{"id":6550,"date":"2016-07-22T10:31:15","date_gmt":"2016-07-22T02:31:15","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=6550"},"modified":"2022-07-01T04:03:08","modified_gmt":"2022-06-30T20:03:08","slug":"seaview-condo-ruling","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/","title":{"rendered":"The Seaview condo saga: What the rulings mean for property buyers"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure id=\"attachment_6551\" aria-describedby=\"caption-attachment-6551\" style=\"width: 800px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-6551\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/07\/the-seaview.jpg\" alt=\"The Seaview condo, along Amber Road, had its fair share of problems after it was granted TOP\" width=\"800\" height=\"581\" \/><figcaption id=\"caption-attachment-6551\" class=\"wp-caption-text\">The Seaview condo, along Amber Road, had its fair share of problems after it was granted TOP<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">It almost escaped notice, tucked into a small corner of the Straits Times. But in March this year, an important ruling was made regarding <\/span><a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-sea-view\"><span style=\"font-weight: 400;\">The Seaview<\/span><\/a><span style=\"font-weight: 400;\"> condo. Property buyers &#8211; be they home owners or investors, seem to have missed the significance of it: <\/span><\/p>\n<h3><b>What&#8217;s going on at The Seaview condo?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">We wrote an <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/how-the-seaview-is-a-gigantic-warning-to-singapores-property-buyers-2\/\"><span style=\"font-weight: 400;\">earlier article<\/span><\/a><span style=\"font-weight: 400;\"> about numerous defects at The Seaview condo. Residents had a range of complaints, from choked toilets and sinks, to swimming pools that would lacerate skin and require stitches. A part of the roof, on one of the condo towers, also collapsed onto poolside area during a storm.<\/span><\/p>\n<p>This prompted residents of the <a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-sea-view\">The Seaview<\/a>\u00a0condo to attempt to sue four parties, for damages totalling $32 million:<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mer Vue Developments, a subsidiary of Wheelock Properties (the developer)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tiong Aik Construction (the main contractor)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">RSP Architects Planners &amp; Engineers (the architect)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Squire Mech (the electrical engineers)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Three of the parties, Mer Vue Developments, Tiong Aik Construction, and RSP Architects Planners &amp; Engineers, claimed that the fault did not lie with them. They blamed the independent contractors hired to work on the development.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This irked residents, who pointed out that the aforementioned parties should still be responsible; they were not the ones who chose the independent contractors. The developer, main contractor, architect, etc. were the ones responsible for picking them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In March 2016 however, the High Court rules that it was feasible for the three parties to use the independent contractors defence &#8211; which basically means they could not be held liable for the damages.<\/span><\/p>\n<h3><b>What does this mean for property buyers?<\/b><\/h3>\n<p>There are a number of critical lessons that can be learned here. These are:<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Developers will have to work harder to get your trust<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The amount you can recoup can be very limited<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The people doing the work may not be the ones you&#8217;ve met<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Even for completed units, there are some signs to watch for<\/span><\/li>\n<\/ul>\n<ol>\n<li><b><b>Developers will have to work harder to get your trust<\/b><\/b><\/li>\n<\/ol>\n<p>This ruling is a double-edged sword for developers. While it does mean they are better protected, it also establishes ground rules that raise suspicion. Buyers now know that it&#8217;s hard to hold developers accountable &#8211; should they attempt to sue, the developer can simply push the blame onto one of the many sub-contractors.<\/p>\n<p>This awareness could have a dire impact on the sale of under-development units.<\/p>\n<p>Developers already give substantive &#8220;early bird&#8221; discounts to entice buyers to move in early; and with time limits imposed by the Additional Buyers Stamp Duty (ABSD) for developers, garnering enough trust to sell under-development units is important.<\/p>\n<p>But with developers being well armoured against lawsuits, will property buyers dare?<\/p>\n<p>Newer developers, who do not have a track record, may find this legal protection to be more hindrance than help. Their lack of immediate credentials will not put increasingly wary buyers at ease.<\/p>\n<ol start=\"2\">\n<li><b> The amount you can recoup can be very limited<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">First, note that there isn&#8217;t much money in suing a sub-contractor. These are often Small to Medium Enterprises (SMEs), and some may be mom-and-pop companies who are already struggling in a difficult economy. It&#8217;s almost impossible that they will be able to cough up several million dollars to compensate you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Second, there is some possibility that the sub-contractor might, in turn, blame another sub-contractor. And as you go further down the chain, the amount of money that you can recoup becomes less and less.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even if you do successfully pursue the case, do not count on fixing all the financial damage you might incur. <\/span><\/p>\n<ol start=\"3\">\n<li><b> The people doing the work may not be the ones you&#8217;ve met<\/b><\/li>\n<\/ol>\n<p>When we buy from a developer, we&#8217;re often drawn in from a solid track record, a glossy brochure, or a nice show flat. But now, buyers need to be aware that these same people use other contractors to do the work. This means quality can vary.<\/p>\n<p><span style=\"font-weight: 400;\">Most developers are meticulous to a fault, and will safeguard their reputation by picking contractors they&#8217;ve used for years. But every now and then, they might experiment with a new one. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perhaps a good question to ask in showrooms now is &#8220;Will you be using the same sub-contractors?&#8221; when a new development is compared to previous successes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Trying to evaluate each sub-contractor will, unfortunately, be beyond the means of most regular buyers.<\/span><\/p>\n<ol start=\"4\">\n<li><b> Even for completed units, there are some signs to watch for<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The people who can sue, in this case, are restricted to the ones who purchased the units directly from the developer (new sales). We note that in <a href=\"https:\/\/www.99.co\/singapore\/condos-apartments\/the-sea-view\">The Seaview\u00a0condo<\/a>, this now accounts for just a small minority of the residents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ones who bought their units from previous tenants cannot even sue. They&#8217;ll have to live with the existing situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fact that they are the majority also suggests a large number of tenants got lucky, and were able to offload this property on them. We don&#8217;t know how the various problems were concealed, but it does mean we need to watch for signs even when buying completed units.<br \/>\n<\/span><br \/>\n<span style=\"font-weight: 400;\">It&#8217;s always a good idea to check online, for issues such as court battles with developers. Alternatively, trawl forums for complaints &#8211; property buyers are usually quite loud, with regard to defects.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It almost escaped notice, but in March 2016, an important ruling was made regarding The Seaview condo which has major implications.<\/p>\n","protected":false},"author":21,"featured_media":54362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53601,53602,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","10":"entry","11":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Seaview condo saga: What the rulings mean for property buyers<\/title>\n<meta name=\"description\" content=\"It almost escaped notice, but in March 2016, an important ruling was made regarding The Seaview condo which has major implications.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Seaview condo saga: What the rulings mean for property buyers\" \/>\n<meta property=\"og:description\" content=\"It almost escaped notice, but in March 2016, an important ruling was made regarding The Seaview condo which has major implications.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/99dotco\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-22T02:31:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-30T20:03:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/the-seaview.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"627\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ryan Ong\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@99dotco\" \/>\n<meta name=\"twitter:site\" content=\"@99dotco\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ryan Ong\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/\"},\"author\":{\"name\":\"Ryan Ong\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#\/schema\/person\/4ad00425f4de904205396b4c8b79f2a4\"},\"headline\":\"The Seaview condo saga: What the rulings mean for property buyers\",\"datePublished\":\"2016-07-22T02:31:15+00:00\",\"dateModified\":\"2022-06-30T20:03:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/\"},\"wordCount\":919,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/seaview-condo-ruling\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/the-seaview.jpg\",\"articleSection\":[\"Condo\",\"Condo Stories &amp; 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