Friday, September 01, 2006
[RealEdge] TodayOnline Forum : Spell it all out plainly
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| Spell it all out plainly Law needed to guide en bloc sales team's activities Onus on committee to be open, amicable Friday September 1, 2006 Letter from Thomas Liew I refer to the letter, "When neighbours and friends turn enemies ..." from Chiu Li Yu (Aug 29). Her experience seems to accurately reflect the Pine Grove condo situation where the pro tem sales committee has been questioned on their legality. Letter from Choy Yoon Hoong Mr Chan Kok Hong's letter in response to it, "Clearing the air in en bloc estates" (Aug 30) seems to suggest that the main cause for such disagreements is the lack of governance and transparency of the sales committees, made up of volunteers who act on their own self-interest. I have been in Pine Grove for 20 over years and have a deep attachment to this place. There was a survey done on the residents' interest to go the en bloc way. Since that survey, we have suddenly seen a sales committee formed, an agent and law firm selected and a collective sales agreement handed to us for signing. I do not recall being asked to elect members to represent the condo or to vote on the issues for en bloc, such as the best deal from various agents and law firms and how the sales proceeds will be distributed. As pointed out by Mr Chan, there is no need for the pro tem sales committee to do so. As a result, there are intense disagreements between the supporters and the dissenters. While I do not want to opt for the en bloc sale, I do feel it is best to follow a process spelt out by the law, with a majority agreement on the various issues (beyond just the final consensus vote). When this is done, the issue of neighbours becoming enemies will not arise. What we do not want is for a small group to influence a larger group of "ignorant or naive" owners into signing a collective sales agreement without knowing the implications of an en bloc sale. The law should provide for the protection of dissenters' interests, by ensuring transparency and majority agreement in the activities of the sales committee. I agree with Chiu Li Yu. The estate I am living in is the subject of an ongoing en bloc sale, too. A homeowner's first reaction to the suggestion of an en bloc sale is likely to be: "How dare you try to uproot me from my own comfortable dwelling." On the surface, this is true. But the subject has to be approached in an objective manner. The en bloc committee has to address all owners in an amicable manner, reasoning out the many factors that prompted the exercise. The question of what would happen should the sale fail to go through must also be addressed in full by the committee and estate management without prejudice to the owners. In such a case, for instance, the issue of upgrading will need to be addressed, especially for an estate more than 30 years old. The normal sinking fund will not be able to meet or sustain the demanding requirements without additional subscriptions from the owners. Also, in order to enhance the market value of the property, there is the looming cost of topping up a 99-year lease plus development charges a high-cost item. And, if an estate happens to be sited near or above any MRT construction, there is a danger that when the trains start running, the Land Transport Authority (LTA) will monitor all the buildings for vibrations and ground movements. If found to be excessive, the Government might take over the buildings and offer compensation short of any en bloc offers. I had misgivings when the en bloc sale was first mooted, having lived in my estate since it was built more than 30 years ago. I am now aware of the justifications, despite my fondness for my first owned home. Many people do not understand or misconstrue the concept of an en bloc sale, and it is up to the committee and management to communicate the plan truthfully, openly and amicably, so owners can see the merits or demerits of the exercise. | |
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// posted by Shajahan @ 10:13 AM 