THE SOCIO-LEGAL IMPLICATIONS OF THE BILL ON COLLECTIVE SALE

Abstract

The trend for collective sales in Singapore started with the introduction of the Development Guide Plans (DGP). As its timing coincided with the high point in the property market, there was an urgency to realize the DGP potential immediately and capitalise on the high profits to be made, given the favourable market conditions. While many sales were successful, there were numerous cases of aborted sales, as the requirement for unanimous consensus for a sale to proceed was not met. This caused much frustration among the majority who was often held ransom by the minority. The Bill was tabulated in Parliament on 30 June 1998 which removes the need for unanimity among the owners for a collective sale to succeed. The survey, it revealed overwhelming support for the Bill. However, there are others who questioned the necessity of creating a legislation that will result in an erosion of property rights, just so as to hasten redevelopment. In Singapore, the law has often been used to fulfill public policy whenever the market fails to do so. Thus, the Bill was drafted with the intention of facilitating collective sales. However, there have been controversial views pertaining to this proposed legislation. Due to the controversial nature of the proposed legislation, this study hopes to shed some light on the social and legal aspects of the Bill.