Singapore legislation

Clause 18

of Land Titles (Strata) (Amendment) Bill

Clause 18

New sections 23A and 23B

The principal Act is hereby amended by inserting immediately after section 23 thereof the following new sections: —“Recovery of contribution from the sale of a lot23A.—

(1)

Where —

(a)

any contribution has been levied under subsection (5) of section 23 of this Act in respect of a lot at any time before, on or after the date of commencement of the Land Titles (Strata) (Amendment) Act, 1974; or

(b)

any amount is recoverable by the management corporation in respect of a lot pursuant to subsection (5) of section 19 of this Act,and such contribution or amount remains unpaid on the expiry of a period of fourteen days after the management corporation has sent a written demand for the contribution or amount, that contribution or amount including any interest due thereon shall constitute a charge on the lot in favour of the management corporation upon lodgement of an instrument of charge by the management corporation with and the registration thereof by the Registrar.(2) Upon registration of the instrument of charge by the Registrar —

(a)

the management corporation shall, subject to the provisions of subsection (3) of this section, have the power of sale and all other powers relating or incidental thereto as if such management corporation is a registered mortgagee; and

(b)

the amount of contribution due (including any interest thereon) shall be subject to all statutory rights and charges of any public authority over the lot and to all encumbrances registered or notified prior to the date of lodgement of the said instrument of charge.(3) The management corporation shall not proceed under paragraph (a) of subsection (2) of this section to sell the lot unless —

(a)

a special resolution has been passed by members of the management corporation to have the lot sold;

(b)

a notice of the intended sale has been published once in one or more daily newspapers as approved by the Registrar;

(c)

during the period of six weeks after the date of such publication no payment has been made for the amount of contribution including interest thereon due and the cost of publication specified in paragraph (b) of this subsection as well as other necessary incidental charges; and

(d)

there is no legal action pending in court to restrain the management corporation from proceeding with the sale.(4) Where a transfer of any lot has been made by the management corporation in the exercise of its power of sale as a mortgagee pursuant to the provisions of subsection (3) of this section and lodged with the Registrar for registration —

(a)

such transfer shall not be accepted for registration unless there has been lodged with the Registrar —

(i)

a certified true copy of the special resolution of the management corporation authorising the exercise of its powers of sale with the seal of the management corporation affixed thereto in the presence of two members of the council of the management corporation;

(ii)

a copy each of the notice of the publication specified in paragraph (b) of subsection (3) of this section; and

(iii)

a statutory declaration made by the members of the council of the management corporation referred to in sub-paragraph (i) of this paragraph jointly stating that the contribution and interest due thereon including all necessary incidental charges have not been paid and that there is no legal action pending in court to restrain the management corporation from proceeding with the sale of the lot; and

(b)

neither the purchaser of the lot from the management corporation nor the Registrar shall be concerned to enquire into the regularity or validity of the sale or transfer.(5) Where the management corporation has wrongfully or otherwise exercised its power of sale in contravention of the provisions of this section every member of the council of the management corporation in whose presence the seal of the management corporation was affixed to the certified true copy of the special resolution passed and lodged with the transfer pursuant to subsection (4) of this section shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine not exceeding five thousand dollars or to both such imprisonment and fine.(6) Where an instrument of charge has been registered against a lot under this section the subsidiary proprietor of the lot shall, upon payment of the amount of contribution due including all interest thereon and any necessary incidental charges, be entitled to an instrument of discharge executed and acknowledged by the management corporation as to the receipt of such payment, and upon registration of such instrument of discharge, or in the event of the management corporation refusing to execute a discharge, an order of court declaring that the lot shall be discharged from the charge, the lot shall be freed from the charge constituted under this section.(7) For the purpose of registration of a charge and a discharge under this section, the Registrar may dispense with the production of the relevant duplicate subsidiary strata certificate of title.(8) The provisions of this section shall be without prejudice to the rights and powers conferred on the management corporation by subsection (5) of section 19 or subsections (5) and (7) of section 23 of this Act to recover the contribution or amount due and all interest thereon including any legal costs and incidental charges necessarily incurred for the recovery of such contribution or amount in respect of any lot as a civil debt from the subsidiary proprietor of, or his successor in title to, the lot.(9) In this section “public authority” means the Government, Collector of Land Revenue, Comptroller of Property Tax, and shall include any other person, corporation or body, authorised or empowered by any written law to attach, sell or acquire land compulsorily.Liability of members for debts of the management corporation23B.—

(1)

The payment of any amount lawfully incurred by the management corporation in the course of the exercise of any of its powers or functions or the carrying out of its duties or obligations or of any pecuniary penalty imposed on the management corporation shall, by virtue of this section, be guaranteed by the persons who, for the time being and from time to time, are the members of the management corporation, the member who is or the members who are the subsidiary proprietor or subsidiary proprietors of each lot being liable under such guarantee only for such proportion of the money so incurred as the share unit of that lot bears to the aggregate share units of all the lots.(2) Where —

(a)

by reason of any liability of a member or former member of the management corporation under subsection (1) of this section that member or former member has, in respect of any matter, been obliged to pay, and paid, more than the proportion for which he was liable in respect of that matter under subsection (3) of section 23 of this Act; and

(b)

any other member or members of the management corporation has or have not discharged or fully discharged his or their liability under that subsection in respect of that same matter,the member or former member referred to in paragraph (a) of this subsection shall be entitled to recover from the member or members referred to in paragraph (b) of this subsection in any court of competent jurisdiction, as a debt due to him from that member or those members, an amount not exceeding the amount by which the aggregate amount paid by him in respect of that matter exceeded the amount of the proportion for which he was liable in respect of that matter under subsection (3) of section 23 of this Act, but no member referred to in paragraph (b) of this subsection shall be held liable to pay under this subsection more than the amount remaining undischarged of his liability in respect of that matter under subsection (3) of section 23 of this Act.”.