New rules for collective sales take effect today...

New rules aimed at creating more clarity over collective sales kick in today, as reported in the ST.

A key change centres on when an attempt to sell an estate en bloc fails to garner enough backing from owners.

To discourage repeated attempts when there is insufficient interest, a two-year restriction period will be imposed after a failed collective sale attempt.

During this period, the first retry to convene an extraordinary general meeting to reappoint a sale committee will require the agreement of 50% by share value, or of the total number, of owners.

This is up from the current level of 20% by share value or 25% of the total number of owners.

For the second and subsequent retries, approval from 80% is needed.

To speed up the sale process, the Strata Titles Board (STB) will focus on its role as a mediator, instead of also trying to make rulings in disputed cases.

How much will the new rules dampen collective sales, especially if market sentiments continue to be red hot? Only time will tell…

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