FAQ for General Enquiry

• Question 1:

  What is an undivided share of a lot?

  When a developer sells a part/unit of the building to individual owners, an owner will have exclusive possession of his own unit and will also jointly own the lot where the building is situated with the developer and other individual owners. On the joint ownership of lot, individual owner will be assigned a certain share of the lot concerned. Under this arrangement, each owner will own certain undivided share of the lot. The undivided shares of each unit are set out clearly in the Deed of Mutual Covenant (DMC) of the building.

• Question 2:

  Will Facilitation Agreement be registered in the Land Registry affecting the sale and purchase of the property?

  No. Facilitation Agreement will not be registered in the Land Registry. It has been clearly stipulated in the Facilitation Agreement that it does not affect rights of the owners in relation to the disposal or encumbrance of the owner’s property or any part thereof. In short, Facilitation Agreement does not affect sale and purchase and tenancy matters of the property.

• Question 3:

  What will the consultancy fees payable by owners be used for?

  After the attainment of the Joint Sale Threshold, URFS will on behalf of the owners appoint consultants (including but not limited to solicitor, valuation consultant and auctioneer) to provide services to the owners. The consultancy expenses paid by owners will wholly be used for engagement of consultants. If the actual consultancy expenses incurred are higher than the amount paid by owners, URFS will make up the shortfall.

• Question 4:

  Under what situations will the owners be refunded the consultancy expenses?

  If a Facilitation Project fails after the signing of the Facilitation Agreements for whatever reasons, those owners who have signed the Facilitation Agreements will recover their share of the balance of their payments and contributions which have not been expended, if any.

  Upon successful joint sale of property interests, a service fee of 1% of the sale proceeds derived from the joint sale will be charged by URFS from the participating owners. At the same time, the consultancy expenses paid by participating owners will be refunded by URFS from the 1% service fee received.

• Question 5:

  How to apportion the sale proceeds derived from the joint sale to participating owners?

  Sale proceeds derived from the joint sale will be apportioned among the participating owners in accordance with agreed sharing ratios which stated in the Joint Sale Agreement. An independent valuation consultant will assess the value of each unit and determine the sharing ratios accordingly.

• Question 6:

  Do participating owners of tenanted properties have to deal with the tenancy specifically for the joint sale?

  Participating owners of tenanted properties will sell their properties with existing tenancy. Any tenancy will be dealt with by the purchaser.

• Question 7:

  How does URFS determine the joint sale threshold, i.e. 80% or 90%?

  In general, the joint sale threshold for a particular lot is 90% of undivided shares. However, the joint sale threshold could be 80% of the undivided shares if:

  (I)	each of the units on the lot represents more than 10% of all the undivided shares in the lot; or
  (II)	each of the buildings erected on the lot was issued with an occupation permit at least 50 years before the Project Selection Date; or
  (III)	the lot is not located within an industrial zone and each of the buildings erected on the lot (a) is an industrial building; and (b) was issued with an occupation permit at least 30 years before the Project Selection Date.