Thursday, August 31, 2006
[RealEdge] TodayOnline Forum: Clearing the air in en bloc estates
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| Clearing the air in en bloc estates Sales committee, MC play a role in ensuring there is clear communication Thursday August 31, 2006 Letter from Chan Kok Hong I refer to Chiu Li Yu's letter, "When neighbours and friends turn into enemies" (Aug 29). It has been my experience as a professional managing agent for 24 years that neighbours and friends turn into enemies due to misunderstanding and miscommunication. Members of the public have little or no understanding of how an en bloc sale is conducted and hence, much suspicion has arisen concerning the legality of the "sales committee". Suffice it to say, a sales committee is no more than a group of volunteers who are interested in securing a good deal for their property and obtaining a good premium over the current market price, if their properties are sold "en bloc" instead of on a piecemeal basis. A marketing agent may be appointed by the sales committee without going through an AGM or EOGM. The Land Titles (Strata) Act only requires the sales committee to apply to the Strata Titles Board for an order if they are unable to obtain the consent of all the owners, but have met the minimum requirement of 80 per cent or 90 per cent (depending on age of the estate). However, there will be objectors or owners who feel that the sales committee's choice of marketing agent or reserve price does not meet their expectations. There will be contentions and ill feelings during this process, which will take more than 12 months. So my advice to all en bloc sales committees: Getting every owner to agree to sell, let alone sell at the same price, or agree on how the proceeds are to be distributed are monumental challenges. But having volunteered to accept the responsibility, one must be prepared to face the challenges that come with it. With reference to Tan Keng Ann's letter, "Owners right to take en bloc process in hand" (Aug 30), he is unfair to state that management councils (MC) and managing agents (MA) are able to manipulate affairs to their advantage. Due notice is given for AGMs and the attendance at such meetings is usually very low around 10 per cent to 20 per cent of the total ownership. In fact, my experience has been that low attendance at an AGM reflects that the owners are happy with the management of the estate. When individuals volunteer as council members, it is imperative that they understand the duties and functions of the council. The primary duty of a council is to "provide for proper maintenance and management of the common property". In that respect, keeping the cost of the maintenance low is also not a virtue as that may lead to neglect of the common property, resulting in low value for the property. I agree with Mr Tan's concept of preventive maintenance and keeping the estate in a good condition. As for the unfortunate misunderstanding between the MC and the owners, my advice is for the MC to hold frequent dialogue sessions with the owners and residents to get feedback. Harmonious living is what every owner looks for, but it is a two-way street and all parties must contribute to this process. | |
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// posted by Shajahan @ 8:31 AM 