A smaller net gain does not automatically let him block the sale (iv is false)
A worked RES examination question on collective sale process, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Mr Gopal presses his "financial loss" complaint before the Board. Consider the following statements.
- (i) Simply gaining less than his neighbours does not, by itself, amount to a financial loss.
- (ii) His having bought in only after the agreement was signed weakens his claim.
- (iii) The Board may, within a prescribed limit, increase the proceeds payable to an objecting owner.
- (iv) A smaller net gain than others automatically entitles him to block the sale.
The answer, and why
Answer: A
The rule. Gaining less than one's neighbours is not, by itself, a financial loss (i), and buying in after the agreement was signed weakens the claim (ii). The Board may, within a prescribed limit, raise an objecting owner's proceeds (iii). A smaller net gain does not automatically let him block the sale (iv is false).
Why A is correct. (i), (ii) and (iii) are right; (iv) is false.
The other options.
- B drops (iii), the proceeds-adjustment power.
- C drops (i), the "less than others is not a loss" point.
- D adds the false (iv), the automatic blocking right.
Exam note. Mr Gopal's smaller gain, and his late entry, both cut against him — and even a real grievance is met by a capped top-up, not a veto.
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