LAND TITLES (STRATA) (AMENDMENT) BILL

Order for Second Reading read.

3.17 p.m.

The Minister for Law and the Environment (Mr E. W. Barker): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, although the Bill appears to introduce a large number of amendments to the Act, the bulk of them are merely consequential amendments, and I shall deal with only the main ones.

The Land Titles (Strata) Act, enacted in 1968, enables purchasers of flats for which strata titles have been issued to manage and maintain the building containing the flats and its related common property such as common corridors, staircases, garden and lifts. However, in recent years there have been attempts made by the developer of a subdivided building to control the management of the building after the issue of the certificates of strata title by issuing leases of the flats to the purchasers with terms entrenched in the leases in favour of the developer. To ensure that these purchasers, who have been granted a leasehold interest of a term of not less than 21 years, should have a say in the management and maintenance of the common property pertaining to the subdivided building, it is necessary to amend the Act to allow such purchasers to exercise fully the rights of management conferred upon Strata title owners as if the leases were not created. The Bill before this House seeks, inter alia, to do this.

The Bill provides for the issue of strata titles for condominium developments. Perhaps I should explain briefly what a condominium development is. A housing estate which is classified as a condominium development will have the usual bungalows, semi-detached houses, terrace houses and, perhaps flats. The estate looks no different from the usual housing estate. However, in a condominium development, the developer will be required to provide recreational facilities for all the residents in the estate. As soon as the strata title plan of the estate has been registered with the Registrar of Titles the owners of the housing or flat units in the estate will constitute the management corporation of the estate. The management corporation will then be responsible for the maintenance of all the recreational facilities and the common property.

The interest which an owner of a housing unit in such an estate acquires is contained in a strata title. He owns what is within the confines of his bungalow, semi-detached house, terrace house or flat as the case may be. The land on which all the housing units are built is vested in all the owners as part of their common property in accordance with the shares allotted to them as shown in the strata title plan.

In such an estate, owners of bungalows, semi-detached houses and terrace houses may also own private gardens. The land comprising the garden also forms part of the common property but an "accessory" strata lot will be created for the garden so privately owned and such "accessory" lot can only be transferred together with the strata lot comprising the dwelling unit.

The Bill also provides for the issue of strata titles for a condominium development as and when part of it is completed. In a very large housing project, it is desirable to allow the developers to convey the legal title of completed housing units even though the whole housing project has not been completed. This will enable a developer to divest himself of his title in a completed housing unit while the construction of the remaining part is still in progress and a purchaser to obtain a good title to his individual housing unit much earlier.

Under the Bill some significant changes have been proposed for the pur- pose of enlarging the powers, duties and obligations of a management corporation established under Part IV of the Act in respect of subdivided buildings and condominium developments. These changes are necessary because every owner of a strata lot in a subdivided building or a condominium development participates in community living. It has been found necessary to amend the law in this respect to ensure that every owner plays his part in maintaining a subdivided building or the condominium development.

Sir, the Bill will affect the rights and interests of a large section of our public. It is therefore proposed to refer it to a Select Committee so that all interested parties can air their views and make such representations as they may deem necessary.

Sir, I beg to move.

Question proposed.

3.23 p.m.

Mr Teong Eng Siong (Sembawang): (In Mandarin): Mr Speaker, Sir, I would like the Minister to clarify a few points. The Bill provides that condominium land is common property. In other words, it is land commonly owned by the owners of the houses. However, if the buildings in this condominium estate have to be rebuilt, will this condominium land still belong to the owners of the housing units? In other words, if there is rebuilding on this site and if the owner of a flat on this condominium property is unable to carry out the rebuilding of his flat, what will happen to him?

Mr Barker: Sir, can the Member repeat his question, because I did not quite catch him?

Mr Teong Eng Siong: (In Mandarin): Sir, the Minister has said that the land which is developed by condominium housing belongs to the owners of the houses or flats on this property. My question is: if a block of flats has to be pulled down and rebuilt, what happens if certain owners of the flats are unable to rebuild, although they still have their share of the land? What is the position of such flat owners?

Mr Barker: The answer is simple. All that the flat owner owns is a part of the land. If the flat owner owns, let us say, Flat A on the 16th floor, then if the flat is demolished all he owns is a little portion of the land in the proportion in Which he owned it before.

Mr Teong Eng Siong: (In Mandarin): Sir, if the land area measures 10,000 sq.ft. and there are 20 housing units on it, then if this piece of land is subdivided into 20 parts, it will be wasted. If certain owners do not want to rebuild their flats on this piece of land and if you subdivide this land into 20 lots, it will be a waste.

Mr Barker: Yes, I agree with the Member that it will be a waste. But what is his point? The owner of a strata title owns his particular flat. All these flats are on a piece of land. If there are 20 flats of equal area, he owns one-twentieth of that land. Obviously you cannot divide 10,000 sq.ft. by 20, as there will be not much left to build. Hence the condominium idea.

Question put, and agreed to.

Bill accordingly read a Second time.

Resolved,

"That the Land Titles (Strata) (Amendment) Bill be committed to a Select Committee consisting of Mr Speaker as Chairman and seven Members to be nominated by the Committee of Selection."- [Mr E. W. Barker].