Complete Property Market Updates of Singapore

En-bloc disputes

Your apartment is old and in a state of disrepair. Someone comes along and utters the magic words: En-bloc sale.

Hey presto! The value of your property zooms. Overnight, you become a millionaire.

But the spell does not mesmerise some of your neighbours. The lure of big bucks may not compensate them for what they are losing - big homes which they cannot afford to buy with the sale proceeds in today’s rising property market.

The friendly neighbours become enemies, facing off each other in court.

In March, a group of Farrer Court residents launched a ‘bad publicity’ campaign and alleged the place had bad fengshui so other owners would vote for the sale. The property has not been put up for en-bloc sale yet.

The figures tell the tale. The number of applications to the Strata Titles Board from home owners hoping to block the en-bloc sale of their estates has gone up.

In 2004, there were 10 applications. The number rose to 14 in 2005, according to a Straits Times report last August. The figure has already reached 32 as of last August.

Just last week, it was reported that some unhappy home owners at Horizon Towers tried to stop the en-bloc sale even though a developer had agreed to buy it for $500 million in January.

Their reason: The condo next door, Grangeford Apartments, is asking for $660m.

A couple at Waterfront View in Bedok also refused to accept the en-bloc payout and took the matter to the High Court last month.

The owners said the net proceeds were insufficient to fully repay the outstanding bank loan and fully return CPF monies withdrawn to buy the property. They failed in their bid to stop the development from going en bloc.

Industry watchers say greed is also a major factor.

Chesterton International’s head of research and consultancy, Mr Colin Tan, said: ‘No longer are properties treated as homes first. They are now treated as short-term investment products that can be traded like a commodity.’

Lecturer Christine Lim, 49, is worried about all the en-bloc talk going on in her estate, which is located in the West.

She said: ‘My estate may be old but it is still in a good condition. So, why is there a need to talk about going en bloc?’

About a third of the more than 100 en-bloc deals last year fell through, or are still in the market because the majority vote was not achieved or the project did not hit its reserve price, according to a Business Times report in February.

Credo Real Estate, which specialises in en-bloc sales, said it has noticed more resistance to en-bloc efforts of late.

Director Yong Choon Fah explained: ‘This is because property prices are moving up and replacement units are also harder to find as the units in the newer developments tend to be smaller.

‘And when you sell high, you also buy high.’

Source: The New Paper, 10 May 2007

I refer to the letter, ‘Free up commissions in housing market’ by Mr Lee Chong Kai (April 20).

The Singapore Accredited Estate Agencies (SAEA) does not stipulate any guidelines concerning agents’ commission rates. The actual commission is a matter to be negotiated privately between the parties, and will depend on market forces.

The SAEA’s main role is to elevate the standard of practice and conduct in the real estate agency industry. All SAEA agencies and any individuals associated with the SAEA have to abide by the Code of Conduct and Ethics set by the SAEA. We will hear complaints concerning the conduct of any individuals associated with accredited estate agencies, and if necessary, take action against those found guilty of such misconduct.

We thank Mr Lee for his feedback and suggest he approach the SAEA should he find any allegation of misconduct of our accredited agents. Check www.saea.org.sg for further details and a list of accredited agencies and agents.

Manisah Jalil (Ms)SecretariatSingapore Accredited Estate Agencies

Source: The Straits Times, 09 May 2007

Q: I AM a Singaporean, now residing in San Francisco.

My estranged husband and I have been separated for two years and we are due to file divorce papers next month.

Our asset, an HDB flat, has been sold and the proceeds split equally. But my husband refused to pay me any alimony.

We had been married for four years and separated for two years, and have no kids. I supported him through college for two years and when he was jobless.

I also paid for the renovation loan, which he did not pay for. Can I ask for my money back? Is it possible that he does not need to pay any alimony at all according to Singapore law?

A: The court has the power to order the division of matrimonial assets at the time of or subsequent to the grant of the decree of divorce.

When doing so, the court takes into account several factors as set out in section 112 of the Women’s Charter.

The list specifically refers to the extent of the contributions made by each party in money, property or work towards acquiring, improving or maintaining matrimonial assets.

Therefore, your payment of the renovation loan would be considered under this factor.

Another factor is any debt owing or obligation incurred or undertaken by either party for their joint benefit.

This would also cover the issue of the renovation loan as well as your having supported your husband through college.

In addition, your financial support could be considered under yet another factor that deals with the giving of assistance or support by one party to the other party (whether or not of a material kind).

Unfortunately, as you have already sold off your only asset - the HDB flat - and there are no other assets, these factors and considerations that would have worked in your favour might not be of much assistance now.

Therefore, you might have to either commence separate civil proceedings to recover your husband’s share of the renovation loan, or weave it into some form of a lump-sum settlement that could also include a portion of this loan.

As far as your maintenance claim is concerned, the Women’s Charter makes provision for a wife’s maintenance both during marriage and upon the grant of the decree of divorce.

Section 114 of the charter sets out several matters that the court takes into account when determining the amount of maintenance, such as income, earning capacity, financial needs, obligations and responsibilities, the standard of living enjoyed before the breakdown of the marriage, the age of the parties, the duration of marriage, any physical or mental disability of either party, and contributions made to the welfare of the family.

Your husband would have to pay you maintenance. The only question is the maintenance amount.

The courts also consider a lump-sum maintenance payment instead of periodic payments where the marriage was a relatively short one, the parties are young and able to earn an income, and where there are resources or means from which a lump sum could be paid.

As your marriage lasted only about four years and there are no children and you both appear financially independent, you have a strong case for lump-sum maintenance, which would allow a clean break.

As mentioned, you could ask for a little more to compensate you for the renovation loan you paid off and for the financial support you gave to your husband.

Had your HDB flat not been sold off, the court could have carved your lump sum out of the net sale proceeds of the flat and you would not have needed to bring an enforcement action against your husband for a lump-sum payment. You would still need to bring an enforcement action against him if he chooses not to pay after the court makes such an order.

If your husband is overseas, you may face some additional problems getting him to pay up as he no longer has any property here in Singapore against which you could secure the maintenance.

At some point, after the proceedings have started, you should also consider the mediation sessions at the Family Court as an expedient, cost-effective and preferred avenue of resolving the maintenance issue.

Source: The Straits Times, 06 May 2007