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Application for collective sale of parcel not registered under this Act by majority of proprietors where proprietors of flats own land

Land Titles (Strata) Act 1967

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—(1) This section applies where there are subsisting leases of flats in a development registered under the Registration of Deeds Act 1988 or the Land Titles Act 1993 and the proprietors of the flats own the land comprised in the development.(2) An application for an order for the sale of all the flats and the land in a development to which this section applies may be made by —(a)the proprietors of the flats who own not less than 90% share of the land and not less than 90% of the total area of all the flats 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 development 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 development, whichever is the later; or(b)the proprietors of the flats who own not less than 80% share of the land and not less than 80% of the total area of all the flats 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 development 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 development, whichever is the later,who have agreed in writing to sell all the flats and the land in the development to a purchaser under a sale and purchase agreement which specifies the proposed method of distributing the sale proceeds to all the proprietors of the flats (whether in cash or kind or both), subject to an order being made under subsection (4) or (5).(2A) An application under subsection (2) for an order for the sale of all the flats and the land in a development to which this section applies —(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 84D stop order is issued by the Board under subsection (4A)(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 (2) for an order for the sale of all the flats and the land in a development to which this section applies must be made within a period of 14 days after a section 84D stop order is issued by a Board under subsection (4A)(b) in relation to the same sale.(3) In the case of an application to a Board under subsection (2) for an order for the sale of all the flats and the land in a development to which this section applies, each of the following persons may file an objection to the sale, stating the grounds for the 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 proprietor of any flat in the development 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 the flat and whose interest is notified on the land-register for that flat.(3A) Where a section 84D stop order is issued under subsection (4A)(b) in respect of an application to a Board under subsection (2) for an order for the sale of all the flats and the land in a development to which this section applies, and an application is made to the General Division of the High Court under subsection (2) for an order for the same sale of all the flats and the land in the same development, any person referred to in subsection (3)(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.(4) Where an application has been made to a Board under subsection (2) and no objection has been filed under subsection (3), the Board must, subject to subsection (7), approve the application and order that the flats and the land in the development be sold.(4A) Where an application is made under subsection (2) to a Board, and one or more objections have been filed under subsection (3) 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 (4B), order a discontinuance of all proceedings before it in connection with that application (called in this section a section 84D stop order).(4B) A section 84D stop order must not be made by a Board under subsection (4A)(b) with respect to an application made to it under subsection (2) unless —(a)the Board has, by notice served on every objector who filed an objection under subsection (3) 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 84D 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.(5) Where one or more objections have been filed under subsection (3A) in respect of an application to the General Division of the High Court under subsection (2), the General Division of the High Court is to, subject to subsection (7), approve the application and order that the flats and the land in the development be sold unless, having regard to the objections, the General Division of the High Court is satisfied that —(a)any objector, being a proprietor, will incur a financial loss; or(b)the proceeds of sale for any flat to be received by any objector, being a proprietor, mortgagee or chargee, are insufficient to redeem any mortgage or charge in respect of the flat.(5A) An order made under subsection (5) 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 flat to be received by an objector, being a proprietor who has filed an objection under subsection (3A), be increased if the General Division of the High Court is satisfied that it would be just and equitable to do so.(5B) The total sum ordered by the General Division of the High Court for all the objectors under subsection (5A) is to be paid from the proceeds of sale of all the proprietors and must not exceed the aggregate sum of 0.25% of the proceeds of sale for each flat or $2,000 for each flat, whichever is the higher.(6) For the purposes of subsection (5)(a), a proprietor —(a)is taken to have incurred a financial loss if the proceeds of sale for the proprietor’s flat, after any deduction allowed by the General Division of the High Court, are less than the price the proprietor paid for that flat;(b)is not to be taken to have incurred a financial loss by reason only that the proprietor’s net gain from the sale of the proprietor’s flat will be less than the other proprietors.(7) The General Division of the High Court or a Board must not approve an application made under subsection (2) —(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 flats and the land in the development;(B)the method of distributing the proceeds of sale; and(C)the relationship of the purchaser to any of the proprietors; or(ii)the sale and purchase agreement would require any proprietor who has not agreed in writing to the sale to be a party to any arrangement for the development of the flats and the land in the development; or(b)if the collective sale committee does not consent to any order made by the General Division of the High Court under subsection (5A).(8) Where no objection has been filed under subsection (3) to a Board or under subsection (3A) to the General Division of the High Court, the determination under subsection (7) 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.(9) Sections 84A(1A), (2), (3), (5), (5A), (7C), (8)(a), (b) and (c), (11), (11A), (12) and (13), 84B and 84C and the Second and Third Schedules apply, with the necessary modifications, to any application or order made under this section.(9A) In the application of section 84A(1A) and the Second and Third Schedules to any development to which this section applies, any reference to a management corporation is to be read as a reference to the proprietors of the flats.(10) In this section —“development” means any parcel of land with one or more buildings where the parcel is owned by the proprietors of the flats;“proprietor” includes a successor in title.

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