RES exam question on Land Law: A bankruptcy order is made against Marcus on 3 March
A bankruptcy order is made against Marcus on 3 March. He solely owns a private apartment worth $1.8 million with no mortgage, has $120,000 in his CPF Ordinary Account, and owes unsecured creditors about $900,000. Which of the following statements is/are correct? (i) The apartment vests in the Official Assignee when the bankruptcy order is made, without any further transfer being needed. (ii) The Official Assignee may claim the $120,000 in his CPF Ordinary Account to pay his unsecured creditors. (iii) Marcus may still sell the apartment himself, provided he uses the proceeds to pay his creditors first. (iv) The Official Assignee may sell the apartment and distribute the proceeds among Marcus's creditors.
- A(i), (ii) and (iv) only
- B(i) and (iv) only
- C(ii) and (iv) only
- D(i), (iii) and (iv) only
Show answer & explanation
Answer
B. (i) and (iv) only
Explanation
Answer: (i) and (iv) only. The apartment vests in the Official Assignee on the order, but CPF moneys are protected.(i) True. The apartment vests by operation of law on the order, without any further conveyance, assignment or transfer.(iv) True. Realising vested property for the creditors is exactly what the Official Assignee does.Watch out: The $900,000 of debt changes nothing about what vests.Rule: A bankruptcy order vests the bankrupt's property in the Official Assignee for division among creditors, but CPF moneys are protected. That is why a bankruptcy search is part of due diligence on a private sale.Source: Insolvency, Restructuring and Dissolution Act 2018 s 327 (sso.agc.gov.sg, current at 1 October 2026); Central Provident Fund Act 1953 s 24(2) (sso.agc.gov.sg); /learn/en-bloc-auction-and-the-private-sale-process (current at 1 October 2026)
Why the other options are wrong
- (ii) False. CPF moneys do not pass to the Official Assignee or anyone acting for creditors, so the savings are beyond reach.
- (iii) False. Once the apartment has vested, it is no longer Marcus's to sell. Realising it is for the Official Assignee, not the bankrupt.
Study the concept behind this question: Foreign Ownership & the Residential Property Act
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