The first thing owners of housing units do when they want to sell collectively is to find neighbours who are likely to agree with them, and then float the idea to them.
Once the number of sellers willing to sell reaches a certain threshold that is determined by voting, they set a date and meet with a view to setting up a collective sales committee (CSC).
If the idea is to sell a whole housing block as a unit, the threshold is 20% of the block ownership in terms of share value.
In short, the properties the neighbours willing to sell collectively own must constitute 20% of all the shares held by the total number of owners together.
Otherwise, the group may go by subsidiary proprietorship, in which case the consenting owners must constitute 25% of total proprietorship.
If there had been an earlier attempt to sell en bloc that failed, the threshold of unit owners who can formally initiate the process is 50% whether it is by shareholding or by subsidiary proprietorship.
It is worth noting that whenever property owners issue a collective sales tender and the sale does not go through, they are obligated to stay for a minimum of 2-yrs before they can initiate another collective sales bid.
Although the percentage of ownership is not very high with regards to having the authority to discuss the possibility of selling en bloc, nothing formal can be done until unit owners with 80% shareholding or strata area ownership consent to the sale.
The threshold of 80% relates to buildings that are more than 10-yrs old, but the threshold for those less than 10yrs is higher, at 90%.
As such, often the first EOGM is consumed convincing more members to give consent to the sale, unless the few initiators of the discussion manage to convince the bulk of the people before the scheduled date.
To ensure a smooth collective sales process, owners interested in selling their property en bloc must adhere to the Strata Titles Act, Section 84A, which stipulates the threshold for consenting property owners.
Nevertheless, there are cases where all owners speak with one voice and are eager to sell. In such cases where there is 100% consent, the sales process takes a very short time from the beginning to the end.
If there is ever controversy as to how old a development officially is, especially for the sake of consenting threshold, the date considered to be the property’s construction date is the date when its temporary occupation permit (TOP) was issued.
In a case where there was no TOP issued, the age of the building is counted from the date the Certificate of Statutory Completion (CSC) was issued.