The Land Titles (Strata) (Amendment) 2007

WITHOUT PREJUDICE

A Summary for Bedok Court Subsidiary Proprietors

FIRST SCHEDULE
(1)This Act may be cited as the LAND TITLES (STRATA) (AMENDMENT) ACT and shall come into operation on 4th October 2007.

(2) The requirement that subsidiary proprietors with at least 80% of the share value and not less than 80% of the total area of all the lots in the strata title plan for developments that are at least 10 years old, must agree to a collective sale before an application for such sale may be made to a Board.

(3)The total sum ordered by the Board for all the objectors shall be paid from the proceeds of sale of all the subsidiary proprietors and shall not exceed the aggregate sum of 0.25% of the proceeds of sale for each lot or $2000 for each lot, whichever is the higher.

(4)A Board shall not invalidate an application to the Board for an order by reason only of non-compliance, if the Board is satisfied that such non-compliance does not prejudice the interest of any person.

(5)The Board shall not approve an application:
5.1 If the Board is satisfied that the transaction is not in good faith after taking into account only the following factors:
(A) the sale price
(B) the method of distributing the proceeds of sale; and
(C) the relationship of the purchaser to any of the subsidiary proprietor
5.2 The sale and purchase agreement would require any subsidiary proprietor who has not agreed in writing to the sale to be a party to any arrangement for the development of the lots and the common property in the strata title plan; or
5.3 If the sale committee does not consent to any order made by the Board

(6) The collective sale agreement shall be signed by the subsidiary proprietor,and , if signed in Singapore, in the presence of an advocate and solicitor who has a valid practising certificate appointed by the collective sale committee.

(7) A subsidiary proprietor may rescind( one time only) his agreement to be a party to the collective sale agreement by serving a notice of rescission within the 5 working days cooling-off period.


SECOND SCHEDULE:
Requirements for general meeting or EOGM on requisition
The council of a management corporation shall, on receipt by the secretary thereof of a requisition for a general meeting signed by :
(a) one or more persons entitled to vote in respect of one or more lots, the share value or the total share value of which is at least 20% of the aggregate share value of all the lots whose subsidiary proprietors comprise the management corporation; or
(b) not less than 25% of the total number of subsidiary proprietors of the lots whose subsidiary proprietors comprise the management corporation,immediately proceed to convene a general meeting of the management corporation to be held as soon as practicable but in any case not later than 6 weeks after the receipt by the secretary of the requisition

Notice of general meetings
(1) A notice of a general meeting of a management corporation shall be served on each subsidiary proprietor at least 14 days before the meeting.
(2) Every notice for a general meeting shall :
(a) specify the place, day and hour for the meeting;
(b) include each proposed resolution to be considered at the meeting;

QUORUM for EOGM
(1) A quorum shall be formed at any general meeting when the number of subsidiary proprietors who own at least 30% of the aggregate share value for all lots comprised in that strata title plan are present at the meeting, either in person or by proxy.


THIRD SCHEDULE

Members of collective sale committee
(1) A collective sale committee shall comprise such number of persons as may be determined in a general meeting convened in accordance with the Second Schedule, but in no case be less than 3 members or more than 14 members who are natural persons

(2)A person standing for election as a member of a collective sale committee who has any direct or indirect interest in any property developer, property consultant, marketing agent or legal firm, being an interest that could conflict with the proper performance of his functions as a member of a collective sale committee (should he be elected) shall, as soon as practicable after the relevant facts have come to his knowledge, disclose the nature of that interest at a general meeting.

(3)The chairperson of the collective sale committee shall be appointed from among its members.

Vacation of office of member of collective sale committee
A person who is a member of a collective sale committee shall vacate his office as such:
(a) if the person was a subsidiary proprietor at the time of his election and he ceases to be a subsidiary proprietor;
(b) if the person was the nominee of a subsidiary proprietor and the subsidiary proprietor who nominated him —(i) ceases to be a subsidiary proprietor; or(ii) notifies the collective sale committee in writing that the person’s office as a member of the collective sale committee is vacated;
(c) upon the receipt by the collective sale committee from the person of a notice in writing of the person's resignation;
(d) if the person is removed from office at a general meeting;
(h) if the person is convicted, by a court in Singapore or elsewhere of an offence involving fraud or dishonesty.

General meetings convened by collective sale committee
(1) The collective sale committee shall convene one or more general meetings of the management corporation in accordance with the Second Schedule for the following purposes:
(a) to consider the appointment of any advocate and solicitor, property consultant or marketing agent;
(b) to consider the apportionment of sale proceeds;
(c) to consider the terms and conditions of the collective sale agreement;
(d) to give an update on the total number of subsidiary proprietors who,immediately before the date of the general meeting, have signed the collective sale agreement;
(e) to provide information of the sale proposal and sale process;
(f) to provide information on the number of offers received for the collective sale and the respective amounts; and
(g) to consider the terms and conditions of the sale and purchase agreement.

Meetings of collective sale committee
(1) At any meeting of a collective sale committee, a quorum shall consist of the majority of the members of the collective sale committee.
(2) A decision of the majority of the members of the collective sale committee present and voting at any meeting of the collective sale committee shall be a decision of the collective sale committee.
(3) A collective sale committee shall cause a record of its decisions and minutes of its meetings to be kept.
(4) The collective sale committee shall keep minutes of its proceedings and shall cause minutes of general meetings convened in accordance with the Second Schedule to be kept.
(5) If the management corporation is required by its by-laws to maintain a notice board, the collective sale committee shall cause a copy of the minutes of a meeting of the collective sale committee to be displayed on the notice board within 7 days after the meeting.
(6) A copy of any minutes shall be kept displayed on the notice board for a period of not less than 14 days.
(7) The collective sale committee shall ensure that proper books of account are kept in respect of all sums of money received and expended for the purposes of a collective sale specifying the matters in relation to which the receipts and expenditure take place

Collective sale by public tender or auction
(1) The collective sale of all lots and common property in a strata title plan shall be launched for sale only by way of public tender or public auction.
(2) A valuation report by an independent valuer on the value of the development as at the date of the close of the public tender or public auction shall be obtained by the collective sale committee on the date of the close of the public tender or public auction.
(3) Notwithstanding sub-paragraph (1), the collective sale committee may, within 10 weeks from the close of the public tender or public auction, enter into a private contract with a purchaser for the sale of all the lots and common property in a strata title plan.


FOURTH SCHEDULE
DEDUCTIONS ALLOWABLE BY BOARD
1. Stamp duty paid on the purchase of the lot or flat.
2. Legal fees paid in relation to the purchase of the lot or flat.
3. Costs incurred pursuant to the collective sale which are to be shared by all subsidiary proprietors or proprietors as provided under the collective sale agreement.

MCST SINKING & MANAGEMENT FUNDS
(1)No moneys in the management fund or sinking fund shall be used for any purpose of a collective sale of the property other than for the purpose of convening any general meeting under the Second Schedule.
(2)The moneys remaining in the management fund and sinking fund as at the date of the legal completion of a collective sale of the property shall be returned as soon as practicable to the subsidiary proprietors of the lots in shares proportional to the contributions levied by the management corporation on the subsidiary proprietors.

Date: 10/10/2007; 04:20am