Do Objections delay the Sale?

Blogger view only (I have to keep reminding people that everything said on this blog is my opinion only, not the word of god)

The Objections have become a handy scapegoat for the delay in the Sale. This is unfair as there are 2 entirely different processes which overlap in a collective sale:

1. The LTSA Process which Owners have to go through: this starts at the formation of the CSC under the Schedules and ends an the STB Sales Order. The Objections fall within this process.
2. The Purchaser/Developer Process which begins at the SPA Date and ends when all their units in the new development are sold.

From the moment the S&P is signed, the Buyer has to get cracking and obtain all the necessary Gov Approvals to complete the sale. He has to apply to the LTA, URA,SLA to obtain his Lessor Approval, PAFS, QC, OPP, SLA Top Up Consent, LUP, & Baseline Confirmation. It is this Application-Approval period which is delaying the completion of the sale. We were told on FB that these Approvals were being done 'concurrently' with the Objections, but we later found out from the newspaper that the buyer did not Apply for the OPP until December 2017 and that it is still outstanding. Why didn't he apply earlier, why the delay? The answer is not important - just the fact that he made the calculated decision NOT to apply earlier and so has run smack into the new DC Rate increase. It was his folly and his alone. 

The DC Rate that is used in their DP calculations is pegged to the OPP Approval date - that is why they were hoping & praying for the OPP Approval before the 1 Mar 2018. It didn't come so now the new DC rate applies

I look at it this way: Objections in general work to the Buyer's advantage as they provide a breathing space for them to do the necessary before the PCP clock starts to tick. In a regular sale, the PCP clock starts at the date of issue of the QC (Qualifying certificate) but 'for cases where a developer has purchased residential land through a collective sale under the Land Titles (Strata) Act (“the Act”), the PCP will commence from the date of the collective sale order granted under the Act. This is to enable the developer to have the full PCP to complete the project.'   

So the longer the Sale Order takes, the more time he has to get his approvals without it eating into his precious 5 yr PCP.  We were told that the  QC/RPA was granted 17 Sep 2017 - so the Objections have saved the Developer 3 months of PCP - which he clearly has wasted.

I have tried to put it pictorially - but it's not very good, sorry.

From the Owners perspective, it feels a little different. Owners generally want that STB Order to come quicker as they believe the Completion Date would be sooner. But it's all wishful thinking, as an earlier STB Sales Order does not make anything move faster, the Approvals will take as long as they take and completion is in the Developer's hands.

Moving forward, I believe Developer-Buyers of future collective sales might secretly wish for a toothless STB objection or two, to cover their Approval Application period. It's ALL about timing, isn't it...... just saying :P