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 property compensation for development, needing some advice

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TSMR_alien
post Mar 10 2023, 08:37 PM, updated 3y ago

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there is a land that developer wants to take to develop
that land is owned by multiple people and has houses on it

as the land and house owners on that piece of land
i already signed the agreement for the developer to develop it...so as the other land owners and house owners
including how much is the compensation for the houses that will be torn down

now what i wanna know as the house owners on the land right now
when that compensation should be paid?
is there by law to say when is it should be paid to the house owners?....because i reckcon it should be paid way before they started the construction right?...so that people can find places to move
and what can the house owners do when the developers fail to pay after they serve the clearing notice?

This post has been edited by MR_alien: Mar 10 2023, 09:11 PM
GGSC27
post Mar 10 2023, 08:59 PM

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depend how is it,

u sell the land to them yes

if JV to develop the land normally developer will give u few unit from the development for u to sell and gain back ur profit
TSMR_alien
post Mar 10 2023, 09:10 PM

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QUOTE(GGSC27 @ Mar 10 2023, 08:59 PM)
depend how is it,

u sell  the land to them yes

if JV to develop the land normally developer will give u few unit from the development for u to sell and gain back ur profit
*
that one is settled
not sure call JV or what, but the land and house is in exchange of a unit of the development

but the point here is the compensation for the house that is about to be torn down
when is it supposed to be paid to the house owner?....and is there any law that specify this part?
Michaelbyz23
post Mar 10 2023, 09:38 PM

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Is there any mentioning in the agreement you signed? Better check with your lawyer.
TSMR_alien
post Mar 10 2023, 09:51 PM

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QUOTE(Michaelbyz23 @ Mar 10 2023, 09:38 PM)
Is there any mentioning in the agreement you signed? Better check with your lawyer.
*
no
only which unit it's in exchanged of and how much is the compensation
the date of when it's going to be paid is never mentioned

we tried to ask him via phone call and no confirmed date can be provided by him as well
GGSC27
post Mar 10 2023, 10:05 PM

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then u gotta wait till the unit is done only can be exchange. otherwise how they can give u

pretty common in JV between developer and land owner...

indeed meanwhile u wouldnt get anything
Michaelbyz23
post Mar 10 2023, 11:15 PM

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So, they didn't offer any form of security. Just pray that the project gets completed then, and not half way abandon for whatever reason. Otherwise your house is demolished, and your unit is never completed.
TSMR_alien
post Mar 11 2023, 07:23 AM

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QUOTE(GGSC27 @ Mar 10 2023, 10:05 PM)
then u gotta wait till the unit is done only can be exchange. otherwise how they can give u

pretty common in JV between developer and land owner...

indeed meanwhile u wouldnt get anything
*
QUOTE(Michaelbyz23 @ Mar 10 2023, 11:15 PM)
So, they didn't offer any form of security. Just pray that the project gets completed then, and not half way abandon for whatever reason. Otherwise your house is demolished, and your unit is never completed.
*
i'm not referring to the units that is about to be exchanged
i'm talking about the current house that is about to be torn down...the compensation for that very house(not the one that is still unbuild yet)
GGSC27
post Mar 11 2023, 08:13 AM

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QUOTE(MR_alien @ Mar 11 2023, 07:23 AM)
i'm not referring to the units that is about to be exchanged
i'm talking about the current house that is about to be torn down...the compensation for that very house(not the one that is still unbuild yet)
*
the torn down house should be included in the unit to be exchanged what..... all lump sump land n unit torn down in exchange for newer unit to be build soon

but it depend on earlier what ur discussion with them.... if there no mention the developer should thought that as what i mentioned above..

compensation inclusive unit torn down and shall be given to u once unit done.
TSMR_alien
post Mar 11 2023, 08:31 AM

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QUOTE(GGSC27 @ Mar 11 2023, 08:13 AM)
the torn down house should be included in the unit to be exchanged what..... all lump sump land n unit torn down in exchange for newer unit to be build soon

but it depend on earlier what ur discussion with them.... if there no mention the developer should thought that  as what i mentioned above..

compensation inclusive unit torn down and shall be given to u once unit done.
*
so the compensation should be given after the development is done and not before?

i've search some news on google before...especially the sg.dua case...it's also before development begins and people are ask to stand their ground and not move unless compensation is paid hmm.gif
AbbyCom
post Mar 11 2023, 08:47 AM

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QUOTE(MR_alien @ Mar 11 2023, 07:23 AM)
i'm not referring to the units that is about to be exchanged
i'm talking about the current house that is about to be torn down...the compensation for that very house(not the one that is still unbuild yet)
*
Normally the agreement will mention compensation/payment for your inconvenience during the construction period - shifting & rental allowance, etc.

Did you owners have a lawyer advising you before you sign the documents, better refer to him/her. If you have no lawyers advising you or going thru the agreement, then maybe you guys kena game by developer d, because maybe they purposely don't mention the timeline for payment so they can drag until the end of the construction, or worse, until VP.
TSMR_alien
post Mar 11 2023, 10:32 AM

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QUOTE(AbbyCom @ Mar 11 2023, 08:47 AM)
Normally the agreement will mention compensation/payment for your inconvenience during the construction period - shifting & rental allowance, etc.

Did you owners have a lawyer advising you before you sign the documents, better refer to him/her. If you have no lawyers advising you or going thru the agreement, then maybe you guys kena game by developer d, because maybe they purposely don't mention the timeline for payment so they can drag until the end of the construction, or worse, until VP.
*
Is there anything to do at this point if everything is signed?

And FYI the developers is actually their own brother laugh.gif
hafiziza
post Mar 11 2023, 10:54 AM

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Assuming that the agreement does not state when compensation has to be paid, section 47 of the Contracts Act 1950 applies.

Section 47 states that "Where, by the contract, a promisor is to perform his promise without application by the promisee, and no time for performance is specified, the engagement must be performed within a reasonable time. Explanation--The question 'what is a reasonable time' is, in each particular case, a question of fact."

In other words, the developer has to pay compensation within a reasonable time. What constitutes 'reasonable time' may differ from one case to another, depending on the facts and circumstances of the case.
AbbyCom
post Mar 11 2023, 10:58 AM

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QUOTE(MR_alien @ Mar 10 2023, 08:37 PM)
now what i wanna know as the house owners on the land right now
when that compensation should be paid?
is there by law to say when is it should be paid to the house owners?....because i reckcon it should be paid way before they started the construction right?...so that people can find places to move

and what can the house owners do when the developers fail to pay after they serve the clearing notice?
*
Seems like no one has replied on whether there are any laws - so it's better for lawyers to advise you how to proceed since we don't know the agreement you signed, even if there are laws, afraid the lawyers drafting the agreement for developers might have exploited some loop holes.

Logic and common sense is the shifting expenses need to be paid earlier and rental expenses to be paid on an ongoing basis.

Since you mention the developer is the brother of some of the owners then if the brothers who are the owners also haven't received the compensation, or they receive and you haven't, then it's a big red flag, need to set some expectations to the developer that you guys are no stepover if not it gonna get worse going forward.

Edit : Just saw the post before this quoted some law, but still not very straightforward.

This post has been edited by AbbyCom: Mar 11 2023, 11:02 AM
TSMR_alien
post Mar 11 2023, 11:18 AM

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QUOTE(hafiziza @ Mar 11 2023, 10:54 AM)
Assuming that the agreement does not state when compensation has to be paid, section 47 of the Contracts Act 1950 applies.

Section 47 states that "Where, by the contract, a promisor is to perform his promise without application by the promisee, and no time for performance is specified, the engagement must be performed within a reasonable time. Explanation--The question 'what is a reasonable time' is, in each particular case, a question of fact."

In other words, the developer has to pay compensation within a reasonable time. What constitutes 'reasonable time' may differ from one case to another, depending on the facts and circumstances of the case.
*
Looks like the house owners can only kept asking when the compensation will be paid since there is a grey area on when is the reasonable time is
TSMR_alien
post Mar 11 2023, 11:21 AM

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QUOTE(AbbyCom @ Mar 11 2023, 10:58 AM)
Seems like no one has replied on whether there are any laws - so it's better for lawyers to advise you how to proceed since we don't know the agreement you signed, even if there are laws, afraid the lawyers drafting the agreement for developers might have exploited some loop holes.

Logic and common sense is the shifting expenses need to be paid earlier and rental expenses to be paid on an ongoing basis.

Since you mention the developer is the brother of some of the owners then if the brothers who are the owners also haven't received the compensation, or they receive and you haven't, then it's a big red flag, need to set some expectations to the developer that you guys are no stepover if not it gonna get worse going forward.

Edit : Just saw the post before this quoted some law, but still not very straightforward.
*
Actually all of the house owner haven't received payment yet
For me it's fine actually but of course I would prefer to receive the compensation before construction begins
But other relatives aka other house owners aren't so fortunate
They need the compensation in order to rent and move to a new place...they're not rich to begin with nor they do have an official job
hafiziza
post Mar 11 2023, 11:23 AM

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QUOTE(MR_alien @ Mar 11 2023, 12:18 PM)
Looks like the house owners can only kept asking when the compensation will be paid since there is a grey area on when is the reasonable time is
*
For your peace of mind, it's better to appoint a lawyer and get their advise. Good luck!
TSMR_alien
post Mar 11 2023, 11:26 AM

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QUOTE(hafiziza @ Mar 11 2023, 11:23 AM)
For your peace of mind, it's better to appoint a lawyer and get their advise. Good luck!
*
Would do that if there is still resolution from asking nicely
All the house owners should all get together and appoint a lawyer for it

Right now they're just being nice because everybody is relative
Their land and shop anyway
If it's mine, I would've played rough since day 1
GGSC27
post Mar 12 2023, 09:29 AM

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QUOTE(MR_alien @ Mar 11 2023, 11:26 AM)
Would do that if there is still resolution from asking nicely
All the house owners should all get together and appoint a lawyer for it

Right now they're just being nice because everybody is relative
Their land and shop anyway
If it's mine, I would've played rough since day 1
*
mind to share how big the area affected? i mean how many household?

does the number big enuf if gang up together
TSMR_alien
post Mar 12 2023, 09:56 AM

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QUOTE(GGSC27 @ Mar 12 2023, 09:29 AM)
mind to share how big the area affected? i mean how many household?

does the number big enuf if gang up together
*
the land is actually bigger but many parts of the land is un-occupied but only owned
the total of houses that they need to demolished if not wrong is around 5-6 if i remember correctly

 

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