Beware not having 21% Stayer Support

Against an en bloc? Don't just sit there and lose your home! Fight for what you believe in! Given the way the law is structured, you need to muster more than 20% in your Stayers core group. Secondly, you must hold together that 21% core group until at least the expiry of first 12 months from first CSA signature and - keep that Group together. Until the laws change, another en bloc process can re-mushroom immediately upon expiry.

Beware of signing the CSA

Those who do not sign the CSA are not bound by CSA, hence not bound by SPA ... UNTIL collective sale order from STB. In the case of Horizon Towers, it has been shown that those who did not sign the CSA were not sued, whereas those who signed were sued collectively.

Beware of Sticky Promises

One CSA we have seen stipulates only 6 mths to gather the 80%, BUT gives the SC the final authority to extend that deadline up to 12 mths if they deem necessary. It made one wonder why ever did they bother to put in the 6 mths clause, aside from giving owners the false impression that any ordeal will be over in 6 mths, and it's better to sign fast.

For their second 12 mth period, they did the same thing - 8 mths to obtain sale but SC has ability to extend up to 12 mths. Maybe during the presentation they only highlighted the 6 and 8 mth deadlines without stating the clauses for extension, I don't know. But that's something to watch out for.

Beware of en blocers not signing the CSA on time

All CSAs require 2 sets of signature per unit: SPs must sign, date, and the signing must be WITNESSED by lawyer who has to sign AND DATE it. If unit owners are overseas, the signature has to be signed, and validated by the Singapore High Commission in that country (signed and dated by SHC officer there). Look out for monkey business.

Previously, pre the LTSA amendments, 2 sets of signatures were still required. However, the witness signature could be a marketing agent, not necessarily lawyer. This led to some issues of agents backdating signatures or not signing the witness portion etc. What safeguards will there be now? It's up to you to feedback irregularities.

When you actually reach the STB hearing stage, all SPs will receive a package containing, among the documents, a copy of the CSA with all the signatures and dates. You'll be able to ascertain who signed and when they signed. Is it too late to object by then? Not really, because this is the time when objections are raised about the validity of some signatures.

Beware not waiting for the en bloc to go through for sure

Given that the market (by definition) is in a constant state of flux, this law of "up to 12+12-month window" is really, really disproportionate and pre-loads the dice against SPs who need to buy a replacement unit after en bloc.

Some sad SPs are so sure their enblocs will go through that they end up in financial shambles. for instance an Airview Towers SP (where 99% signed the CSA) was so sure he would enbloc so he went out to buy a replacement unit when 80% hit and he is now straddled with two properties and two loans to pay!

Beware of the hecklers who won't let you speak at EOGMS

En blocers heckle Stayers at EOGMs to embarrass them into silence and prevent a true airing of issues.

Importantly, a Stayer should behave and not give in to the bullying/name calling etc as the pro-salers will try to make you lose your cool. Don't respond to the person directly but rather, ask the Chairman of the MC if he/she could tell that person to calm down. It is the responsibility of the Chair of MC to ensure the meeting is held in an orderly fashion. It does not matter if the Chairman is pro, he has to perform his duty. If he doesn't, just ask him/her "So can it be minuted that the SP of Unit X has requested for order to be maintained at the EOGM, and the Chair has declined to do so. The Chair has to comply to a direct request from an SP to him. Of course you should limit your queries - you want to come off as a concerned owner, who wishes to highlight some problems, and the longer you drag the Q&A out, the more likely people who may be inclined to support you, begin to see you in a less favourable light. Keep queries to the big issues.

If the Chair fails to stop the name calling and shouting etc, we suggest writing in to him to ensure that order be maintained, or you will write to STB (Strata TItles Board) and lodge a complaint; or you will contact a lawyer to ascertain what legal action can be done against the Chairman. Check with a lawyer on both cases. In addition, you should state that there should be 'ample' time for the question and answer session since it is the right of any and every SP to query the SC/Agent/lawyer and obtain a response. Otherwise why hold an EOGM, why not just a letter?

Beware of the CSA EOGM

Here's a common tactic of the Sales Committee. They sometimes showcase the CSA (Collective Sales Agreement) and then start the CSA signing, giving SPs (for and against, both treated alike) very little time to read the CSA and query various points in it. The only thing you can do, if you're not legally trained, is to ask general questions about the potential loopholes in the CSA. If you do not have access to the CSA prior to the EOGM, and you have serious misgivings about it, then bring it up strenuously and inform all SPs. Imagine selling your home using a contract that has terms which are not favourable to you, which your lawyer cannot comment on beforehand, which you are not even given time to consider. It's your home, yet you are powerless? We have seen even pro enblocers incensed by the lack of consultation or discussion - all discouraged by the SC in their hurry flurry to push the en bloc through.

Beware of not attending EOGMS

The majority required to pass a EOGM resolution is pegged to (a) 50.1% and (b) those present at that EOGM, whether in person or by proxy. So it is very important to attend EOGMs as resolutions are passed by simple majority.

Suppose there is an EOGM to approve the tender:

Even if 80% signed the CSA, but only 30% of owners attend the EOGM, you just need 50.1% of the 30% present to vote for this particular resolution to sell your condo down the river!

This applies to all the other EOGMS too!

SPs should attend all EOGMs - especially the ones where the CSA terms are to be approved.

Beware of sale by private treaty

3rd Schedule Para 7.4 refers to the EOGM to update owners on number of offers, and terms of the SPA:

"(4) The meeting under sub-paragraph (1)(f) and (g) shall be convened as soon as practicable after the close of the public tender or public auction or, where applicable, after the collective sale committee has entered into a private contract under paragraph 11."

So assuming that this final EOGM can only be held after a private treaty, and then owners have to vote on whether to accept the treaty and SPA or not. It's crucial, at this point, to get as many Stayers (or their proxies) to attend this meeting.

Beware of lowering of the reserve price

Or let's say your SC receives the 80% and they go to public tender or auction. The tender deadline passes, and all bids are lower than the RP (Reserve price). The SC has 2 options - go for another tender, or pick the 'best' developer's offer and work out a compromise - this is the private treaty. Now, we don't know if the developer picked is the best, nor do we know in what way is it the 'best' - or why the SC voted for a particular developer. And if there is a lack of transparency on the part of the SC, SPs will not be privy to full information. They may have selected a lower bid from a more reputable buyer, or they may be greedy and go for the highest unsuccessful bid (but it may turn out like the Tulip Gardens case where the developer could not pay in time). It will be up to the SC to explain to all owners at the EOGM. This is a really important EOGM because it is also a crucial time when pro-sales SPs may defect to say no, esp if they are not getting what they were promised - the best windfall deal.

Stayers, make sure you document everything that happens in your estate. 80% of 10 estates we know of undergoing enbloc did not conduct any form of voting for the the above EOGMs. When asked, the lawyer, SC and agent stated that it is not required! Believe us, when you can provide consolidated information like this, there's almost no way the authorities can ignore you.

Give your feedback - it's vitally important

We urge all of you to write in to contact@mlaw.gov.sg as they have said publicly that they are monitoring the public forum letters, letters to them and discussions about the new en bloc laws. Our hope is that they will keep refining the laws to enable a fair and transparent process to en blocs, at the very least.

The Ministry has kept a study team in place to monitor (a) the continuing abuses IN SPITE OF the new law; (b) the new problems BECAUSE OF the new law; and (c) the perpetration of structural issues DESPITE the new law.

All Stayers' running skirmishes are important because it shows the continuing abuses IN SPITE OF the new law. Don't lead MinLaw to believe that all is calm and the new law is so effective - speak up!