Free RES Practice Questions — CU3

10 practice questions with answers and full explanations. Nothing to sign up for — open each answer when you are ready.

1. Paper 2 · 3.6 Regulations on advertisements

   Salesperson Farhan is printing flyers (a non-classified advertisement) for a client's condominium. Under CEA's Practice Guidelines on Ethical Advertising, which of the following must the flyer show? (Select ALL that apply.)

   • A The seller's full name and NRIC number
   • B Farhan's CEA-registered contact number
   • C Farhan's registered name and CEA registration number
   • D His estate agent's name and licence number
   Show the answer and explanation

   Answers: B. Farhan's CEA-registered contact number | C. Farhan's registered name and CEA registration number | D. His estate agent's name and licence number

   A non-classified advertisement must show the salesperson's registered name and registration number, the estate agent's name and licence number, and the salesperson's CEA-registered contact number. The seller's personal particulars must not be published; doing so would also raise personal data protection concerns.

2. Paper 2 · 3.1 Regulation of real estate agency industry

   For at least how long must an estate agent keep the transaction documents and records of the estate agency work done by its salespersons?

   • A 7 years
   • B 3 years
   • C 1 year
   • D 5 years
   Show the answer and explanation

   Answer: D. 5 years

   Records must be kept for at least 5 years. The same 5-year minimum applies to customer due diligence records under the anti-money laundering regulations and to due diligence records for residential leases. 3 years and 7 years are common guesses but are not the prescribed period.

3. Paper 2 · 3.1 Regulation of real estate agency industry

   Under the Estate Agents Act 2010, which of the following maximum penalties are correctly stated?

   • (i) Carrying on estate agency work without a licence: fine up to $75,000, jail up to 3 years, or both
   • (ii) Acting as a salesperson without being registered: fine up to $25,000, jail up to 12 months, or both
   • (iii) An estate agent employing an unregistered salesperson: fine up to $100,000
   • (iv) Giving false documents in a licence or registration application: fine up to $50,000 or jail up to 3 years
   • A (ii), (iii) and (iv) only
   • B (i) and (ii) only
   • C (i), (ii) and (iv) only
   • D (i), (ii), (iii) and (iv)
   Show the answer and explanation

   Answer: C. (i), (ii) and (iv) only

   Carrying on estate agency work without a licence (s 28(2)) carries a fine of up to $75,000, up to 3 years' jail, or both. Acting as an unregistered salesperson (s 29(3)) carries up to $25,000, up to 12 months' jail, or both. Giving false documents in a licence or registration application carries up to $50,000 or up to 3 years' jail. Employing an unregistered salesperson (s 39(2)) is punishable by a fine of up to $25,000 or up to 12 months' jail, not $100,000, so statement (iii) is wrong.

4. Paper 2 · 3.1 Regulation of real estate agency industry

   East Harbour Realty, a licensed estate agent in Katong, has 40 registered salespersons. Which of the following statements about its professional indemnity insurance (PII) are correct?

   • (i) Its minimum PII cover is $400,000.
   • (ii) The policy must have a sub-limit of $100,000 for each salesperson.
   • (iii) The maximum deductible for the agency may be up to $20,000.
   • (iv) The maximum deductible per salesperson is $5,000.
   • A (i), (ii) and (iv) only
   • B (i) and (ii) only
   • C (ii) and (iii) only
   • D (i), (ii), (iii) and (iv)
   Show the answer and explanation

   Answer: A. (i), (ii) and (iv) only

   An agency with 31 to 50 RESs must carry at least $400,000 of PII cover, with a maximum agency deductible of $5,000. Every band has a sub-limit of $100,000 per salesperson and a maximum deductible of $5,000 per salesperson. A $20,000 deductible applies only to agencies with more than 500 RESs, so (iii) is wrong for a 40-person agency.

5. Paper 2 · 3.4 Types of listing

   Which of the following statements about an open (non-exclusive) listing are correct?

   • (i) The owner may appoint several estate agents at the same time
   • (ii) The owner may sell to a buyer he found himself without paying commission to any appointed agent
   • (iii) Agents may be less willing to spend heavily on marketing because they have no assurance of commission
   • (iv) The owner must pay each appointed agent a marketing fee when the listing expires
   • A (i) and (ii) only
   • B (ii), (iii) and (iv) only
   • C (i), (ii) and (iii) only
   • D (i), (ii), (iii) and (iv)
   Show the answer and explanation

   Answer: C. (i), (ii) and (iii) only

   In an open listing the owner can appoint several agents at the same time and can sell to a buyer he found himself without paying any agent. Because no agent is assured of commission, agents may be less willing to spend heavily on marketing. There is no rule that the owner must pay each agent a marketing fee when the listing expires, so (iv) is wrong.

6. Paper 2 · 3.6 Regulations on advertisements

   Salesperson Jason is drafting online advertisements for a resale condominium unit in Kembangan. Which of the following statements would breach CEA's Practice Guidelines on Ethical Advertising? (Select ALL that apply.)

   • A 'Top Producer 2025' when Jason has no verifiable basis for the claim
   • B An asking price of $1,280,000 when the seller instructed Jason to market it at $1,350,000
   • C 'Guaranteed sale above valuation!'
   • D '3-bedroom, 5-minute walk to Kembangan MRT' when the description is accurate
   Show the answer and explanation

   Answers: A. 'Top Producer 2025' when Jason has no verifiable basis for the claim | B. An asking price of $1,280,000 when the seller instructed Jason to market it at $1,350,000 | C. 'Guaranteed sale above valuation!'

   Advertisements must not be false or misleading, and claims such as 'top producer' must be verifiable. Advertised prices must match the client's instructions, and salespersons must not guarantee prices above valuation. An accurate description of the unit and its location is allowed, so D is not a breach.

7. Paper 2 · 3.1 Regulation of real estate agency industry

   Which of the following disputes is NOT covered by the CEA Dispute Resolution Scheme?

   • A A dispute between two salespersons from different agencies over how a co-broke commission should be split
   • B A seller's dispute with her estate agent over the commission payable under their estate agency agreement
   • C A landlord's claim that his agent's services fell short of what was promised in their estate agency agreement
   • D A buyer's disagreement with his agent over whether a fee is payable under their purchase agreement
   Show the answer and explanation

   Answer: A. A dispute between two salespersons from different agencies over how a co-broke commission should be split

   The Dispute Resolution Scheme under the Estate Agents (Dispute Resolution Schemes) Regulations 2011 covers disputes between a client and the agent arising from an estate agency agreement. Mediation is administered by CASE, SISV or SMC, and arbitration by SIArb or SISV. Co-broking disputes between salespersons do not arise from a client's estate agency agreement, so they are not covered.

8. Paper 2 · 3.10 Marketing of special properties

   Mdm Lim, a Singapore Citizen who already owns a condominium, buys a conservation shophouse zoned commercial for $4,200,000 from a GST-registered company. Which statement about the taxes on her purchase is correct?

   • A She pays BSD at non-residential rates but no ABSD, and GST at 9% may be chargeable because the seller is GST-registered
   • B She pays no stamp duty because the shophouse is a conserved building
   • C She pays ABSD at 20% because this is her second property
   • D She pays ABSD at 20% and GST at 9%
   Show the answer and explanation

   Answer: A. She pays BSD at non-residential rates but no ABSD, and GST at 9% may be chargeable because the seller is GST-registered

   ABSD applies only to residential property. A shophouse zoned commercial is non-residential, so no ABSD is payable, although BSD at non-residential rates still applies. The sale of commercial property by a GST-registered person is a taxable supply, so GST at 9% may be charged. Conservation status does not exempt the transfer from stamp duty.

9. Paper 2 · 3.5 Methods of sale

   Which of the following statements about selling a property by tender are correct?

   • (i) The seller is obliged to accept the highest tender received
   • (ii) Offers are submitted by a stated closing date, often in sealed envelopes
   • (iii) Tenders are useful for unique properties whose market value is hard to gauge, such as a collective sale site
   • (iv) In a closed tender, bidders do not know the amounts of competing bids
   • A (i), (ii) and (iii) only
   • B (ii), (iii) and (iv) only
   • C (ii) and (iv) only
   • D (i) and (iii) only
   Show the answer and explanation

   Answer: B. (ii), (iii) and (iv) only

   In a tender, offers are submitted by a closing date, usually in sealed envelopes. In a closed tender bidders do not see each other's bids. Tenders suit unique properties whose value is hard to gauge, such as collective sale sites. The seller is usually not obliged to accept the highest tender or any tender, so statement (i) is wrong.

10. Paper 2 · 3.1 Regulation of real estate agency industry

    Hui Min has been a registered salesperson since 2019. By December 2026 she has completed 10 hours of Professional Competencies courses, 2 hours of Prescribed Essentials courses and 4 hours of Self-directed Learning approved by her KEO. Has she met the 2026 CPD requirement?

    • A No. Self-directed Learning must make up at least 8 of the 16 hours
    • B Yes. She has completed the minimum 12 hours of Structured Learning
    • C Yes. She has completed the required 16 hours in total
    • D No. She needs at least 2 more hours of Prescribed Essentials, because extra Professional Competencies hours cannot make up for the shortfall
    Show the answer and explanation

    Answer: D. No. She needs at least 2 more hours of Prescribed Essentials, because extra Professional Competencies hours cannot make up for the shortfall

    From 1 January 2026 an RES needs 16 hours a calendar year: at least 12 hours of Structured Learning, made up of at least 4 hours of Prescribed Essentials and at least 8 hours of Professional Competencies, plus 4 hours of Self-directed Learning. Hours in one category cannot substitute for another. Hui Min has 16 hours in total and 12 hours of Structured Learning, but only 2 hours of Prescribed Essentials, so she is 2 hours short. Self-directed Learning is 4 hours, not 8. For 2026 the Prescribed Essentials topic is the compulsory Prevention of Money Laundering, Proliferation Financing and Terrorism Financing (PMLPFTF) course of at least 4 hours.