 Our
friends at Pearlbank apartments have just heaved a sign of relief
that their condo did not receive any substantive offers to go en
bloc. However, their agent, Knight Frank, has just informed them
that they will now open up the bids for the development for private
sale.
From the time a Collective Sales Committee is appointed, it's a one
year process to collect signatures. If the dreaded 80% is achieved,
sometimes it's another year for the agent to collect bids. And if
the open tender bids fail, in most cases the agent is free to open
the sale to others.
The $1b question is: Do the SPs think of the consequences to them?
Sometimes, owners think that a Collective Sales Agreement is a
"standard" legal document. In other words, they think it's a fair
document which protects owners. Beware of such thinking. You need to
be represented by your own lawyer, who is looking out for YOUR own
best interests, rather than the en bloc lawyer, whose interest it
may be to earn that $2m ++ fee and push the sale thru... If you do
not understand the CSA, and sign because your neighbours signed
without reading, what could happen? Alamak! Litigation against a big
time developer with big pockets!
Why does litigation happen so often in the
Singapore en bloc market? Because many en bloc sellers
realise too late that they signed away many rights and waited too
long for their money. Such a long wait means that the replacement
value of what is sold has shrunk considerably. Thus the delayed
Seller's regret and... pain... That's why we call the CSA - Classic
Signers' Angst.
You may too be telling a tale of en bloc litigation like all the en
bloc kitties who have sold out before you! En bloc kitties! Don't be
so blur, please!
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