Professor S Jayakumar said it aims to provide additional safeguards and greater transparency for all owners involved in en-bloc sales.

Parliament has approved changes to the Land Titles (Strata) Bill, which clearly stipulates the proper conduct of en-bloc sales.

Moving the second reading of the bill in Parliament on Thursday, Law Minister Professor S Jayakumar said it aims to provide additional safeguards and greater transparency for all owners involved in en-bloc sales.

It will also ensure that their interests are taken into consideration more adequately. One of the changes requires the sales committee to be properly formed and elected.

The measures also seek to improve transparency in the en-bloc sales process by providing regular updates on bids received and how sales proceeds will be divided.

The amended law also helps owners better understand the legal implications of en-bloc sales.

Under the amendment, a lawyer should be present to clarify doubts when the owner signs the Collective Sales Agreement. Those who change their minds after signing the deal are allowed to do so - but only once and within a five-day cooling-off period.

Professor Jayakumar also explained that the proposed changes will not apply to developments where the required 80 per cent or 90 per cent majority of owners, based on share value, have signed the Collective Sales Agreement before the commencement of the Amendment Act.

He stressed that the amended law does not make it unduly onerous to bring about an en-bloc sale, and that the public response to the proposed changes has been largely positive.

Analysts said the changes will protect owners from over-enthusiastic sales committees, inexperienced lawyers and pushy consultants.

Several MPs also called for greater protection for the ill-informed and illiterate. One group that they felt needed more assistance during an en-bloc sale are the senior citizens, many of whom wanted greater protection, security and stability in their golden years.

“For the elderly living in affected collective sale properties who are against the sale, we should try to minimise their suffering from a reverse eviction from their legitimate homes. To them, the strong sentimental value in the place they stay far surpass the monetary gains,” said Ellen Lee, MP for Sembawang GRC.

Summing up the debate, Professor Jayakumar explained that the amendments have been crafted to strike a balance. “Let me assure the House that this review by my ministry and the Strata Titles Board and the Singapore Land Authority is an on going one.

“We will see how these amendments operate in practice, see how the new legal regimes work and if it is felt (that) further changes are needed in the light of subsequent experience, then indeed where it merits further refinement and changes, we will do so.”

And one outcome regulators will be watching out for will be how the saga surrounding Horizon Towers is played out as the episode is likely to provide valuable lessons for future en-bloc transactions. - CNA/ac

Source : Channel NewAsia - 20 Sep 2007