SALE OF COMMERCIAL PROPERTIES (AMENDMENT) BILL

Order for Second Reading read. 4.05 p.m.

The Minister for National Development (Mr Teh Cheang Wan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The purpose of this Bill is to introduce a number of amendments to the Sale of Commercial Properties Act, 1979.

The Sale of Commercial Properties Act came into operation on 20th July, 1979, in response to complaints about the inequitable manner in which some developers conducted the sale of their commercial units. Rules made under the Act prescribe the terms and conditions for the option and the sale of commercial units and generally the rights and obligations of vendor and purchaser.

However, the Act does not apply to commercial properties sold before the coming into operation of the Act. There have been numerous complaints by purchasers of these commercial properties of delays by developers in obtaining strata titles. At present, there are 34 commercial buildings whose developers have not obtained strata titles. Since the Act does not cover these old cases, the Ministry can only apply administrative pressure on the developers concerned. This is not satisfactory.

The Act is being amended to empower the Controller to direct developers inter alia to obtain strata titles by a stipulated date. This will apply to commercial properties sold before 20th July, 1979, that is, prior to the coming into operation of the Sale of Commercial Properties Act, 1979.

The sale of commercial properties with certificate of fitness but without strata titles is not covered by the Act because under section 10 (b) such buildings which have been physically completed are exempted. Since strata titles are of primary importance to purchasers, the sale of properties without strata titles should be brought within the provisions of the Act. Section 10 (b) has therefore been amended to exempt only buildings which have both certificate of fitness and strata titles.

The Controller of Housing will review all commercial buildings sold before 20th July, 1979, which are without strata titles and direct developers to obtain titles by stipulated dates or to take such other steps as may be necessary. In normal circumstances, the developer having obtained separate strata titles must, under the agreement, proceed to complete the sale. If this is not the case, the Controller of Housing may direct the developers to complete the sale.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Teh Cheang Wan].

Bill considered in Committee; reported without amendment; read a Third time and passed.