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RES exam question on Torts, Mortgages & Co-ownership: Ms Goh, a salesperson, tells a buyer from memory that a development is freehold

HardProperty Torts, Mortgages & Co-ownership · Paper 1

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.

  1. A(i), (iii) and (iv) only
  2. B(i) and (iii) only
  3. CAll of the above
  4. 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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