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Application for collective sale of parcel by majority of subsidiary proprietors who have made conditional sale and purchase agreement

Land Titles (Strata) Act 1967

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—(1) An application for an order for the sale of all the lots and common property in a strata title plan may be made by —(a)the subsidiary proprietors of the lots with not less than 90% of the share values and not less than 90% of the total area of all the lots (excluding the area of any accessory lot) as shown in the subsidiary strata certificates of title where less than 10 years have passed since the date of the issue of the latest temporary occupation permit on completion of any building (not being any common property) comprised in the strata title plan or, if no temporary occupation permit was issued, the date of the issue of the latest certificate of statutory completion for any building (not being any common property) comprised in the strata title plan, whichever is the later; or(b)the subsidiary proprietors of the lots with not less than 80% of the share values and not less than 80% of the total area of all the lots (excluding the area of any accessory lot) as shown in the subsidiary strata certificates of title where 10 years or more have passed since the date of the issue of the latest temporary occupation permit on completion of any building (not being any common property) comprised in the strata title plan or, if no temporary occupation permit was issued, the date of the issue of the latest certificate of statutory completion for any building (not being any common property) comprised in the strata title plan, whichever is the later,who have agreed in writing to sell all the lots and common property in the strata title plan to a purchaser under a sale and purchase agreement which specifies the proposed method of distributing the sale proceeds to all the subsidiary proprietors (whether in cash or kind or both), subject to an order being made under subsection (6) or (7).(1A) For the purposes of a collective sale under this section and before the signing of the collective sale agreement by any subsidiary proprietor —(a)there must be constituted a collective sale committee to act jointly on behalf of the subsidiary proprietors of the lots whose members are elected by the subsidiary proprietors of the lots at a general meeting of the management corporation convened in accordance with the Second Schedule; and(b)the Third Schedule has effect as respects the collective sale committee, its composition, constitution, members and proceedings.(2) The subsidiary proprietors mentioned in subsection (1) must appoint not more than 3 persons from the collective sale committee mentioned in subsection (1A) to act jointly as their authorised representatives in connection with any application made under subsection (1).(2A) An application under subsection (1) for an order for the sale of all the lots and common property in a strata title plan —(a)must be made to a Board in the first instance; and(b)may be made to the General Division of the High Court thereafter if, and only if, a section 84A stop order is issued by the Board under subsection (6A)(b) with respect to the application to that Board in respect of the same sale.(2B) An application to the General Division of the High Court under subsection (1) for an order for the sale of all the lots and common property in a strata title plan must be made within 14 days after a section 84A stop order is issued by a Board under subsection (6A)(b) in relation to the same sale.(3) Subject to subsection (7C), no application may be made to a Board under subsection (1) by the subsidiary proprietors mentioned in subsection (1) unless they have complied with the requirements specified in the First, Second and Third Schedules and have provided an undertaking to pay the costs of the Board under subsection (5).(4) In the case of an application to a Board under subsection (1) for an order for the sale of all the lots and common property in a strata title plan, each of the following persons may file an objection to the sale, stating the grounds of objection, within 21 days after the date of the notice served pursuant to paragraph 1(e) of the First Schedule or such longer period as the Board allows in exceptional circumstances, whether before or after the end of the 21 days:(a)a subsidiary proprietor of any lot in the strata title plan who has not agreed in writing to the sale;(b)a mortgagee, chargee or other person (other than a lessee) with an estate or interest in land and whose interest is notified on the land-register for that lot.(4A) Where a section 84A stop order is issued under subsection (6A)(b) in respect of an application to a Board under subsection (1) for an order for the sale of all the lots and common property in a strata title plan, and an application is then made to the General Division of the High Court under subsection (1) for an order for the same sale of all the lots and common property in the same strata title plan, any person referred to in subsection (4)(a) or (b) who filed an objection to the Board (but no others) may re‑file the person’s objection to the sale, stating the same grounds of objection, to the General Division of the High Court in the manner and within the time delimited by the Rules of Court.(5) The Board has power —(a)to mediate in any matter arising from an application made to it under subsection (1);(aa)to summon any person whom the Board is of the view is connected or otherwise related to the sale which is the subject of the application, to attend before the Board at the time and place specified in the summons and to produce such books, documents or other records in the person’s custody or control which the person is required by the summons to produce;(b)to call for a valuation report or other report and to require the subsidiary proprietors mentioned in subsection (1) to pay for the costs; and(c)to impose such conditions as it may think fair and reasonable in approving an application made to it under subsection (1).(5A) Where an application is made under subsection (1) to the General Division of the High Court in the circumstances described in subsection (2A)(b), the General Division of the High Court, without prejudice to any other powers it may have under law, has power —(a)to summon any person whom the General Division of the High Court is of the view is connected or otherwise related to the sale which is the subject of the application, to attend before the General Division of the High Court at the time and place specified in the summons and to produce such books, documents or other records in the person’s custody or control which the person is required by the summons to produce;(b)to call for a valuation report or other report and to require the subsidiary proprietors mentioned in subsection (1) to pay for the costs; and(c)to impose such conditions as it may think fair and reasonable in approving the application.(6) Where an application has been made under subsection (1) to a Board and no objection has been filed under subsection (4), the Board must, subject to subsection (9), approve the application and order that the lots and common property in the strata title plan be sold.(6A) Where an application is made under subsection (1) to a Board, and one or more objections have been filed under subsection (4) in relation to that application —(a)the Board must mediate matters that are in dispute between the objectors and the applicants to achieve a resolution of the dispute; and(b)if —(i)at the end of a period of 60 days starting from the first day set aside for mediation; or(ii)mediation has proceeded as far as it reasonably can in an attempt to achieve a resolution of the dispute but has nevertheless failed to resolve the dispute,whichever first occurs, one or more of those objections are not withdrawn, the Board must, subject to subsection (6B), order a discontinuance of all proceedings before it in connection with that application (called in this section a section 84A stop order).(6B) No section 84A stop order shall be made by a Board under subsection (6A)(b) with respect to an application made to it under subsection (1) unless —(a)the Board has, by notice served on every objector who filed an objection under subsection (4) in relation to that application and the authorised representatives of the applicants, informed the objector and authorised representatives of its intention to make a section 84A stop order; and(b)at the end of a period of 7 days after the notice under paragraph (a) is so served, one or more of those objections so filed are not withdrawn.(7) Where one or more objections have been filed under subsection (4A) in respect of an application under subsection (1) to the General Division of the High Court, the General Division of the High Court is to, subject to subsection (9), approve the application and order that all the lots and common property in the strata title plan be sold unless, having regard to the objections, the General Division of the High Court is satisfied that —(a)any objector, being a subsidiary proprietor, will incur a financial loss; or(b)the proceeds of sale for any lot to be received by any objector, being a subsidiary proprietor, mortgagee or chargee, are insufficient to redeem any mortgage or charge in respect of the lot.(7A) An order made under subsection (7) by the General Division of the High Court may, with the consent of the collective sale committee, include an order that the proceeds of sale for any lot to be received by an objector, being a subsidiary proprietor who has filed an objection under subsection (4A), be increased if the General Division of the High Court is satisfied that it would be just and equitable to do so.(7B) The total sum ordered by the General Division of the High Court for all the objectors under subsection (7A) is to be paid from the proceeds of sale of all the subsidiary proprietors and must not exceed the aggregate sum of 0.25% of the proceeds of sale for each lot or $2,000 for each lot, whichever is the higher.(7C) A Board must not invalidate an application to the Board for an order under subsection (1) or section 84D(2), 84E(3) or 84FA(2) by reason only of non-compliance with any requirement in the First, Second or Third Schedule if the Board is satisfied that such non‑compliance does not prejudice the interest of any person, and the Board may make such order as may be necessary to rectify the non‑compliance and such order for costs.(8) For the purposes of subsection (7)(a), a subsidiary proprietor —(a)is taken to have incurred a financial loss if the proceeds of sale for the subsidiary proprietor’s lot, after such deduction as the General Division of the High Court may allow (including all or any of the deductions specified in the Fourth Schedule), are less than the price the subsidiary proprietor paid for that lot;(b)is not to be taken to have incurred a financial loss by reason only that the subsidiary proprietor’s net gain from the sale of the subsidiary proprietor’s lot will be less than the other subsidiary proprietors; and(c)is not to be taken to have incurred a financial loss by reason that the proceeds of sale for the subsidiary proprietor’s lot, after such deduction as the General Division of the High Court may allow (including all or any of the deductions specified in the Fourth Schedule), are less than the price the subsidiary proprietor paid for that lot if the subsidiary proprietor had purchased the lot after a collective sale committee had signed a sale and purchase agreement to sell all the lots and common property to a purchaser.(9) The General Division of the High Court or a Board must not approve an application made under subsection (1) —(a)if the General Division of the High Court or Board (as the case may be) is satisfied that —(i)the transaction is not in good faith after taking into account only the following factors:(A)the sale price for the lots and the common property in the strata title plan;(B)the method of distributing the proceeds of sale; and(C)the relationship of the purchaser to any of the subsidiary proprietors; or(ii)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(b)if the collective sale committee does not consent to any order made by the General Division of the High Court under subsection (7A).(10) Where no objection has been filed under subsection (4) to a Board or under subsection (4A) to the General Division of the High Court, the determination under subsection (9) is to be made by the General Division of the High Court or the Board on the basis of the facts available to the General Division of the High Court or Board, as the case may be.(11) The General Division of the High Court or a Board may make all such other orders and give such directions as may be necessary or expedient to give effect to any order made under subsection (6) or (7) for the sale of all the lots and common property in a strata title plan, including but not limited to a direction apportioning all reasonable costs and expenses incurred in connection with the sale that is the subject of an order under subsection (6) or (7) to be borne by all or any subsidiary proprietors of the lots in the strata title plan, whether or not they are objectors.(11A) Any order or direction made by a Strata Titles Board before 15 July 2010 apportioning among all or any subsidiary proprietors of the lots in a strata title plan or development, whether or not they are objectors, all reasonable costs and expenses incurred in connection with a sale that is the subject of an order under subsection (6) or (7) is deemed to have been validly made in accordance with subsection (11) as if subsection (11) had been in force on that date.(12) The General Division of the High Court or a Board may, at any time it thinks fit, extend, vary, revoke or discharge any order made under this section, and may vary any term or condition upon or subject to which any such order has been made.(13) A notice sent by registered post under the First Schedule is deemed to be duly served on the person to whom it is addressed 2 days after the day on which the notice was posted, despite the fact that the letter may be returned by the post office as undelivered.(14) The Minister may, by order in the Gazette, amend or add to the First, Second, Third and Fourth Schedules.(14A) Where an application under subsection (1) relates to any land or housing estate to which the repealed section 126A or the repealed HUDC Housing Estates Act (Cap. 131, 1985 Revised Edition) applied immediately before 1 March 2021 —(a)any reference in subsection (1)(a) or (b) to the date of the issue of the latest certificate of statutory completion for any building (not being any common property) comprised in the strata title plan is a reference to the date of completion of the construction of the last building (not being any common property) comprised in the strata title plan as certified by the relevant authority;(b)any reference in subsection (1)(a) or (b) to the date of the issue of the latest certificate of statutory completion for any building (not being any common property) comprised in the strata title plan is a reference to the date of the issue of the certificate of fitness for any building (not being any common property) comprised in the strata title plan for land specified in the First Schedule to the repealed HUDC Housing Estates Act (Cap. 131, 1985 Revised Edition); and(c)a certificate purporting to be under the hand of an officer of the relevant authority specifying the date of completion of the construction of the last building (not being any common property) comprised in the strata title plan mentioned in paragraph (a) is, in the absence of proof to the contrary, and without further proof of the signature appended to the certificate, sufficient evidence of the matters specified therein.(15) In this section, “subsidiary proprietor” includes a successor in title.

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