Steps relating to an application under Part VA of the Land Titles (Strata) Act

WHAT IS A COLLECTIVE SALE

A collective sale, also known as an en-bloc sale, is a sale of two or more property units to a common purchaser. A common en-bloc scenario is one where all the units in a strata-titled development are sold to a developer and proceeds are divided amongst all the unit owners. Other variations of en-bloc sales include the sale of all units in a development together with an adjoining development or landed properties.

En-bloc sale by majority

En-bloc sale is governed by the Land Titles (Strata) Act. The sale is to be supported by the requisite majority consent under the Act:

• Developments less than 10 years old – at least 90% by share value and strata area

• Developments 10 years and older – at least 80% by share value and strata area

Under section 84A of the Land Titles (Strata) Act, the owners can apply for an order of en-bloc sale from the Strata Titles Boards or the High Court after obtaining the requisite statutory majority consent.

Note: In applying for an en-bloc sale, the age of a development is determined with reference to the date of issue of the latest Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) if no TOP was issued.

STEP 1: APPLICATION FOR COLLECTIVE SALE (EN-BLOC SALE)

Notice of proposed application served on all owners

Before an application is made to the Strata Titles Boards for an en-bloc sale pursuant to the Land Titles (Strata) Act, the Applicants (i.e. representatives appointed by the majority owners) or their lawyers will serve the notice of proposed application on all owners to inform them of the proposed application, enclosing all relevant documents for the en-bloc sale as required under the Land Titles (Strata) Act. These documents include copies of:

• the advertisement;
• the Collective Sale Agreement;
• the Sale and Purchase Agreement;
• a statutory declaration made by the of purchaser on his relationship, if any, to the unit owners;
• minutes of general meetings
• valuation report with supporting evidence and details of calculations; and
• report by an independent valuer on the method of distribution of proceeds of sale.

A copy of this notice, in the 4 official languages, would also be affixed to a conspicuous part of each building in the development.

Collective sale application to the Strata Titles Boards

Application to the Strata Titles Boards will be made within 14 days of the newspaper advertisement.

After the application is filed to the Strata Titles Boards, the Applicants will serve a copy of the actual application on all minority owners.

Note: The above procedures ensure that owners have adequate notice of the en-bloc sale. Owners may read up more on en-bloc procedure under the “Applicants” tab. For full details, owners should refer to “Part VA – Collective Sale of Property” under the Land Titles (Strata) Act.

STEP 2: OBJECTION TO COLLECTIVE SALE (EN-BLOC SALE)

After the notice of proposed application has been served on all owners, a minority owner (i.e. unit owner who has not agreed to the sale in writing) may file a valid objection to the Strata Titles Boards using the prescribed form within 21 days after the date of the notice served. The prescribed forms for objections (Form 24 (PDF, 624 KB)) – unit owner who is an individual; and Form 25 (PDF, 624 KB) – unit owner who is a company) are enclosed with the notice of application. 6 copies of the objection form and any supporting documents are to be submitted to the Strata Titles Boards office.

Minority owners can raise a valid objection on the permissible grounds under the Land Titles (Strata) Act, e.g. financial loss.

Note: Owners must seek independent legal advice if they are uncertain. The Strata Titles Boards is a tribunal and does not provide legal advice. It is impartial and does not advice one party against the other.

The registry staff assists with the filing and scheduling of the proceedings. They are not able to give parties legal advice or decide what to include in their papers to the Strata Titles Boards.

Where one or more objections have been filed in relation to that application, the application proceeds to a mediation. The Strata Titles Board will mediate matters that are in dispute between the Objectors and the Applicants for a maximum 60-days period. Please refer to details under mediation.

STEP 3: NOTICE OF CONSTITUTION OF THE BOARD

A three (3) or five (5)-member Board will be convened by the Strata Titles Boards to mediate and/or hear the case.

All parties will receive a Notice of Constitution of a Strata Titles Board constituted to hear the application. All parties will have up to seven (7) days from this notice to object, in writing, to any Board member on reasonable grounds, such as conflicts of interest. Objection to any Board member will be submitted for the President’s consideration.

STEP 4: NOTICE OF MEDIATION DATE

Applicants and Objectors, if any will subsequently be issued a Notice of Mediation informing of the mediation date to attend before the Board. Parties must attend the mediation.

No fees are payable for the first two (2) mediations. Please see Fees for the mediation/hearing fees specified in the Scheudle of the Building Maintenance and Strata Management (Strata Titles Boards) Regulations 2005.