Abstract:
It is well known that the numbers of en bloc or collective sales reached their peak in 2007. The policy supporting collective sales is linked to Singapore’s severe land constraints and the need to realise the full development potential of old estates. The main incentive for sellers is the exceptional premium to be gained from the en bloc sale rather than if a unit were to be sold individually on the open market. Not surprisingly, en bloc sales fell dramatically in 2008 along with the economic downturn. Of the collective sale applications submitted to the Strata Titles Board (“STB”) for approval, an increasing number of its orders have been challenged in the Supreme Court. The cases involve recurrent issues which the STB has had to grapple with and which are best clarified and resolved by the courts. The judgments on statutory interpretation, statutory non-compliance, constitutional issues, role of the STB, the relationship between the sale committee and the subsidiary proprietors and the nature, form and effect of the sale and purchase agreement will provide helpful guidelines of particular relevance when en bloc sales pick up again.