Condo Raiders

Is there a condo raider in your estate? We define condo raiders as owners who buy for the purpose of reaping a windfall (at your expense) from condos which are ripe or have potential for en bloc.

Such persons not only own multiple units in your condo, they also try to effect an en bloc by serving on the Sales Committee or acting behind the lines to encourage the sales committees to form. In recent legal cases, key members of the SC owned multiple units bought just before or in the early throes of the en bloc. The impact of this is simple. The condo raider may not be serving your best interest in getting the best price for your unit, as he is burdened by owning several units in the condo. His windfall can only be realised by a quick sale. Never mind the issues of conflict of interest, fiduciary care to all SPs etc. It's a business. Different rules at play for them.

Condo raiders are organised and very experienced in going about creating en blocs in old estates. They treat property as a commodity and are often represented by excellent lawyers.

In some cases, the condo raider owns units across several condos. They also buy units just as the en bloc is announced.

It is not against the law to be a condo raider. However the actions of such a person affect your home greatly. So, vigilantes we must be, to protect what is ours. In short, we Stayers need to be as smart as condo raiders.

If you suspect this is happening in your estate, search the URA or other sale sites for the transacted units in your condo. Get the unit number and full address of all apartments sold. You will be able to know who bought a recently sold unit. Is this person active at EGMS? On the SC? The loudest heckler when you speak against en blocs? On the MC? ? Then ask your MA (Managing Agent) for the most recent updated Strata Title Roll (you may have to pay for the copying charges) and look for identical names and ic numbers of the suspected party. In some cases, the property is purchased by a relative, so look for matching addresses as well.

Since this is public information, it is neither illegal to obtain nor to share this information with anyone. Full disclosure is often the bane of a condo raider.

Speak up focrcefully at meetings about the conflict of interest in having a condo raider serve on your SC. Sometimes people have to be shamed into behaving ethically.

If you wish to write to us and let us know about a condo raider in your condo, press here.

Here's an excellent reply from a Stayer :

How to spot a condo raider
If an old development suddenly finds favour with buyers, or several units changing hands rapidly, be alert. Check with the MA who are the people who bought these units. If the units are merely given cosmetic make over, ie, a simple coat of paint, new curtains and seem very aggressive in wanting to rent out to whoever, stay alert. If strangers suddenly appear at the AGMs, hands full of proxies, scrutinising past year's accounts, questioning every motion tabled, especially if this is related to upgrading or maintenance initiatives for the estate, be VERY alert. These are very likely to be your condo raiders.

In the past, many owner residents are taken by surprise and did not know how to respond, including the MC office bearers. This is exactly the outcome the condo raiders want, make surprise, lighting fast attacks, inciting the owners to turn against their MC - and if the MC is offended, those who have served in the past quit. This plays into the hands of the condo raider - divide and conquer. When the MC who has worked so hard quits, there is a power vaccum. Better for the condo raider!

Condo raiders excite those owners who do not live in the estate, but have been waiting for a good price to dispose of their units. Before anyone regains composure, these raiders have taken control of the MC. The next thing, a CSC (Collective Sales Committee) is formed, and everyone is swept along.

Do not be inducted into such tactics. Be calm, be informed. It pays to do one's own homework. Talk to the other owner residents, explore what is the risk/gain if the estate goes enbloc. Do the sums. If the estate goes enbloc with $x ppr, what is the developer-buyer's construction costs, what must he sell to make a profit. That would roughly form the basis of a valuation of the next unit in the next development within the same neighbourhood. That would give a rough idea of where the gain/loss is. Checking past transacted records would also form a guide to the valuation of the current estate. Do not be seduced by sexy en bloc talk. En blocs seldom work for the owner-resident.

Be aware of the timeframe, property down market, or up market, which has a bearing on the asking price. Factor in all costs, including what one may have to compensate another neighbour who could have paid very high for his unit in the past.

Make informed decisions.

Make it a point to attend ALL the AGMs and - support upgrading/maintenance efforts. Enbloc deals often fall through. It will really be financial hardship if one commits to a new property, while saddled with an old, under-maintained unit which cannot easily be sold or rented out, in the event of a failed enbloc attempt.

Do not be pushed or harrassed by condo raiders who may desperately need to recover their costs. These people have a "cut loss" exit strategy. Resident homeowners do not.