2 Types of Failure: Fail to Launch and Fail to Find Buyer.

Fail to Launch. Collective Sale Committee needs to obtain minimum 80% consent from the owners before the launch of the tender. If the target number is not reach within the time period, then the whole en bloc process ends or fail.

In order to re-initiate the collective process again will take some time. (See Example: Ivory Heights & Mandarin Gardens)

Fail to Find Buyer. As per the regulations of the Strata Title Board, a buyer needs to be found within 12 months after obtaining the 80% consent. If a tender fails to attract bids the CSC can launch the property again through a fresh tender offering more incentive to the developers.

The CSC also has the option to enter into a private treaty with developers if they don’t find any bidders. These options have to be exercised within the 12-month period.

After the expiry of the 12-month period the whole process of gathering consent has to be repeated in case the owners want to test the waters again.

For More Information See En Bloc Process