When it comes to buying or selling a property in Singapore, the Collective Sale Agreement (CSA) is an important document to understand. This legally binding agreement allows a group of property owners in the same development to jointly sell their units to a third party, usually a property developer, for redevelopment.
The process of a collective sale is initiated by the formation of a collective sale committee (CSC), which has to be made up of at least 25% of the owners in the development. The CSC will then appoint a marketing agent to find a buyer for the property.
Once a buyer has been identified, the CSA will be drafted and signed by all the owners involved in the sale. This agreement will outline the terms and conditions of the sale, including the sale price, payment terms, timeline for completion, and other important details.
It is important to note that the decision to proceed with a collective sale requires a high level of consensus among the owners. At least 80% of the total share value and number of owners must agree to the sale before it can proceed. This means that each owner`s vote carries a significant weight in the decision-making process.
While the collective sale process can be lucrative for property owners, it can also be complex and time-consuming. The process can take several months to a year or more, and there are potential legal issues that may arise during this time.
To ensure a smooth and successful collective sale, it is important to work with experienced professionals, such as lawyers, property agents, and valuers, who are familiar with the process. It is also essential to have a clear understanding of the terms and conditions of the CSA before signing it.
In conclusion, the Collective Sale Agreement is a critical document for property owners in Singapore who are looking to sell their units collectively. It allows for a group of owners to work together to achieve a common goal, but it also requires careful consideration and planning to be successful. If you are considering a collective sale, it is important to seek expert advice and guidance to ensure a successful outcome.