BT Letter : Keep members of MC, sales committee distinct

Business Times - 15 Apr 2010

LETTER TO THE EDITOR
Keep members of MC, sales committee distinct

AS en bloc sales fever is revived, it is important for the government to take note that, often, members of the management corporation or council (MC) are the same people as those sitting on the sales committee set up for selling the property . This presents potential conflict of interest and leads to malpractices.

When the MC, whose main roles are to oversee maintenance is tasked with the responsibility for collective sale, there would be obvious an conflict of interest simply because they are not in neutral positions; they have the power to make decisions on maintenance matters that influence en bloc sales.

A case in point is a condominium where the MC, in pushing for an en bloc sale, has openly said that non-maintenance is a tactic to make owners fed up of their run-down properties so that they would want to sell.

The MC also said that money should not be wasted on estate planning when an en bloc sale is in prospect. As a result, the estate's conditions, amenities and facilities have so deteriorated that they are posing safety and health hazards to residents.

As en bloc sale procedures can take years, maintenance of estates need to be continued at a reasonable level. Hence, it is important that management of maintenance issues be separated from en bloc issues and that members of the respective committees be also distinct.

Florence Tan

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