Free RES Practice Questions — CU4

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

1. Paper 2 · 4.8 Taxes on property

   Which of the following statements about GST in real estate transactions are correct? (Select ALL that apply.)

   • A The lease of residential property is exempt from GST
   • B A business must register for GST once its taxable turnover exceeds $500,000 in 12 months
   • C A GST-registered estate agent charges GST at 9% on its commission
   • D The sale of residential property is exempt from GST
   Show the answer and explanation

   Answers: A. The lease of residential property is exempt from GST | C. A GST-registered estate agent charges GST at 9% on its commission | D. The sale of residential property is exempt from GST

   Sales and leases of residential property are GST-exempt supplies. Estate agency commission is a taxable service, so a GST-registered estate agent charges GST at the current 9% rate (since 1 January 2024). The compulsory registration threshold is taxable turnover above $1 million in 12 months, not $500,000.

2. Paper 2 · 4.4 Sale of HDB flats

   Which of the following statements about buyers of resale Plus or Prime flats are correct?

   • (i) At least one buyer must be a Singapore Citizen
   • (ii) The buyers must meet an income ceiling
   • (iii) They may rent out the whole flat once they have met the MOP
   • (iv) Private property owners may buy them without any wait-out period
   • A (i), (ii) and (iii) only
   • B (i) and (ii) only
   • C (i), (ii) and (iv) only
   • D (ii) and (iv) only
   Show the answer and explanation

   Answer: B. (i) and (ii) only

   Buyers of resale Plus and Prime flats must include at least one Singapore Citizen and must meet an income ceiling. Whole-flat rental is never allowed for Plus or Prime flats, even after the MOP. Private property owners buying these flats must wait out 30 months, so (iv) is wrong.

3. Paper 2 · 4.9 Property finance and financial calculations

   Which of the following statements about the Home Protection Scheme (HPS) are correct? (Select ALL that apply.)

   • A It covers death, terminal illness and total permanent disability
   • B Premiums are paid from the member's CPF Ordinary Account
   • C It is compulsory for HDB flat owners who use CPF savings to pay their monthly housing instalments
   • D Cover continues until age 70 even if the loan has been repaid
   Show the answer and explanation

   Answers: A. It covers death, terminal illness and total permanent disability | B. Premiums are paid from the member's CPF Ordinary Account | C. It is compulsory for HDB flat owners who use CPF savings to pay their monthly housing instalments

   The HPS is mortgage-reducing insurance covering death, terminal illness and total permanent disability. It is compulsory for HDB flat owners using CPF for monthly instalments, and premiums are paid from the Ordinary Account. Cover lasts until age 65 or until the loan is repaid, whichever is earlier, not until age 70.

4. Paper 2 · 4.2 Sale of completed private properties

   Ms Wong exercised the option to purchase a completed condominium unit in Pasir Ris by signing the acceptance copy and paying the exercise fee (4% of the price) by cheque, which cleared. A week later she tells the seller she no longer wants to buy. Which statement is correct?

   • A No contract was formed, because no separate sale and purchase agreement has been signed.
   • B A binding contract was formed when she exercised the option. Her refusal to proceed is a repudiation, and the seller may accept it and pursue remedies such as forfeiture under the contract and/or damages.
   • C Ms Wong is entitled to a full refund because she withdrew within 7 days of exercising the option.
   • D The seller must wait until the original option period ends before remarketing the unit.
   Show the answer and explanation

   Answer: B. A binding contract was formed when she exercised the option. Her refusal to proceed is a repudiation, and the seller may accept it and pursue remedies such as forfeiture under the contract and/or damages.

   Exercising the option in the manner the option requires (signing the acceptance copy and paying the exercise fee) forms a binding contract of sale; no separate S&P is needed for a resale private property. Refusing to proceed afterwards is a repudiatory breach, and the seller can accept it, end the contract and claim the remedies available, including forfeiture as provided in the contract and damages. There is no cooling-off right after exercise, and the option period is spent once the option has been exercised.

5. Paper 2 · 4.1 Sale of uncompleted private properties

   A developer is building 12 terrace houses in Bedok and wants to sell them before completion. Which of the following statements are correct?

   • (i) The Housing Developers (Control and Licensing) Act applies, because the development has more than 4 units.
   • (ii) The developer must hold a housing developer's licence before it can undertake the development.
   • (iii) A licence that does not permit sale (Licence C) is enough for the developer to sell units before completion.
   • (iv) To sell units before completion, the developer needs a licence that permits sale (Licence A).
   • A (i) and (ii) only
   • B (ii) and (iii) only
   • C (i), (ii) and (iii) only
   • D (i), (ii) and (iv) only
   Show the answer and explanation

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

   The HDCLA regulates housing developments of more than 4 units, and the developer must be licensed. A Licence A permits the developer to sell units in the development, while a Licence C is for developments where no units are sold before completion. The developer therefore needs a Licence A to sell before completion, so (iii) is wrong.

6. Paper 2 · 4.2 Sale of completed private properties

   The seller of a completed condominium unit in Bedok serves a valid Notice to Complete on the buyer, who has failed to complete on time. Under the Law Society's Conditions of Sale 2020, which of the following statements are correct?

   • (i) The buyer must complete within 21 days after the notice is served.
   • (ii) If the buyer still fails to complete after the notice, the seller may forfeit the deposit.
   • (iii) The seller must refund the deposit in full if the buyer fails to complete.
   • (iv) The notice gives the buyer a further 3 months to arrange financing.
   • A (i) and (ii) only
   • B (i), (ii) and (iii) only
   • C (ii) and (iv) only
   • D (iii) and (iv) only
   Show the answer and explanation

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

   Under condition 15.7, the party served with a Notice to Complete must complete within 21 days after service. If the buyer defaults after the notice, condition 15.9(c)(i) allows the seller to forfeit the deposit, so (iii) is wrong. There is no 3-month extension.

7. Paper 2 · 4.9 Property finance and financial calculations

   Mr and Mrs Tan, both Singapore Citizens and first-timers, are buying a 4-room resale flat in Tampines within 4 km of Mrs Tan's parents' home. Assume they meet all the eligibility conditions. Leaving out the Enhanced CPF Housing Grant, how much can they receive in total from the CPF Housing Grant for resale flats and the Proximity Housing Grant?

   • A $110,000
   • B $70,000
   • C $100,000
   • D $80,000
   Show the answer and explanation

   Answer: C. $100,000

   A first-timer family buying a 2- to 4-room resale flat gets a CPF Housing Grant of $80,000. The Proximity Housing Grant for families is $20,000 for living within 4 km of parents, or $30,000 for living with them. $80,000 + $20,000 = $100,000. $110,000 wrongly uses the 'live with' amount, and $70,000 uses the $50,000 grant for 5-room or larger flats.

8. Paper 2 · 4.2 Sale of completed private properties

   Mr Farhan is selling a Tampines condominium unit that he bought in 2025, and the sale attracts Seller's Stamp Duty (SSD). He refuses to pay it. Under the Law Society's Conditions of Sale 2020, what may the buyer do?

   • A Rescind the contract at once and recover all monies paid
   • B Pay the SSD and then claim it back from the seller's estate agent
   • C Nothing, because SSD is purely a matter between the seller and IRAS
   • D Deduct the SSD from the balance purchase price and pay it to IRAS
   Show the answer and explanation

   Answer: D. Deduct the SSD from the balance purchase price and pay it to IRAS

   SSD is the seller's liability. Condition 7.4.2 of the Conditions of Sale 2020 allows the buyer, if the seller does not pay it, to deduct the SSD from the balance purchase price and pay it to IRAS. The seller's refusal does not give the buyer a right to rescind. The estate agent is not liable for the seller's stamp duty.

9. Paper 2 · 4.3 Collective sale of private properties

   'Seaview Court', a strata development in Upper East Coast, was completed with its latest TOP in March 2018. In 2026 its owners start a collective sale. What level of consent is required under the current Land Titles (Strata) Act?

   • A At least 80% of the share values and 80% of the total strata area
   • B At least 75% of the share values only
   • C At least 90% of the share values and 90% of the total strata area
   • D Consent of all subsidiary proprietors (100%)
   Show the answer and explanation

   Answer: C. At least 90% of the share values and 90% of the total strata area

   Under the current LTSA, a development under 10 years old needs owners holding at least 90% of the share values and 90% of the total strata area to agree. The 80% threshold applies to developments 10 years old or more. Seaview Court is about 8 years old, so the 90% threshold applies. Unanimous consent is not required, which is the purpose of the collective sale provisions.

10. Paper 2 · 4.9 Property finance and financial calculations

    Mr and Mrs Tan buy a private condominium for $1,500,000 with a bank loan. The bank's valuation is $1,450,000. What is the CPF Withdrawal Limit for the property?

    • A $1,500,000
    • B $1,800,000
    • C $1,450,000
    • D $1,740,000
    Show the answer and explanation

    Answer: D. $1,740,000

    The Valuation Limit is the lower of the purchase price and the valuation: $1,450,000. The Withdrawal Limit is 120% of the Valuation Limit: 1.2 x $1,450,000 = $1,740,000. CPF above the Valuation Limit can only be used after the Basic Retirement Sum is set aside. $1,800,000 wrongly uses the price rather than the lower valuation.