that will be taken into account in the evaluation of claims on financial loss. 
• It is proposed that the establishment of an en bloc sale committee should be decided at an Extraordinary General Meeting (EOGM) convened by the Management Corporation.

Public Consultation Exercise

3. As announced at the Committee of Supply debate, the Ministry of Law will hold a public consultation on the proposed amendments to the en bloc sale legislation. The public will have from 2 April to 12 May 2007 to review and comment on the proposed amendments. The feedback given will be taken into consideration in finalising the amendments to the en bloc sale legislation.

4. The public can forward their responses via email or by mail to:

The Ministry of Law 100 High Street The Treasury, #08-02 Singapore 179434 Attn: Mr Gary Goh

5. Following evaluation of the feedback, the confirmed amendments are expected to be implemented by the third quarter of this year.

• View the Consultation Paper on the Review of En Bloc Sale Legislation here
• View the Draft Legislative Amendments to the Land Titles (Strata) Act here
• Send in your feedback and comments via e-mail to MLAW_enbloc@mlaw.gov.sg