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How En Block Process Works

With so many en blocs happening across Singapore, we’ve always pondered on how the whole process actually works. Did you know that it takes about six months before the money is finally received by the sellers? Totally enlightening, particularly for those seeking to cash in on the en bloc wave. For those who recently bought their new place, it is something worth knowing.

What is a collective sale?
An en bloc sale, or collective sale, is the sale of the whole private strata development by way of majority agreement and is regulated by the Land Titles (Strata) Act.

If there is an uncontested approval to sell the development, the laws governing en bloc sales will not apply.

How does the en bloc process work?
The initial step in an en bloc sale effort is for owners to put together a sale committee. The law needs only one sale committee to be appointed for each development and that the sale committee must comply with certain proceedings as declared in the law.

Once a sale committee is put together, owners will show their approval to the en bloc sale by signing a Collective Sale Agreement (CSA). The majority approval by share value and strata area must be attained within one year before the sale effort can continue. The majority approval levels are:
  • For developments less than 10 years old – at least 90% by share value and strata area or
  • For developments 10 years and older – at least 80% by share value and strata area
When majority approval is attained, the subsequent step is for the sale committee to acquire a buyer. To guarantee transparency, this must be done through a public tender exercise. When a buyer is found and the sale accepted upon, an application must be sent to the Strata Titles Board (STB) which will think over the application and pass a verdict if the sale will happen.

When an application for an en bloc sale has been sent to the STB, the owners who do not agree to the sale can bring up their disapproval to the STB. It is necessary for the STB to acknowledge these disapprovals before coming out with the verdict of the application for the sale. Any party unhappy with the STB’s verdict can contest the verdict through the judiciary’s appeal system.

How long does it typically take?
It usually takes a minimum of one year after the collective sale process has been initiated before the transaction is finalized and up to an additional six months before the sale proceeds are handed out.