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Timeline for a collective sale - example of Thomson View
09 Nov 2021 (596 views)  

The owners of Thomson View held at Extraordinary General Meeting (EGM) on 24 Jan 2021 and approved the formation of a sales committee.

The sales committee met with several marketing agents and lawyers and discussion the terms of the collective sales agreement (CSA).

They called the second EGM on 25 April. The EGM approved the CSA and the appointment of the marketing agent and legal adviser.

The marketing agent approached the owners to sign the CSA. Under the law, 80% of the owners (by number of units and strata value) have to sign the CSA for it to be effective. 

It was a challenging undertaking. The marketing agent achieved the 80% threshold in October. This process took slightly less than 6 months.

An owner's meeting was held on 7 November to update the owners.

An advertisement was placed in the newspapers on 8 November to invite interested developers to submit a tender for the site. They are given 9 weeks to make their submission. The tender will close in January.

It is still uncertain if there are developers who will be interested to bid for the site. 

If there is a bid that meets all the conditions of the tender and the collective sales agreement, the sales committee is authorized to accept the bid. 

An application has to be submitted to the Strata Title Board (STB) to approve the collective sale. Any dissenting owner, who did not sign the CSA, can submit their objection. The STB will attempt to mediate the objection. If the mediation is unsuccessful, the objection will be heard in the High Court.

If there are no objections, the STB will grant its approval for the collective sale.

If the objection has to be resolved in court, it may take a few more months. The court may grant its decision by August 2021 or later. 

If the matter goes through, the owners is expected to deliver vacant possession of their units between August to December 2021. 

The whole process would take about two years, from the date of calling the first EGM.

It is not easy to complete a collective sale. Many condominiums have tried, but only a small proportion (perhaps less than 10 percent) became successful. 

The obstacles include:

a) Inability to get 80% of owners to sign the CSA
b) Developers are not interested to buy the site at the price asked for
c) Objections by dissenting owners (i.e. those who refused to sign the CSA).

I own two units in Thomson View. This is probably the sixth attempt at a collective sale. I hope that it succeeds this time.

This article describes the changes over the past 25 years.

Tan Kin Lian


Timeline for a collective sale - example of Thomson View
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The owners of Thomson View held at Extraordinary General Meeting (EGM) on 24 Jan 2021 and approved the formation of a sales committee.

The sales committee met with several marketing agents and lawyers and discussion the terms of the collective sales agreement (CSA).

They called the second EGM on 25 April. The EGM approved the CSA and the appointment of the marketing agent and legal adviser.

The marketing agent approached the owners to sign the CSA. Under the law, 80% of the owners (by number of units and strata value) have to sign the CSA for it to be effective. 

It was a challenging undertaking. The marketing agent achieved the 80% threshold in October. This process took slightly less than 6 months.

An owner's meeting was held on 7 November to update the owners.

An advertisement was placed in the newspapers on 8 November to invite interested developers to submit a tender for the site. They are given 9 weeks to make their submission. The tender will close in January.

It is still uncertain if there are developers who will be interested to bid for the site. 

If there is a bid that meets all the conditions of the tender and the collective sales agreement, the sales committee is authorized to accept the bid. 

An application has to be submitted to the Strata Title Board (STB) to approve the collective sale. Any dissenting owner, who did not sign the CSA, can submit their objection. The STB will attempt to mediate the objection. If the mediation is unsuccessful, the objection will be heard in the High Court.

If there are no objections, the STB will grant its approval for the collective sale.

If the objection has to be resolved in court, it may take a few more months. The court may grant its decision by August 2021 or later. 

If the matter goes through, the owners is expected to deliver vacant possession of their units between August to December 2021. 

The whole process would take about two years, from the date of calling the first EGM.

It is not easy to complete a collective sale. Many condominiums have tried, but only a small proportion (perhaps less than 10 percent) became successful. 

The obstacles include:

a) Inability to get 80% of owners to sign the CSA
b) Developers are not interested to buy the site at the price asked for
c) Objections by dissenting owners (i.e. those who refused to sign the CSA).

I own two units in Thomson View. This is probably the sixth attempt at a collective sale. I hope that it succeeds this time.

This article describes the changes over the past 25 years.

Tan Kin Lian