I REFER to the query, 'How is en-bloc payout tied to 'share value'?' (ST, Oct 24).
Share value determines share of common property, voting rights and amount of maintenance contribution of each subsidiary proprietor (owner) of a strata sub-divided lot (condominium units, among others, are strata sub-divided lots).
The schedule of share values is filed by the developer and must be accepted by the Commissioner of Buildings (COB) before the sale of any strata lot in a development.
The COB issues guidelines on the filing of the schedule of share values. In the latest guidelines, share values of condominium units are assigned based on floor-area groupings of 50 sq m intervals (see http://www.bca.gov.sg/BMSM/others/Share_Value_Guidelines.pdf). Thus a unit with a floor area of 45 sq m would be assigned five shares and one with 55 sq m would be assigned six shares.
The COB reviews and revises the guidelines periodically. Before the latest revisions, share values of condominium units were assigned based on floor-area groupings of 100 sq m intervals, with share value of three for floor areas of less than 100 sq m.
In the case of Eng Lok Mansion, the share values for the 118 sq m and 146 sq m units were assigned based on the previous guidelines and were of the same share.
Tan Kok Chuan
