Collective Sales, often known as en bloc is a property transaction with 2 or more units in the whole development being sold to a single purchaser, often a property developer. Depending on the size of the development which can be 2 units to more than 1000 units, the respective homeowners join together to sell their unit with a golden handshake.
In a development that is less than 10 years old, more than 90% has to consent to the collective sales. For development that is older than 10 years, more than 80% must consent for the sale to go through at the expense for those who opposed to the sale.
Collective sales result in the sudden surge in millionaires as often developers pay a premium for those to sell, although some minority will not be keen to sell, whether for sentimental values or blessing. The silver lining is often the price where owners often get a windfall for their unit.
As a development aged, wear and tear will occur or even leakage. Or as city progress, the old development has to upgrade to blend in with the tides of time. However, there would be some who would not want to move because they love the location and they know that once they sell their property, they will not be able to buy back the same location at the same price.
Thus the collective sales 80% mark was a balance to go with the majority for the collective sales.
Pro-Tem committee handle organising Extraordinary General Meeting (EGM) and rallying support to get fellow owners to sell collectively to hit the 80% threshold.
Once there is enough vote for the collective sales to proceed, the pro-tem committee will have to get a lawyer to draft all the necessary legal document and also appoint valuer and property consultant to market the development.
Proper Timeline and course of actions has to be accounted to the owners as to when to vacate and when they get paid.
If the owners group together to start the collective sales, then development will then be marketed to buyers and developers, which normally handle by the property consultant and then cross finger see which are the highest bidder and if it exceed expectation.
In the event that there’s no 100% approval to sell, Strata Titles Board will step in to review in a case by case basis to determine and justify if respective suffered financial loss as a result of this collective sales.
Strata Titles Board will reject the en bloc application if in any case the protesting owners suffered a financial loss as a result of this en bloc case.
Once the Strata Title Board approve the en bloc case, the owners will be schedule a timeline for them to get their proceed so that they can buy another development and can vacate the place at a specific timeline.
Those with tenants will also have to vacate the place, often with some form of compensation.
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