Going En-Bloc? Here’s What Happens!



Seems like you aren’t the only one annoyed by creaky lifts, leaking pipes, and a water supply that tastes like someone’s dog drowned in it. Your neighbours have formed a committee to support an en-bloc sale. But while you may be eager to quit the bacteria laden pit that’s sadly your apartment, do you know what an en-bloc involves? H88 gives us a quick primer on the process:


How the En-Bloc Process Works

With so many en blocs coming left, right and centre, we’ve always wondered how the whole process works. Did you know it takes up to six months for the sale money to eventually get to the sellers? Quite insightful, especially for those looking to cash in on the en bloc wave. For those who just got their new place, it’s something good to know.

The following post is excerpted from the newly launched Secrets of Singapore Property Gurus, in an interview with Dillon Loi, Master Trainer at the Real Estate Academy.


What is a Collective Sale?



An en bloc sale, or collective sale, is the sale of an entire private strata development by way of majority consent and is governed by the Land Titles (Strata) Act.

If there is unanimous consent to sell the development, the laws governing en bloc sales will not apply.


How Does the En -Bloc Process Work?

The first step in an en bloc sale attempt is for owners to form a sale committee. The law requires that only one sale committee be elected for each development and that sale committee must follow certain procedures as stated in the law.

Once a sale committee has been formed, owners will indicate their consent to the en bloc sale by signing a Collective Sale Agreement (CSA). The majority consent by share value and strata area must be obtained within one year before the sale attempt can proceed further. The majority consent 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 consent is obtained, the next step is for the sale committee to find a buyer. To ensure transparency, this must be done through a public tender exercise. When a buyer is selected and the sale agreed upon, an application must be made to the Strata Titles Board (STB) which will consider the application and deliver a decision on whether the sale will go through.

When an application for an en bloc sale has been made to the STB, the owners who do not consent to the sale can raise objections to the STB. The STB is required to consider these objections before deciding on the outcome of the application for sale. Any party dissatisfied with the STB’s decision can challenge the decision through the judiciary’s appeal system.


How Long Does it Typically Take

It typically takes at least one year after the collective sale process has commenced before the transaction is completed and up to another six months before the sale proceeds are distributed out.


A MoneySmart Tip

Whether you’re for or against the en-bloc, it’s best to start preparing for it early. The more time you have to look for a home, the better the deal you’ll get.  Visit MoneySmart for help in finding a new home.

Have you ever been part of an en-bloc sale? Comment and let us know how it went!


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