RES exam question on Land Law: A bankruptcy order is made against Marcus, who solely owns a private apartment worth…
A bankruptcy order is made against Marcus, who solely owns a private apartment worth $1.8 million with no outstanding mortgage. Which of the following statements are CORRECT? (i) Marcus's property vests automatically in the Official Assignee upon the bankruptcy order being made (ii) Marcus's CPF Ordinary Account savings are protected from his creditors and cannot be claimed by the Official Assignee (iii) Marcus retains full legal ownership of the property but must obtain the Official Assignee's consent before selling (iv) The Official Assignee may sell the property and distribute proceeds to unsecured creditors
- A(i) and (iv) only
- B(i), (iii) and (iv) only
- C(i), (ii) and (iv) only
- D(ii) and (iv) only
Show answer & explanation
Answer
C. (i), (ii) and (iv) only
Explanation
CPF savings are specifically protected from creditors under s24 of the CPF Act and cannot be claimed by the OA — so (ii) is correct. The OA can and commonly does sell property to realise assets for creditors — so (iv) is correct. Answer: (i)(ii)(iv).
Why the other options are wrong
- Upon a bankruptcy order, all of the bankrupt's non-exempt property (including real estate) vests immediately in the Official Assignee (OA) by operation of law — so (i) is correct and (iii) is wrong (Marcus no longer owns it).
Study the concept behind this question: Restrictions on Capacity to Hold Land — Minors, Companies, Societies & the Mental Capacity Act
Practise more Basic Land Law: Estates & Registration of Title questions
Drill the full Basic Land Law: Estates & Registration of Title bank with instant answers and explanations — free to start, no card needed.
Related Basic Land Law: Estates & Registration of Title questions
- RES exam question on Land Law: Ben and Clara own a private condominium unit as equal tenants in common
- RES exam question on Land Law: A fraudster forges a transfer of Mdm Koh's house to himself and is registered as…
- RES exam question on Land Law: A neighbour has openly occupied and fenced off a strip of an owner's registered land…
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.