Thursday, January 28, 2010

En bloc sale panels already have a lifespan

I REFER to the letters on Monday by Ms Susan Prior (‘Save owners from sword of Damocles’) and Mr Augustine Cheah (‘Loopholes in law’).

Ms Prior suggests that a collective sale committee should have a limited lifespan. This is already provided for in the Land Titles (Strata) Act. The committee will automatically dissolve on expiry of the collective sale agreement. The agreement will expire if the requisite consent level is not attained within 12 months from the date of the first signatory.

The committee can also be dissolved by an ordinary resolution at a general meeting. Further, if no one has signed the agreement, the owners can dissolve the committee at any general meeting.

Mr Cheah claims that there had been no clarification or reply from the Ministry of Law to letters by many, including him, on purported loopholes in collective sale legislation.

Mr Cheah should know that what he says is inaccurate. The ministry has regularly responded to various letters on the matter.

The ministry has also previously responded to a Forum letter from one Mr Augustine Cheah (who is probably the same writer). The ministry’s reply to Mr Cheah (‘En bloc sales: Rights of all owners adequately protected’) was published on Aug 21 last year.

As for Mr Cheah’s call to tighten the legislation, the public is assured that the ministry has always actively considered feedback received, consulted industry experts and introduced amendments where appropriate. The ministry will continue to do so.

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

Source: Straits Times, 28 Jan 2010

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