RES exam question on Torts, Mortgages & Co-ownership: Ms Goh, a salesperson, tells a buyer from memory that a development is freehold
Ms Goh, a salesperson, tells a buyer from memory that a development is freehold. It is a 99-year leasehold from 1996. The buyer relies on her and does not order a title search before exercising the option. Which of the following statements are correct? (i) Ms Goh can owe the buyer a duty of care not to make careless statements he reasonably relies on. (ii) Since property is sold on caveat emptor, therefore Ms Goh cannot be liable for what she tells a buyer. (iii) Caveat emptor is a rule between seller and buyer about condition, and it does not protect a false statement. (iv) Telling the buyer in writing to verify tenure by a title search can reduce his reliance on her statement.
- A(i), (iii) and (iv) only
- B(i) and (iii) only
- CAll of the above
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
A. (i), (iii) and (iv) only
Explanation
Answer: (i), (iii) and (iv) only. Caveat emptor never protects a false statement, so Ms Goh can be liable for a careless one.(i) True. A special relationship or assumption of responsibility can found a duty for a careless statement. This is a live risk for agents.(iii) True. Caveat emptor is a rule between seller and buyer about physical condition. It protects silence, never a false statement.(iv) True. A written referral to a title search bears on whether reliance on her was reasonable.Watch out: The safe practice is to verify material facts such as tenure, or refer the buyer to his own searches.Rule: Negligent misstatement causing economic loss requires a special relationship or assumption of responsibility. Caveat emptor is no defence for a salesperson.Source: Hedley Byrne; RESPrep /learn/property-torts-mortgages-co-ownership, /learn/en-bloc-auction-and-the-private-sale-process and /learn/misrepresentation-and-agent-liability, current at 1 October 2026
Why the other options are wrong
- (ii) False. Property is sold on caveat emptor, but that rule does not cover a false statement or the salesperson.
Study the concept behind this question: Property Torts, Mortgages & Co-ownership (Singapore)
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