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Mar 3, 2010

EN BLOC SALES

Allowing one owner to stop majority untenable



MR TAN Keng Ann ('Review law on en bloc sales'; last Saturday) says he cannot treasure his home because the power to sell his home is vested in 80 per cent of his neighbours. He asks for the collective property sale laws to be changed.

Home owners of strata developments own the right to their individual units, and they share ownership of the common areas and facilities with other owners. While individual owners can decide whether and when to sell their units, they will have to go with the wishes of the vast majority of owners for a collective sale.

Shared ownership of common property means the rights of the individual owner have to be balanced against those of the vast majority of owners. The legislation, which sets a high majority consent level of 80 per cent for developments at least 10 years old and 90 per cent for developments less than 10 years old, seeks to strike such a balance.

Mr Tan's point is that any one owner should be able to stop the majority owners' decisions (even if it is 80 to 90 per cent majority). That is not a tenable proposition.

Chong Wan Yieng (Ms)
Head, Corporate Communications
Ministry of Law